Croatia implements electronic time‑tracking and tougher fines to combat undeclared work

The Croatian government has introduced a mandatory electronic system to record workers' hours, initially covering platform jobs such as taxi drivers and delivery couriers and planned to expand to construction sites. The Ministry of Labour and Social Policy, working with IT firm APIS IT, says the system will capture who worked, when and where, allowing inspectors to spot undeclared or overtime work.

Employers who breach the law three times within three years will be fined €8,000 for each undeclared worker. Over the past two years inspections uncovered nearly 2,000 undocumented workers, including about 900 foreigners. Since 2023, penalties for undeclared work have already generated €5.4 million in fines. Labour Minister Alen Ružić emphasized the stricter penalties, stating, "Employers who breach the law three times in three years will pay €8,000 per undeclared worker." The rollout is supported by employer organisations such as the Croatian Employers' Association and the Chamber of Crafts.