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Employment Termination in Croatia

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Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences.

No matter the reason for an employee’s termination, the employer is expected to provide written notice in advance.

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Notice period

The statutory notice period depends on an employee’s tenure with the employer’s organisation.

  • 2 weeks: e mployees with one year of service
  • 6 weeks: e mployees with two years of service
  • 8 weeks: e mployees with five years of service
  • 10 weeks: e mployees with 10 years of service
  • 12 weeks: e mployees with 20+ years of service

The notice period can either be limited to just 30 days, if an employer provides a valid justification, or halved if an employee breaches terms spelled out in the employment contract.

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Severance pay

Employees who have worked at least two years with an employer are entitled to a severance package, equivalent to a third of a month’s wages per year of employment.

For instance, an employee who has worked with an employer for 12 years will be entitled to four months’ wages upon severance.

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Probation periods

Probation periods are agreed upon by both parties and cannot exceed a year. We recommend that probation periods should not exceed 6 months and it is common to give 1 weeks notice during termination in probation period.