Employment Retention Incentives - shortened working hours

• From 1 June to 31 December 2020 

• The grant is awarded for temporary introduction of full-time work which lasts shorter than the monthly working hour fund, but not shorter than 50% of monthly working hours fund, in the amount up to HRK 2,000 per month net per employee.
• The employer is obliged to calculate and pay social security contributions, for which a refund will be made in accordance with the approved grant.
• Payment by the 30th of the month for the previous month.

• Basic eligibility criterion: expected shortened monthly working hours fund for all employees employed by the employer on a full-time basis in the month for which the grant is requested of at least 10%.
• Revenue decline (based on VAT forms) of at least 20% in the month for which the grant is requested compared to the same month previous year.
• The employer must provide credible documentation proving business difficulties such as:

• cancelation of or amendment of the contracts with customers, written statement of customers on decline of orders for the month for which the grant is requested;
• inability of contracting new jobs during the COVID-19 epidemic;
• inability of supply of finished products or contracted and paid raw and production materials, machines, tools;
• inability of purchase of new raw and production materials, machines and tools necessary for business activities.

• Employers with 10 or more employees.

• from 10 to 50 employees if the application for the grant is submitted for at least 20% of employees;
• 51 or more employees if the application for the grant is submitted for at least 10% of employees;

EXCLUDING:

• employers who have not paid salaries for the previous month;
• associations and institutions that are not Corporate Profit taxpayers.

• Full-time employees, permanent or fixed-term, in accordance with employee records as of 31 May 2020.

EXCLUDING:

• owners and co-owners with more than 25% share, shareholders, board members, directors, procurators, etc.;

• employees whose notice period is running;

• employees working from home office.

Employer who applied for the incentive will be obliged to repay the grant if in the period from the grant receipt until 31 December 2021:

• pays dividends or profit share or other equivalent receipt that is considered as distribution of profits realised in any tax period;
• provides stock options or own stocks or shares to members of the management board, executive directors, procurators and etc.;
• pays bonuses and rewards for work results above the non-taxable amount (HRK 5,000) and other similar receipts to members of the management board, executive directors, procurators, etc.;
• Acquires own shocks or own shares.

Not applicable for employers who already receive job retention grants from the Croatian Employment Bureau.