Croatia tightens rules on foreign workers and undeclared labour

In Croatia, foreign employees face serious challenges when their work permits are not renewed. Pregnant workers and others who lose their jobs must pay for their own health insurance, despite legal prohibitions on discrimination, and risk deportation if they cannot secure new employment. Trade unions report many cases where workers are unaware of their administrative status and are left without coverage.

The government is responding with a new anti‑undeclared‑work law that raises fines for employers up to €8,000 per infraction, expands black‑listing of repeat offenders, and introduces faster removal from the list. The legislation also protects employers who hire third‑country nationals during permit‑extension periods, ensuring that work performed after a permit expires is not counted as undeclared if the renewal request was filed in time. Lawmakers debated the adequacy of inspection resources and the fairness of fixed fines, but the measures aim to curb illegal employment and improve oversight of foreign labour.

These moves seek to tighten labour market regulation, improve protection for foreign workers, and increase compliance among Croatian employers.