Minister of labor and the Pension System Josip Aladrović (Photo: HRT/Reuters/PIXSELL) Minister of labor and the Pension System Josip Aladrović (Photo: HRT/Reuters/PIXSELL)

The concept is for the state to foot the bill for non-effective work, meaning that if an employer works five days a week, and only has a need for four, the state will co-finance the one work day. The measure to shorten work hours in order to preserve jobs which is being prepared by the European Union foresees a hundred million euros in loans, said Labor Minister Josip Aladrović.

“We believe that in the coming period, when we can't go as horizontally as we did with the first measures to preserve jobs, this is one of the manners in which we can preserve business and economic activities,” said Aladrović.

Shortening work hours due to less work has been applied for years in Croatia and other European countries, said the president of the Independent Trade Unions Krešimir Sever.

“This means that the state will pay the difference up to full salaries. According to the current measure an employer can lower work hours up to 40 percent, on the daily or weekly level, the state will pay the difference, but not more than the minimum wage,” said Sever.

Like the unions, employers support the measure.

“In that manner the state is protecting the employer and itself from a wave of layoffs. So it is fully a win-win situation,” said Kristijan Krpan from the Croatian Employers' Association.

Source: HRT