European Country Adds Foreign Workers to its Unemployment Benefits Scheme

Croatian lawmakers are considering expanding unemployment benefits to include jobless foreign nationals from third countries, provided they have a valid work permit. The proposed amendments to the Labour Market Act were debated in the Croatian Parliament, where it was highlighted that foreign workers without employment contracts could register with the Croatian Employment Service (CES) and qualify for unemployment benefits, as reported by Schengen.News.

Key Provisions of the Proposal

For the first time, foreign workers would be allowed to register as unemployed in Croatia. This initiative aims to enable these workers to quickly find new employment without being forced to return to their home countries due to legal constraints.

“We want to offer them a job immediately, to help them find new opportunities without legal compulsion to leave the country,” said Ivan Vidiš, State Secretary at the Ministry of Labor, Pension System, Family, and Social Policy.

However, eligibility for unemployment benefits would be restricted to foreign nationals holding valid temporary residence permits. Once the permits expire, they would no longer qualify for compensation. “The goal is not just to provide benefits but to integrate these individuals into the workforce, particularly in professions where there is a shortage,” Vidiš explained.

Concerns and Reassurances

Some parliamentarians raised concerns that this policy might encourage misuse of unemployment benefits, particularly among low-skilled foreign workers. Dalija Oresković expressed skepticism, emphasizing that low-skilled workers might dominate this group. In response, Vidiš clarified that many foreign workers in Croatia are medium- to highly-skilled professionals, who are vital to the nation’s economy. He stressed that at least 20,000 jobs need to be filled to achieve a one-percent GDP growth.

Improving Croatia’s Image as a Destination for Workers

The inclusion of foreign workers in unemployment schemes is seen as a step toward enhancing Croatia’s reputation as an attractive destination for international labor. Historically, Croatian employers faced criticism for poor working conditions for third-country nationals. This initiative could signify progress in improving those conditions.

Extended Benefits for All Unemployed

In addition to including foreign nationals, Croatian authorities are considering extending unemployment benefits for all eligible individuals. Key changes discussed include:

• Extension of the benefit period: From 91 to 180 days.
• Increase in benefit amount: From 30% to 35% of the base, with an average payout of approximately €400.

However, opposition voices, such as Irena Dragić from the Social Democratic Party (SDP), argued that these measures are insufficient. “The increase from 30% to 35% of the base will not significantly improve the lives of unemployed individuals, especially given the rising cost of living,” Dragić stated.

Additional Measures

Vidiš also announced that companies in sectors facing labor shortages would be required to meet a mandatory quota for Croatian citizens. Additionally, young people would now qualify for unemployment compensation after six months of unemployment, down from the previous two-year requirement.

These amendments aim to address labor shortages and improve employment conditions in Croatia while ensuring the integration and fair treatment of foreign workers.