Assist Prof Vanja Smokvina Faculty of Law University

Assist. Prof. Vanja Smokvina Faculty of Law, University of Rijeka, Croatia International Scientific Conference – Flexinora, Faculty of Law, University of Rijeka - 12/05/2017 1 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

Contents: 1. 2. 3. Introduction 4. Conclusion Youth (un)employment Measures: Occupational training without commencing employment 2 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

Croatia: Population (2011)- 4. 284. 889 Croatian Bureau of Statistics: In 02/2017 active population in Croatia numbered 1, 565, 993 members - 1, 327, 059 persons were in employment The number of pensioners (04/2017)- 1. 232. 897 (1: 1, 19) Minimum wage (2017)- HRK 3. 120, 00 (gross)- HRK 2. 490, 00 net (approx. EUR 330) The average net salary (2017. )- HRK 5, 408, 00 (approx. EUR 721) 3 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

*The average number of unemployed persons (04/2017) - 198. 972 *The registered unemployment rate in February 2017 was 15. 3 % *March 2017 the Croatian Employment Service registered 224, 068 unemployed persons, what makes 14, 866 persons less than in the previous month and 52, 338 persons less than in March 2016. *there were: 8, 672 persons (or 3. 9%) in the age group from 15 -19; 26, 205 persons (11. 7%) in the age group from 20 to 24; 27, 231 persons (12. 2%) in the age group from 25 to 29; 22, 546 persons (10. 1%) in the age group from 30 to 34; 4 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

5 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

Country (%) 2010 2011 2012 2013 2014 2015 2016 EU-28 61. 7 61. 1 60. 0 59. 4 60. 2 61. 4 62. 6 Austria 73. 5 74. 8 74. 9 74. 5 73. 1 73. 4 74. 0 Belgium 61. 0 60. 5 59. 4 57. 9 57. 8 57. 6 Croatia 55. 2 49. 8 46. 7 44. 8 48. 5 49. 5 54. 8 Denmark 70. 3 69. 7 67. 5 67. 7 67. 6 69. 2 69. 6 Germany 69. 5 71. 4 71. 0 71. 2 71. 4 71. 7 Greece 53. 5 46. 4 40. 2 36. 7 38. 3 40. 3 41. 0 Italy 47. 5 46. 7 45. 1 41. 0 40. 3 42. 1 Netherlands 78. 7 77. 5 76. 8 75. 3 74. 1 75. 8 75. 9 Switzerland 78. 2 79. 0 78. 2 77. 6 77. 9 78. 6 79. 4 6 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

The employment measures are designed for different groups of unemployed persons (young people up to 30 years, longterm unemployed, persons above 50 years…) and include: *Training subsidies *Job preservation subsidies *Self-employment subsidies *Education for unemployed *Employment after Occupational training without commencing employment *Public works *Employment subsidies *Occupational training without commencing employment 7 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

*PERSONS INCLUDED IN ACTIVE LABOUR MARKET POLICY PROGRAMMES (03/2017): 22. 145 * Occupational training without commencing employment: 13. 735 * Flexinora questionnaire: ? ? ? 8 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

* It started in 2010 (as a measure by the CES) + there is one in the LA * The Occupational training without commencing employment is a traineeship scheme (on-the job training) which has been created in order to include more young people in the labour market. * Target groups: This measure is targeted at young unemployed persons up to the age of 30 years, registered with the CES for at least 30 days, who have less than a year’s work experience in their occupation or who do not have any work experience at all (not just with faculty degree but also persons that graduated high school) * It is relevant to Guideline 6 of the Guidelines for the employment policies of the Member States 2015: Enhancing labour supply, skills and competences, as well as for the implementation of the Youth Guarantee. 9 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

* Occupational training without commencing employment is therefore designed for young people who have no work experience related to their profession. The measure has been created in order to provide young people not only with relevant work experience, but also with a learning environment, which increases their chances for integration in the labour market after the completion of training. * Length of the measure: 12 or 24 months * The employer receives: Mandatory contributions for pension system: 7. 057, 92 HRK for 12 months Mandatory contributions for health system: 5. 468, 96 HRK for 12 months Education costs: 7. 000, 00 HRK * The person: 2, 620, 80 HRK of remuneration + travel expenses paid by the employer + costs of professional exam * May not work on Sunday, holiday or not working day, no night work! 10 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

*Data on the participants who started their occupational training without commencing employment during 2011 and finished during 2012 show that 61. 3% of them were employed in the course of 12 months after finishing the occupational training. *Data also show that 65. 7% of participants in the private sector get employed within a year after completion of the occupational training. An increased private sector involvement is expected and a resulting wider application of this measure in the private sector. *The medium-term probability of employment increases for approximately 40% of participants entering the measure. *In 2015, there were 18, 597 new entrants to the measure. Compared with the starting year of 2010 this represents a significant increase (by 13, 344 participants). 11 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

*Is the measure a successful measure? *The social partners? *Youth? *The future of the measure… 12 „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP 09 -2014 -09 -9377)

Thank You for Your attention!!! Vanja Smokvina Faculty of Law, University of Rijeka, Croatia vsmokvina@pravri. hr vanja. smokvina@gmail. com „Flexicurity and New Forms of Employment (Challenges regarding Modernization of Croatian Labour Law)“ CSF (UIP-09 -2014 -09 -9377) 13