CROATIA Law and Practice Contributed by: Lovro Badžim, Badžim Law Practice
Affected parties normally have the right to appeal within the federation, and after exhausting internal remedies may turn to sports arbitration if provided for by the applicable rules. External judicial protec - tion remains available: administrative courts review decisions involving public powers, civil courts hear contractual and financial disputes, and the sports inspectorate may intervene in cases of illegality. As a rule, internal remedies must be exhausted before court proceedings, subject to limited exceptions for urgent or fundamental rights issues. 7. Employment Contracts and Rights 7.1 Sports-Related Employment Contracts In Croatia, the relationship between sports organisa - tions – clubs and federations – and athletes is gov - erned primarily by the Sports Act and the internal rules of national federations. The law clearly distinguishes between professional and amateur athletes and allows different contractual models depending on status and level of competition. Professional athletes may be engaged either under an employment contract or through a professional playing contract if they operate as self-employed. Where an employment contract exists, certain labour law rules (such as those on fixed-term work, working time, termination, and severance) do not apply auto - matically and are instead governed by the individual contract with the club. These contracts are registered with the national federation for record purposes, but their validity does not depend on federation approval. Contracts are negotiated individually; standardised league-wide agreements are uncommon. Amateur athletes are not employees. They may receive scholarships or allowances – up to EUR24,000 per year and generally until the age of 24 – but without an employment relationship. Transfers of amateur ath - letes are normally free of charge, except for limited training compensation when they turn professional. Athletes may also compete as independent profes - sionals through a trade or liberal profession. Athletes are categorised based on sporting results, which affects eligibility for state-funded contributions,
scholarships, and awards. Croatian law does not impose salary caps; remuneration is contract-based, although some federations may set limits at amateur or lower levels. Transfer rules are set by federations but remain sub - ject to state oversight and competition law. Clauses forcing athletes to accept renewals, allowing unilateral extensions, or threatening suspension for refusal are void. Non-compete clauses are permitted only if pro - portionate. Most clubs are organised as associations, with limited use of corporate forms, and athlete pay is typically funded through club revenues, sponsorships, and public-interest sports programmes. 7.2 Employer/Employee Rights Sports federations in Croatia are organised as asso - ciations with public powers under the Sports Act. As legal entities, they are subject both to sport-specific rules and to the general law on associations. From an employment perspective, this means that labour law applies to federations in the same way as to other employers, unless the Sports Act provides otherwise. For federation staff – such as administrative employ - ees, coaches, and technical personnel – the Labour Act applies in full. Their employment relationships are governed by standard employment contracts, includ - ing rules on working time, termination, severance, and workplace safety, and federations are fully liable for these obligations with all their assets. Professional athletes are treated differently. When an athlete is employed by a club, certain labour law pro - tections – such as rules on fixed-term contracts, notice periods, severance, and working time – do not apply automatically and are instead governed by the indi - vidual agreement with the club. These contracts must be registered with the national federation, although federations are not the athletes’ employers and act mainly in a regulatory and supervisory capacity. The law provides important safeguards. If a club becomes insolvent or if a dispute arises over a so- called self-employed athlete’s contract, the relation - ship may be reclassified as employment, giving the athlete access to labour law protection. Federations
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