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Board-level Representation

There is employee representation at board level in larger Croatian limited companies and all Croatian public limited companies. However, this representation is limited to a single member representing employees.

Croatia has both public limited companies (d.d.) and limited companies (d.o.o.). Since 2008, public limited companies have been able to choose between a two tier corporate governance structure, with a supervisory and a management board, and a single tier structure, with just one board. However, whichever structure they choose, they must have an employee representative at board level – as a member of the supervisory board in a two tier structure or as a member of the board in a single tier structure.

Limited companies can also choose between a two tier and one tier structure. However, if any of certain conditions are met, they are required to have a two tier structure with a supervisory board. The conditions include having more than 200 employees, having a share capital above HRK 600,000 (about €80,000) and more than 50 shareholders, and operating in a number of specific industries. Under the 2010 Labour Act, limited companies with this two tier structure must also have an employee representative on the supervisory board.

Publicly owned companies must also have an employee representative at board level.

The single representative at board level is appointed and recalled by the works council. If there is no works council the employee representative is elected by the employees from among their number. In this area the possibility of the union taking on the rights and duties of the works council, which exists in other areas, does not exist.

The legislation specifically states that the employee representative has the same legal position as other board members.

L. Fulton (2015) Worker representation in Europe. Labour Research Department and ETUI. Produced with the assistance of the SEEurope Network, online publication available at http://www.worker-participation.eu/National-Industrial-Relations.