FINANCIAL COMPENSATION FOR UNEMPLOYMENT (UNEMPLOYMENT BENEFIT)

The realization of the right to unemployment benefit in the Republic of Croatia is regulated by the Labour Market Act (Official Gazette, no. 118/18).

To exercise the right to a cash benefit, a foreigner, an unemployed person whose employment was terminated without their fault or consent may apply to the Croatian Employment Service (HZZ) if a temporary stay in the Republic of Croatia has been granted.

A foreigner applies to HZZ according to the approved temporary residence.

HZZ, in determining the unemployment rights, also applies agreements on social insurance concluded by the Republic of Croatia with other countries.

Valid agreements on social insurance containing the provisions on unemployment are concluded with:

– Bosnia and Herzegovina

– The Republic of Serbia

– The Republic of Montenegro

– The Republic of Macedonia

– The Republic of Turkey.

 

According to agreements on social insurance concluded with other countries, only the insurance period for unemployment benefits is added, provided that the unemployed person has ceased employment in the Republic of Croatia and provided that such person was employed or insured in the Republic of Croatia for a certain period before the filing of the application.

In order to realise the right to unemployment benefit in the Republic of Croatia, an unemployed person from one of the above-mentioned states must meet the following conditions:

  1. The condition regarding previous employment,
  2. The condition of previous employment in the Republic of Croatia,
  3. The employment relationship must not be terminated due to his or her fault or will / self-employment cannot cease without any justified reasons,
  4. Must be registered with the competent local office of the Croatian Employment Service within the statutory deadline and apply for unemployment benefit.

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QUESTIONS AND ANSWERS

You acquire the right to unemployment benefit if you have at least 9 months of working relationship in the last 24 months at the time of the termination of your employment or self-employment. In order to exercise this right, the time you spent working in any of the above states will be taken into account if you meet the condition of previous employment in the Republic of Croatia, i.e. before submitting your application, you must be employed or insured in the Republic of Croatia for a certain period of time.

In order to take into account the time you have spent working in any of the aforementioned states for the realisation of the right to unemployment benefit in the Republic of Croatia, you must be employed in the Republic of Croatia for at least 6 months in the last 12 months before submitting your application.

For example, if you have worked in the Republic of Croatia for 7 months, and before that you have worked for 2 months in any of the afore-mentioned states, when determining the right to unemployment benefit, the time you spent working in both states will be taken into account.

Insurance periods in another contracting state must be checked by the prescribed forms or certificates before the final calculation. The Croatian Employment Service will perform this officially. Please enclose a copy of your employment booklet showing the periods from the above-mentioned countries when submitting your application to the Croatian Employment Service.

In order to be able to exercise the right to an unemployment benefit, the employment relationship must not cease due to your fault or with your consent.

You cannot acquire the right to unemployment benefit if your employment relationship has ceased:

  • When you terminated the employment relationship, except in case of extraordinary termination of the employment contract caused by the employer’s conduct,
  • By mutual written agreement on the termination of employment (except if proposed by the employer, in case of collective disposal of surplus workers in accordance with the special regulation),
  • By a court settlement which established the termination of the employment relationship,
  • Because you have not successfully passed the probation or internship period or have not successfully and in a timely manner passed the state exam,
  • As a result of the infringement of obligations arising from employment (dismissal caused by inappropriate conduct on the part of the employee), as well as a serious infringement of working obligations (extraordinary dismissal) or official duties,
  • Due to imprisonment longer than three months.

You cannot acquire the right to unemployment benefit if your self-employment was terminated without any justified reasons. Justified reasons are the following:

  • Insolvency or illiquidity,
  • Conclusion of bankruptcy proceedings,
  • Business at a loss,
  • Loss of business space,
  • Loss of the privilege or the license to carry out the activities prescribed by a special regulation,
  • Illness of an insured person in case of unemployment,
  • Loss of a business partner,
  • Serious damage to property of the insured person in case of unemployment,
  • Natural disasters and catastrophes caused by force majeure,
  • Other reasons that prove to be justified.

The right to unemployment benefit shall not be acquired by an unemployed person who would be entitled to this right after the termination of employment or self-employment if the employment relationship or self-employment lasted less than three months and the previous employment relationship or self-employment ceased in any of the above-mentioned ways.

In order to exercise the right to unemployment benefit, you must register with the Croatian Employment Service within 30 days of the termination of employment or self-employment and apply for the unemployment benefit.

If you were on sick leave, i.e. maternity, parental, adoptive parents’ or caretaker’s leave after the termination of your employment or self-employment, you must apply within 30 days of the termination of one of these circumstances.

You register and submit the request at the local office of the Croatian Employment Service in your registered place of permanent or temporary residence.

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