Almost a third of companies that participated in a Croatian Chamber of Economy (HGK) survey on the need for additional skills and knowledge in the labor market employ foreign workers. The majority (80%) of these workers are in craft and vocational professions, as stated at the HGK seminar "Employment of Foreign Workers – The New Aliens Act and Active Employment Policy Measures."

The majority of companies (83%) see the biggest advantage of hiring foreign workers as filling vacant positions more easily. However, they cite additional employment costs and integration challenges as the biggest obstacles. Companies also pointed out that the administrative process for hiring foreigners has been lengthy and complex, and they hope the new law will ease the administrative burden on both employers and workers, reports HINA. 

HGK Vice President for Trade and Internationalization, Igor Pokaz, predicts that the demand for foreign labor will continue to grow, especially in construction, tourism, and trade.

New Law on Foreign Workers: Key Changes and Challenges

"A proper legal framework is crucial to ensuring a steady workforce supply to support economic growth. A key focus in the coming period will be the development of regulations governing accommodation conditions for foreign workers," said Pokaz.

One of the key changes in the new law is the restriction on the ratio of foreign workers to domestic employees. For non-deficit occupations, domestic workers must make up at least 16% of the foreign workforce, while for deficit occupations, domestic workers must comprise at least 8%, according to HGK.

Marko Pekčec, President of the HGK Community of Employment Agencies, emphasized that this change could pose a challenge for agencies specializing in hiring and leasing foreign workers. He expects an increase in domestic employment as agencies try to expand their quota for foreign workers, leading to higher business costs.

"We are also concerned about how promissory notes will impact employment agency service prices. The law requires employers to submit a promissory note equal to one average gross salary for each foreign worker before their arrival. The goal is to increase employer accountability, which is a positive step. Additionally, increased inspections to prevent illegal employment practices, such as hiring workers without proper permits or qualifications, are a welcome measure," said Pekčec.

Regulations Still Pending

The new law extends work and residence permits for foreign workers from one to three years and seasonal work permits from six to nine months, which employers support.

Kristina Anetić, Head of HR and General Affairs at Kamgrad, welcomes the extension of work and residence permits and the flexibility to change job roles with the same employer. However, she notes that certain aspects of the law still require additional regulations, leaving room for different interpretations by authorities until they are clarified.

Employers hiring third-country nationals are now required to provide adequate accommodation under the new law, but specific conditions, such as space and sanitary requirements, are yet to be defined in the Regulation on the Accommodation of Foreign Workers, which has not yet been adopted. In the meantime, companies are facing inconsistencies in how the law is interpreted, leading to challenges such as treating all foreign workers as seasonal employees.

Marko Šimunić, Director of Šimunić Promet, believes that the new Aliens Act should not necessarily classify mobile workers as seasonal.

"Due to the nature of their work, mobile workers spend short periods in Croatia. If the company provides adequate accommodation at the business address, they should be able to register there, as has been the case until now," said Šimunić.