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Severance pay calculation
Croatian Labour Act (Zakon o radu), Articles 122 and 126
The employee
Name [FULL NAME]
Job title [JOB TITLE]
Employer [EMPLOYER]
Town [TOWN]
Completed years with the employer [YEARS]
Average monthly gross pay (last 3 months) €[AMOUNT]
Ratio per year [1/3 OF PAY PER YEAR]
The calculation
Item Amount
Pay per year of service €[AMOUNT]
Per year × completed years €[AMOUNT]
Cap: 6 months’ pay €[AMOUNT]
Severance pay €[AMOUNT]
Of which tax-free (€960 per year) €[AMOUNT]
Taxable part €[AMOUNT]
Entitlement: the employer gives notice after two years of continuous work, not for the employee’s conduct (Art. 126(1)–(2)).
At least 1/3 of the average monthly pay of the last three months for each completed year, at most six months’ pay unless agreed otherwise (Art. 126(3)–(4)).
Minimum notice: from 2 weeks to 3 months, by length of service (Art. 122).
Request for payment of severance
[FULL NAME]
[ADDRESS] · OIB [OIB] · [PHONE]
[TOWN], [DATE]
[EMPLOYER]
For the attention of management and HR
By registered post with advice of delivery, or by hand against a receipt
Subject: request for payment of severance and final settlement
Dear Sir or Madam,
My employment contract for the position of [JOB TITLE] ends on [END DATE OF CONTRACT] following your notice, after [YEARS] of continuous work with your company.
Under Article 126 of the Labour Act, I ask you to pay me severance of at least €[AMOUNT], as shown in the attached calculation, together with my pay for the last month, pay in lieu of unused annual leave (Article 82) and any other amounts due under the collective agreement.
Please also send me the written calculation of these amounts within 15 days of payment, as required by Article 93 of the Labour Act.
If the amounts are not paid, I reserve the right to seek protection of my rights under the Labour Act, including before the competent court.
Yours faithfully,
[FULL NAME] Signature: ________________
Attachment: severance calculation.
After notice: check
What When Done
Written notice with reasons, delivered to you (Art. 120) — ☐
Notice runs from delivery (Art. 121) from delivery ☐
Pay for unused annual leave (Art. 82) with final pay ☐
Written calculation of severance and pay (Art. 93) 15 days after payment ☐
Register with the Croatian Employment Service (HZZ) as soon as possible ☐
Arithmetic under the Croatian Labour Act, not legal advice.