The government measures to bail out Croatia's economy amid the pandemic, announced this spring, were adopted promptly and did not put an administrative burden on businesses, the American Chamber of Commerce in Croatia (AmCham) said on Thursday.

AmCham said it supports all of the government activities aimed at continuing support to the most affected sectors, AmCham’s executive director Andrea Doko Jelusic said during a meeting with Minister of Labour, Family and Social Welfare Josip Aladrovic.

The labour drain from Croatia, along with difficulties in finding appropriately qualified employees, will have a negative impact on economic growth and will weaken Croatia’s competitiveness amid high taxes on labour, she said.

AmCham believes it is time to amend the Labour Act and to make changes to the overall functioning of the labour market through reforms.

Doko Jelusic said that the Covid epidemic has pointed out the need for more flexible labour relations that would regulate labour relations in extraordinary circumstances without having to adopt ad hoc measures.

Amendments to labour legislation have to simplify working from home and to allow non-taxable fixed allowances for costs incurred by employees while working from home.

AmCham recommends the introduction of a new institute in the Labour Act – occasional work from home at worker’s request.

AmCham believes that in addition to the proposals it has made for minimum improvements to the existing Labour Act that it is necessary to open dialogue for comprehensive amendments to labour legislation that would be resilient to extraordinary circumstances while adapting to the demands of modern times and the need for more flexible forms of employment.