Amendments of the Labour Act – how to organize work from home?

Amendments of the Labour Act – how to organize work from home?

The crisis caused by coronavirus pandemic has encouraged the Government of the Republic of Croatia to consider amending of Labour Act with aim of organizing work from home as efficiently as possible. Formal consultations with the Government shall start late August of early September, while more detailed information on changes to the Labour Act are still not familiar. However, employers are dissatisfied with the existing legal structure as it requires a special type of employment contract which defines additional provisions related to work from home (Article 17 of Labour Act). Namely, during coronavirus pandemic, recommendations were to establish home office, but at the same time it was difficult to implement all measures and satisfy legal structure. High emphasis is placed on the Croatian regulations related to job safety which do not differ employer’s obligations regardless of job being done in employer’s premises or at the remote working place.

It is expected that the new model in the fall will create a more flexible approach for home office, which would define for employers so called remote working and changes related to job safety, labour costs, performance measurements, working hours, etc. With regard to payment of costs to employees, it is expected that all costs incurred by using employees’ own equipment and increased costs of home office (internet cost, electricity, heating, water and others) will be tax-free.

Since home office as form of work is well accepted by both employers and employees, it is expected that this institute will be regulated within Labour Act not only as temporary option, but also permanent without the need to conclude employment contract with additional provisions. The introduction of such institute would enable employers to make employees more satisfy and productive, as shown by the results of various surveys of global companies during the corona crisis.


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