May 8, 2020 - Beware the Croatian inspector - a new series courtesy of Glas Poduzetnika (Voice of Entrepreneurs), highlighting a Croatian business reality that helps kill growth, profit, and entrepreneurship. Complaining Brings More Problems.
I have seen them operating all over the country over the last 18 years, the most feared visitors to Croatia's cafes, restaurants, and other businesses - the Croatian inspector.
As with many corrupt countries, the role of the inspector should be to make sure that the rules are being adhered to in the particular area they specialize in - sanitary, fiscal, etc - but in reality, the prime motivation is to find ways to fill the State coffers and their own. Allegedly.
I heard SO many stories of inspections where perfectly run businesses end up paying thousands in fines, some of it justified, much of it grossly unfair. And there is an old truism here:
If the Croatian inspector comes to visit, he will find something, even if there is nothing there.
It is a subject that I have wanted to cover for years, but I never had quite the right material. Until now.
Huge thanks to those very proactive chaps at Glas Poduzetnika, who are really becoming a force for change to be reckoned with. A really great initiative. In one of their latest moves, they have been collecting some of their members' experiences with the Croatian inspector, to highlight the issue and the realities of doing business in Beautiful Croatia.
Story #13: I Know How Complaints Go, You Will Just Get Yourself in More Trouble
Some 3 years ago, while my wife was a co-owner, that is, a buddy in a joint venture (self-employed) with her brother, and I, jack of all trades, took the opportunity to fall into a frequent trap in the sense that I hired an employee on a familiar line. The employee was appointed as the clerk behind the counter of a travel agency.
To frequent complaints from a client, and her coworker, with whom she shared her workplace, I was forced to frequently have conversations with the problematic employee, all to normalize a healthy relationship with clients and her coworker. My relationship and that of her coworker with her were extremely correct, and the problematic employee did not incur any harm, materially, nor morally. For her superciliousness, she reported me to the labor inspection.
The labor inspection came while my wife was not at the location of the activity, and while I was on an all-day trip with clients outside the site of the travel agency.
The inspector called me on the phone (while my clients were next to me all day, and when I couldn't hold a conversation for more than 20 seconds or at all) tried to convince me that I committed a violation by getting a troubled employee in an employment relationship on 15th June, while she was in the agency for the first time on 14th June.
I tried in vain to explain that on 14th June it was, in fact, her colleague who was on a shift which could be seen from both the fiscalized accounts and our internal records and that the problematic employee at that time was only as a person to whom, as a senior employee, her colleague sought to pass on her knowledge and experience, and had nothing to do with the clients or the responsibilities that she takes on with the 15th June.
The next morning I called the inspector and asked her why they were doing this, what was the point? I got a response that what I did is not legal and that I should have registered the problematic employee on 14th June. By the way, she added that she would advise me to pay the fine immediately because if I pay promptly, the penalty will be lower. She also said that she did not encourage me to appeal it in any way because she knew how complaints go and that I would just get into more trouble that way (look at that rhetoric). Paid the racket to be in peace.
Please do not take the accuracy of the specific dates into account, they were just an example, I didn't feel like going through the registrators looking for papers for exact dates and amounts. I believe the paid amount was around 3,500 kn, and full amount 5,000—6000 kn. I tried to forget everything as soon as possible, but for you, from UGP, I remembered it again. There are more of these experiences, perhaps for another time.
Beware the Croatian Inspector is a new daily series (yes, there really is that much material) which you can follow here.
If you have a Croatian inspector story you would like to share with the Glas Poduzetnika team (in English or Croatian), you can do so via This email address is being protected from spambots. You need JavaScript enabled to view it. Subject TCN inspector.
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