Croatia has witnessed a staggering 70% decrease in the issuance of foreign work permits following recent amendments to its Aliens Act. This significant drop has raised concerns among employers and foreign workers alike, as the new regulations complicate the hiring process and threaten the stability of the labor market.

Key Takeaways

  • 70% Drop: The number of foreign work permits issued has decreased by 70% compared to last year.
  • New Regulations: Stricter controls and requirements have been implemented under the revised Aliens Act.
  • Impact on Employers: Many employers are struggling to navigate the new bureaucracy, leading to a decline in applications from temporary employment agencies.
  • Foreign Worker Sentiment: Despite challenges, many foreign workers express a desire to remain in Croatia long-term.

Overview of the New Regulations

The recent changes to Croatia’s Aliens Act, which took effect two months ago, have introduced stricter criteria for employers wishing to hire foreign workers. The Ministry of the Interior reported that approximately 136,000 foreign workers currently reside in Croatia, with many sending remittances back home to support their families.

Under the new regulations, employers must now meet several conditions to qualify for hiring foreign workers:

  1. Employment of Croatian Nationals: Employers must have at least one Croatian national employed full-time for the past 12 months.
  2. Active Economic Activity: Employers must demonstrate that they are engaged in active economic activities.
  3. No Blacklist Status: Employers must not be on a blacklist for engaging in undeclared work.

The Impact on Temporary Employment Agencies

Temporary employment agencies have been particularly hard hit by the new regulations, experiencing a dramatic 70% drop in submitted applications. Employers have reported that the challenge is no longer finding workers but rather legally hiring them under the new rules.

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Ivana Šimek from the Croatian Employment Service noted that many employers were unprepared for the increased bureaucracy and stringent requirements. The law allows for work permits of up to three years and seasonal permits of up to nine months, but the conditions for approval have become more complex.

Foreign Workers’ Perspectives

Despite the challenges posed by the new regulations, many foreign workers in Croatia express a strong desire to stay long-term. A study by the Institute for Migration Research revealed that:

  • 90% of foreign workers send money home to support their families.
  • 20% plan to remain in Croatia until retirement.
  • 55% are considering bringing their families to live with them in Croatia.

Many foreign workers, particularly those from countries like Nepal, India, and the Philippines, report that they perceive a better quality of life in Croatia compared to their home countries, despite facing low wages and language barriers.

Conclusion

The 70% drop in foreign work permits in Croatia highlights the challenges posed by new regulations aimed at tightening control over the labor market. While the intent may be to protect local jobs and ensure compliance, the impact on both employers and foreign workers raises questions about the future of labor migration in Croatia. As the country navigates these changes, a balance must be struck to support both economic growth and the integration of foreign workers into Croatian society.

Sources

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