Payback Clause

PDF Version
Name of the instrument - Local language
Klauzula o povratu
Name of the instrument - English translation
Payback Clause
Scheme ID
264
Country
Croatia
Reporting year
2020
Type of instrument
Payback clause
Sub-type of instrument
Payback clauses are possible with no explicit limitations
Type of entry
Single instrument
Short description

In compensation for employer-provided/financed training, employees commit themselves to stay in the company for an agreed period or (partially) pay back the costs of training. In the case of premature departure from the company, the employee obliges to compensate for training-related costs occurred by the employer. The parties are free to regulate their obligations, and these must be in compliance with the Constitution of the Republic of Croatia, mandatory laws, and the morals of the society. The payback clause is not directly regulated by national law and governmental bodies are not involved in the management. The County Courts and Constitutional Court hear the case in the event of a dispute between an employer and employees and make a decision.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Further instrument
Civil obligations Act (Zakon o obveznim odnosima), Official Gazette 35/05, 41/08, 125/11, 78/15, 29/18; https://narodne-novine.nn.hr/clanci/sluzbeni/2018_03_29_586.html
Objective(s) and target(s)
Official objectives of the instrument are not stated in the legal acts.
Year of implementation
2005
Operation/management
The employee directly manages the payback clause. The government bodies are not directly involved. The County Courts and Constitutional Court hear the case in the event of a dispute between an employer and employees and make a decision. Social partner bodies (trade unions, employer associations/federations) are not involved.
Eligible group(s)
All employers
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
All types of education can be eligible depending on the agreement between the employer and employee. The Law does not regulate the type of education and training eligible. The Law regulates the principles of obligations (general part) and contractual and non-contractual obligations (special part). The parties are free to regulate their obligations, and these must be in compliance with the Constitution of the Republic of Croatia, mandatory laws and the morals of the society (Article 2 of the Law).
Source of financing and collection mechanism
Employer funds training, the employee provides (partial) repayment eligible training costs in case of premature departure from the company.
Financing formula and allocation mechanisms
Employer funds training, the employee provides (partial) repayment eligible training costs in case of premature departure of the company. The Law regulates the principles of obligations (general part) and contractual and non-contractual obligations (special part). The parties are free to regulate their obligations (e.g.. regarding the repayment mechanism), and these must be in compliance with the Constitution of the Republic of Croatia, mandatory laws and the morals of the society (Article 2 of the Law).
Eligible costs
The eligibility of costs is agreed between the employer and employee and these are defined as the mutual agreement (e.g. tuition fees, costs for internal training personnel, costs for training materials, travel costs, accommodation costs).
Volumes of funding
Not available. Data on the frequency of use of payback clauses is not collected and it is not clear which institution would collect such data.
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Not applicable
Monitoring/evaluation reports available
Not available
Most relevant webpage - in English
http://pak.hr/cke/propisi,%20zakoni/en/CivilObligationsAct/EN.pdf
Most relevant webpage - local language
Not available
Recent changes

No recent amendment

Recent changes in response to COVID-19

No changes

Sources
Civil obligations Act (Zakon o obveznim odnosima), Official Gazette 35/05, 41/08, 125/11, 78/15, 29/18
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