Croatia adopts stricter penalties for undeclared work

The Croatian Parliament (Sabor) passed a new law aimed at curbing undeclared employment. The legislation introduces a heavier fine of €8,000 for employers who are found to have used undeclared labor for the third time within a three‑year period. Existing sanctions of €2,650 and €6,630 remain in place for first and second offenses.

The law also shortens the public posting period of the “black list” of violators from six years to one year and removes the “white list” of compliant employers. Employers on the black list will lose access to active labor‑market measures, while an accelerated process allows the Ministry to delete a name from the list within three days after payment of the imposed amount or a final court ruling.

Additional provisions protect employers who hire third‑country nationals when a renewal request for a work permit is submitted before the current permit expires. The act requires mandatory pension‑insurance registration for workers employed part‑time elsewhere and expands the electronic work‑record system (JEER) to cover more occupations.