Penalties for improper working-hours records: how much they cost and how to avoid them

How much the penalties are

Under the Croatian Labour Act, failing to keep records of workers and working hours, or keeping them in a non-prescribed manner, is among an employer’s most serious offences. The fines are:

• 8,090.00 to 13,270.00 euros for an employer that is a legal entity (d.o.o., j.d.o.o.),
• 920.00 to 1,320.00 euros for an employer that is a natural person and for the responsible person in a legal entity (director, owner).

The same penalty applies when you fail to provide the labour inspector, on request, with data on workers and working hours. If the offence is committed against a minor, the amount is doubled.

The burden of proof is on the employer

In addition to the penalty itself, the Croatian Labour Act sets out a serious consequence in a dispute: if the employer does not keep records in the prescribed manner, the burden of proving working hours falls on the employer. Without proper records it is hard to dispute a worker’s claims about hours worked, overtime or night work.

What inspectors check

For each worker, the record must contain at least:

• the start and end of working time for each working day, not just the total hours,
• overtime and night work, recorded separately,
• breaks and daily, weekly and annual rest periods,
• the reasons for all absences, clearly categorised (sick leave, annual leave, other leave).

The data must be accurate, up to date and available on request, and the records are kept for the prescribed period.

How to protect yourself

The safest protection is a record created at the source that cannot be quietly rewritten afterwards. When a worker clocks in at the entrance with a card, PIN or QR, the time is logged automatically, and the record is append-only with a trail of changes. The pay premiums for night work and overtime are calculated automatically, and the report for inspection is exported as a PDF under Article 13 in a few seconds.

Cuketi is compliant with Ordinance NN 55/2024 and works across all kinds of workplaces, from the plant to the construction site. See how it is set up by application scenario or check the pricing right away.

Note: this text is informational and does not constitute legal advice. The penalty amounts are stated according to the Croatian Labour Act (Article 229); check the current regulation before making decisions. Source: the Croatian Labour Act (zakon.hr).