Redundant employees will get an average severance payment of 230,000 kuna.
Croatian Telecom announced that, as part of the process of transformation of business operations, about 100 employees would leave the company, reports Jutarnji List on February 15, 2017.
According to the statement, Croatian Telecom will this year continue with the process of transformation of its business operations in order to maintain operational efficiency and ensure potential for long-term, sustainable growth. “As part of this process, we have determined that there is an excess of about 100 workers whose contracts will be terminated for business reasons by 31 March. That is the smallest number of employees leaving the company since Croatian Telecom started the process of transformation”, announced the largest telecommunications company in Croatia.
It added that the company was approaching the process of reducing the number of employees with full social responsibility. In addition to severance payment guaranteed by the collective agreement, Croatian Telecom decided to pay out additional stimulating severances which will be given to workers depending on their years of service in the company. Also, for certain categories of workers, the company will pay special supplement in the amount of six salaries, said the company in the statement.
Employees who leave the company will receive a severance pay which will amount to, on average, 230,000 kuna, an equivalent to one and a half annual average wage in Croatian Telecom. The company explained that the severance pay in Croatian Telecom was among the highest in Croatia and on average two times higher than legally prescribed.
The company added that the reduction in the number of workers was carried out in accordance with the provisions of the Labour Act and the collective agreement. It explained that the company, through its Support Plus programme, provided qualified experts to workers to advise them how to more easily find their place in the labour market and address their employment status. Employees who will leave the company will be able to receive additional 5,000 kuna in subsidized education courses.
“The telecommunications industry in which Croatian Telecom operates is rapidly changing and the constant adaptation and transformation is necessary in order to maintain the leading position and to ensure growth and development in the future. Technological development brings significant changes and certain positions are completely discontinued or their scope is greatly reduced, resulting in the need for reducing the number of workers”, explained Croatian Telecom.
It added that, along with the process of continuous restructuring, Croatian Telecom is constantly employing new young professionals with specific knowledge in the STEM field.
