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In Croatia severance payment is used in most cases as monetary help that employer pays to the employees when cancelling their employment contract.

Nevertheless, a severance payment may also be a monetary reward for the loyalty of the employees to the employer, which is being paid when the employees are retiring.

Severance payment may be also paid in case where employees contracts are being cancelled as a result of accidents at work or occurrence of occupational diseases.

Right of the employees to severance payment is usually stipulated within provisions of the Collective Agreement (if any) and the Work Regulations (if any) and in the provisions of the of the Labour Act.

The employees are eligible for severance payment in three different situations:

• severance payment for retiring – when employees are retiring in cases of “old-age” retirement, early retirement and/or disability retirement
• severance payment for cancellation of employment contracts – for employees whose employment contracts have been cancelled by the employer through either a personally conditioned cancellation, or through a business conditioned cancellation
• severance payment for employees who suffered accidents at work or occupational diseases – and their employment contracts were cancelled as a result of subsequent inability to work.

All payments that may be paid tax-exempt to the employee are foreseen in the Income Tax Regulations, and hereunder you may see the relevant info for tax-exempt severance payment for retirement.

No.	Description	Coefficient	Amount in EUR – 2025 max tax exempt
14.	Severance payment for retirement	2,5	up to 1.500,00

No.	Description	Coefficient	Amount in EUR – 2025 max tax exempt
15.	1,6	Severance payment for cancelation of employment contract – through a personally conditioned cancellation and through a business conditioned cancellation , compliant with Labour Act	up to 960,00 EUR for each completed year of employment with that employer

No.	Description	Coefficient	Amount in EUR – 2025 max tax exempt
16.	2,0	Severance payment due to accidents at work or occupational diseases	up to 1.200,00 EUR for each completed year of employment with that employer

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Below are critical aspects of business law for startups

1. Legal Structure
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2. Employment Law Compliance
   Drafting fair and clear intercompany regulations and employment contracts protects both employees and the business.​
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   Consumer protection minimum requirements are usually common knowledge among consumers so legal hiccups in that area do not help in business longevity of the startup.
6. Intellectual Property Protection
   Securing trademarks, patents, and copyrights before or after hitting the market may safeguard unique ideas and brands. Nevertheless, in many situations well drafted rules about trade secret can be the best and only solution for protection against competition.
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In September 2010, Kresimir Jelakovic founded his own law firm in Varaždin, Croatia, now Jelaković & Partners.

Jelaković & Partners is a business law firm located at Zagrebacka 61/III in Varazdin on the whole third floor of the business venue, and its second address will be soon at Slavonska Avenija 1A in Zagreb on the fifth floor of the Matrix Office Park.

Kresimir Jelakovic has decades of experience himself and together with his team he is able to offer a wide range of services. From support in restructuring and renegotiation of the existing projects to legal support in the areas of real estate law, contract law, corporate law, energy law, tax law, insolvency law to the areas of financing, such as senior loans, junior loans, syndicated loans and much more.