Written notice is required.

• Employees have the right to end their employment contract without providing a reason, provided they observe any legally required or contractually agreed notice periods.

• Standard notice periods depend on the employee’s length of service with the employer:

  • Less than one year: Two weeks

  • After one year: One month

  • After five years: Two months

  • After 20 years: Three months

  • More than 15 years:

Severance pay is generally not mandatory for voluntary resignation. Employment contracts may provide additional voluntary resignation-related benefits.

• Accrued but unused annual leave must be paid out at the time of termination. The employee is entitled to their full salary up until termination.

• Any earned bonuses, allowances, or other contractual entitlements must be settled.

• Both the employer and the employee may choose to terminate an employment contract—whether fixed-term or open-ended—by means of extraordinary termination.

• In the case of extraordinary termination, neither party is required to observe the standard notice period; however, they must demonstrate that a justified reason for termination exists.

• Extraordinary termination ends the employment relationship when a particularly serious breach of employment obligations or another significant circumstance makes it impossible, considering all relevant factors and the interests of both parties, to continue the employment.

• For this type of termination, both the employer and the employee must substantiate the existence of a justified reason, and the contract must be terminated within 15 days from the date on which the underlying fact was discovered.

• If an employee initiates extraordinary termination due to the employer’s conduct, the employee is entitled to unemployment benefits.

Written notice is mandatory; the termination must be documented in writing.

No notice period is required for termination with cause. Termination is immediate.

Employees terminated for cause are generally not entitled to severance pay. Any severance provision would only apply if stipulated by the employment contract.

• Accrued unused annual leave and other earned entitlements must still be paid unless gross misconduct justifies deduction under law (e.g., in cases of fraud causing financial loss).

• Any contractual bonuses or benefits may be forfeited if explicitly allowed under the contract and in accordance with law.

An employer may terminate an employment contract with a stipulated or agreed notice period (ordinary dismissal) if a justified reason exists, including the following situations:

• The need for a particular job has ceased due to economic, technical, or organizational changes (business-related dismissal), which is not applicable under the EOR setup.

• The employee is unable to properly fulfill their work duties due to certain permanent characteristics or abilities (dismissal on personal grounds).

• The employee has violated employment obligations (dismissal for misconduct).

• Business-related and personal grounds for termination are permissible only if the employer cannot reassign the employee to another suitable position.

Written notice is mandatory. The dismissal must be issued in writing, include an explanation, and be delivered to the employee concerned.

Notice periods must correspond to the length of employment, starting at:

• Less than one year of service: Two weeks

• One year: One month

• Five years: Two months

• 20 years: Three months

During notice, employees continue to receive their salary and all legal entitlements.

• Employees who have worked for the same employer for at least two years are entitled to severance pay.

• The amount of severance pay is calculated based on the length of the employee’s continuous service with the employer. It may not be set at less than one-third of the employee’s average monthly salary earned during the three months preceding termination, for each completed year of service with that employer.

• Unless otherwise provided by law, a collective agreement, internal labor regulations, or the employment contract, the total severance pay may not exceed six times the employee’s average monthly salary earned in the three months prior to termination.

• Payment of salary up until termination for accrued but unused annual leave

• Settlement of earned bonuses, allowances, and other contractual entitlements

• Any other benefits stipulated in employment contracts or collective agreements

A mutual termination agreement (sporazumni prestanak ugovora o radu) allows the employer and employee to agree to end the employment relationship by mutual consent. This is governed by the Labour Act of the Republic of Croatia (Zakon o radu), which permits termination at any time if both parties agree, regardless of statutory notice periods or grounds for termination.

Must be in writing and signed by both parties.

Can be negotiated freely between the employer and employee; statutory notice periods do not apply unless specifically incorporated in the agreement.

Severance pay and other benefits are negotiated in the agreement; they are not automatically mandated unless otherwise stipulated in the Labour Act, collective agreements, or employment contracts.

• Payment for accrued but unused annual leave

• Settlement of earned bonuses, allowances, or contractual entitlements

• Any additional benefits negotiated (e.g., outplacement services, extended healthcare coverage)

Employees are generally not entitled to severance pay when a fixed-term contract ends naturally. Exceptions apply if the contract or collective agreement explicitly provides severance.

• Payment for accrued but unused annual leave.
• Settlement of any earned bonuses or allowances as per the employment contract.
• Provision of a certificate of employment showing start and end dates, position, and type of termination.

• Employer must provide written notice unless there is a serious reason justifying immediate termination (termination with cause).
• If termination is without cause, statutory notice periods apply depending on employee’s length of service:
  • Less than one year: Two weeks
  • One year: One month
  • Five years: Two months
  • 20 years: Three months

Employees terminated early due to inability to perform the job may be entitled to severance, subject to the same rules as permanent employees:

• One-third of average monthly salary over the last three months × years of continuous employment
• Usually capped at six times the average monthly wage unless otherwise provided by contract, law, or collective agreement

• Payment of full salary until termination and for accrued but unused annual leave.
• Settlement of earned bonuses, allowances, or other contractual entitlements.
• Certificate of employment reflecting start and end dates, job title, and reason for termination.

The employer must pay all outstanding salary, including unused vacation days, bonuses, and other entitlements no later than the next regular payday following the termination, but usually within 15 days of termination.

The employer may owe statutory interest on late wages. Employees can file a complaint with the Croatian Labor Inspectorate. Persistent non-payment can lead to legal action or fines under labor law.