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Croatia. LABOUR ACT (No. 758/95)

 

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CROATIA

LABOUR ACT (No. 758/95)
1995 version (no amendment included)


PART I. GENERAL PROVISIONS

PART II. THE CONTRACT OF EMPLOYMENT

PART III. PROTECTION OF LIFE, HEALTH AND PRIVACY OF EMPLOYEES

PART IV. TRIAL PERIOD

PART V. EDUCATION AND TRAINING FOR WORK

PART VI. HOURS OF WORK

PART VII. REST PERIODS AND LEAVE

PART VIII. NIGHT WORK

PART IX. PROTECTION OF MOTHERHOOD

PART X. THE PROTECTION OF EMPLOYEES WHO ARE TEMPORARILY OR PERMANENTLY DISABLED

PART XI. SALARIES

PART XII. INVENTIONS AND TECHNICAL INNOVATIONS MADE AT THE WORK PLACE

PART XIII. PROHIBITION OF COMPETITION BETWEEN AN EMPLOYEE AND HIS OR HER EMPLOYER

PART XIV. COMPENSATION FOR DAMAGES

PART XV. TERMINATION OF THE EMPLOYMENT CONTRACT

PART XVI. EMPLOYMENT RULES

PART XVII. EXERCISE OF EMPLOYMENT RIGHTS AND OBLIGATIONS

PART XVIII. EMPLOYEE PARTICIPATION IN DECISION MAKING

PART XIX. TRADE UNIONS AND EMPLOYERS' ASSOCIATIONS

PART XX. COLLECTIVE AGREEMENTS

PART XXI. ALTERNATIVE COLLECTIVE EMPLOYMENT DISPUTE RESOLUTION

PART XXII. STRIKE AND LOCKOUT

PART XXIII. ECONOMIC AND SOCIAL COUNCIL

PART XXIV. SUPERVISION OF THE APPLICATION OF LABOUR REGULATIONS

PART XXV. SPECIAL PROVISIONS

PART XVI. PENAL PROVISIONS

PART XVII. INTERIM AND FINAL PROVISIONS


PART I. GENERAL PROVISIONS

Section 1. Subject matter of the Labour Act

This Act shall regulate employment in the Republic of Croatia, if not otherwise provided for by another law or treaty concluded, ratified and proclaimed in accordance with the Constitution.

Section 2. Prohibition of unequal treatment

The job seeker as well as the employee shall not be placed in a less favourable position compared to other persons on the basis of race, colour of skin, sex, marital status, family obligations, age, language, religion, political or other affiliation, national or social background, financial status, birth, social status, membership or non-membership in a political party or trade union, and physical or psychological difficulties.

Section 3. Basic obligations and rights of employment

(1) The employer shall assign the employee a job and pay him or her for the work done, while the employee shall be obligated to carry out personally the assigned job according to the employer's instructions given according to the nature and type of work.

(2) The employer shall determine in detail the location and manner for performing the work, while respecting the rights and dignity of the employee.

(3) The employer shall provide the employee with safe working conditions in accordance with a special law and other regulations.

Section 4. Definition of terms: employee and employer

(1) In this Act, the word, "employee," means a physical person who in employment carries out certain tasks for the employer.

(2) In this Act, the word, "employer" means a physical person or an entity for whom the employee carries out certain tasks.

Section 5. Duty to respect regulations related to employment

(1) In employment, the employer and employee shall comply with the provisions of this and other laws, treaties which are concluded and ratified in accordance with the Constitution and proclaimed, other regulations, collective agreements and rules of employment..

(2) Before an employee commences work, the employer shall permit him or her to familiarize himself or herself with the rules of employment and shall inform him or her about the organization of work and safety measures.

(3) The rules on safety measures, a collective agreement and rules of employment shall be made available to employees in an appropriate manner.

Section 6. Application of general provisions of the Act on Obligations

The general provisions of the Act on Obligations shall be applied to the conclusion of employment contracts, their legal validity, termination and other issues not regulated by this or another law in accordance with the nature of such contracts.

Section 7. Freedom of contract and its limitations

(1) The employer, the employee and the employees' council as well as trade unions and employers' associations may stipulate working conditions which are more favourable for the employee than conditions prescribed by this Act.

(2) The employer, employers' associations and trade unions may stipulate in a collective agreement less favourable conditions than those prescribed by this Act only if they are expressly authorized to do so by this or another law.

PART II. THE CONTRACT OF EMPLOYMENT

Section 8. Commencement of employment

Employment shall commence by the making of a contract of employment.

Section 9. Contract of employment for an indefinite period

(1) The contract of employment shall be made for an indefinite period except if not otherwise provided for in this Act.

(2) The parties shall be bound by the contract of employment for an indefinite period until one of the parties does not cancel it or until it terminates in another way prescribed in this Act.

(3) If the contract of employment does not stipulate the period for which employment is contracted, it shall be deemed that such a contract is made for an indefinite period.

Section 10. Contract of employment for a definite period

(1) When there is a valid and important reason, the contract of employment may, in an exceptional basis, be made for a definite period, especially when it concerns:

(2) A collective agreement may limit or extend the possibility of making a contract of employment for a definite period.

(3) The contract of employment made for a definite period shall terminate upon the expiration of the term stipulated therein.

(4) The employer shall not make one or more consecutive contracts of employment for a definite period on the basis of which employment relations are established with respect to the same work for a continuous period of longer than three years, except if this is permitted by a law or collective agreement.

(5) An interruption of work shorter than two months shall not be deemed to be an interruption of the three year period under Subsection 4 above.

Section 11. Form of the contract of employment

(1) The contract of employment shall be made in writing.

(2) A failure on the part of the contractual parties to make a contract of employment in writing shall not influence the existence and validity of such a contract.

(3) If the contract of employment is not made in writing, the employer shall give to the employee a written certificate about the contract no later than on the fifteenth day from the day that work commences.

(4) If the employer does not make a contract of employment in writing with the employee within the term stipulated under Subsection (3) above, or does not give him or her a written certificate on the concluded contract, it shall be deemed that the employer has made the contract of employment for an indefinite period with the employee, unless the employer proves otherwise within one year from the day that work commences.

(5) If the contract of employment which was not made in writing terminates prior to the end of the fifteenth day from the day when work commences, the employer shall give the employee a written certificate on the concluded contract no later than on the last day of work.

(6) The contract of employment of seamen and fishermen must be registered with the county office competent for labour matters.

(7) The Minister of Labour shall establish in a book of rules the content and manner of registration of contracts of seamen and fishermen.

Section 12. Contract of employment made in writing or written certificate on the concluded contract of employment

(1) The contract of employment made in writing or the certificate on the contract of employment made under Subsection 11(3) of this Act shall contain provisions on:

(2) A contract or certificate may refer to respective laws, other regulations, collective agreements or rules of employment which regulate these issues to replace the provisions of paragraphs (vi) to (ix) of Subsection (1) above.

Section 13. Mandatory contents of written contracts of employment or written certificates on contracts of employment concluded for employees sent abroad

(1) If an employee is sent to work abroad for a period longer than a month, and during the work abroad foreign regulations apply to the contract of employment, the employer must make a contract of employment in writing or give a written certificate on the contract of employment concluded with the employee before he or she goes abroad and, in addition to the provisions under Section 12, it shall contain provisions on:

(2) A contract or certificate may refer to respective laws, other regulations, collective agreements or rules of employment which regulate these issues to replace the provisions of paragraphs (ii) and (iii) of Subsection (1) above.

Section 14. Minimum age of employment

(1) A person under fifteen years of age cannot be employed.

(2) As an exception, a person under fifteen years of age can, upon previously obtained approval of a labour inspector and for compensation, participate in the filming of a movie, the preparation and performance of artistic, theatrical and other similar performances in a manner and within a scope and in work which does not threaten his or her health, morals, education or development.

(3) Permission under Subsection (2) above shall be issued by a labour inspector on the basis of a petition filed by a legal guardian.

Section 15. Legal capacity of minors to make contracts of employment

(1) If a legal guardian authorizes a minor over fifteen years of age to make a specific contract of employment, this minor shall be legally capable to make and terminate this contract and to carry out all the legal acts connected with the performance of obligations and the realization of rights from or connected to the contract.

(2) The authorization under Subsection (1) above shall not apply to legal matters, the performance of which requires the legal guardian to obtain permission from a social work authority.

(3) The social work authority shall decide on disputes between legal guardians or one or more legal guardians and a minor over granting authorization to make a contract of employment, taking into account the minor's best interests.

(4) The legal guardian may withdraw or limit the authorization Subsection (1) above or terminate employment on the minor's behalf.

(5) The person who has custody of the minor may give authorization under Subsection (1) above only on the basis of previous permission given by the social work authority.

(6) The authorization under Subsection (1) above shall be given in writing.

Section 16. Prohibition of employment of minors in certain jobs

(1) A minor shall not be employed in jobs which may threaten healthy morals or development.

(2) The Minister of Labour shall in a book of rules list the jobs referred to under Subsection (1) above.

(3) The Minister of Labour shall in a book of rules establish jobs for which a minor can be employed only subject to meeting a previously established state of health requirement.

(4) The books of rules under Subsections (2) and (3) above shall be approved by the Minister of Labour subject to agreement by the Minister of Health.

(5) The labour inspector shall prohibit a minor from being employed jobs referred to under Subsection (1) above.

(6) Upon the request of the minor, his or her parents or guardian, an employees' council, a trade union or a labour inspector, the employer engaging a minor in work referred to under Subsection (1) above must assign the minor to other corresponding tasks and, if there are no such tasks, he or she may dismiss him or her from the job in a manner and subject to the conditions prescribed in this Act.

Section 17. Authority of labour inspector to prohibit the employment of a minor for certain jobs

(1) If he or she suspects that the jobs carried out by the minor threaten his or her health, the labour inspector may at any time demand from the employer that an authorized doctor examine the minor employee and assess whether or not in his or her expert opinion the tasks performed by the minor threaten his or her health or development.

(2) In cases under Subsection (1), the labour inspector shall set a period of time within which the employer must obtain such an expert opinion on whether or not the tasks carried out by the minor threaten his or her health or development.

(3) The expenses of the medical examination and expert opinion under Subsection (1) above shall be paid by the employer.

(4) On the basis of the expert opinion from the authorized doctor, the labour inspector may prohibit minors from performing certain jobs.

(5) The initiative of informing the labour inspector so that the proceedings under Subsection (1) above may be carried out may be taken by the the minor, his or her guardian, an employees' council or a trade union.

(6) In cases under Subsection (4) above the employer shall assign the minor employee to other appropriate tasks, and if there are no such tasks, the employer can terminate the employment of the minor in a manner and subject to the conditions prescribed in this Act.

Section 18. Special conditions for concluding contracts of employment

(1) If a law, other regulation, collective agreement or rules of employment prescribe or establish special conditions for the commencement of employment, the contract of employment may be made only by an employee who meets such conditions.

(2) The Minister of Labour, subject to agreement with the Minister of Health, shall in a book of rules list the jobs which an employee can only perform if he or she meets previously established health requirements.

(3) The book of rules under Subsection (2) above shall establish the manner of determining the state of health, the terms under which such health determinations must be repeated, the contents and proceedings for issuing the certificate on the state of health, and other issues important for the determination of the state of health required to carry out the tasks under Subsection (2) above.

(4) A foreign national or a stateless person may make a contract of employment under the conditions prescribed in this Act and a special law which regulates the employment of such persons.

Section 19. Obligation of employee to notify employer about illness or other circumstances

(1) When concluding the contract of employment, the employee must notify the employer about illness or other circumstances which prevent him or her from or essentially interferes with his or her performance of the obligations in the contract of employment, or which endangers the life or health of persons with whom the employee comes into contact during the performance of the contract of employment.

(2) The employer may send the employee to undergo a medical examination for the purpose of determining whether or not his or her health permits the performance of certain tasks.

(3) The cost of the medical examination under Subsection (2) above shall be paid by the employer.

Section 20. Information which should not be required

(1) Upon execution of the contract of employment, the employer must not require the employee to give information unrelated to his or her employment.

(2) The questions referred to under Subsection (1) above need not be answered.

PART III. PROTECTION OF LIFE, HEALTH AND PRIVACY OF EMPLOYEES

Section 21.Employers' obligations with respect to the

life, health and morals of employees

(1) The employer must provide for and maintain machinery, instruments, equipment, tools, its workplace, access to its workplace, as well as organize work in a manner which guarantees the protection of the life and health of employees in accordance with special laws and other regulations and in accordance with the nature of the job being carried out.

(2) The employer must inform the employee of the dangers of the job which is being carried out by the employee.

(3) The employer must train the employee for the work in a way which guarantees the protection of the life and health of the employee and prevents accidents from occurring.

(4) If the employer assumed the obligation to provide for the lodging and food of the employee, in the performance of this obligation, he or she must take into account the protection of the life, health and morals of the employee as well as his or her religion.

Section 22.Protection of privacy of employees

(1) Personal data about employees may be gathered, processed and used as well as sent to third persons only if so provided for by this or another law, or if necessary for the purpose of realizing the rights and obligations of employment or employment-related matters.

(2) If personal data under Subsection (1) above must be gathered, processed and used or sent to third persons for the purpose of realizing the rights and obligations of employment or employment-related matters, the employer must establish previously in the employment by-laws which data he or she will gather, process, use or send to third persons for this purpose.

(3) The personal data of employees may be gathered, processed, used and sent to third persons only by the employer or by the person especially authorized by the employer for this purpose.

(4) Incorrect personal data must be immediately corrected.

(5) Personal data for which there is no longer a legal or factual basis for storage must be erased or removed in another manner.

(6) The employer must appoint a person who would, in addition to him or her, be authorized to supervise whether the personal data of employees is gathered, processed, used and sent to third persons in accordance with the law.

(7) The person referred to under Subsection (6) of this Section must enjoy the confidence of the employees, and data which he or she gains knowledge of during the course of his or her duty must be carefully safeguarded by him or her.

PART IV. TRIAL PERIOD

Section 23. Execution of contract and duration of trial period

(1) Upon execution of the contract of employment, a trial period may be stipulated.

(2) The trial period under Subsection (1) above cannot last more than six months.

(3) If a trial period is agreed upon, the notice period shall be no less than seven days.

PART V. EDUCATION AND TRAINING FOR WORK

Section 24. Obligation to provide education and training for work

(1) The employer must provide, in accordance with work possibilities and needs, schooling, education, training, and advanced training to the employee.

(2) The employee must, in accordance with his or her abilities and work needs, acquire schooling, education, training, or advanced work training.

(3) When changes or a new means of work organization are introduced the employer must, in accordance with work needs and possibilities, provide training or advanced work training to the employee.

Section 25. Apprentices and the duration of their contracts of employment

(1) A person employed for the first time in the occupation for which he or she went to school may be employed by the employer as an apprentice.

(2) An apprentice under Subsection (1) above shall be trained for independent work in the occupation for which he was trained for at school.

(3) A contract of employment may be entered into with an apprentice for a definite period of time.

Section 26. Means of training an apprentice

(1) The means of training an apprentice for independent work must be regulated by employment rules or by a contract of employment.

(2) In order to be trained to work independently, an apprentice may be sent to work for another employer temporarily.

Section 27. Duration of apprenticeship

The duration of training for an apprentice (the "apprenticeship") shall not be for more than one year unless the law otherwise provides.

Section 28. Occupational examination

(1) After completing an apprenticeship, an apprentice shall take an occupational exam if so provided for under a law, regulation, collective agreement or employment rules.

(2) If the content and means of taking a professional exam is not provided by a law, other regulation or collective agreement, the content and means of taking an occupational exam shall be regulated by employment rules.

(3) The employer may regularly dismiss from work an apprentice who does not pass the occupational exam.

Section 29. Internship work

(1) If the occupational exam or work experience is established by law or other regulation as the prerequisite for performance of jobs within a certain occupation, the employer may admit a person who completed schooling for such an occupation to occupational training without employing him or her ("internship work").

(2) The period of internship work referred to under Subsection (1) above shall be counted as part of the apprenticeship and work experience that is a prerequisite for working in a certain occupation.

(3) The internship work under Subsection (1) above may not extend over a longer period than the apprenticeship.

(4) If this or another law does not provide otherwise, the provisions on employment in this and other laws shall be applied to an intern, except for provisions on executing a contract of employment, on salary and compensation, and on the termination of a contract of employment.

(5) The contract for internship work shall be in writing.

PART VI. HOURS OF WORK

Section 30. Full-time employment

(1) Full time employment shall not be longer than forty two hours a week.

(2) Unless otherwise provided for in a law, collective agreement between the employees' council and employer or in a contract of employment, it shall be deemed that full-time means forty two hours a week.

Section 31. Part-time employment

(1) A contract of employment may be a contract for part-time employment.

(2) If the previous duration of employment with the same employer is important for the acquisition of certain rights, periods of part-time employment shall be deemed to be full-time employment.

Section 32. Constructive full-time employment

(1) Hours of work shall be shortened in proportion to the harmful impact of working conditions on health and the working ability of the employee in jobs in which, despite the application of safety measures in the workplace, it is impossible to protect employee from harmful effects.

(2) The jobs under Subsection (1) above as well as the hours of work in such jobs shall be determined by a collective agreement or employment rules.

(3) If the jobs under Subsection (1) above as well as the duration of hours of work are not established in a collective agreement or employment rules, the Minister of Labour shall, upon the proposal of a person who according to this Act may be a party to the collective agreement, and subject to the agreement of the Minister of Health, pass rules which shall regulate these issues.

(4) The employee who works in jobs under Subsection (1) above must not work overtime and must not accept additional employment in such jobs with another employer.

(5) The contract of employment or the collective agreement may provide that an employee who does not work full-time in jobs under Subsection (1) above works part-time, but no longer than the full-time limit on some other jobs not of the same nature as the jobs referred to under Subsection (1) above.

(6) For the purpose of realizing the right to a salary and other rights from employment or related to employment, the working hours under Subsections (1) and (5) above shall be deemed to constitute full-time working hours.

Section 33. Overtime work

(1) In the case of force majeure, an irregular increase in the scope of work and in other similar circumstances of immediate necessity, the employee must, at the employer's request, work overtime for at most ten hours a week.

(2) If overtime work for a certain employee extends over more than four consecutive weeks or more than twelve weeks during one calender year, or if the overtime work of all employees of a certain employer exceeds ten percent of the total working hours in one particular month, notice must be given about such overtime work to the labour inspector.

(3) The labour inspector shall prohibit overtime work if it has a harmful impact on the health and working ability of employees or if by means of excessive usage, it impedes the employment of unemployed persons.

(4) Overtime work by minor employees shall be prohibited.

(5) A pregnant woman, a mother of a child under three years of age, and a single parent of a child under six years old, may work overtime only if he or she freely gives his or her consent in writing to perform such work.

(6) The labour inspector shall prohibit overtime work by minors and of persons referred to under Subsection (5) above who did not submit a written statement that they voluntarily agreed to perform overtime work.

Section 34. Schedule of working hours

(1) If daily and weekly schedules of working hours are not regulated by regulations, a collective agreement, an agreement executed between the employees' council and employer or a contract of employment, the schedule of working hours shall be decided on by the employer in a written decision.

(2) The employer must notify employees about the schedule or changes to the schedule of working hours at least one week ahead of time except in cases of urgent overtime work.

Section 35. Re-scheduling of Working Hours

(1) If the nature of the job so requires, full-time working hours may be re-scheduled so that during one period it lasts longer while during another it lasts less than full-time working hours.

(2) If the working hours are rescheduled, the average working hours during one calender year or other period established by a collective agreement must not exceed full time working hours.

(3) The rescheduled working hours shall nob be deemed as overtime work.

(4) If the working hours are rescheduled, they cannot exceed 52 hours a week.

(5) A collective agreement may provide that rescheduled working hours for seasonal jobs may exceed 52 but not 60 hours a week.

(6) If the rescheduling of working hours is not provided for in a collective agreement or in an agreement executed between the employees' council and the employer, the employer must obtain the consent of the labour inspector for the rescheduling of working hours.

(7) The labour inspector may give consent to the rescheduling of working hours for not longer than one calender year.

PART VII. REST PERIODS AND LEAVE

Section 36. Rest period

(1) A full-time employee shall have the right to a rest period of a minimum of thirty minutes each working day.

(2) The time of the rest period referred to under Subsection (1) above shall be included in the working hours.

(3) If the special nature of the job does not provide for an interruption in work for the purpose of taking the rest period under Subsection (1) above, the use of this rest period shall be regulated by a collective agreement, an agreement executed between the employees' council and the employer, employment by-laws or a contract of employment.

Section 37. Daily rest

(1) The employee shall have the right to a daily rest period of a minimum of twelve consecutive hours between working days.

(2) As an exception to Subsection (1) above, an adult employee who performs seasonal work in industry shall have the right to a rest period between two consecutive working days of a minimum of ten straight hours, but not for more than sixty days in one calender year.

(3) As an exception to Subsection (1) above, an adult employee who performs seasonal jobs in agriculture, commerce or other non-industrial sectors, shall have the right to a rest period between working days of at least ten consecutive hours.

(4) The Minister of Labour shall have the authority to determine which sectors, in accordance with Subsections (1) and (2) above, shall be classified as industrial and which as agricultural, commercial or other non-industrial sectors.

Section 38. Weekly rest

An employee shall have the right to a weekly rest period on Sunday for a minimum of twenty four consecutive hours, and if his or her work on Sunday is indispensable, then one day of rest, for the period provided for in a collective agreement, an agreement executed between the employees' council and employer, or a contract of employment, must be provided to him or her each work week.

Section 39. Minimum annual leave

(1) For each calender year, an employee shall have the right to paid annual leave of a minimum of eighteen working days.

(2) A minor employee shall have the right to annual leave for each calender year of a minimum of twenty four working days.

(3) An employee who performs jobs for which, with the application of safety measures, it is not possible to protect the employee from harmful effects, shall have the right in each calender year to an annual leave of a minimum of thirty working days.

(4) The jobs under Subsection (3) above, as well as the minimum annual leave for such jobs, shall be established in a collective agreement or in employment rules.

(5) If the jobs under Subsection (3) above and the minimum annual leave for such jobs are not established by a collective agreement or employment rules , the Minister of Labour may, upon a proposal from the person who according to this Act may be a party to a collective agreement, and with consent from the Minister of Health, pass rules which shall regulate these issues.

Section 40. Determining the duration of annual leave

(1) The duration of annual leave for a period longer than the minimum period described in Section 39 of this Act may be established in a collective agreement, employment rules or in a contract of employment.

(2) Holidays and non-working days established by law shall not be included in the duration of annual leave.

(3) A period of temporary inability to work which was confirmed by an authorized doctor shall not be included in the duration of annual leave.

(4) If work is organised for fewer than six working days weekly, and a collective agreement, employment rules or a contract of employment does not provide otherwise, it shall be deemed when determining the duration of annual leave that the hours of work are scheduled over six working days.

Section 41. Nullity of waiver of the right to annual leave

An agreement on a waiver of the right to annual leave or to payment of compensation in lieu of annual leave is null.

Section 42. Term for acquisition of right to annual leave

(1) An employee who is employed for the first time or who has interrupted work between two jobs for more than eight days shall acquire the right to annual leave after six months of continuous work.

(2) An interruption of work caused by temporary inability to work, military service or other justifiable reason determined by law shall be included in the term of continuous work for the purposes of Subsection (1) above.

Section 43. Right to a proportion of annual leave

(1) An employee shall have the right to one-twelfth of annual leave as determined under Section 40 of this Act for each full month of work in the following cases:

(2) When computing the duration of annual leave in the manner prescribed under Subsection (1) above, one-half of a day of annual leave shall be deemed to be one whole day of annual leave.

Section 44. Annual leave in the case of termination of employment

(1) An employee who has used all of his annual leave entitlement for the current calender year, when he or she was working with a previous employer, shall not have the right to annual leave.

(2) If the contract of employment is terminated, the employer must provide the employee with a confirmation of use of annual leave.

Section 45. Supplement to salary during annual leave

(1) When taking annual leave, the employee shall have the right to a salary supplement in an amount determined in a collective contract, employment rules contract of employment, amounting to at least his or her average monthly salary in the preceding three months (taking into account the corresponding monetary value of the salary).

(2) The salary supplement under Subsection (1) above must be paid to the employee prior to taking annual leave, unless it is not otherwise stipulated in a collective contract or in an agreement made between the employees' council and the employer.

(3) The employer shall not have the right to ask the employee to return a salary supplement paid for taking annual leave prior to fulfilment of the conditions under Section 43 of this Act.

Section 46. Taking portions of annual leave

(1) The employee shall have the right to take annual leave in two portions.

(2) If the employee takes annual leave in portions, he or she must use the first portion extending over a minimum of twelve consecutive working days during the calender year for which the right to annual leave is realized.

(3) The employee must take the second portion of annual leave by June 30 of the following year at the latest.

Section 47. Carrying over annual leave to the next calender year

(1) The employee shall have the right to take annual leave, that is the first portion of annual leave which was interrupted or not taken in the calender year for which it was attained due to illness or maternity leave, by June 30 of the following year under the condition that he or she worked for at least six months of the year which preceded the year in which he or she returned to work.

(2) A member of the crew of a ship, an employee at work abroad or an employee who was serving in the military may take annual leave in its entirety in the following calender year.

Section 48. Schedule for taking annual leave

(1) The employer shall prepare the schedule for taking annual leave in accordance with the collective agreement, employment rules, contract of employment and this Act.

(2) In preparing the annual leave schedule, both the needs of the organization for labour and the possibilities for rest and leisure at the disposal of employees must be taken into consideration.

(3) Employees must be informed at least thirty days before taking annual leave about the schedule and the duration of annual leave.

(4) Employees shall have the right to take one day of annual leave whenever they wish to under the condition that they so inform the employer at least three days in advance, unless the collective agreement stipulates a different period of advance notice.

Section 49. Paid leave

(I) During the calender year, employees shall have the right to be free of work obligations but paid a salary supplement ("paid leave") for a maximum of seven working days for important personal obligations, and in particular, those related to marriage, childbirth, serious illness or death of a member of the immediate family.

(2) The following persons are members of the immediate family under Subsection (1) above:

spouse, direct relatives by blood and their spouses, brothers and sisters, step-children and adopted children, foster children, step-fathers and step-mothers, adoptive parents, and persons whom the employee is obligated to support under law as well as a person with whom the employee is married to under the common-law.

(3) The employee shall have the right to paid leave when receiving occupational or general schooling, training or advanced training, as well as schooling for the needs of the employees' council or union work, under the conditions, for the duration and for an additional amount determined by a collective agreement, an agreement made between the employees' council and the employer or the employment rules.

(4) With regard to securing the rights of employment or those related to employment, the period of paid leave shall be considered part of service at work.

Section 50. Unpaid leave

(1) The employer can at the request of the employee approve unpaid leave.

(2) During unpaid leave, the rights and obligations of employment or related to employment are suspended, if not otherwise stipulated by law..

PART VIII. NIGHT WORK

Section 51.Definition of night work

(1) Work between the hours of 10 in the evening and 6 in the morning of the next day and, for agriculture, between 10 in the evening and 5 in the morning of the next day, shall be considered night work, if not stipulated otherwise for specific cases under this or another law, under another regulation, a collective agreement or an agreement made between the employer and the employees' council.

(2) If work is organized in shifts, a change in shifts must be guaranteed such that employees must work during consecutive nights for at most one week.

Section 52. Prohibition of night work for women in industry

(1) Night work for women in industry shall be prohibited, unless this kind of work is approved by the Labour Minister as an exception in cases of grave danger or for the protection of national interests.

(2) The prohibition under Subsection (1) above shall not apply to employers who employ only members of their families.

(3) The prohibition against night work provided for under Subsection (1) above shall not apply to women who carry out managerial and technical jobs, or to women employed in the health and social services for which work of a physical nature is not uncommon.

(4) The Labour Minister must obtain the opinion of the trade union and employers' associations before giving the consent referred to under Subsection (1) above.

(5) In exceptional cases, a woman can be scheduled for night work without prior consent from the Labour Minister if such work is urgently necessary due to force majeure or to prevent a breakdown in raw materials.

(6) The labour inspector must be informed within a period of twenty four hours about night work carried out pursuant to Subsection (5) of this Section.

(7) The labour inspector can prohibit night work under Subsection (5) if he or she determines that the work in question is not needed in that there is no force majeure or danger of a breakdown in raw materials.

(8) The Labour Minister shall be authorized to determine in a book of regulations which activities, within the meaning of Subsection (1) of this Section, belong to industry.

Section 53. Exceptions to prohibition against night work for women in industry

(1) Due to the need to better utilize resources for work, to increase employment or for similar important economic or social reasons, the Labour Minister can decide that night work be defined differently than under Section 51 of this Act, so that exceptions from the prohibition against night work for women are made for those:

(2) An expectant mother, a mother with a child under two years of age and a single mother with a child under three years of age cannot be exempted from the prohibition on night work, unless she herself so requests.

Section 54. Night work for minors

(1) For minors employed in industrial labour, the time period between 7 in the evening and 7 in the morning of the next day shall be considered night work.

(2) For minors employed outside industry, the time period between 8 in the evening and 6 in the morning of the next day shall be considered night work.

(3) Night work for minors shall be prohibited unless such work is urgently needed due to force majeure.

(4) The prohibition on night work under Subsection (3) above can, in the case of grave danger, or to protect national interests, be temporarily suspended by a decision of the Labour Minister.

(5) The Labour Minister shall be authorized to determine with a book of regulations which activities, within the meaning of Subsection (1) above, shall be classified as belonging to industry.

PART IX. PROTECTION OF MOTHERHOOD

Section 55. Jobs which women should not perform

(1) Women may not perform very difficult physical labour, jobs underground or underwater and other jobs which, with regard to their psychological and physical characteristics, exceptionally endanger a woman's life and health.

(2) The Labour Minister, with agreement from the Health Minister, will define the jobs referred to under Subsection (1) above in a book of regulations.

(3) The prohibition on work underground under Subsection (1) above shall not relate to women who perform management jobs, jobs in health care and social welfare, students, and trainees who during schooling and occupational training, must spend a part of their time in the underground parts of mines and to women who occasionally must enter the underground parts of mines in order to carry out work which is not of a physical nature.

Section 56. Prohibition of unequal treatment of expectant mothers

(1) The employer shall not refuse to employ a women because she is pregnant, and shall not terminate her contract of employment or transfer her to other jobs except under the terms of Section 57 of this Act.

(2) The employer shall not ask for any kind of information on the woman's pregnancy nor shall he send another person to seek such information except if the woman employee personally requests a specific right envisaged under law or regulation concerning the protection of expectant mothers.

Section 57. Transfer of an expectant mother and a nursing mother

(1) The stipulations of Section 56 of this Act shall not prevent the temporary transfer of an expectant mother or a nursing mother to other jobs based on her personal request or in accordance with the decision of the employer, if her state of health requires this, as confirmed by an authorized physician.

(2) If a woman referred to under Subsection (1) above is performing work which endangers her life or health, or the life and health of her child, the employer must transfer her to another more suitable job.

(3) Only an authorized physician shall have the authority to determine whether the transfer to another job under Subsection (1) above is suitable in the event of a dispute between the employer and the woman employee in this regard..

(4) If an employer who employs five employees or less is not able to secure another appropriate job for a woman referred to under Subsection (1) above, the woman shall have the right to leave with a salary supplement under special regulations.

(5) The Labour Minister, with the agreement of the Health Minister, shall prescribe in a book of regulations the conditions and procedure for obtaining rights under Subsection (4) above and the manner for determining the amount and mode of payment of the salary supplement.

(6) The employer can reverse the temporary transfer under Subsection (1) above as soon as the woman's state of health permits her to return to the job which she performed previously.

(7) The temporary transfer under Subsection (1) above shall not result in the reduction of the woman's salary.

(8) A woman employee referred to under Subsection (1) above can only be transferred to another place of work with her consent.

Section 58. Maternity leave

(1) A woman employee shall have the right to maternity leave during her pregnancy, childbirth and when nursing her child.

(2) The woman employee may begin to take maternity leave 45 days before the expected delivery date and can take such leave at any time until her child is one year of age.

(3) An authorized physician shall determine the expected delivery date.

(4) For twins, or for the third or any subsequent child, the woman employee may take maternity leave until the child is three years of age.

(5) The woman employee must take maternity from 28 days before delivery until the child is six months of age.

(6) At her own request, a woman as an exception can begin to work before her child is six months of age, but not before 42 days have lapsed since childbirth.

(7) If a child is born prematurely, the maternity leave under Subsection (2) above shall be extended for the length of time that the child was born premature.

(8) After the lapse of the mandatory maternity leave under Subsections (5) and (6) above, if the parents so agree, the right to maternity leave can be used by the child's father.

Section 59. Shortened working hours for parents

(1) When mandatory maternity leave under Subsections (5) and (6) of this Act lapses, the woman employee shall have the right to work one half of normal working time until her child is one year of age and for twins, or for a third or each subsequent child, she can work half of normal working time until the child is three years of age.

(2) The right under Subsection (1) above can be used by an employee who is the child's father if the mother is working full-time during this time.

(3) After the child is one year of age, one of the child's parents shall have the right to work half of full-time working hours up until the child is three years of age if the child, according to the appraisal of an authorized physician, needs greater care and attention due to the state of his or her health and development.

(4) The Health Minister shall in a book of regulations prescribe the conditions and procedure for attaining the right to work shortened working hours for the care of the child who needs greater care and attention.

Section 60. Break for nursing a child

(1) A woman who after taking maternity leave or working shortened working hours continues to nurse her child, has for this purpose the right to a break of one hour twice a day during full-time work.

(2) A woman can use the right under Subsection (1) above until the child is one year of age.

(3) The time period of the break referred to under Subsection (1) above shall be included in working time.

(4) A salary supplement for the break under Subsection (1) above shall be determined according to special regulations.

(5) The Labour Minister with the agreement of the Health Minister, shall in a book of regulations prescribe the conditions and procedure for realizing rights under Subsection (1) above as well as the manner of determining and the mode of paying the salary supplement under Subsection (2) above.

Section 61 Rights available to the father of the child

(1) If the mother dies, abandons the child or, if because of illness or for other important reasons she is unable to take care of the child, the father of the child my utilize all the rights prescribed by this Act for the purpose of nurturing and bringing up the child.

(2) The Minister of Health shall provide a set of conditions and procedures in a book of rules to determine whether a mother is unable to take care of her child because of illness or for other important reasons.

Section 62 Suspension of employment for the child's first three years

At the conclusion of maternity leave one of the parents shall have the right not to work until the child has completed its third year, during which time the rights and obligations in the employment agreement shall be suspended, and the right to health insurance and health care as well as the old age and disability pension shall continue in accordance with the regulations governing these rights.

Section 63 Rights of a mother-nurturer

(1) A mother with four or more children shall be entitled to the status of mother -nurturer under special regulations.

(2) An employed or an unemployed woman, upon attaining the status of mother-nurturer, shall be entitled to financial compensation, old age and disability pension, health insurance and other rights in accordance with special regulations.

Section 64 Rights of the mother upon the death of her child

If an employed woman gives birth to a stillborn child or if the child dies before the conclusion of maternity leave, she shall be entitled to continue to enjoy the benefits of the maternity leave for as long as, in the opinion of a qualified physician, it is necessary for her to recover from giving birth and the psychological condition resulting from the loss of the child. This period shall be not less than 45 days, during which time she shall enjoy all rights under maternity leave.

Section 65 Salary compensation during maternity leave and during abbreviated working schedule

(1) During maternity leave, employees on leave shall have the right to salary compensation in accordance with specific regulations.

(2) During an abbreviated working schedule, in accordance with this Section of the Act, an employee earns the right to salary compensation in accordance with special regulations, for working fifty percent of the regular working schedule.

Section 66 The rights of parents of children with serious developmental problems

(1) One of the parents of a child with serious developmental problems shall be entitled to leave for the purpose of taking care of the child, or to work fifty percent of a full working schedule until the completion of the child's seventh year.

(2) At the conclusion of the rights granted under Subsection (1) above, one of the parents of a child with serious developmental problems shall have the right to work one half of the normal working schedule.

(3) Parents utilising the rights granted in Subsection (1) and (2) above shall be entitled to salary compensation in accordance with special regulations.

(4) Salary compensation provided under Subsection (3) above shall be provided from the funds allocated for social care.

(5) The Minister responsible for social care, in agreement with the Minister of Health, shall provide regulations specifying conditions and procedures for realizing the rights specified under Subsections (1) and (2) above, as well as the manner for calculating and allocating the salary.

(6) A parent specified under Subsection (1) above who is working one half of the normal working time cannot be required to work a night shift, nor to work overtime, nor can his or her place of work be changed without his or her agreement.

(7) When an employee ceases to use rights under Subsections (1) and (2) above, he or she shall have the right to continue working full-time in the job he or she was doing prior to beginning to utilize this right and if this position no longer exists, he or she will be assigned to other similar duties.

Section 67 The rights of adoptive or foster parents

(1) The rights specified by this Act for the purpose of protecting motherhood and the raising of children may be utilized under the same conditions by an adoptive parent or by an individual designated by a relevant social agency to take care of and to bring up a child.

(2) If a child is older than the age provided for in this Act, to utilize the rights under Subsection (1) above, one of the adoptive parents of a child under twelve years of age has the right to an adoptive parental leave of 270 continuous days from the date of adoption provided that this individual's spouse is not the parent of the child.

(3) While utilizing an adoptive parent's leave the adoptive parent has the right to receive salary compensation according to special regulations.

Section 68 Assumption of work on full-time schedule

If prior duration of employment is important to achieve specific rights based on the employment contract, the period devoted to maternity leave, periods of less than full-time work scheduled for either the birth parent or the adoptive parent, as well as the adoptive parent's leave, will be considered as full-time work.

Section 69 Advance warning of the exercise of a right

(1) An employee who intends to exercise his or her right to maternity leave, adoption leave or the right to suspension of the employment contract up to the third year of the life of their child, shall advise his or her employer of this intention as soon as possible, and not less than one month in advance.

(2) Employees may cease to exercise their right described Subsection (1) above, and their employer must take them back to work and assign them to an appropriate post within a month of the date on which the employees have advised the employer that they intend to cease exercising their right.

(3) An employee who has exercised the right referred to under Subsection (1) above shall have the right to additional occupational training if changes have been introduced in the technology or method of work.

Section 70 Prohibition of dismissal

(1) During pregnancy or during the exercise of maternity leave rights, the exercise of the right to part-time work of parents or adopted parents, the exercise of adoption leave and leave for the care of a child with serious difficulties in development, and during a period of fifteen days after the cessation of pregnancy or the cessation of the exercise of these rights, an employer shall not dismiss from work a pregnant woman or a person exercising one of the aforementioned rights.

(2) Dismissal shall be invalid if an employee notifies his or her employer, within a period of fifteen days after receipt of a notice of dismissal, of the circumstances referred to under Subsection (1) above, enclosing an appropriate certificate signed by an authorised medical practitioner or another authorized body.

(3) The circumstances referred to under Subsection (1) above shall not prevent the termination of an employment contract made for a limited period of time upon expiry of the period of time for which the contract was made.

Section 71 The right of an employee to terminate an employment contract by giving extraordinary notice

(1) An employee exercising the right to maternity leave or adoption leave, or an employee whose employment is suspended until his or her child reaches three years of age, may terminate his or her employment contract by giving extraordinary notice.

(2) An employment contract may be terminated by the method described under Subsection (1) above not later than fifteen days prior to the date on which the employee is due to return to work.

(3) An employed pregnant woman may terminate an employment contract by giving extraordinary notice.

Section 72 The right to return to previous or appropriate work

After the termination of maternity leave, adoption leave or part-time employment, an employee who has exercised one of the aforementioned rights shall be assigned to the same work he or she performed before exercising this right, and if the need for such work no longer exists, he or she shall be assigned to other appropriate work.

PART X. THE PROTECTION OF EMPLOYEES WHO ARE TEMPORARILY OR PERMANENTLY DISABLED

Section 73 Prohibition of dismissal if a temporary disability is caused by an injury at work or a professional disease

(1) During the time an employee who has suffered an injury at work or has contracted a professional disease is temporarily unable to work due to medical treatment or convalescence, the employer shall not dismiss him or her.

(2) The prohibition described under Subsection (1) above shall not affect the termination of an employment contract made for a limited period of time.

Section 74 Prohibition of harmful effects on promotion or the realization of other rights

An injury at work, or an occupational disease, shall not have a harmful effect on the promotion of an employee or the realization of other rights and privileges ensuing from employment or connected to employment.

Section 75 The right to return to previous or other appropriate work

An employee who was temporarily unable to work due to an injury or an injury at work, a disease or an occupational disease and who, after treatment and recovery, is deemed by an authorized person or body to be able to work, shall have the right to return to his or her previous work or other appropriate work.

Section 76 The obligation to advise the employer of temporary work disability

(1) The employee shall advise the employer of his or her temporary inability to work as soon as possible, and shall deliver, within a period of not more than three days, a medical certificate about his or her temporary inability to work and its expected duration.

(2) The authorized medical practitioner shall issue the certificate described under Subsection (1) above to the employee.

(3) If, due to a legitimate reason, the employee is unable to fulfil his or her obligations described under Subsection (1) above, he or she shall do so as soon as possible, and not later than three days after the reason that prevented him or her from doing so has ceased to exist.

(4) The Minister of Labour, with the approval of the Minister of Health, shall issue regulations establishing the content and method of issuing the certificate described under Subsection (1) above.

Section 77 The right to employment in other work

(1) If an authorized person or body establishes that the employee has a reduced ability to work or that he or she is in immediate danger of becoming disabled, the employer shall, taking into consideration the diagnosis and opinion of the authorized person or body, offer the employee other work which the employee is able to perform which shall, to the greatest possible extent, correspond to the work previously performed by the employee.

(2) To provide such work, the employer shall adapt the work to the abilities of the employee, alter the work timetable, and do his or her very best to provide appropriate work for the employee referred to under Subsection (1) above.

(3) The offer of other work referred to under Subsection (1) above shall be made in writing.

Section 78 Dismissal in case of reduced ability to work or immediate danger of disability

(1) An employer may dismiss an employee with a reduced ability to work or who is in immediate danger of becoming disabled only with the prior approval of the Employees' Council.

(2) If there is no Employees' Council at the employer's enterprise, the approval referred to under Subsection (1) above shall be given by the competent employment agency.

(3) The Employees' Council or the competent employment agency shall give the employer approval to terminate the employment contract if the employer proves that he or she has done everything in his or her power to provide the employee described under Subsection (1) above with appropriate work or if the employer proves that the employee has refused assignment to work suited to his or her abilities in accordance with the diagnosis and opinion of the authorized person or body.

(4) If the Employees' Council or the competent employment agency refuses to give approval for dismissal, such approval may be given by a judicial or arbitration decision.

Section 79 Severance pay in case of injury at work or occupational disease

(1) An employee who has suffered an injury at work or has contracted a occupational disease, and who is not returned to work after the completion of treatment and convalescence, shall have the right to severance pay in an amount at least double the amount he or she would get otherwise.

(2) An employee who has unjustifiably refused to take a position offered to him or her shall not have the right to severance pay.

Section 80 Priority for occupational training and schooling

An employee who suffers an injury at work or an occupational disease shall be given priority for occupational training and schooling organized by the employer.

PART XI. SALARIES

Section 81 Establishing salaries

(1) An employer bound by a collective agreement shall not state in the payroll accounts and pay to the employee a salary amounting to less than the amount established by the collective agreement.

(2) If the basis and criteria for salaries have not been established by a collective agreement, an employer employing more than 20 employees shall establish the above in employment rules.

(3) If the salary has not been established by the methods described under Subsections (1) and (2) above, and the employment contract does not contain sufficient data on the basis of which it can be established, the employer shall pay the employee an appropriate salary.

(4) An appropriate salary shall be deemed to be a salary regularly paid for the same work, and if it is impossible to establish such a salary, then a salary established by the court according to the circumstances of the case.

Section 82 Equal pay for men and women

(1) An employer shall pay equal salaries to women and men for equal work and for work of equal value.

(2) Any provision in an employment contract, a collective agreement, employment rules, or any other legal act that contravenes Subsection (1) above shall be null and void.

Section 83 Payment of salaries

(1) A salary shall be paid after the corresponding work has been performed.

(2) The periods for which salaries shall be paid shall be established by the collective agreement or by the employment contract.

(3) A collective agreement or an employment contract shall not provide for payment of salaries at intervals longer than one month.

(4) When paying a salary, the employer shall hand over to the employee a copy of the payroll account pertaining to that salary.

Section 84 The right to an increased salary

An employee shall have the right to an increased salary for arduous working conditions, overtime and night work, and for work on Sundays, holidays, and other days that are not working days according to the law.

Section 85 Compensation of salary

(1) An employee shall have the right to compensation of salary for periods in which he or she is not working due to legitimate reasons established by this Act, another regulation or a collective agreement.

(2) The period described under Subsection (1) above for which compensation shall be paid at the expense of the employer shall be established by law, another regulation, collective agreement or employment contract.

(3) An employee shall have the right to compensation of salary during a period of time when work is interrupted due to the fault of the employer or due to other circumstances for which the employee is not responsible.

(4) Employees who refuse to work because measures under safety regulations have not been implemented shall have the right to compensation of salary amounting to the same salary that he or she would have received had they worked, for the period until the such measures are implemented, unless the employee has been assigned to other appropriate work during this period.

(5) Unless provided otherwise by this or another law, regulation, collective agreement, employment rules or employment contract, an employee shall have the right to compensation of salary amounting to the sum of the average salary paid to him over the preceding three months.

Section 86 Protection of employees' claims in bankruptcy proceedings

(1) In bankruptcy proceedings, the following claims by employees shall have precedence with regard to payment and shall be settled as expenses of the bankruptcy proceeding:

(2) The claims for salaries and compensation of salaries described under Subsection (1) above shall be settled as expenses of the bankruptcy proceeding, only up to the amount corresponding, for a particular month, to the sum of two-thirds of the average monthly salary paid in the Republic of Croatia.

(3) The claims for severance pay described under Subsection (1) above shall have precedence with regard to payment in a bankruptcy proceeding only up to the amount corresponding to one-third of the average monthly salary paid in the Republic of Croatia for every full year of employment with that employer.

(4) The average salary described under Subsections (2) and (3 ) above shall be established on the basis of the latest statistical data published before the bankruptcy proceedings were initiated.

Section 87 Limitations of offsetting

(1) An employer shall not, without the consent of the employee, collect an amount claimed from the employee by withholding payment of a salary or part of a salary, or by withholding payment of compensation for a salary or part of compensation for a salary.

(2) An employee cannot give the consent described under Subsection (1) above before the claim arises.

Section 88 Protection of salaries when a salary is withheld by force of law

Not more than one half of the salary or compensation for a salary of an employee may be withheld by force of law in order to fulfil the legal obligation of supporting another person, and not more than one-third of the salary of an employee may be withheld by force of law to fulfil other obligations.

PART XII. INVENTIONS AND TECHNICAL INNOVATIONS MADE AT THE WORK PLACE

Section 89 An invention made at the workplace or in connection with the workplace

(1) An employee shall advise his or her employer of his or her invention made at the workplace or in connection with the workplace.

(2) The employee shall treat all information pertaining to the invention described under Subsection (1) above as a business secret and shall not pass it on to a third person without the prior consent of the employer.

(3) The invention described under Subsection (1) above shall be the property of the employer, and the employee shall have the right to compensation established by the collective agreement, the employment contract, or a separate contract.

(4) If compensation is not established in the manner described under Subsection (3) above, appropriate compensation shall be established by the court.

Section 90 An invention connected to the activity of the employer

(1) An employee shall advise his or her employer of an invention that was not made at the workplace or in connection with the workplace if the invention is connected to the activity of the employer, and shall make the employer a written offer to transfer to the employer his or her rights in connection with such an invention.

(2) The employer shall respond to the employee's offer described under Subsection (1) above within a period of one month.

(3) The provisions regulating the statutory right of first purchase shall apply in a suitable manner to the assignment of the right to an invention, described under Subsection (1) above.

Section 91 Technical innovations

(1) If the employer agrees to adopt a technical innovation proposed by an employee, the employer shall pay to the employee the compensation established by the collective agreement, employment contract or a separate contract.

(2) If compensation has not been established in the manner described under Subsection (1) above, appropriate compensation shall be established by the court.

PART XIII. PROHIBITION OF COMPETITION BETWEEN AN EMPLOYEE AND HIS OR HER EMPLOYER

Section 92 Legal prohibition of competition

(1) An employee shall not, without the consent of his or her employer, conclude business transactions, on his own account or on the account of another, in the field of activity of his or her employer ("legal prohibition of competition").

(2) If an employee breaches the prohibition under Subsection (1) above, his or her employer may claim compensation for damages from the employee or may require that the business transaction be deemed to be concluded on the employer's account, or that the employee give the employer the profit arising from such a transaction or transfer to the employer any claims for profits arising from such a transaction.

(3) The right of an employer under Subsection (2) above shall cease three months after the date on which the employer discovered that the business transaction had been concluded, and in any case five years after the date on which the transaction was concluded.

(4) If, at the time of employing an employee, the employer was aware of the fact that the employee was engaged in certain business activities, and did not require that the employee stop engaging in such activities, it shall be deemed that the employer gave the employee permission to engage in such activities.

(5) An employer may revoke the permission referred to under Subsection (1) and (4) above with respect to the time period prescribed or agreed upon for the termination of an employment contract.

Section 93 Contractual prohibition of competition

(1) An employer and an employee may agree that, for a certain time after the termination of the employment contract, the employee shall not enter into employment with another person who is competing on the market with the employer, and that the employee shall not, on his own account or on the account of another, conclude business transactions that constitute competition with the employer ("contractual prohibition of competition").

(2) The agreement described under Subsection (1) above shall not be made to apply for a period longer than two years after the date of the termination of employment.

(3) The agreement described under Subsection (1) above may be an integral part of the employment contract.

(4) The agreement described under Subsection (1) above shall be made in writing.

(5) The agreement described under Subsection (1) above shall not be binding on the employee if the goal of the agreement is not to protect the legitimate business interests of the employer or if, considering the area, time and goal of the prohibition in relation to the legitimate business interests of the employer, the agreement disproportionately limits the work and advancement of the employee.

(6) The agreement described under Subsection (1) above shall be null and void if it is made by an employee who is under age or by an employee who, at the time the agreement is made, is receiving a salary amounting to less than the average salary in the Republic of Croatia.

(7) The employer shall not have the right to state that a contractual prohibition of competition is null and void by invoking the application of Subsection (6)

Section 94 Compensation of salary when there is a contractual prohibition of competition

(1) Unless provided otherwise by this Act, the contractual prohibition of competition shall be binding on an employee only if the employer has undertaken a contractual obligation to pay compensation to the employee for the duration of the prohibition amounting to at least half of the average salary paid to the employee during the three months prior to the termination of the employment contract.

(2) The compensation of salary described under Subsection (1) above shall be paid by the employer to the employee at the end of each calendar month.

(3) The amount of the compensation under Subsection (1) above shall be updated to take into account changes in the average salary in the Republic of Croatia.

(4) If part of the salary of an employee is intended to cover certain costs connected to the performance of work, the compensation can be reduced proportionately.

Section 95 Termination of the contractual prohibition of competition

(1) If an employee terminates an employment contract by giving extraordinary notice because the employer has seriously violated an obligation in the employment contract, the contractual prohibition of competition shall be null and void if the employee declares in writing, within a month of the date of the termination of the employment contract, that he or she does not consider him or herself bound by the contract.

(2) A contractual prohibition of competition shall be null and void if the employer terminates the employment contract without having just cause under this Act, unless the employer notifies the employee, within fifteen days of the termination of the contract, that it shall pay to the employee, for the duration of the contractual prohibition of competition, compensation amounting to the average monthly salary paid to the employee during the three months prior to the termination of the employment contract.

(3) The amount of the compensation described under Subsection (2) above shall be updated in accordance with the changes in the average salary in the Republic of Croatia.

Section 96 Waiver of the contractual prohibition of competition

(1) An employer may be released from the obligation to pay the compensation described in Section 94 of this Act, if he or she notifies the employee in writing that he or she is waiving the contractual prohibition of competition.

(2) A waiver of the contractual prohibition of competition under Subsection (1) above shall release the employer from the obligation to pay compensation after a period of three months from the date on which the waiver was delivered to the employee.

Section 97 Contractual penalty

(1) If in the case of a violation of a contractual prohibition of competition only a contractual penalty has been provided for, the employer may, in accordance with the general provisions of the Act on obligations, claim only payment of that penalty, and not the fulfilment of the obligation or compensation for greater damages.

(2) The contractual penalty described under Subsection (1) above may also be agreed upon when the employer does not undertake to pay compensation of salaries for the duration of the contractual prohibition of competition.

PART XIV. COMPENSATION FOR DAMAGES

Section 98 Employee's liability for damages caused to the employer

(1) An employee who at the workplace or in connection with the workplace intentionally or due to gross negligence causes the employer to suffer damage shall compensate the employer for such damage.

(2) If the damage has been caused by several employees, each employee shall be liable for the part of the damage caused by him or herself.

(3) If it is impossible to determine what part of the damage was caused by each employee, all the employees shall be deemed equally liable and shall compensate for the damage in equal parts.

(4) If several employees have caused damage by their premeditated criminal act, they shall be jointly liable for the damage caused.

Section 99 Predetermined amount of compensation for damages

(1) If determining the amount of damages would cause disproportionate costs, the amount of damages for certain acts may be determined in advance.

(2) The damaging acts and compensation described under Subsection (1) above may be provided for in the collective agreement or in the employment contract.

(3) If the damage caused by a damaging act referred to under Subsection (2) above is much greater than the predetermined amount of compensation, the employer may claim compensation for the amount of the damage actually suffered and established.

Section 100 Responsibility of an employee to refund compensation for damages

An employee who at the workplace or in connection with the workplace intentionally or due to gross negligence causes damage to a third person, and compensation for the damage has been paid by the employer, shall pay to the employer the amount of compensation paid to the third person.

Section 101 Reduction of compensation for damages or the exemption of an employee from paying compensation for damages

The conditions and method for reducing compensation for damages or exempting an employee from the obligation to compensate for damages may be established by a collective agreement or employment rules.

Section 102 Responsibility of the employer for damages caused to an employee

(1) If an employee suffers damage at work or in relation to work, the employer shall compensate the employee for the damage according to the general provisions of the Act on obligations.

(2) The right to compensation for damages referred to under Subsection(1) above shall also refer to damages caused by the employer to the employee by a violation of the employee's employment rights.

PART XV. TERMINATION OF THE EMPLOYMENT CONTRACT

Section 103 Methods for terminating the employment contract

An employment contract shall terminate:

Section 104 Form of an Agreement to terminate an employment contract

An agreement to terminate an employment contract shall be made in writing.

Section 105 Notice

An employer and an employee may give notice that they wish to terminate an employment contract.

Section 106 Regular notice

(1) An employer may give notice that he or she wishes to terminate an employment contract subsequent to the notice period provided for by regulations or the contract ("regular notice") if he or she has a valid reason for doing so, in the following cases:

- if the need for performing certain work ceases due to economic, technical or organizational reasons ("notice due to business reasons");

Section 107. Extraordinary termination of contract of employment

(1) Employers and employees shall have just cause to terminate a contract of employment made for an indefinite or a definite period, without having an obligation to adhere to a prescribed or agreed termination period, ("extraordinary termination") if, due to an extremely grave violation of an obligation under the contract of employment or due to any other highly important fact and, recognising all circumstances or interests of both contracting parties, continuation of the contract of employment is not possible.

(2) A contract of employment may be terminated extraordinarily only fifteen days after the day when the fact which is claimed to be the basis of the termination is made known.

(3) A terminating party to the contract of employment who in the case specified under Subsection (1) above terminates a contract of employment extraordinarily, shall have a right to claim damages for non-performance of contractual obligations from the party which is responsible for the termination.

Section 108. Reasons not constituting just cause for dismissal

(1) Temporary absence from work caused by an illness or personal injury shall not be deemed to be just cause for dismissal.

(2) Filing a grievance or complaint, and taking part in a procedure against the employer based on a violation of a law, other regulations, a collective agreement or employment rules, as well as an employee's recourse to the competent executive bodies, shall not be deemed to be just cause for the termination of a contract of employment.

Section 109. Termination of a contract of employment concluded for a definite period

A contract of employment concluded for a definite period may be ordinarily terminated only if such a possibility was envisaged by the contract.

Section 110. Pre-termination procedure

(1) Prior to terminating an employee for a misdemeanour ("ordinary termination"), an employer must draw to the employee's attention, in written form, his or her obligations under the contract of employment, to inform him or her about the possibility of dismissal if further violations occur.

(2) Prior to both an ordinary and an extraordinary termination caused by a misdemeanour or work performance of an employee, the employer shall give the employee an opportunity to provide an explanation, except in circumstances where it is not reasonable to expect such a course of action from the employer concerned.

Section 111. Form, reasons and service of notice of dismissal; termination period

(1) A dismissal must be made in writing.

(2) An employer must give reasons for dismissal in writing.

(3) A notice of dismissal shall be served to the person concerned.

(4) The termination period shall commence on the day of service of the notice of dismissal.

(5) The termination period shall be suspended during pregnancy, maternity leave, exercise of parent's or adoptive parent's part-time employment right, adoptive parenthood leave, and leave for special care for a child suffering from a grave disability, temporary work disability, annual vacation, paid leave, military service, and other cases of justified absence of an employee which may be prescribed by this or another Act.

Section 112. Burden of proof

(1) When an employer terminates a contract of employment, and existence of just cause is a requirement for the validity of a dismissal under this Act, the employer must demonstrate the existence of such just cause for dismissal.

(2) An employee must demonstrate the existence of just cause for termination only in cases of extraordinary termination of an employment contract.

Section 113. Minimum termination period

(1) In the case of an ordinary termination, the termination period shall be at least:

- if the employee concerned has continuously worked for the same employer for less than one year: two weeks;

(2) If an employee, upon an employer's request, ceases to work before the expiry of a prescribed or agreed termination period, the employer shall be obligated to pay the salary and recognise all other rights as if the employee had actually worked until the expiry of the termination period.

(3) During the termination period an employee shall have the right to be absent from work not less then four hours per week with salary, for the purpose of job hunting.

(4) A collective agreement or a contract of employment may specify termination periods shorter then those specified under Subjection (1) above, and in cases when a contract of employment is terminated by an employee the termination period may be shorter than in cases when a contract is terminated by an employer.

(5) When a contract of employment is terminated by an employee, the termination period may not exceed one month where the employee concerned has an especially important reason.

Section 114. Cancellation accompanied by an offer to alter the terms of a contract of employment

(1) Provisions of this Act applicable to termination shall be applicable to cases when the employer terminates the contract of employment and simultaneously offers to enter into a contract of employment under different terms ("termination accompanied by an offer to alter the terms of the contract of employment") .

(2) Where in cases specified under Subsection (1) above an employee accepts the employer's offer, he or she retains the right to challenge the validity of such an alteration before the competent judicial authority.

Section 115. Resumption of work when wrongful dismissal

(1) If a court establishes that a dismissal was not permissible, and that employment did not cease, it shall order the employer to permit the employee to resume work.

(2) An employee who has challenged the permissibility of a dismissal may ask a court to issue an interim measure and order his or her readmission to work pending a final decision on the merits.

Section 116. Judicial rescission of a contract of employment

(1) When a court establishes that a dismissal was not permissible but that it is not acceptable for the employee to continue to work, the court shall, upon the employee's request, determine the date of termination of employment and award him or her damages in an amount not less then three and not more then 18 of the employee's average monthly salaries, calculated on the basis of the preceding three months, depending on the length of employment, age and maintenance costs that the employee concerned incurs.

(2) A court may adopt the decision specified under Subsection (1) above, at the request of an employer, if circumstances exist which demonstrate justifiably that continuation of employment is contrary to the interests of both contracting parties.

(3) Both an employer and an employee may submit a request for rescission of a contract of employment in the manner specified under Subsections (1) and (2) of this Section, prior to the conclusion of the hearing before a court of first instance jurisdiction.

Section 117. Consultation with the Employees' Council regarding dismissal

An employer must inform the Employees' Council about his or her intention to terminate any contract of employment, and shall have an obligation to consult with the Employees' Council in cases specified by this Act, subject to methods and requirements specified therein.

Section 118. Severance pay

(1) Unless dismissal is based on the employee's misconduct, when an employer dismisses an employee who is a party to a contract of employment concluded for an indefinite period following a two year period of continuous employment, the employee concerned shall have the right to receive severance pay in an amount determined on the basis of lapsed continuous employment with that employer.

(2) Severance pay for each year of employment with the same employer shall not be agreed upon nor determined in an amount lower than one-half of the average monthly salary paid to the employee concerned in a period of three months prior to termination of the contract of employment.

Section 119. Redundancy social security plan

(1) Employers employing more than 20 employees who, due to economic, technical or organizational reasons, intend to terminate more than 10 % of the contracts of employment or dismiss at least 5 employees within 6 months, must establish a redundancy social security plan.

(2) The plan specified under Subsection (1) above must be established by employers who, due to economic, technical or organizational reasons, intend to terminate more than 20 contracts of employment within one month.

(3) In establishing the plan specified under Subsection (1) and (2) above, employers shall be obligated to consult with the Employees' Council, in a manner and subject to conditions specified by this Act.

(4) Employers must forward to the Employees' Council on a timely basis and in written form relevant information, including reasons for intended terminations, relating to the number and kind of employees who are likely to be concerned, as well as about the intended time of termination.

(5) In making the plan specified under Subsections (1) and (2) above, employers must to give a statement on opinions and proposals made by the Employees' Council in respect of measures which must be undertaken in order to prevent or minimize expected terminations of contracts of employment, as well as in respect of measures intended to minimise detrimental effects of such terminations of contracts of employment.

(6) If an Employees' Council has not been established with an employer, the employer concerned shall, in making the redundancy social security plan, be obligated to consult with a competent employment agency in a manner and subject to conditions specified under Subsections (4) and (5) above.

Section 120. Compulsory particulars of a redundancy social security plan

(1) A redundancy social security plan must include:

(2) If measures specified under Subsection (1) above are not sufficient for ensuring employment for all employees, their contracts of employment may be terminated in a manner and subject to requirements specified by this Act.

(3) The employer must inform employees and the competent employment agency about any redundancy social security plan.

(4) The notice specified under Subsection (3) above shall be forwarded in written form not later than eight days following adoption of the plan.

(5) An employer shall not terminate any contract of employment before forwarding the redundancy social security plan to a competent employment agency, and before the employment agency has issued its statement within a period of eight days.

(6) A competent employment agency may, on the basis of important economic or social reasons, suspend operation of a plan under Subsection (1) above, either entirely or in part, but not for a period exceeding three months.

Section 121. Special rights of employees working abroad

(1) An employer who assigns an employee to work abroad, either in a business enterprise or other company owned by the employer concerned shall, in the event of termination of a contract made between that employee and the foreign business enterprise or company, except when dismissal results from the employee's misconduct, be obligated to compensate the employee for relocation costs and provide for adequate employment in the country.

(2) For purposes of calculation of the dismissal period and severance pay, the period of employment of an employee specified under Subsection (1) above, spent in employment abroad, shall be deemed to be continuous employment with the same employer.

Section 122. Return of documents and employment certificates

(1) Following termination of employment, an employer shall return to the employee concerned his or her documents, and when requested, issue a certificate setting out the work assignments and length of employment.

(2) A certificate under Subsection (1) above shall not contain any additional information that would make entering into a new contract of employment more difficult for the employee concerned.

PART XVI. EMPLOYMENT RULES

Section 123. Obligation to issue employment rules

(1) Any employer employing more than twenty employees must issue and publish employment rules regulating salaries, organization of work and other issues important for its employees, except when such issues are regulated by a collective agreement.

(2) Specific employment rules may be issued for particular departments of a business enterprise, company, institution, or for a particular group of employees.

(3) The Minister of Labour may, subject to prior consultation with trade unions and employers' associations, prescribe in a book of rules which issues must be regulated by employers with the rules specified under Subsection (1) above.

Section 124. Employment rules adoption procedure

(1) Employers must consult with the Employees' Council on the adoption of employee rules when, in the manner and subject to the conditions specified under this Act.

(2) The rules referred to under Subsection (1) above must specify the date when they shall take effect.

(3) The rules specified under Subsection (1) above may not become effective until eight days after their publication.

(4) The Minister of Labour shall with a book of rules prescribe the manner of publication of rules specified under Subsection (1) above.

(5) Employment rules may be amended or supplemented in compliance with the provisions of this Act regulating their adoption.

(6) The Employees' Council may ask a competent court to declare that employment rules are illegal, or that any of their provisions are void.

(7) Where an Employees' Council is not established with respect to an employer, the right specified under Subsection (6) of this Section may be exercised by a trade union commissioner.

PART XVII. EXERCISE OF EMPLOYMENT RIGHTS AND OBLIGATIONS

Section 125. Persons Entitled to Make Decisions on Employment Rights and Obligations

(1) An employer that is a physical person may, by virtue of authority given in written form. authorize another physical person of major age and the required capacity to represent him or her in the exercise of his or her employment rights and obligations, or those related thereto.

(2) When an employer is a legal entity, rights specified under Subsection (1) above shall be vested in a chief executive or a body authorised by a statute, contract, or statement of incorporation, or other rules of that legal entity.

(3) A body specified under Subsection (2) above may, by virtue of authority in written form, delegate its authority to another physical person of major age with the capacity to act on its behalf.

Section 126. Judicial protection of employment rights

(1) An employee who considers that his or her employer has violated his or her employment rights may within fifteen days following receipt of a decision allegedly violating such rights, or fifteen days following the day when he or she became aware of such a violation, request the employer to permit him or her to avail of the claimed right.

(2) If the employer does not meet a request of an employee as referred to under Subsection (1) above within fifteen days, an employee may within another fifteen days apply for judicial protection before a competent court.

(3) When any Act, other regulation, collective agreement or employment rules envisage alternative dispute resolution, judicial proceedings may be initiated within a period of fifteen days following the day when such a procedure terminated.

(4) The employee's failure to claim damages or make any other financial claim under the contract of employment within the periods specified under Subsections (1) to (3) above, shall not result in the loss of his or her rights.

Section 127. Judicial Jurisdiction

Except as otherwise provided for under this Act, for the purposes of this Act the competent court shall be the court having jurisdiction in labour cases.

Section 128. Arbitration

(1) Parties to a contract of employment may, subject to their mutual consent, assign the resolution of labour cases to arbitration.

(2) A collective agreement may regulate the composition, procedure and other issues relevant to arbitration.

Section 129. Succession by a new employer to a contract of employment

(1) If the identity or legal position of an employer changes, e.g. because of succession, sale, merger, accession, split, change of organizational form of a business enterprise etc., all contracts of employment shall be ceded to the new employer.

(2) A person who, by means of a change of a legal position, form of organization or in any similar way, fraudulently attempts to avoid to perform his or her obligations owed to an employee, shall be ordered by the competent court to perform such an obligation, even in cases when a contract of employment was not concluded between an employee and such a person.

Section 130. Presumed consent to employer's decision

(1) If an employer, in order to adopt a decision, has an obligation to obtain consent from the Employees' Council, a trade union, a labour inspector, or the employment agency, such Employees' Council, trade union, labour inspector, or employment agency shall issue a statement on granting or denying such consent within fifteen days following the service of the employer's request, save as otherwise provided by this Act with respect to a specific situation.

(2) Where the Employees' Council, trade union, labour inspector, or employment agency do not forward to an employer their respective statement regarding the granting or denial of their consent within the time specified under Subsection (1) above, they shall be deemed to have consented to the employer's decision.

Section 131. Statute of limitations in respect of claims based on employment

Except as otherwise provided for by this or another Act, the right to make a claim based on employment, if not exercised, shall expire three years after it arises.

PART XVIII. EMPLOYEE PARTICIPATION IN DECISION MAKING

Section 132. Right to Participate in Decision Making

Employees of an employer who regularly employs at least twenty employees, with the exception of employees of bodies of public administration, shall have a right to take part in decision-making on issues related to their economic and social rights and interests, in the manner and subject to conditions specified by this Act.

Section 133. Right to elect employees' council

(1) Employees shall have the right to elect, by free, secret and direct elections, one or more of their representatives (the "employees' council") which shall represent them before their employer and protect and further their rights and interests.

(2) The procedure for establishment of an employees' council shall be initiated upon the motion of a trade union or at least ten per cent of the employees of an employer.

Section 134. Number of members of employees' council

(1) The number of employees' council members shall be determined in accordance with the number of employees of an employer in the following manner:

(2) For each further 1000 increment of employees the number of representatives shall be increased by two.

(3) The method of election of representatives must take into consideration equitable representation of all organizational units and groups of employees (the criteria may be gender, age, qualifications, work assignments etc.).

Section 135. General employees' council

(1) If an employer operates through many organizational units, employees may establish more employees' councils which would enable adequate participation of employees in decision making.

(2) When envisaged under Subsection (1) above, a general employees' council shall be established.

It shall be composed of representatives of employees' councils elected by organizational units.

(3) The composition, powers and other issues important for the operation of the general employees' council shall be established by an agreement between an employer and employees' councils.

Section 136. Electoral term

(1) An employees' council shall be elected for a term of three years.

(2) Elections shall, as a rule, be held in March of each year.

Section 137. Electoral rights

(1) All employees of an employer shall have the right to vote and be elected.

(2) Members of management and supervisory boards and their family members, as well as employees vested with the authority to represent the employer before third persons or before employees, shall not have the right specified under Subsection (1) above.

(3) An electoral committee shall establish a list of employees having voting rights.

Section 138. Lists of Candidates

(1) Lists of candidates for employee representatives may be proposed by trade unions whose members are employed by a respective employer, or a group of employees which enjoys the support of at least ten per cent of the employees of a respective employer.

(2) In order to ensure that the employees' council does not have any vacancies when a mandate of one of its members is terminated, where only one representative is to be elected, at least one additional deputy must be proposed, and where three or more representatives are to be elected, three deputies must be proposed.

(3) Each list of candidates must contain a number of candidates equal to the number of vacancies to be filled.

Section 139. Electoral committee

(1) An electoral committee shall be established to organize elections.

(2) An electoral committee shall be composed of at least three members.

(3) An electoral committee shall have an odd number of members.

(4) Each trade union and group of employees which has submitted its list of candidates shall designate one member of an electoral committee.

(5) An employee who is a candidate to become a member of the employees' council may not serve as a member of the electoral committee.

(6) An electoral committee shall be appointed by the employees' council when elections are announced.

(7) When the employees' council is not established, an electoral committee shall be appointed by a meeting of employees.

Section 140. Operation of Electoral Committee

(1) The electoral committee shall organize and supervise a ballot.

(2) The electoral committee shall be responsible for the legality of elections and announce the results.

(3) A record of the electoral committee's work shall be kept and published after the elections.

(4) An electoral committee shall adopt decisions by a simple majority.

Section 141. Elections

(1) No one shall be permitted to obstruct elections, nor to interfere with the freedom of deliberation of members of the Employees' Council.

(2) Actions in violation of Subsection (1) above may result in an election being declared void.

(3) An employees' council, an electoral committee, an employer, a trade union which has nominated a candidate, or a candidate, may ask a competent court to declare an election to be void in the event of grave violations of Subsection (1) above, if such a violation had an impact on electoral results.

(4) Elections shall be valid provided that at least one third of the employees having a right to vote has actually voted.

(5) Election costs shall be paid by the employer.

Section 142. Determination of election results

(1) Where one representative is to be elected, a candidate which has received the majority of votes cast shall be elected.

(2) If, under the circumstances described under Subsection (1) above, two or more candidates receive the same number of votes, a candidate who was employed by the employer concerned for a longer continuous term shall be elected.

(3) Where three or more representatives are to be elected, the number of elected representatives shall be determined in the following way:

The total number of votes cast for each list ("electoral list aggregate") shall be divided into numbers from 1 to, inclusively, the number of representatives to be elected. Results shall be ordered in descending order. The result which according to the order corresponds to the number of representatives to be elected shall be the common dividend.

The number of votes cast for each electoral list aggregate shall be divided by a common dividend. The result shall indicate the number of elected representatives from the respective lists. Decimal figures shall not be taken into consideration. If votes are distributed in such a way that it is not possible to establish from which of the lists a candidate is to be elected, the candidate on the list which has received a higher number of votes shall be elected.

(4) Lists which receive less then 5 % of votes cast shall not be included in the distribution of vacant posts.

(5) In circumstances referred to under Subsection (3) above, the number of candidates listed from the top of a respective list equivalent to the number of posts apportioned to a respective list shall be elected.

(6) Deputy representatives shall be those candidates who were not elected, beginning from the first non-elected candidate, up to a number equal to the number of elected representatives from a respective list. When a list of candidates is exhausted, deputies shall be elected from a list of deputy candidates.

Section 143. Basic powers of employees' council

(1) The employees' council protects and furthers the interests of employees employed by an employer, provides advice and negotiates with the employer or an authorised person about issues which are important for employees.

(2) The employees' council monitors compliance with this Act, collective agreements and other regulations which are adopted for benefit of employees.

(3) The employees' council monitors regular and complete performance of employer's obligations and the collection and payment of social security contributions, and for that purpose shall have authority to inspect relevant documentation.

(4) The employees' council shall not participate in the organization or performance of strikes, lock-outs or any other industrial action, nor shall it in any other way interfere with a collective labour dispute which may result in such an action.

Section 144. Duty to inform

Employers shall have the duty to inform the employees' council in quarterly periods about:

Section 145. Duty to consult before passing decision

(1) Prior to the adoption of any decision which is important for the position of employees, an employer shall consult the employees' council about the proposed decision and shall furnish the employees' council with information important for reaching a decision and understanding its impact on the position of employees.

(2) Important decisions referred to under Subsection (1) above shall be deemed to be, inter alia, the following:

(3) Information related to a proposed decision shall be forwarded to the employees' council in a complete form, and timely, so that the council may have an opportunity to put forward any objections or proposals, in order to enable the results of discussion to have material impact on decision making.

(4) Except as otherwise provided by an agreement between an employer and the employees' council, the employees council shall forward its statement relating to a proposed decision to the employer within eight days. In the case of an extraordinary dismissal the Council shall act within three days.

(5) If the employees' council does not adopt a statement regarding the proposed decision within the time specified under Subsection (4) above, it shall be presumed that the employees' council does not have any objections or proposals.

(6) The employees' council may disagree with a dismissal if an employer does not have just cause for the dismissal, or if the dismissal procedure envisaged by this Act was not completed.

(7) The employees' council shall give reasons for its dissent.

(8) If the employees' council disagrees with an extraordinary dismissal and the employee concerned initiates judicial action in order to contest permissibility of the dismissal and request the employer to retain him at work, the employer must keep retain the employee at work pending a final judicial decision.

(9) If the disagreement of the employees' council with an extraordinary dismissal is blatantly without basis under this Act, an employer may ask a court to issue an interim measure and, pending the final decision on the merits, release it from the obligation to retain the employee concerned at work, and to pay him or her a salary.

(10) If an employer terminated a contract of employment on the basis of an extremely grave violation of an employment duty by the employee, he or she may suspend the employee concerned pending the final judicial decision on permissibility of termination. An employer must pay a salary in the amount of one-half of the average salary paid to the employee in the preceding three months.

(11) Decisions adopted by employers in violation of the provisions of this Act regulating consultations with the employees' council shall be void.

Section 146. Co-decision making

(1) The following employers' decisions may be adopted subject to prior consent of the Employees' Council:

(2) If the employees' council does not grant or deny its consent within eight days, it shall be presumed that it consented to the employer's decision.

(3) If the employees' council denies its consent to

a dismissal, a judicial or an arbitral decision may be sought and, if it determines that the dismissal is permissible, the above consent will not be required.

(4) Other issues which may be decided subject to prior consent of the employees' council may only be established subject to an agreement between an employer and the employees' council.

Section 147. Duty to inform employees

The employees' council has the duty to regularly inform employees about its work and to receive their initiatives and proposals.

Section 148. Relations with trade unions

(1) The employees' council, with a view to protect and promote the rights and interests of employees, shall cooperate in full faith with all trade unions whose members are employed by the employer.

(2) A member of the employees' council may continue to work for a trade union.

(3) When the employees' council is not established, rights specified under Sections 144 to 146, 152, Subsections (1) to (5) and (8), and 154 and 155 of this Act shall be exercised by a trade union commissioner.

(4) If the employees of an employer belong to more than one trade union, and trade unions did not reach an agreement concerning a trade union commissioner who shall exercise the rights referred to under Subsection (3) above, the dispute shall be resolved by the application of the provisions of this Act regulating the authority of trade unions to enter into collective agreements.

Section 149. Operation of the employees' council

(1) Employees' councils consisting of three or more members shall work in sessions.

(2) The employees' council shall adopt its own rules of procedure.

(3) Trade union members whose members are employed by the employer concerned may attend sessions of the employees' council, but shall have no right to vote.

(4) The employees' council may consult experts regarding issues falling within its competence.

(5) The costs of consultations referred to under Subsection (4) above shall be covered by the employer concerned, subject to an agreement between the employer and the employees' council.

Section 150. Meetings of employees

(1) Meetings of employees shall be held at least two times a year, at regular intervals, so that employees can be completely informed, and that they can discuss the situation and development of the business enterprise, institution, or another organizational form, as well discuss the work of the employees' council.

(2) If the size of a business enterprise, institution or another organizational form or other circumstances so require, the meetings referred to under Subsection (1) above may be held in departments or other organizational units.

Section 151. Judicial standing

(1) The employees' council may sue and be sued subject only to the authority or obligations set forth by this or another law, regulation, or collective agreement.

(2) The employees' council may not acquire assets.

(3) The employees' council and its members shall not incur civil liability for its decisions.

Section 152. Conditions for operation of the employees' council

(1) The employees' council shall convene and pursue its affairs during working hours.

(2) Each member of the employees' council shall be entitled to receive compensation on the basis of his or her salary for six working hours per week.

(3) Members of the employees' council may transfer their entitlement to the working hours specified under Subsection (2) above to each other.

(4) If the number of available working hours so permits, the affairs of a president or a member of the employees' council may be pursued full time.

(5) The employer shall provide the employees' council with the necessary premises, personnel, means and other working facilities.

(6) The employer shall permit members of the council to undergo training necessary for service on the council.

(7) An employer shall cover other expenses which arise from activities of the employees' council subject to the provisions of this or another law or collective agreement.

(8) Following the expiry of his or her term of service, a president or a member of the employees' council who had worked in the Employees' Council full time shall be assigned to his or her former work assignment, and where a need for such work assignment does not exist any more - to another appropriate work assignment.

(9) Conditions for work of the employees' council shall be further established subject to an agreement between the employer and the employees' council.

Section 153. Prohibition of discriminatory treatment regarding members of employees' council

An employer shall neither favour nor disfavour members of the employees' council. Prohibition of discriminatory treatment of employees by the employees' council

Section 154. Prohibition of Unequal Treatment of Employees by the Employees' Council

In pursuance of its activities the employees' council shall neither nor disfavour any individual employee.

Section 155. Nondisclosure of confidential business information

(1) Employees' council members shall not disclose confidential business information which they became aware of in the course of the exercise of their authority under this Act.

(2) The duty referred to under Subsection (1) above shall exist even after the expiry of their mandate.

Section 156. Agreement between the Employees' Council and Employer

(1) The employees' council may enter into an agreement, to be made in writing, in order to regulate employment matters.

(2) The agreement referred to under Subsection (1) above shall be directly applicable and binding on all employees of the respective employer.

(3) The agreement referred to under Subsection (1) above shall not regulate salaries, work time and other matters which are to be regulated by a collective agreement, except when parties to a collective agreement have authorised parties to an agreement under Subsection (1) above to do so.

Section 157. Increase in membership and authority of employees' council

(1) The number of members of the employees' council may be increased to exceed the number prescribed by this Act subject to an agreement between the employees' council and employer. The extent of paid working hours during which members of the employees' council may attend to council matters may also be increased.

(2) The authority of the employees' council members may be expanded by virtue of an agreement between the employees' council and employer, or by virtue of a collective agreement.

Section 158. Disbanding an employees' council and expulsion of its members

If the employees' council or some of its members grossly violate obligations under this or another law or collective agreement, trade unions whose members are employed by the respective employer, or at least 25% of the employees, or the employer concerned, may ask a competent court to disband the employees' council, or to expel any of its members.

PART XIX. TRADE UNIONS AND EMPLOYERS' ASSOCIATIONS

A. General Provisions on Associations

Section 159. Right to create an association

(1) Employees have the right, indiscriminately, and according to their own free choice, to establish a trade union and to be members of such a trade union, subject to only such requirements which may be prescribed by a statute or by-laws of that association.

(2) Employers have the right, indiscriminately, and according to their own free choice, to establish an employers' association and to be members of such an association, subject only to such requirements which may be prescribed by a statute or by-laws of that association.

(3) Establishment of the associations referred to under Subsections (1) and (2) above ("associations") is not subject to any prior authorization.

Section 160. Non-compulsory membership of associations

(1) Employees and employers, respectively, may freely decide on their membership in an association.

(2) No one shall be discriminated against because of his or her membership or non-membership in an association or participation or non-participation in its activities.

Section 161. Temporary and Permanent Prohibition of Activities by Virtue of an Executive Act

Activities of an association shall not be prohibited, and an association cannot be disbanded by virtue of an act of executive authorities.

Section 162. Federations or other forms of association

(1) Associations may create federations or other forms of association in order to pursue their interests together at a higher level ("higher levels of association").

(2) Higher levels of associations shall enjoy all rights and freedoms granted to associations.

(3) Associations and higher levels of associations shall have the right to federate freely and to cooperate with international organizations established for purposes of the promotion of common rights and interests.

Section 163. Authorities of associations

(1) An association may be a party to a collective agreement provided it is established and registered subject to the provisions of this Act.

(2) An association may represent its members in disputes before an employer, before a court, an arbitral tribunal or a state body.

Section 164. Establishment of other legal entities

In pursuance of their goals and tasks as provided under their statute or by-laws, associations may establish other legal entities, subject to specific provisions.

B. Establishment and Registration of Associations

Section 165. Establishment of association

(1) Ten individuals of major age with the capacity to act may establish a trade union.

(2) Ten individuals of major age with the capacity to act may establish an employers' association.

(3) Higher levels of associations may be established by two or more associations referred to under Subsections (1) and (2) above.

 

Section 166. Statute of association

(1) An association or a higher level association shall have a statute based and adopted on principles of democratic representation and democratic decision-making of its members.

(2) A statute of an association shall regulate its purpose; its internal organization based on principles of democratic representation and democratic decision-making; name, headquarters; area of work; emblem; bodies; method of election and recall of members of such bodies; authorities of such bodies; membership acceptance and termination procedure; methods of setting a membership fee; methods of adoption and amendment of a statute, by-laws and other internal regulations; methods of acquisition, disposition and supervision of assets, and disbanding.

(3) A statute of an association shall include provisions on bodies authorised to enter into a collective agreement and requirements and procedures for organising industrial action.

(4) A name of an association, or a higher level association must be clearly distinct from names of already registered associations or higher level associations.

(5) Entering into collective agreements must be specified as a statutory purpose of an association.

(6) Authority to enter into a collective agreement may be delegated to a higher level association by virtue of a statute, act of establishment, or act of association with a higher level association.

Section 167. Legal Personality of Association

(1) An association and a higher level association shall have legal personality as of the date of its registration in the register of associations.

(2) A statute of an association shall state whether an association has branch offices or other internal organizational forms, and the authority with which such branch offices or other internal organizational forms are vested for the purpose of legal transactions.

(3) A branch office or any other internal organizational form shall have authority to engage in legal transactions referred to under Subsection (2) above as of the date of registration in the register of associations.

Section 168. Register of associations

(1) Associations and higher level associations which operate within the territory of a single county shall be registered in a register of associations at the county office for employment affairs.

(2) Associations and higher level associations which operate within the territory of two or more counties shall be registered with a register of associations at the Ministry of Labour.

(3) If an association has branch offices or other internal organizational forms which are authorized to engage in legal transactions, such branch offices or other internal organizational forms and their authorities shall be registered in a register of associations.

(4) The following information shall be registered in a register: date of establishment; title; head office; area of work; name of executive body; names of persons vested with authority; disbanding of an association or a higher level association and termination of authority to engage in legal transactions of a branch office or other internal organizational form.

(5) The Minister of Labour shall regulate contents and methods for maintaining registers of associations.

Section 169. Application to register with a register of associations

(1) An association shall be registered in a register upon the application of its founder.

(2) The application shall be accompanied by: a certificate of establishment; minutes of the founding assembly; a statute; a list of founders and members of an executive body; and names and family names of a person or persons vested with authority to represent the association.

(3) The founders must apply for registration in a register of associations within thirty days following the date of the founding assembly.

(4) A body competent for registration must issue a certificate that an application for registration has been filed with a register of associations.

Section 170. Decision on application for registration in a register of associations

(1) Upon receipt of an application for registration in a register of association, a competent body shall pass a decision in this regard.

(2) The decision referred to under Subsection (1) above shall include: date of registration and registration number; name of association; head office address; area of work; and name and family name of a person or persons vested with authority to represent an association.

Section 171. Corrections of statute or establishment procedure

(1) If a body competent for registration finds that an attached statute does not comply with this Act, or that it does not contain evidence concerning fulfilment of requirements for establishment of an association specified by this Act, it shall call upon the applicant to bring the statute into conformity with this Act or to produce adequate evidence, and shall establish a deadline for this purpose not to exceed fifteen days.

(2) If within the time referred to under Subsection (1) above the applicant does not bring a statute into conformity or does not produce evidence of compliance with requirements for the establishment of an association provided for by this Act, a body competent for registration shall issue a decision rejecting the application to register in the register of associations.

Section 172. Time for issuing decision on registration in a register of associations

(1) A body competent for registration shall issue a decision concerning an application for registration with a register of association within 30 days following the filing of a complete application.

(2) If a competent body does not issue a decision within the time period ed under Subsection (1) above, it shall be considered that an association is registered as of the day following the expiry of the specified time period.

(3) In cases specified under Subsection (2) above, a body competent for registration shall issue a certificate of registration of an association, containing particulars set forth in Subsection (2) of Section 170 of this Act, within 7 days following the expiry of the time period for issuing a decision.

Section 173. Denial of application for registration

(1) A body competent for registration shall deny registration in a register of associations by issuing a decision to this effect if an association was not established in compliance with Sections 165 and 166 of this Act.

(2) Reasons must be given for a decision to deny an application for registration.

(3) A decision specified under Subsection (1) above shall be final and can be challenged before an administrative tribunal.

Section 174. Registration in the event that information changes

(1) Any change of a title of an association or its branch office or other internal organizational form vested with the authority to engage in legal transactions, change of a head office address, area of work, name of a body, persons vested with the authority to represent, and disbanding or termination of authority to engage in legal transactions shall be registered in a register of associations.

(2) A person vested with the authority to represent an association must report any change specified under Subsection (1) above to a body maintaining a register of associations within 30 days following the occurrence of a change.

(3) Provisions of this Act applicable to the registration of associations in a register shall be applicable to the registration of changed information referred to under Subsection (1) of this Section.

C. Assets of Associations

Section 175. Collection and protection from eviction

(1) Associations may collect enrolment and membership fees and buy, receive donations, or acquire assets in any other legal manner, without the need for prior authorization.

(2) Real estate and moveable assets of associations which are necessary for convening meetings, education, and for libraries may not be subject to attachment..

Section 176. Allocation of association's assets

(1) If an association splits, or a substantial number of its members creates a separate association, assets of the association shall be allocated proportionate to the number of former members of the original association who join the newly established entities, unless otherwise provided by a contract or other agreement.

(2) If an association is dissolved, its assets shall be dealt with in the manner prescribed by its statute.

(3) If an association dissolves, its assets may not be allocated to its members.

D. Operation of Associations

Section 177. Prohibition of control of counterpart

(1) Employers and their associations shall not have a right to control the establishment and operation of trade unions or their higher level associations, nor shall they finance or in another way support trade unions or their higher level association in order to control them.

(2) Prohibition of the control described in Subsection (1) above shall be applicable to a relationship of trade unions and their higher level associations with employers and their associations.

Section 178. Judicial Protection of Membership Rights

A member of an association may seek judicial protection in the event of the violation of his or her rights guaranteed by a statute or other regulations of an association.

Section 179. Judicial protection of right to associate

(1) An association or a higher level association may ask a court to prohibit an activity which violates the right of employees and employers, respectively, to free association.

(2) An association or a higher level association may claim damages incurred as a result of activities prohibited under Subsection (1) above.

Section 180. Prohibition of unequal treatment on the basis of membership in trade union or taking part in activities of trade union

(1) An employee shall not be discriminated against because of his or her membership in a trade union. In particular, it shall be prohibited to:

(2) Membership in a trade union and taking part in activities of a trade union must not be taken into consideration by an employer when reaching a decision whether or not to enter into a contract of employment, in the assignment of an employee to a particular work assignment or to a particular work site, specialist training, promotion, pay, social benefits and termination of a contract of employment.

(3) An employer, a chief executive, another body or an employer's representative, shall not use coercion in favour of or against any trade union.

Section 181. Trade union representatives and commissioners

(1) Trade unions shall decide freely on methods for their representation before an employer.

(2) Trade unions whose members are employed by a particular employer may appoint or elect one or more trade union representatives or commissioners who shall represent them before that employer.

(3) Trade union representatives or commissioners shall have a right to protect and promote interests of trade union members.

(4) Employers shall have a duty to facilitate timely and efficient exercise of the rights referred to under Subsection (3) above by trade unions representatives and commissioners, and to provide access to information necessary for the exercise of those rights.

(5) A trade union representative or a commissioner must exercise his or her rights referred to under Subsection (3) above in a manner which is not detrimental to the efficiency of the employer's business.

(6) A trade union shall inform an employer about the appointment of a trade union representative or commissioner.

Section 182. Protection of trade union commissioners

(1) An employer may dismiss a trade union commissioner only subject to the prior consent of the trade union.

(2) If the trade union does not give or deny its consent within eight days, it shall be presumed to have consented to the employer's decision.

(3) If the trade union denies its consent, the employer's decision may instead be authorised by a judicial decision.

(4) A maximum number of trade union commissioners who are entitled to protection under Subsection (1) shall be determined by the application of provisions of this Act regulating the number of members of the Employees' Council.

E. Termination of Association

Section 183. Methods of termination of association

(1) An association may terminate:

(2) In cases specified under paragraphs (ii) to (iv) above, a decision on the termination of an association shall be delivered by a competent court.

(3) Upon a final judicial decision, a body competent for registration shall delete an association from its register.

Section 184. Ban on operation of associations

(1) The operation of an association may be prohibited by a decision of a county court having territorial jurisdiction in the area where an association has its head office, if the operation of an association violates the Constitution and law.

(2) The injunction procedure shall be initiated upon a motion of a body competent for registration, or a competent State Attorney.

(3) A judicial decision prohibiting the operation of an association must include reasons for the decision, and must indicate the activities which led to prohibition of the association's operation.

(4) A judicial decision prohibiting the operation of an association must include a decision on the disposition of the association's assets, subject to the provisions of the statute of the association.

(5) The holding of a final decision prohibiting the operation of an association shall be published in "Narodne Novine" (the Official Gazette).

PART XX. COLLECTIVE AGREEMENTS

Section 185. Parties to a collective agreement

Parties to a collective agreement may be one or more employers, an employers' association, or a higher level employers' association on one side, and a trade union or a higher level trade union association on the other side, which are, in the course of negotiating a collective agreement, willing and able to use pressure to protect and promote the interests of their members.

Section 186. Trade union collective bargaining committee

(1) If more then one trade union, or a higher level association is present in a territory where a collective agreement is to be concluded, an employer or employers, or an employers' association or a higher level employers' association is permitted to negotiate a collective agreement only with a collective bargaining committee composed of representatives of such trade unions.

(2) Trade unions shall establish the number of members and composition of the collective bargaining committee referred to under Subsection (1) above.

(3) The collective bargaining committee referred to under Subsection (1) above shall have not less then five nor more than eleven members.

(4) If trade unions do not reach an agreement as to the number of members of the collective bargaining committee referred to under Subsection (1) above, the decision shall be made by the chairman of the Economic and Social Council, taking into consideration the number of trade unions in the respective economic branch.

(5) If trade unions do not reach an agreement as to the composition of the collective bargaining committee referred to under Subsection (1) above, the number of representatives of each trade union participating in the committee shall be set in accordance with the number of votes cast for a respective trade union. All members of all trade unions which are active in a territory for which a collective agreement is to be negotiated shall participate in a ballot.

(6) Election rules and methods according to which members of the committee referred to under Subsection (1) above are to be elected shall be established by a consensus of all trade unions, and if agreement cannot be reached until the day when elections are announced, by the Economic and Social Council.

(7) Only trade unions which have been registered for at least six months prior to the announcement of elections shall have the right to nominate candidates to the collective bargaining committee referred to under Subsection (1) above.

(8) Trade unions may agree not to elect members of the collective bargaining committee in accordance with Subsection (5) above, but instead to authorize an arbitral tribunal to make a decision on the composition of such a committee.

(9) The collective bargaining committee referred to under Subsection (1) above established in compliance with the provisions of Subsections (1) to (8) above shall be elected for the same term for which the collective agreement is to be applicable, but not for longer than three years.

(10) The collective bargaining committee shall determine its own work and decision-making procedures..

Section 187. Subject matter of collective agreement

(1) A collective agreement regulates the rights and obligations of parties which are signatories thereto, and may contain legal rules which regulate conclusion of the agreement, the substance and termination of contracts of employment, issues related to an employees' council, social security issues, and other issues originating from or related to employment.

(2) Legal rules contained in the collective agreement shall be directly applicable and binding on all persons who are, in accordance with this Act, subject to the collective agreement.

(3) The collective agreement may contain rules related to collective bargaining procedures and to the composition and methods of work of bodies vested with the authority for the peaceful settlement of collective labour disputes.

Section 188. Compulsory collective bargaining

Persons who by virtue of this Act may be parties to a collective agreement, shall in good faith negotiate a collective agreement in relation to issues which, according to this Act, may be the subject of a collective agreement.

Section 189. Persons bound by collective agreement

(1) A collective agreement shall be binding on all persons signatories thereto, and all persons who, at the time of closing such an agreement, were or subsequently became members of the association which is a party to the collective agreement.

(2) A collective agreement shall be binding on all persons who have acceded to the collective agreement and all persons who have subsequently become members of the association which has acceded to the collective agreement.

Section 190. Form of collective agreement

A collective agreement must be in writing.

Section 191. Obligation of good faith performance of obligations originating from collective agreement

(1) Parties to a collective agreement and persons subject to its application shall in good faith perform their obligations originating from such an agreement.

(2) Injured parties or persons subject to the application of the collective agreement may claim damages for breaches of provisions of the collective agreement.

Section 192. Indication of scope of application

A collective agreement shall indicate who are subject to its application and the scope of its application.

Section 193. Authority for negotiating and concluding a collective agreement

(1) Persons representing parties to a collective agreement must be authorized in writing to negotiate and conclude a collective agreement.

(2) If a party to a collective agreement is a legal person, the authority referred to in Subsection (1) above must be given in compliance with a statute of that legal person.

Section 194. Duration of collective agreement

(1) It may be agreed that a collective agreement shall be applicable for a definite or an indefinite period.

(2) A collective agreement applicable for a definite period may not be applicable for more then five years.

Section 195. Extended application of legal rules of a collective agreement

Save as otherwise provided for by a collective agreement, following the expiry of the period for which a collective agreement is agreed to be in effect, legal rules contained therein relating to entry into and the substance and termination of contracts of employment shall continue to be applicable until a new collective agreement is signed.

Section 196. Cancellation of a collective agreement

(1) A collective agreement must contain provisions on a cancellation period and the cancellation, amendment and renewal procedure.

(2) A collective agreement signed for an indefinite period may be cancelled.

(3) A collective agreement signed for a definite period may be cancelled only if it contains a cancellation clause.

(4) The cancellation of a collective agreement shall be served to parties thereto.

Section 197. Influence of statutory changes on application of a collective agreement

If an employer engages in a division, merger, separation, or any other statutory change, the original collective agreement, which was applicable prior to such a statutory change, shall be applicable to employees until a new collective agreement is signed, but not for longer than one year.

Section 198. Submission of collective agreement to a competent body

(1) Every collective agreement and any change (amendment, supplement, cancellation or accession) in a collective agreement shall be submitted, depending on the area of its application, to the Ministry of Labour or to a county office for labour affairs.

(2) Collective agreements and changes thereto applicable in the territory of the entire Republic of Croatia, or in the territory of two or more counties shall be forwarded to the Labour Ministry. All other collective agreements and changes thereto shall be forwarded to county offices for labour affairs.

(3) A collective agreement or a change thereto shall be forwarded to a competent body by the party which is listed first in the agreement concerned and, in the case of cancellation, by the cancelling party.

(4) The Minister Of Labour shall, with a book of rules, regulate the procedure for forwarding collective agreements and changes thereto to a competent state body and the methods of recording received collective agreements and changes thereto.

Section 199. Publication of a collective agreement

(1) A collective agreement shall be published.

(2) The Minister of Labour shall adopt regulations in order to regulate methods of publication of collective agreements.

Section 200. Accession to a collective agreement

(1) Persons who subject to this Act may be parties to a collective agreement may accede to such an agreement.

(2) A statement of accession shall be served to all signatories to collective agreements and all persons who have subsequently acceded thereto.

(3) Persons who have subsequently acceded to a collective agreement shall have the same rights and obligations as the original signatories.

Section 201. Extension of Application of a Collective Agreement

(1) The Minister of Labour may for purposes of public interest extend the application of collective agreements to persons who did not take part in negotiations, and who have not subsequently acceded to such an agreement.

(2) Prior to the adoption of a decision to extend the application of a collective agreement the Minister of Labour must consult trade unions, employers' associations and employers' representatives which would be subject to such an extended application of the collective agreement.

(3) A decision on the extension of the application of a collective agreement may be rescinded by application of rules relating to the adoption of such a decision.

Section 202. Judicial protection of rights established under a collective agreement

A party to a collective agreement may ask a court to protect rights established under such an agreement.

PART XXI. ALTERNATIVE COLLECTIVE EMPLOYMENT DISPUTE RESOLUTION

1. Mediation

Section 203. Compulsory mediation of disputes

(1) Disputes related to the signing, amendment or renewal of a collective agreement, and any other disputes which could result in a strike or any other form of industrial action (collective employment dispute), shall be resolved subject to a compulsory mediation procedure prescribed by this Act, except when parties have agreed to an alternative method of dispute resolution.

(2) The settlement referred to under Subsection (1) above shall be determined by a board of mediators.

 

Section 204. Composition of board of mediators

(1) A board of mediators shall consist of three members: one representative of employers or their associations, or higher level associations, one representative of trade unions or their associations, or higher level associations, and one member appointed by disputing parties, selected from a list established by the Economic and Social Council.

(2) The Economic and Social Council and county offices competent for labour affairs shall keep lists of potential mediation board members who are eligible for appointment.

(3) Costs of a mediation board member appointed from a list maintained by the Economic and Social Council shall be covered by the Ministry of Labour.

(4) Administrative work of a mediation board shall be performed by the Ministry of Labour or a competent county labour affairs office service.

(5) The Economic and Social Council shall adopt regulations in order to regulate methods of appointment of mediation board members and the procedure of such boards.

Section 205. Deadline for completion of mediation

Except when parties to a dispute agree otherwise, mediation must be completed within five days following submission of a dispute to the Economic and Social Council, or a county office competent for labour affairs.

Section 206. Dispositions of parties and their effect

(1) Parties may either accept or reject a proposal of a mediation board.

(2) An accepted proposal shall have the effect and legal force equivalent to that of a collective agreement.

2. Arbitration

Section 207. Resolution of disputes by arbitration

(1) Parties may agree to the resolution of a collective labour dispute by arbitration.

(2) The appointment of an individual arbitrator or an arbitration board may be regulated by a collective agreement or by an agreement of parties made after a dispute has arisen.

Section 208. Questions to be decided by an arbitration board

(1) An agreement to bring a dispute before an arbitration board shall define the matter which must be resolved.

(2) An arbitration board may decide only those matters which were brought by parties to a dispute.

Section 209. Arbitration award

(1) If a dispute concerns interpretation or application of law, other regulations or a collective agreement, an arbitration board must base its decision on such law, other regulations or collective agreement.

(2) If a dispute concerns the signing, amendment or renewal of a collective agreement, the arbitration board shall base its decision on equitable grounds.

(3) Except when parties to a dispute decide otherwise by a collective agreement or an agreement to bring a dispute before an arbitration board, an arbitration award must include the reasons for the award.

(4) Arbitration awards may not be subject to an appeal.

(5) If a dispute concerns the signing, amendment or renewal of a collective agreement, an arbitration award shall have the effect and legal force of such an agreement.

PART XXII. STRIKE AND LOCKOUT

Section 210. Strike

(1) Trade unions and their higher level associations have the right to call a strike and to strike in order to protect and promote the economic and social interests of their members.

(2) A strike must be announced to an employer, or to the employers' association, against which it is directed.

(3) A strike may not begin prior to the conclusion of the mediation procedure subject to this Act, or prior to completion of other dispute settlement procedures agreed upon by the parties.

(4) A strike must be announced by a letter which must state the reasons for the strike, the place, date and time of its commencement.

(5) Not later then on the day when the strike is announced, trade unions or higher level trade unions' associations must publish rules concerning work assignments for which work must not be interrupted during a strike or a lockout. Such rules shall be adopted subject to provisions of this Act..

Section 211. Lockout

(1) Employers may engage in a lockout only as a response to a strike already in progress.

(2) A lockout must not commence prior to the expiry of eight days from the date of commencement of a strike.

(3) The number of employees locked out from work must not be higher then one half of the employees which are on strike.

(4) With respect to the employees who are locked out employers must pay contributions prescribed by specific regulations according to a minimum salary basis.

(5) Provisions of this Act applicable to strikes shall be applicable to the right of employers to lock employees out in the course of a collective labour dispute.

Section 212. Rules applicable to work assignments which should not be interrupted

(1) Upon an employer's proposal, a trade union and the employer concerned may, by an agreement, prepare and adopt rules applicable to the maintenance of production and other necessary work assignments which must not be interrupted during a strike or a lockout.

(2) The rules referred to under Subsection (1) above shall include provisions concerning assignments and the number of employees who work on such assignments during a strike or a lockout, with the aim of enabling a restoration of regular work, immediately after a strike ("production maintenance assignments"), or with the aim of performance of work which is essential for the prevention of hazards, personal safety or public health ("essential assignments") .

(3) Adoption of the assignments referred to under Subsection (1) above must not prevent or substantially frustrate a right to strike.

(4) If a trade union and an employer do not reach an agreement on assignments referred to under Subsection (1) above within 15 days following receipt by a trade union of an employer's proposal, the employer concerned or a trade union may within the next 15 days submit the issue for decision by an arbitration board.

(5) The arbitration board referred to under Subsection (4) above shall consist of one representative of a trade union, one representative of the employer concerned, and of one independent chairperson to be elected subject to an agreement between the trade union and the employer concerned.

(6) If a trade union and an employer do not reach an agreement on the appointment of a chairperson of the arbitration board, and those issues are not otherwise regulated by a collective agreement or an agreement between the parties, the chairperson shall be appointed by the president of a court which, subject to this Act, has jurisdiction to hear cases related to the prohibition of strike or a lockout.

(7) If one party refuses to participate in an arbitration procedure for the determination of assignments which may not be interrupted, the procedure shall be completed without participation of that party, and a decision on assignments referred to under Subsection (1) above shall be delivered by the chairperson of the arbitration board.

(8) An arbitration board shall deliver a decision on the assignments referred to under Subsection (1) above within 15 days following commencement of the arbitration procedure.

(9) If an employer did not propose the determination of assignments referred to under Subsection (1) above until the day of the commencement of mediation, such a procedure may not be initiated until the end of a strike.

Section 213. Effects of strike organization or participation in a strike

(1) Strike organization or taking part in a strike which is organised in compliance with the law, a collective agreement and rules of a trade union does not constitute a breach of a contract of employment.

(2) Employees must not be put in a less favourable position than other employees because of their involvement in organization of or participation in a strike which was organised in compliance with the law, a collective agreement and rules of a trade union.

(3) An employee may be dismissed only if he or she organised or participated in a strike which was not organised in compliance with the law, a collective agreement or rules of a trade union, or if in the course of a strike he or she commits some other grave violation of a contract of employment.

(4) Employees must not be, by any means, coerced to participate in a strike.

Section 214. Proportional reduction of salary and bonuses

An employer may reduce the salary and bonuses of an employee who has participated in a strike, but benefits for children may not be reduced. The reduction must be proportionate to the time spent on strike.

Section 215. Judicial prohibition of illegal strikes and damages

(1) An employer or an employers' association may ask a competent court to prohibit the organization and carrying out of an illegal strike.

(2) An employer may claim damages suffered from a strike which was organised and carried out in violation of the law.

Section 216. Judicial prohibition of illegal lockouts and damages

(1) A trade union may ask a competent court to prohibit the organization and carrying out of an illegal lockout.

(2) A trade union may claim damages suffered by a trade union or employees by a lockout which was organised and carried out in violation of the law.

Section 217. Judicial jurisdiction to prohibit a strike or a lockout

(1) If a strike or a lockout encompasses one county only, first instance jurisdiction to ban a strike or a lockout shall be vested in a county court in accordance with venue requirements.

(2) If a strike or a lockout encompasses two or more counties, first instance jurisdiction to ban a strike or a lockout shall be vested in a three-judge panel of the Supreme Court.

(3) Appeals against decisions delivered under provisions of Subsections (1) and (2) above shall be decided by a five-judge panel of the Supreme Court.

(4) A first instance decision on whether to ban a strike or a lockout or not shall be delivered within four days following the filing.

(5) An appellate decision on whether to ban a strike or a lockout or not shall be delivered within five days following the filing of an appeal.

Section 218. Strikes in the armed forces, police, public administration and public service

Strikes in the armed forces, police, public administration and public service shall be regulated by a special law.

PART XXIII. ECONOMIC AND SOCIAL COUNCIL

Section 219. Powers of the Economic and Social Council

(1) An Economic and Social Council may be established for purposes of the definition and performance of coordinated activities aimed at the protection and promotion of economic and social rights and the interests of both employees and employers, in pursuance of coordinated economic, social and development policies, encouragement of entering into and application of collective agreements and their harmonisation with economic, social and development policies.

(2) Activities of the Economic and Social Council are based on the concept of trilateral cooperation between the Government of the Republic of Croatia (the "Government"), trade unions and employers' associations, for the purpose of solving economic and social issues and problems.

(3) The Economic and Social Council:

(4) The Economic and Social Council shall be established subject to an agreement between the Government, trade unions and employers' associations.

(5) Powers of the Economic and Social Council shall be regulated in more detail in its constitution.

(6) The Economic and Social Council may create committees and commissions to deal with specific questions within its powers.

(7) The Economic and Social Council shall adopt rules of procedure in order to regulate decision-making procedures.

(8) Any member of the Economic and Social Council may propose any question to be discussed, and that a decision falling within the powers of the Council be made.

(9) If the Economic and Social Council is not established, or if the Council did not create a list of mediators or mediation board members, arbitrators or arbitration board members, within 30 days following the filing of an application, or if it did not adopt rules regulating methods of election of mediation board members or mediation procedure within the same time, these issues shall be regulated by the Minister of Labour within the following month, taking into consideration the nature of alternative dispute resolution and the principle of tripartite cooperation between the Government, trade unions and employers' associations in the resolution of economic and social issues and problems.

Section 220. Composition of the Economic and Social Council

(1) The composition of the Economic and Social Council shall be determined by its constitution.

(2) In determining the composition of the Economic and Social Council, care shall be taken to ensure an adequate representation of trade unions and employers' associations in the areas of business and public services.

PART XXIV. SUPERVISION OF THE APPLICATION OF LABOUR REGULATIONS

Section 221. Supervision

(1) A public administration authority competent for the inspection of labour affairs shall supervise the application of this Act, and regulations adopted in pursuance thereof, as well as the application of other laws and regulations regulating the relationship between employers and employees.

(2) If access to a business enterprise or an institution is restricted for reasons of defence of the Republic of Croatia, the supervision referred to under Subsection (1) above shall be carried out by the labour inspectorate, except as otherwise provided by other legislation.

Section 222. Powers of the labour inspector

(1) An inspector of labour shall have supervisory powers set forth by law, or by a regulation enacted in pursuance thereof.

(2) An employee, an employees' council, a trade union and an employer may ask a labour inspector to undertake an inspection.

PART XXV. SPECIAL PROVISIONS

1. Employment Certificate

Section 223. Employment certificate

(1) Every employee shall have an employment certificate which shall be deemed a public document.

(2) The Minister of Labour shall regulate contents, issuing procedure, methods of recording, replacement and reissuing procedure, methods of keeping a register of issued employment certificates, form, production and sale of employment certificates.

Section 224. Administration of employment certificates

(1) Employees shall furnish an employer with the employment certificate on the day of commencement of employment.

(2) In cases referred to under Subsection (1) above, the employer concerned shall issue a receipt on taking the employment certificate into its possession.

(3) The employer must return the employment certificate to the employee concerned on the day of termination of employment.

(4) An employer must return the employment certificate to the employee concerned before termination of a contract of employment, upon the written request of the latter.

(5) An employer who, following termination of a contract of employment, is not able to return an employment certificate to the employee concerned, must forward it to a county office competent for labour affairs in the place of the employee's residence, and if the employee's residence is unknown, to a county office competent for labour affairs in the place where the employment certificate was issued.

2. Special Regulations on Military Service

Section 225. Effects of military service on employment

(1) Rights and obligations created by employment shall be suspended during military service and service in a military reserve corps ("military service").

(2) An employee who following the termination of military service wishes to continue to work for the same employer must, as soon as he or she learns the date of termination of his or her military service, but not later than one month following the termination, communicate his or her intention to the employer concerned.

(3) An employer must assign the employee who complied with the provisions of Subjection (2) above to the same work assignments where he or she worked prior to his or her military service, or to other adequate work assignments, except where the need for such assignments does not exist due to economic, technical or organizational reasons, and it is not possible to transfer such an employee to other adequate assignments.

(4) If, in a case referred to under Subsection (3) above, an employer is not able to admit the employee concerned to work, he must pay him or her compensation in the amount of his or her salary for a period prescribed or for the agreed cancellation period, and if the required conditions are fulfilled, adequate severance pay.

(5) An employer must admit an employee referred to under Subsection (1) above to work within one month following the receipt of his or her statement of intention to continue to work for the same employer.

(6) An employee who cannot be admitted to work as required above shall be given priority for employment by the same employer within one year following the termination of military service.

(7) Termination of a contract of employment because of military service shall not be permitted.

8) During the military service of an employee, an employer may not ordinarily terminate a contract of employment.

(9) In the event of termination of a contract of employment contrary to this Section, employees shall be entitled to all rights guaranteed by this Act applicable to illegal dismissals.

(10) Rights guaranteed by this Act related to military service shall be applicable to persons serving in the police reserve corps.

3. Special provisions applicable to representatives and officials

Section 226. Rights of candidates for parliamentary, assembly and council representation

(1) A candidate for a seat as a representative in the Parliament of the Republic of Croatia ("Parliament") during the time of the electoral campaign shall have the right to abstain from work, without receiving pay, but not for more than fifteen working days.

(2) A candidate for a seat as representative in a county or a district with a special self-governing status shall during the time of the electoral campaign have the right to abstain from work, without receiving pay, but not for more than ten working days.

(3) A candidate for a seat as representative in a city or a municipal council shall during the time of the electoral campaign have the right to abstain from work, without receiving pay, but not for more than five working days.

(4) An employee shall inform his or her employer about the exercise of the rights specified under Subsections (1) to (3) above at least 24 hours in advance.

(5) The leave described under Subsections (1) to (3) above may not be used in portions shorter than one half of daily working hours.

(6) At the request of an employee, he or she may, instead of taking the leave described under Subsections (1) to (3) above take the annual vacation in the prescribed length, until the first day of elections.

(7) If the acquisition of certain rights is made subject to a condition of continuous employment for the same employer, periods of unpaid leave described under Subsections (1) to (3) above shall be deemed equivalent to time spent at work and shall be added to the length of employment required for the acquisition of certain employment rights, or related to employment.

Section 227. Rights of Representatives and Officials

(1) At the request of an employee who is elected as a Parliament representative, or an official appointed by Parliament, by the President of the Republic, the Government or the Constitutional Court, or elected as president of a county, deputy president of a county, city mayor or a deputy mayor of the city of Zagreb, and the employee concerned was employed by the same employer during a continuous period of at least one year, his or her contract of employment shall be suspended until the end of his or her term of office.

(2) Except as agreed by an employer and an employee to the contrary, suspension shall commence fifteen days following the receipt of the employee's request by the employer.

(3) The employee referred to under Subsection (1) above shall have the right to return to work to the same employer if he or she informs the employer of such an intention not later then one month following the termination of his or her term of office.

(4) One month after the day of receipt of the notice referred to under Subsection (3) above, the employee referred to under Subsection (1) above shall have the right to be designated to previously held or other adequate assignments.

(5) If the acquisition of certain rights is made subject to a condition of continuous employment for the same employer, periods of suspension of the contract of employment shall, upon the employee's return to work, be deemed equivalent to time spent at work.

(6) The employee referred to under Subsection (1) above is entitled to additional specialist training if the technique or methods of work have changed during his or her absence.

(7) If an employee is elected or appointed to any of the functions referred to under Subsection (1) above once again, he or she shall not be entitled to the rights specified in this Section, except where a total suspension period of the contract of employment was longer than five years.

(8) If an employee's employment has terminated because of election or appointment for the term of more than 5 years referred to under Subsection (1) above, he or she shall be given priority for employment by the employer during a period of one year following termination of his or her term of office, and in such a case shall have the rights provided in circumstances of original election or appointment restored.

PART XVI. PENAL PROVISIONS

Section 228. Violations Committed by Employers

(1) An employer shall be fined in an amount ranging from 5.000 to 20.000 kinas:

(2) For violations specified under Subsection (1) above committed in respect of a minor employee, minimum and maximum amounts of fines shall be tripled.

Section 229. Violations by trade unions and higher level trade unions' associations

A trade union or a higher level trade unions' association shall be fined by an amount ranging from 5.000 to 20.000 kinas:

Section 230. Violations committed by employers' associations and higher level employers' associations

An employers' association or a higher level employers' association shall be fined in an amount ranging from 5.000 to 20.000 kinas:

PART XVII. INTERIM AND FINAL PROVISIONS

Section 231. Harmonisation of acts and registration of associations in compliance with provisions of this Act

(1) Associations which are registered pursuant to currently effective regulations shall have an obligation to harmonise their statutes, by-laws and other acts with provisions of this Act within three months of its effective date, and to file a complete application for registration with a body competent for registration, in compliance with provisions of this Act.

(2) A body competent for keeping a register of non-profit organisations shall delete from a register an association registered pursuant to this Act upon receipt of a request by a person authorised by the respective association.

Section 232. Collective agreements concluded before the effective date of this Act

Collective agreements concluded before the effective date of this Act shall remain effective until expiry, except when they terminate by virtue of a new collective agreement, cancellation, or by other means as may be provided for by a collective agreement.

Section 233. Adoption of rules on work assignments which must not be interrupted during a strike or a lockout

Trade unions and employers must adopt rules on work assignments which must not be interrupted during a strike or a lockout within six months following the effective date of this Act.

Section 234. Rights of employees whose right to suspension of their employment has terminated

Employees whose employment is suspended in compliance with regulations applicable prior to the effective date of this Act, and who subject to this Act are not entitled to such a suspension, shall have a right, subject to former regulations, to be designated to their original work assignments, or other adequate work assignments within a period not longer then six months following the effective date of this Act.

Section 235. Adoption and harmonisation of work rules with provisions of this Act

Employers must adopt or harmonise work rules with provisions of this Act within three months of its effective date.

Section 236. Right of Croatian war veterans to be re-employed

An employee who subject to specific regulations has the capacity of a Croatian war veteran, and whose employment has terminated, shall have the right to be re-employed by the original employer and to be given adequate work assignments, within one month following termination of military service in the Croatian army or a police unit.

Section 237. Regulations for application of this Act

(1) When this Act authorises a competent minister to adopt regulations for application of this Act, a competent minister shall adopt such regulations within six months of its effective date.

(2) A competent minister shall, prior to adoption of regulations referred to under Subsection (1) above, ask trade unions and employer's unions for an opinion.

(3) Prior to adoption of regulations referred to under Subsection (1) above, the following regulations shall be applicable:

- Employment certificate instruction (Narodne novine No. 9/91) ;

- Registration and publication of registered collective agreement instruction (Narodne novine No. 32/86) ;

- Rules on methodology according to which extremely difficult, energy consuming and unhealthy jobs or work assignments are to be determined by employees (Narodne novine No. 32/86);

- Rules on criteria for establishment of necessary enhanced motherly care of a child under three years of age (Narodne novine No. 4/81);

- Rules on acquisition of a right to be employed according to reduced work hours because of care for a child suffering a grave disability (Narodne novine Nos. 34/90 and 16/91) ;

- Rules on contents and the method of registration of a decision on the choice of seamen or employment of seamen as members of a vessel crew (Narodne novine No. 73/94).

Section 238. Regulations on reduced work hours

(1) If collective agreements are not entered into within one year following the effective date of this Act, or if employers do not adopt work regulations designating work assignments when, even with the implementation of protection at work measures, it is not possible to protect an employee from harmful influences, and work hours on such assignments, rules regulating the said subject matter shall be adopted by the Minister of Labour upon a proposal of a person who subject to this Act has the capacity to be a party to a collective agreement and subject to the consent of the Minister of Health, within three months.

(2) Prior to conclusion of a collective agreement, or adoption of rules referred to under Subsection (1) above, regulations in force prior to the effective date of this Act shall be applicable.

Section 239. Pending registration procedures

Pending registration procedures, which are not completed until the effective date of this Act, and which are subject to the application of provisions of this Act, shall be completed in compliance with provisions of this Act.

Section 240. Pending procedures concerning exercise and protection of rights

(1) Pending procedures concerning the exercise and protection of rights of employees which were initiated prior to the effective date of this Act shall be completed in compliance with provisions of laws in force prior to the effective date of this Act, except when this Act regulates a certain right in a more favourable way for an employee.

(2) An employee who has commenced the exercise of a right to maternity leave or any other right subject to provisions of a law which is in force prior to the effective date of this Act may, if it is more favourable for him or her, claim the rights set forth in this Act.

(3) An employee whose right to maternity leave has expired prior to the effective date of this Act may, if he or she meets all the requirements, exercise rights specified in Sections 58(4) and Section 59(1) and (2) of this Act.

Section 241. Conclusion of contracts of employment in a form and according to substantial requirements set forth by this Act

(1) An employer must offer its employees to enter into a contract of employment with them in a form and according to substantial requirements set forth by this Act within three months following the effective date of this Act.

(2) In respect of the length of employment, working hours, work assignments, salary and other conditions, the contract referred to under Subsection (1) above must not be less favourable for an employee then conditions of the original contract of employment, or the conditions applicable to the relationship of an employer and an employee prior to the effective date of the contract referred to in Subsection (1) above, except when those issues are otherwise regulated by provisions of this Act.

(3) When an employee does not accept an employer's offer to enter into a contract of employment within fifteen days following receipt pursuant to Subsection (2) above, the employee's employment shall terminate following expiry of thirty days following the receipt of the employer's offer.

(4) An employee who accepts the employer's offer, and considers that the contract offered by the employer does not comply with provisions of Subsection (2) above, retains the right to challenge the validity of the employer's offer before a competent court within fifteen days following the acceptance of the offer.

Section 242. Minimum Salary

(1) If salaries are not regulated by a collective agreement during a maximum period of two years following the effective date of this Act, the Government may, upon a proposal of a person who has the capacity to be a party to a collective agreement subject to provisions of this Act, under requirements set forth by this Act, determine the amount of a minimum salary.

(2) An employer must not pay to an employee a salary earned for full time employment which is lower than the amount of a minimum salary calculated pursuant to this Act.

(3) The Government shall determine the amount of a minimum salary taking into consideration:

(4) The Government shall ensure timely adjustment of the amount of a minimum salary with living expenses and other factors referred to under Subsection (3) above, referred to under Subsection (3) above, in accordance with standards established by the Government upon a proposal of the Economic and Social Council.

(5) The Government shall reach a decision on the amount of a minimum salary on the basis of an opinion of the Economic and Social Council.

(6) The Government shall ensure collection of statistical and other data indispensable for the calculation of living expenses and other factors referred to under Subsection (3) above.

(7) The Government may determine the amount of a minimum salary in a single amount for all employees, or in different amounts for different groups of employees, or for different regions of the Republic of Croatia, taking into consideration different living expenses in such regions.

(8) A decision on the amount of a minimum salary shall be published in "Narodne novine."

Section 243. Rights of persons disabled at work in the event of termination of employment

Prior to the effective date of the new regulations on pension and disability insurance, a person disabled at work who has, subject to regulations on pension and disability insurance which were in force on the effective date of this Act, acquired or is to acquire any right based on his or her remaining ability to work, and who was dismissed by an employer because of business or personal considerations, because such person may not be employed on other work assignments, shall exercise acquired rights subject to provisions of Section 54 of the Old Age and Disability Insurance Act ("Narodne novine," Nos. 26/83, 5/86, 42/87, 34/89, 57/89, 40/90, 9/91, 26/93, 96/93, 29/94 and 44/94).

Section 244. Abrogation of other legislation

On the effective date of this Act the following legislation shall be abrogated:

Section 245. Effective date of this Act

This Act shall take effect on the eighth day following its publication in "Narodne novine" and shall be applicable as of January 1, 1996.



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