Hiring in Croatia

The contract sets out role, salary in EUR, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Croatian is the standard contract language. Where the employee does not speak Croatian, the contract is drawn up in both languages and the Croatian version normally prevails.

Fixed-term contracts are the exception, capped at three consecutive contracts and three years in total, and most EORs default to indefinite terms.

Set probation from day one. An extension is only possible to cover justified absence, such as sick leave, and the total cannot exceed 6 months.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Employees are entitled to increased pay for overtime, with a 50% premium the common benchmark. A collective agreement can lift the annual cap to 250 hours.

The Labour Act does not fix the overtime rate, so it becomes a contractual matter rather than a statutory one. Put the position in writing either way.

Work rules and collective agreements commonly add days for length of service, so professional roles often sit above the statutory floor. Quote the market figure when you budget.

The employer pays the first 42 days of sick leave at no less than 70% of average pay, after which the state health insurer takes over. Maternity, paternity and parental pay is funded by the state, not the employer, so confirm the EOR handles the claims.

The employer needs a valid business, personal or conduct reason, and pay in lieu of notice is not allowed unless the employee agrees. Severance is a fixed statutory formula: at least one third of average monthly pay per year of service for business or personal-reason dismissals, capped at six months' pay unless the contract or a collective agreement says more.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and severance. Unfair dismissal claims can end in reinstatement, so keep a documented reason.

Christmas and holiday bonuses, meal allowances, commuting costs and supplementary health insurance are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 16.5% on top of gross salary. That is before the EOR fee.

Late pay is the trap. If salary is not paid by the end of the month, the employer must issue a calculation of the unpaid amount, and the employee can enforce it directly against the employer's bank account without going to court.

EU, EEA and Swiss nationals need no permit. For everyone else, ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the labour market test and employer conditions apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis, such as an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporating a d.o.o. takes two to four weeks through a notary and the court register, with minimum share capital of 2,500 EUR. The running cost is the point: accounting, annual financial statements, audit thresholds and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.