Zagreb, Croatia – Croatia has introduced a sweeping crackdown on the abuse of foreign work permits and the exploitation of migrant workers in gig economy roles, Interior Minister Davor Božinović revealed during an appearance on the Bobu bob! podcast hosted by Igor Bobić.
Following an investigation by Croatian authorities, significant loopholes were discovered in the country’s employment system, allowing some businesses to exploit foreign labour. In response, the government has passed new regulations to strengthen oversight and expand enforcement powers beyond the police to include the Tax Administration and Labour Inspectorate.
Foreign Workers Redirected to Gig Economy Jobs
A key issue at the heart of the reform is the misuse of Croatian work permits. According to Božinović, some companies were bringing foreign workers into Croatia under the pretense of hiring them for construction or mechanical roles, only to divert them into gig economy jobs, primarily as food delivery drivers for platforms like Wolt and Bolt.
“This deceptive practice is now under strict monitoring, and companies caught breaking the law will face heavy penalties,” Božinović warned.
The authorities also uncovered cases of work permits being used by foreign nationals merely as an entry route into the European Union. Some permit holders never arrived in Croatia, while others immediately moved on to other EU countries.
Stricter Screening and Employer Liability
To prevent further abuse, the Croatian government has introduced tougher screening procedures at the visa application stage. Employers must now provide a financial guarantee when applying for foreign work permits. If a worker fails to report to the job, the employer will be liable for covering repatriation costs.
“These guarantees are essential to ensure that companies take full responsibility for the workers they recruit,” Božinović explained.
Rogue Agencies Shut Down
The government’s crackdown has also exposed fraudulent intermediary agencies that facilitated the misuse of foreign labour. So far, eight such agencies have had their licences revoked after being found connecting foreign workers to gig economy jobs with companies such as Uber, bypassing legal employment channels.
Božinović also revealed that 22 forged driving licences have been detected this year, used by unlicensed drivers operating in Croatia.
New Standards for Recruitment Agencies
Under the new rules, agencies hiring foreign workers will face higher regulatory standards. To operate legally, they must now demonstrate financial stability and employ a minimum number of Croatian or EU nationals.
Božinović estimates that only about 20% of existing agencies will meet the stricter requirements, adding that the reforms are vital to ending the exploitation of foreign workers.
Protecting Workers and Closing Loopholes
The new measures represent Croatia’s most comprehensive effort yet to protect foreign workers and secure the integrity of its labour market.
“These reforms are long overdue. We are committed to closing loopholes that have allowed irresponsible businesses to profit at the expense of vulnerable workers,” Božinović concluded.
The government’s action signals a decisive shift toward safeguarding workers’ rights, strengthening Croatia’s labour system, and preventing the misuse of work permits within the wider EU framework.