Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Labour Inspection Convention, 1947 (No. 81) - Croatia (Ratification: 1991)

Article 3(1)(a) and (b) of the Convention. Functions of the system of labour inspection. The Committee takes note of the communication of the State Inspectorate Act 2008 (OG 116/08 and 123/08) adopted in the framework of the Plan of Short term and Long-term Measures to Combat the Grey Economy. It notes, however, that the text of this Act has been translated too late to be examined during the current session of the Committee. The Committee will examine this text together with the next report of the Government.

Article 3(2). Additional duties entrusted to labour inspectors. The Committee has noted in previous comments that one of the priorities of the labour inspectorate since 2005 has been to combat undeclared work including by foreigners without a work permit. It notes from the Government’s latest report that, in 2008–09, labour inspectors responsible for labour relations focused their activities on the enforcement of the Aliens Act in addition to legislation related to conditions of work and the protection of workers such as social security, child labour, hours of work, wages, etc. In 2008, out of 2,215 cases of illegal employment detected, 880 concerned aliens working in contravention of the provisions of the Aliens Act (in 2009, out of 1921 cases, 605 concerned aliens). In the previous period (2006–07), around half of the reported cases of illegal employment concerned aliens working without a permit. In such cases, labour inspectors have been conferred the powers to impose a temporary ban on business operations under the Aliens Act and to bring these cases to the courts. General statistical information is provided in this regard without specifying how many court decisions concern in particular the employment of foreigners in violation of the Aliens Act and whether such decisions also enable foreign workers to recover the wages owed to them for the work performed or specifying the role of labour inspectors in this regard.

Referring to its General Survey of 2006 on labour inspection (paragraphs 75–78), the Committee recalls that Convention No. 81 does not contain any provision suggesting that any workers be excluded from the protection afforded by labour inspection on account of their irregular employment status. The primary duty of labour inspectors is to secure the enforcement of the legal provisions relating to conditions of work and the protection of workers and not to enforce immigration law. To be compatible with the protective function of labour inspection, the verification of the legality of employment should have as its corollary the reinstatement of the statutory rights of all workers. Furthermore, since the human and other resources available to labour inspectorates are not unlimited, the major role sometimes assigned to labour inspectors in the area of illegal employment would appear to entail a proportionate decrease in inspection of conditions of work. The Committee requests the Government to indicate the measures taken or envisaged to ensure that the activities of the labour inspectorate targeted at the enforcement of the Aliens Act do not prejudice the exercise of its primary duty to secure the enforcement of the legal provisions relating to conditions of work and the protection of workers, and to describe the role of the labour inspectorate and the justice system in ensuring the discharge of the employers’ obligations with regard to the statutory rights of foreign workers found to be illegally employed, such as the payment of wages and any other benefits owed for the work performed in the framework of their employment relationship, including where they are liable to expulsion or after they have been expelled.

Article 5(a). Effective cooperation between the inspection services and other government services and public institutions. In its report, the Government indicates that high detection rates of irregularities in the area of labour relations has been the fruit of cooperation between labour inspectors and other inspectors, primarily from the Ministry of the Interior. The Committee requests the Government to specify the nature of this cooperation and the categories of the other inspectors involved in operations aimed at combating undeclared work.

Articles 5(a), 17 and 18. Institution of legal proceedings and enforcement of adequate penalties. In its previous comments, the Committee had noted the high rate (58 per cent) of cases in which the legal proceedings initiated by labour inspectors were declared inadmissible by the misdemeanour courts due to the expiration of the statute of limitations. It notes that this rate has now decreased to 36.5 per cent, due primarily to the adoption of the Misdemeanours Act (OG107/07) which modified the statute of limitations as of 1 January 2008.

Furthermore, pursuant to its previous comments concerning the insufficient level of the penalties imposed, the Committee notes that, according to the Government’s report, the decisions rendered by the Courts almost never order restitution for unjust enrichment and therefore are often not proportionate to the gravity of the offence.

With reference to its 2007 general observation on the importance of cooperation between the labour inspection system and the justice system, the Committee requests the Government to indicate any additional measures taken or considered with a view to accelerating the examination of cases referred by labour inspectors to the courts and ensuring the effective enforcement of adequate and sufficiently dissuasive penalties. It would be grateful if the Government would continue to indicate the progress achieved or difficulties encountered in this regard.

With reference to its comments under the Equal Remuneration Convention, 1951 (No. 100), on the role of the labour inspectorate in the protection of the rights of men and women to equal remuneration for work of equal value, the Committee requests the Government to indicate any awareness-raising activities carried out by the labour inspectorate in this area and once again urges the Government to ensure that legal provisions establishing adequate penalties in the case of violations of section 83 of the Labour Act, 2009 concerning equal remuneration are adopted and are effectively enforced.

The Committee is raising other points in a request addressed directly to the Government.