Unemployment Benefits for Foreign Workers Expanded in Croatia

Croatia has introduced new legislation to support foreign workers who lose their jobs. Under the new rules, workers can register with the Croatian Employment Service (CES) to access unemployment benefits, as long as they hold a valid temporary residence permit. These benefits will end once the permit expires.

The government aims to help foreign workers secure new employment quickly, as various industries in Croatia are experiencing labor shortages. Currently, around 20,000 jobs remain unfilled, and retaining foreign workers in the workforce is seen as crucial for economic growth.

Concerns Over the Benefit System

The updated law also increases the duration and amount of unemployment benefits. Eligible workers can now receive benefits for up to 180 days, an increase from the previous 91 days, with the payment rate raised from 30% to 35% of the base amount. However, some critics argue that these benefits are still insufficient, especially with the rising cost of living. Certain politicians are calling for additional financial assistance.

Changes to Seasonal Worker Contracts

Additionally, the law eliminates the “permanent seasonal worker” category, allowing seasonal workers to secure permanent contracts and work throughout the year, providing them with greater job stability.

Balancing the Needs of Foreign and Local Workers

Debates have emerged regarding the inclusion of foreign workers in the unemployment system. Some express concerns that foreign workers might take jobs away from Croatian citizens. To address this, the government plans to implement quotas, ensuring that companies in labor-short industries hire a certain percentage of Croatian workers, thus maintaining a balance between foreign and local employees.

Enhanced Protections for Foreign Workers

The new law is designed to offer better protection to foreign workers. In the event of job loss, they will not face immediate deportation and will have more time to secure new employment.

A Potential Model for Other EU Nations

Croatia's updated labor laws could serve as a model for other EU countries grappling with similar labor shortages. While some critics caution against over-reliance on foreign workers, the policies aim to strike a balance between the needs of foreign and local workers to foster economic growth.

In conclusion, the expansion of unemployment benefits for foreign workers marks a positive shift in Croatia’s labor laws, demonstrating a commitment to equitable and sustainable economic development. The challenge moving forward will be ensuring these policies benefit all workers.