All types of employment contracts in Croatia

UPDATED: 18.8.2023. 

If you plan to work in Croatia, you should know that there are 3 different types of employment contracts in Croatia. Each has its own limitations and implications, so it’s essential to understand the difference.

When working for a company, you will usually conclude a worker’s contract. If someone hires you for a specific service, you might work under a service contract or author’s contract. Let’s learn more about each of them.

In this post, we cover:

• Work contract types
• Worker’s contract
• Service contract
• Author’s contract
• Contracts’ differences

The facts are these…

Types of employment contracts in Croatia

Types of employment contracts in Croatia

Croatia has 3 types of employment contracts:

• Worker’s contract – a standard contract between a worker and employer within a company
• Service contract – a contract where a performer obliges to perform a specific job for a client who will pay a fee
• Author’s contract – a contract concluded for an original intellectual creation from the fields of literature, science, and art

What is a Croatian worker’s contract (ugovor o radu)?

The worker’s contract is called ugovor o radu in Croatian, which translates as contract of employment or contract on work. A worker’s contract is concluded in written form.

When we talk about the work contracts between workers and employers in Croatia, we usually refer to this type of contract. Most Croatian employees with regular jobs in Croatia work under a worker’s contract.

[Read: How to find a job in Croatia]

There are 2 types of worker’s contracts:

• Ugovor na određeno – a worker’s contract for a definite/specified period called
• Ugovor na neodređeno – a worker’s contract for an indefinite/unlimited period

Each arrangement can be concluded on a full-time or part-time period.

If you want to get a work permit in Croatia which allows you to work and live in Croatia, you need a worker’s contract from your employer.

[Read: How to apply for a work permit]

Ugovor na određeno

A worker’s contract na određeno defines the exact period of time for which the contract is concluded or the date of termination of the contract. It can also terminate after the performance of the job or the occurrence of a particular event.

The total duration of all consecutive contracts including the first one can’t last for more than 3 years. If a worker continues to work after the expiration of the contract, it is considered that a contract is concluded for an indefinite period of work.

An example of a contract for a definite period is available here.

Ugovor na neodređeno

Worker’s contract na neodređeno binds all parties until the contract is terminated under the manners defined in the Labor law. If the exact period of time for which the contract is concluded is not specified in the contract, it is considered that a contract is concluded for an indefinite period.

An example of a contract for an indefinite period is available here.

What does a worker’s contract include?

Every worker’s contract must contain:

• Name of the parties of the contract
• Address of residence or the registered office of parties – view a guide here
• Workplace – if there is no permanent or main place, note that work is performed in different locations
• Name, nature, or type of work OR a shortlist of work OR job description
• Start date
• Expected duration of the contract if it is definite
• Duration of paid annual leave and manner of determining the duration
• Notice period called otkazni rok
• Basic salary, salary supplements, and periods of payment of incomes to which the employee is entitled – view a guide here
• Duration of a regular working day or week

A contract must be written in the Croatian language for it to be binding.

[Read: How to create a legally binding contract in Croatia.]

A worker’s contract is defined by the Zakon o radu (Labor law) which is available here.

What is an employer obliged to do?

#1 Give you a written confirmation of a contract

If they don’t issue this certificate or sign a worker’s contract with you within a prescribed period, it is understood that you have a worker’s contract for an indefinite period.

#2 Register you for obvezno health insurance

Your employer must sign you up for Croatian compulsory health insurance called obvezno osiguranje. They must provide a copy of the application for obvezno health insurance within 8 days from the expiry of the application deadline.

[Read: Croatia’s state health care obvezno insurance, what it costs and what is included]

#3 Register you for pension insurance

Your employer must also sign you up for Croatian pension insurance called mirovinsko osiguranje. They must provide a copy of the application for mirovinsko osiguranje within 8 days from the expiration of the application deadline.

[Read: Everything you need to know about Croatia’s pension system]

What is a Croatian service contract (ugovor o djelu)?

The service contract is called ugovor o djelu in Croatian, and the performer of the work is called izvođač. A service contract is a type of contract where the performer obliges to perform a specific job for the client, who will pay them an agreed fee.

For example, a service contract can be concluded for making or repairing something or performing specific physical or mental work, including furniture making, car repair, fieldwork, a draft of legal work, and short-term sale of Christmas cards at the booth.

During work performance, the client has the right to supervise the performance. They can also give instructions to their performers if it is appropriate, and performers are obliged to enable them to do so.

The work status of the employee is not important. They can already have a full-time job or be an unemployed or retired person.

[Read: How to retire in Croatia]

An example of a service contract is available here.

Things to know if you are a performer

A performer has to respect the following rules:

• Work must be performed as agreed and according to the rules of the profession
• Work must be performed within a defined period
• If a period is not determined, work must be completed within a period reasonable for a specific type of work
• Work doesn’t have to be performed by the contractor personally unless this is specified in the contract
• Performer is responsible for the execution of the work
• Performer is responsible for people who work on their behalf

Things to know if you are a client

If you are a client, you must inspect the work as soon as possible. If you find any issues, you have to inform the performer. If the performer asks you to inspect the work before accepting it, the work is considered to be accepted. After the acceptance, the performer is no longer responsible. If you notice an issue that couldn’t be discovered with the initial inspection, you can ask the performer for a repair.

During the performance, you might notice that a performer is not performing work according to the obligations determined by the service contract. For example, they might give you poor service, or you may notice issues. You can warn a performer and give them a reasonable deadline to fix the work according to the contract. If they don’t do it, you can terminate the contract and ask for a damage fee.

If you notice that a performer is significantly late in starting or finishing the work, you have the right to terminate the contract and ask for a damage fee regardless of the deadline.

A service contract is defined by the Zakon o obveznim odnosima (Law on obligatory relationships). It is available here.

What is a Croatian author’s contract (autorski ugovor)?

The author’s contract is officially called autorskopravni ugovor in Croatian or autorski ugovor in short. It is a contract concluded for an original intellectual creation from the fields of literature, science, and art. This work called autorsko djelo must have an individual character regardless of the expression manner and form, type, value, or purpose.

An example of an author’s contract is available here.

What is considered to be an author’s work?

The author’s work is an original intellectual creation created by the author. It has to be authentic, creative, and subjective, and it is considered an original work if the author does not imitate another work or author.

An author’s work includes the work from the following fields:

• Applied arts
• Architecture
• Audiovisual – cinematography, etc.
• Cartography
• Choreography
• Drama
• Fine art – paintings, sculptures, graphics, etc.
• Industrial design
• Linguistic – writing, speech, computer programs, etc.
• Music
• Pantomime
• Photography
• Scientific and technical reviews – drawings, sketch plans, tables, etc.

The author’s original intellectual creation of an individual character is protected as an independent author’s work from:

• Adaptations
• Musical arrangements
• Translations
• Other adaptations

The author’s contract is defined by the Zakon o autorskom pravu i srodnim pravima (Copyright and related rights act). It is available here.

Differences between Croatian employment contracts

Worker’s contract

• Concluded for the performance of work from the working activity of the employer
• Employee must work according to the instructions of the employer and their needs
• Employer must provide the means of work
• Employee works within defined working hours
• Employer pays a salary to the employee
• Foreigner can receive a work and residence permit based on this type of contract

Service contract

• Concluded for the performance of work from the working activity of the worker
• Performer works independently
• Performer can perform a job personally or another person can do it for them
• Working hours are not defined and performer works according to their own schedule
• Performer works in their own space
• Employer only has the right to supervise the work of the performer and ask for corrections if something goes wrong
• Employee performs the work with his own private means of work
• Employer pays a fee to the performer
• Employee must have the right to work freely to perform under this contract

Author’s contract

• Concluded for the performance of work from the working activity of the worker
• Employee performs the work with his own private means of work
• Author transfers copyright to their work on the client through the contract
• Employer pays a fee to the author
• Employee must have the right to work freely to perform under this contract

View our other work articles

• All the coworking spaces in Croatia (perfect for remote workers and digital nomads)
• How Croatian working time (hours) and schedule is defined
• How to apply for a work permit
• How to find a job in Croatia
• How to get a seasonal work permit in Croatia
• How to hire a foreign worker: Labor market test and work permit
• How to get an EU Blue Card in Croatia (EU plava karta)
• How to hire or work as a freelancer in Croatia
• Minimum wage salaries in Croatia
• What to do if your rights as a worker are violated by your employer
• Who has the right to work in Croatia
• Your rights as a worker

Sources:
Ugovor o radu, ugovor o djelu i ugovor o autorskom djelu – najvažnije razlike i primjeri ugovora
Ugovor o radu
Rad na određeno i neodređeno vrijeme
Što je ugovor o djelu? by Seminar.hr
Ugovor o autorskom djelu(autorski ugovor) by Poslovnisavjetnik.com