ZAGREB, 25 March (Hina) - Nearly a third of companies that participated in a Croatian Chamber of Commerce (HGK) survey on the need for additional knowledge and skills in the labour market employ foreign workers, with 80% of them hiring craftsmen and vocational workers, an HGK seminar on foreign worker employment heard on Monday.

Eighty-three per cent of companies cite easier filling of vacant positions as the biggest advantage of hiring foreign workers, while the main challenges include additional employment costs and integration difficulties. Companies also highlight that, so far, the administrative aspect of hiring foreigners has been lengthy and complex, and they hope the implementation of a new Aliens Act will ease the administrative burden for both employers and workers.

HGK vice president for trade and internationalisation Igor Pokaz predicts the demand for foreign labour will continue to grow, particularly in construction, tourism and trade.

"An adequate legal framework that ensures workforce availability is crucial to supporting economic growth. A key focus in the coming period will be drafting regulations to define accommodation conditions for foreign workers," he said.

One of the novelties of the new law is the restriction on the number of foreign workers relative to domestic ones. For non-shortage occupations, the number of domestic workers must account for at least 16% of foreign workers, while for shortage occupations, domestic workers must constitute at least 8%.

Marko Pekčec, president of the HGK's association of employment agencies, said this change could pose a challenge for agencies specialising in foreign worker employment, including those engaged in worker leasing. He expects an increase in domestic employment as agencies attempt to raise their quota for foreign workers, which will drive up operating costs.

"We are also concerned about how promissory notes will affect employment agency service prices. The law stipulates that employers must submit a promissory note equivalent to one average gross salary for each foreign worker before their arrival. The aim is to increase employer responsibility (and) inspection frequency to prevent irregularities such as hiring workers without proper permits or qualifications," Pekčec said.

The new law also extends work and residence permits for foreign workers from one to three years and seasonal work permits from six to nine months, a move welcomed by employers.

Kristina Anetić from the Kamgrad company supports the possibility of issuing residence and work permits for up to three years, as well as allowing a change of occupation within the same employer. However, she notes that some aspects of the new law still need to be regulated through regulations, leaving room for different interpretations and applications by competent institutions until they are enacted.

Employers hiring third-country nationals under the new law are required to provide suitable accommodation, but conditions such as space requirements and sanitary standards must be defined in the Regulation on Foreign Worker Accommodation, which has not yet been adopted. Companies are facing inconsistent interpretations of the law, leading to implementation issues, such as treating all foreigners as seasonal workers.

Marko Šimunić, director of the Šimunić Promet company, believes that the new Aliens Act should not classify mobile workers as seasonal workers. "Due to the nature of their work, mobile workers stay in Croatia for short periods, and if a company provides adequate accommodation at its business address, we believe they should be allowed to remain registered there as before."