The main legal framework that governs employment relations is determined mostly by the Labour Act. The provisions of this Act guarantee the safety of both the employer and employee. Some specific issues (such as health insurance and education) are determined in detail by special acts or international treaties that have been enacted within the Republic of Croatia.
Employers, employees, work councils, trade unions and employers’ associations may contract more favourable working conditions than those set forth in the Act. Employers, employers’ associations and trade unions may, through collective agreement, decide upon less favourable working conditions only if this is expressly authorised through collective agreement or the enactment of special legislation. If an employment right arising from such employment is differently regulated by an employment contract, an employment ordinance or an agreement concluded between an employer and a work council, by collective agreement or legislation, most favourable right to the employee shall apply, unless the Labour Act or another piece of legislation states otherwise.
Each employer employing more than twenty employees shall adopt and publish an Ordinance/Code of Conduct which regulates salaries, an organisational structure of work, procedures and measures for the protection of employees and protective measures against discrimination and other issues which are important for an employee of that employer, if such issues are not regulated by collective agreement.