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BRIEF NEWS BULLETIN IN ENGLISH NO. 5014

HR-BULLETIN-Politika BRIEF NEWS BULLETIN IN ENGLISH NO. 5014 HINA Zagreb 14 July 2003CROATIAN PARLIAMENT ADOPTS AMENDMENTS TO LABOUR ACTZAGREB, July 14 (Hina) - The Croatian parliament adopted amendments to the Labour Act on Monday, cutting dismissal notices and severance pays. Seventy-one deputies voted in favour, 45 against while five abstained. Under the new law, employees will be given two weeks' notice if they have less than a year of continual service with the same employer, and up to three months if they have worked for the same employer continually for 20 years. The highest severance pay will be in the amount of six monthly salaries. The government said that previous lengths of dismissal notices and levels of severance wages had significantly raised the fixed costs of the employers and slowed down the restructuring of the Croatian economy as a precondition for economic growth and higher employment. The new law introduced a contribution to be paid by non-members of trade unions

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