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Constitutional Court Ruling on Amendments to Croatian Commerce Act

Precedential Decision by Judiciary or Regulatory Agency

Authors: Marija Gregoric, Partner, and Matija Skender, Senior Associate – Babic & Partners Law Firm

On February 6, 2024, the Croatian Constitutional Court ruled on the constitutionality of amendments to the Croatian Commerce Act, which prohibits retail stores from opening for business on Sundays and public holidays. The Court held that the Act does not overly burden business owners, workers or consumers and that the exception, which gives business owners the right to select 16 Sundays within a calendar year during which their stores may be open, allows businesses and consumers to enjoy features of the Croatian market, such as seasonality, and at the same time is not overburdensome for workers.

Consequently, the Court held, the restriction is proportionate to the goals it aims to achieve, such as a better work-life balance and protection of workers’ rights, and is consistent with the Croatian Constitution.

Draft Regulation on the Content and Method of Keeping Employee Records

Proposed Bill or Initiative

Authors: Marija Gregoric, Partner, and Matija Skender, Senior Associate – Babic & Partners Law Firm

In early March 2024, Croatian Ministry of Labor submitted for public review a Draft Regulation on the Content and Method of Keeping Employee Records (Draft Regulation). The Draft Regulation introduces several new requirements, with the most notable being the introduction of an array of data retention periods for employee’ data stored by the employer. The Draft Regulation also imposes a number of changes to data categories that must be recorded. Finally, the Draft Regulation introduces new recordkeeping requirements for regular working time as well as for remote work/telework.

When the Draft Regulation is enacted and goes into effect, Croatian employers should review and update to their privacy and other policies to ensure compliance with the new regulations. A grace period of six months from the Draft Regulation’s effective date is anticipated to allow employers time to comply with the new rules.

Draft Amendments to the Croatian Foreigners Act

Proposed Bill or Initiative

Authors: Marija Gregoric, Partner, and Matija Skender, Senior Associate – Babic & Partners Law Firm

In late February 2024, the Croatian Ministry of Interior submitted for public review a comprehensive Draft Amendments to Foreigners Act (Draft Amendments). In addition to implementing the EU Directive 2021/1883 (revised EU Blue Card Directive), the Draft Amendments introduce several new provisions aimed at to creating a more efficient and flexible system for employing foreign workers in Croatia.

The most notable draft amendments include:

• Regulation of the maximum number of foreign workers, as a percentage of total workforce, that a local employer may employ
• An option to obtain a work permit for a longer period (now up to three years)
• Requiring that employers provide of “adequate” accommodation (specific minimum requirements are to be prescribed later)
• Prohibition of discriminatory salary and employment terms for foreign workers

Considering the imminent parliamentary elections in Croatia, it is difficult to estimate when the Draft Amendments will be enacted and become effective.