Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

Employment Policy Convention, 1964 (No. 122) - Croatia (Ratification: 1991)

Articles 1 and 2 of the Convention. Employment trends and implementation of an active employment policy. The Committee notes with interest the range of measures undertaken by the Government with a view to attaining the objectives of the Convention within the framework of a coordinated economic and social policy. The Government indicates that, as a member of the European Union (EU) since July 2013, Croatia develops a National Reform Programme (NRP) each year within the broader process of economic policy coordination, referred to as the European Semester. In this regard, the Committee notes that the 2017 NRP includes, among its main targets, increasing employability and connecting education with the labour market. In 2014, the Guidelines for development and implementation of active labour market policy for the period 2015–17 were adopted, which provide for an increase in coverage in active labour market policy interventions with special attention paid to the most vulnerable groups, including youth, the long-term unemployed, older workers, low-skilled workers and persons further away from the labour market. The Guidelines establish four main priorities: increasing employment, competitiveness, labour mobility and matching labour market supply and demand. In addition, an independent and comprehensive evaluation of all active labour market policies carried out between 2010 and 2013 was published in February 2016 with the aim of determining their impact on employment. The Committee notes the adoption of a new Labour Act on 15 July 2014. According to the European Foundation for the Improvement of Living and Working Conditions (Eurofound), the Act is aimed at increasing the number of people in employment and creating a legal framework that enables employers to develop more flexible business models and to adapt to market demands, while maintaining employee protection and combating the grey economy. The Committee recalls that the Croatian economy contracted by a cumulative 12.6 per cent between 2009 and 2014, and returned to growth in 2015 after six years of recession. With respect to employment trends, according to the Labour Force Survey (LFS) data published by Eurostat, the employment rate (population aged 15–64) increased from 52.5 per cent in 2013 to 56.9 per cent in 2016. The unemployment rate fell from 17.3 per cent in 2013 and 2014 to 13.3 per cent in 2016. In addition, according to the 2017 European Semester: Country Report on Croatia, unemployment remains significantly above the EU average, including for young people, and almost two-thirds of the unemployed have been without a job for more than a year. The report states that the rapid decrease in the unemployment rate is only partly due to a contraction of the labour force. The Committee requests the Government to provide updated information on the impact of the employment measures taken under the NRPs and the Guidelines for development and implementation of active labour market policy for the period 2015–17, including measures to promote the employment of youth and other disadvantaged groups. The Committee further requests the Government to provide information on the impact of the new Labour Act in the creation of lasting and decent employment. It also requests the Government to continue to provide information on employment trends, disaggregated by age and sex, and on the procedures for deciding on, and reviewing, employment measures implemented within the framework of an overall economic and social policy.

Education and training policies. In its previous comments, the Committee requested the Government to provide information on measures taken to coordinate education and training measures with employment policy measures, as well as the involvement of the social partners in this process. The Committee notes that the adoption of the Vocational Education and Training Development Programme was envisaged under the 2016 NRP and aims at increasing participation in vocational education and harmonizing learning outcomes in vocational education with labour market needs. The Government refers to several measures undertaken to improve harmonization of supply and demand in the labour force, including the establishment of a standard occupational system as the basis for the development of standards of qualifications, and sectoral councils, which provide expert assistance in evaluating proposed occupational and qualification standards. The Government also indicates that emphasis will be placed on further development of the Croatian Qualifications Framework (CROQF), through the Act on the CROQF in order to regulate a more flexible education system. In addition, the Government provides information on the implementation of training courses by the Croatian Employment Service (HZZ), including on-the-job training and occupational training for young people without job experience. It adds that the number of participants in institutional training declined from 16,411 in 2011 to 2,534 in 2012 and remained stable at 2,000 thereafter. In contrast, the number of participants in workplace training increased from 4,762 in 2011 to 15,059 in 2016. The Committee requests the Government to provide information on the impact of the Vocational Education and Training Development Programme. It also requests the Government to indicate the manner in which the social partners and other stakeholders concerned are consulted with respect to the development and implementation of education and training programmes that meet the current and anticipated needs of the labour market.

Persons with disabilities. The Committee notes the information provided by the Government concerning the adoption of the Act on Vocational Rehabilitation and Employment of Persons with Disabilities (OG No. 157/13, 152/14), which increases the quota system for employers in the public and real sectors who employ at least 20 workers to 3 per cent. The Government indicates that vocational rehabilitation centres were established in 2015 with the objective of training persons with disabilities for work and providing employers with professional assistance in the employment of persons with disabilities. The Committee requests the Government to continue providing information on the measures taken or envisaged to promote employment opportunities of persons with disabilities in the open labour market and on their impact, including information on the application of the Act on Vocational Rehabilitation and Employment of Persons with Disabilities.

Business development. The Committee notes the adoption of measures to improve the business environment, including the promulgation of an action plan for reducing the administrative burden on enterprises and removing barriers to the service market as well as the establishment of a new “Non-tax Levies Register”. The goal of the latter is to determine the non-tax levies that weigh on entrepreneurs in order to reduce them. In addition, several national strategies have been implemented, which aim to support entrepreneurship, including the adoption of a national entrepreneurship and crafts support programme, “Entrepreneurial Impulse 2015”, as well as the establishment of the “HITRO.HR portal”. This portal is intended to support businesses by providing an online registration platform for limited liability companies, thereby accelerating and simplifying their creation and reducing the costs related to their establishment. Furthermore, the Government indicates that one of the targets set by the Guidelines for development and implementation of active labour market policy is the promotion of entrepreneurship among unemployed persons. In this respect, the HZZ has granted self-employment subsidies to registered unemployed persons who have developed a sustainable business and has established a support system to provide them with counselling to assist them in the development of their business ideas. The number of businesses created through these means has increased from 772 in 2011 to 2,776 in 2015. The Committee requests the Government to continue to provide information on the impact of business development measures on employment creation and access to decent work, including measures aimed at promoting the development of small and medium-sized enterprises.

Cooperation between the public employment service and private employment agencies. In reply to the Committee’s previous comments, the Government indicates that the public employment service cooperates with all private employment agencies and that the services provided are available to all employers. Services include the publication of job vacancies, organization of job meetings, recruitment activities and provision of subsidies for employment. It further indicates that, in 2016, there were 6,356 registered jobseekers, 4,021 vacancies were published and 2,957 workers were placed in employment. The Committee requests the Government to continue to provide detailed information on measures taken to encourage and maintain collaboration between the public employment service and private employment agencies, as well as on other measures taken or envisaged to build and strengthen the institutions necessary for the realization of full, productive and freely chosen employment.

Article 3. Consultation with the social partners. The Government indicates that the social partners and civil society organizations are included in defining main reform measures covered by the NRP, both through the creation of key legislative packages and the process of consultation with the public. The Committee notes the establishment of the Economic and Social Council (ESC) to determine and realize coordinated activities with the aim of pursuing harmonized economic, social and development policies. The Government also indicates that the social partners are directly involved in the formulation of labour market measures, as they are represented in the Interdepartmental Committee for the adoption, implementation and monitoring of the Guidelines for development and implementation of active labour market policy for the period 2015–17 as well as on the Governing Board of the HZZ. The Committee requests the Government to continue to provide information on the activities of the ESC, the Interdepartmental Committee for adoption, implementation and monitoring of the Guidelines for development and implementation of active labour market policy for the period 2015–17, and the Governing Board of the HZZ with respect to the development, implementation and review of coordinated employment policy measures and programmes and their links to other economic and social policies, indicating the nature and extent of the involvement of the social partners in this regard.