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IMPACT — MEDIUM
The government of Croatia recently increased its national minimum wage.
Key Points:
Additional Information: The minimum wage is relevant to all workers in Croatia whose wages cannot be lower than the minimum wage. Foreign workers must be paid above the minimum wage.
BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their budgets.
This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
Croatia will join the Schengen Area, Europe’s free-travel zone, Jan. 1.
Background: The Schengen Area is made up of 26 countries — 27 with the addition of Croatia — and allows free movement to member countries. Individuals holding a Schengen member state passport or ID card can travel freely within the free-movement area.
Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Croatian government has announced that it will increase the minimum wage by 10.3% on Jan. 1, 2022.
Additional Information: The minimum wage is relevant to all workers in Croatia, including employee card holders, whose wages cannot be lower than the minimum wage. Some foreign workers must be paid above the minimum wage. BAL will provide updates on the 2022 minimums for foreign workers as information becomes available.
BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2022 budgets.
This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2021 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Department of Homeland Security (DHS) announced Tuesday that Croatia would be added to the Visa Waiver Program (VWP).
BAL Analysis: Croatian business and tourist travelers will benefit from the convenience of not having to apply for a visa at a consulate once the change takes effect later this year. Visa-waived travelers are reminded to apply for their ESTA online at least 72 hours prior to travel.
At this time, a number of restrictions on travel to the U.S. remain in place. Travelers should continue to anticipate delays or limited availability of consular services abroad. Employers and employees should continue to consult their BAL professional before planning any international travel.
This alert has been provided by the BAL U.S. Practice group. For additional information, please contact berryapplemanleiden@bal.com.
IMPACT – MEDIUM
What is the change? The European Commission has recommended that Croatia join the Schengen Area.
What does the change mean? If all Schengen member states accept the recommendation, Croatians would enjoy free movement among the 26 countries currently in the Schengen Area.
Background: Croatia joined the European Union in 2013 and later requested to join the Schengen Area. The European Commission recently announced that Croatia has met the criteria to join the border-free area and has recommended Croatia be admitted to the Schengen Area.
The Schengen Area is made up of 26 countries and allows free movement to member countries. Individuals holding a Schengen member state passport or ID card can travel freely within the free-movement area. Along with Croatia, Bulgaria and Romania have also applied but have not yet been admitted.
Analysis & Comments: The change is good news for Croatia and could facilitate business and tourist activity. Nevertheless, the recommendation does not ensure entry as all EU member states in the Schengen Area must uphold the commission’s decision, and it is not certain how each state will vote. If the decision is upheld, individuals traveling within Europe, and between Schengen member states, will find it easier to travel to Croatia for both tourism and business. However, Croatian immigration authorities will determine the business activities permitted under a Schengen “C” visa.
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What is the change? The Swiss government has set work permit quotas for Croatian nationals under Switzerland’s agreement with the European Union on the free movement of people. Quotas will be set on Croatian nationals during a transition phase lasting through 2023.
What does the change mean? For the first year, ending December 2017, the work permit quotas for Croatian nationals are 543 L permits and 54 B permits.
Background: The Swiss government approved Protocol III of the Switzerland-EU agreement on the free movement of people effective Jan. 1.
For 2017, Croatian nationals will be subject to a quota of 543 L permits (for employment contracts of longer than four months but less than one year) and 54 B permits (for employment contracts of at least one year or an indefinite term).
During the transition, Swiss employers wishing to hire a Croatian national on a local employment contract (including short-term local employment of less than three months) must first show that they have made efforts to hire a local worker. Online registration is not permitted for local hires.
Croatian assignees (who remain employees of the foreign company) performing general services in Switzerland for up to 90 days per calendar year should register online eight days before the work start date; those providing structural and secondary contract work, gardening and landscaping, cleaning work or security service must hold a work permit before starting work. Employers hiring Croatians for assignment durations of more than 90 days must submit work permit approval similar to those for other EU/EFTA nationals; for durations longer than four months, employers must obtain a permit quota from the quotas reserved for EU/EFTA nationals on assignment.
The transition period runs through 2023. For the following three years, free movement of Croatian nationals will take effect, but Switzerland may impose limits if immigration from Croatia is excessive. Beginning Jan. 1, 2027, Croatians will have free movement and full access to the Swiss labor market.
BAL Analysis: Employers hiring and assigning Croatian nationals should be aware of the quotas and transition period rules, including local labor market testing. Additionally, technical problems are currently preventing assignees from using the online registration system and may not be resolved until March. Meanwhile, employers and assignees should submit registration forms.
This alert has been provided by the BAL Global Practice group and our network provider located in Switzerland. For additional information, please contact your BAL attorney.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Germany will lift all labor market restrictions on Croatian nationals beginning July 1.
What does the change mean? Croatian companies will be able to post employees to Germany without restrictions. Croatian workers will have free access to the German labor market, regardless of qualifications.
Background: Germany was among the EU countries that placed restrictions on Croatia’s access to its labor market when Croatia joined the EU in 2013.
Croatian nationals have been allowed to work in Germany with a work permit, and Germany carved out exceptions to its work-permit requirement for trainees, seasonal workers and Croatians with college degrees. Restrictions remained in place for other workers, however, including those in construction, cleaning services and interior decoration. Germany announced this week that it would not extend restrictions, which the country would have been able to do under EU law. Beginning July 1, all restrictions will be lifted.
The German government noted in a statement that it does not anticipate “wage dumping” of Croatian employees because Germany’s €8.50-per-hour minimum-wage law applies to all workers, regardless of nationality.
BAL Analysis: Germany called its decision to lift remaining restrictions on Croatia a “signal” that all EU nationals “should seek work and be free to take up job offers throughout the Union.” While Germany had previously exempted many high-skilled Croatian workers from work-permit requirements, its decision to lift remaining barriers will provide greater access to the German labor market for thousands of Croatian nationals.
This alert has been provided by the BAL Global Practice group and our network provider located in Germany. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.