Position Paper on Necessary Amendments to the Labour Act
Position Paper on Necessary Amendments to the Labour Act
Croatia’s economy is struggling, and structural reforms are needed to prevent further decline.
One of the key areas is labour and social legislation, as the current labour market is rigid, segmented, and inefficient, with high unemployment—especially among young people. Employers face high costs and rigid laws that prevent job creation. Amendments to labour legislation, focusing on flexibility in working hours, employment contracts, termination, and industrial relations, could improve competitiveness, attract investment, and stimulate job growth. The Government has already begun reform efforts, with the goal of making the labour market more flexible and business-friendly.