Draft Labor Law and Newly Introduced Flexible Forms of Employment; Work from Home and Temporary Agency Work

Author: Ante Župić, Attorney-At-Law

Introduction
Proposal of the Labor Act (hereinafter: Proposal LA) introduced amendments to labor legislation in the Republic of Croatia aimed at harmonization with EU legislation – the EU acquis communautaire.

Flexible forms of employment that are proposed in the new Labour Act to include work from home or in a separate place of work and work through temporary employment agencies. Proposal ZOR proclaims the principle of “pro rata temporis” (Latin for participation in proportion to time), and introduced flexible forms of employment, as regulated in a number of key EU directives acquis.

Adjustment of labor with EU law
The text of the new Act, inter alia, to incorporate the following EU directives: Council Directive 91/533/EEC of 14 October 1991. on an employer’s obligation to inform employees of the conditions applicable to the contract or employment relationship; the Council Directive 1999/70/EC of 28 June 1999 on the framework agreement on part-time concluded by ETUC, UNICEA and CEEP; the 2008/104/EZ Directive of the European Parliament and of the Council of 19 November  2008 on labor through temporary employment agencies; the

Council Directive 97/81/EC of 15 December 1997 on the framework agreement on part-time work concluded by UNICE, CEEP and the ETUC Directive 2003/88/EC of the European Parliament and the Council of 4 November 2003 on certain aspects of the organization of working time.

By the said legislation it was introduced the possibility of concluding contracts for the jobs of workers at home or in another’s place of employer and employment through temporary employment agencies.

 

Work at home or in another separate place of work
The provisions of the Draft Labour and the schedule of working time, overtime, rescheduling of working time, night work and breaks, in equal measure to apply to the present contract for services at home or to another separate place of work.

Contract on in a separate place of work shall be made ​​in writing and contain additional provisions on: 1) working time; 2) machinery, tools and equipment necessary to perform the tasks which the employer is obliged to provide, install and maintain, 3) use own machines, tools and other equipment and workers compensation costs in this connection, 4) compensation for other costs related to employee performing 5) the method of training and professional development worker

 

Temporary employment, temporary employment agency
A temporary employment agency is the employer who under a contract worker assignment, assigns workers to another employer (user) for temporary work. The work of a temporary employment agency begins to perform after enrollment in the appropriate records of the ministry responsible for labor affairs

The Agency may perform tasks of assigning workers to beneficiaries, provided that it is registered under a special regulation and entered into the ministry may perform activities related to employment, provided that it has the appropriate license under a special regulation

 

Agreement on the Transfer of employees between agencies and users
The contract shall be in writing, and with the special conditions of the agency, shall include provisions on: 1) the number of seconded workers needed by the user, 2) the time period in which workers are assigned; 3) the place of work; 4) jobs that will be outsourced workers perform; 5) the manner and period in which the user must submit the agency bill for salaries and regulations applied by the user to determine salaries, and 6) a person who is authorized to represent the user to seconded workers

An employment contract for temporary work agency may enter into with the employee for a definite or indefinite period of time, and the contract shall contain provisions: 1) that the agreement is made for the sake of assigning workers for temporary work for the user, 2) an indication of transactions which will perform worker is assigned, and 3) the agency’s obligations to the worker during the period when the transferred, and the period when it is not assigned to the user.

An employment contract for temporary work which will be concluded for a definite period which is equal to the period to which the worker is assigned to a user, must include provisions on: 1) the parties and their residence or seat, 2) the expected duration of the contract, 3) the user’s seat 4) place of work; 5) jobs that will be outsourced worker to perform; 6) the date of commencement and completion of the work; 7) salary, salary supplements and periods of salary payments; 8) for a normal working day or week

 

The Obligations of users
The user is in relation to the assigned worker’s employer in terms of labor laws and the laws and regulations that regulate the protection of health and safety at work and the special protection of certain groups of workers

 

Cancellation of work contracts for temporary work and compensation for damages
On canceling a contract of assigned workers do not apply the provisions of the Labour Act on collective redundancy, and the damage that the assigned worker at work or in connection with work on the user causes a third party, shall be compensated by the user who in relation to recourse liability of the assigned worker’s employer, while for damage caused by the assigned worker at work or in connection with the operation causes the user responds agency in accordance with the general provisions of civil law

Concluding Remarks
Reform of the Labour Act is required in order to increase employment and to provide a legislative framework that will allow employers greater flexibility in concluding the contract of employment. By removing the of administrative barriers will influence the reduction of labor costs and increased competitiveness, and thus new employments