PARTI.GENERAL PROVISIONS

Article 2

(1) The State Inspectorate shall engage in inspection activities which include the surveillance of the processes of work and the implementation of regulations in the following areas: commerce,labourand occupational safety and health protection, electric energy, mining, pressure vessels, animal husbandry, wine-growing and wine-production, freshwater and sea fishing, forestry and hunting, forest seeds and forestry planting tools, the calculation and levy of the residence tax, and hotel and restaurant management and tourism.

Article 4

In the area oflabourand occupational safety and health protection, the State Inspectorate shall scrutinize the implementation of laws and other regulations on employer-worker relations (labourrelations and protection at work), and in particular the implementation of regulations on:

theduty of the employer to register his workers with a retirement and health insurance fund within the time fixed by regulations,

the hours of work, wages, employment and work of persons under age, women, pregnant workers, women workers after childbirth, invalids, foreigners, and so forth,

theworking conditions, protection of workers, safety and health protection of workers,

inparticular the health protection of persons under age, women and invalids.

PART II INSPECTION ACTIVITIES

Article 19

Thelabourinspector and the seniorlabourinspector shall survey the implementation of the law and other regulations in the area oflabourand occupational health and safety.

Article 20

(1) Appointed aslabourinspector may be a person who, beside the conditions for entering public service as prescribed by law, shall meet the following particular conditions:

to carry out supervision over the implementation of the law and other regulations in the field of employer-employee relations (labourrelations), thelabourinspector shall be a holder of a university degree in law and of the state certificate of expertise and shall have had at least two years of experience in the specialty;

to carry out supervision over the implementation of the law and other regulations on occupational health and safety, thelabourinspector shall be a holder of a university degree in the technical or medical sciences (specialist in occupational medicine) or of a university degree in psychology and of the state certificate of expertise and shall have had at least two years of experience in the specialty.

(2) Appointed as seniorlabourinspector may be a person who meets the requirements for alabourinspector as prescribed in paragraph 1 of this Article and who has had at least ten years of experience in the specialty out of which three years shall have been as alabourinspector with the state certificate of expertise.

Article 21

The number oflabourinspectors and seniorlabourinspectors in the regional offices shall be determined in relation to the number of workers and shall in principle be onelabourinspector to 4,000 workers.

Article 22

If the regulations referred to in Article 4 of this Law are implemented on the means of work in marine,riverine, rail, road and air transport, the surveillance of their implementation shall be carried out by the inspector authorized to do so in the seat of the employer or the place of the work activity.

Article 23

In this Law "worker" and "employer" shall mean persons determined as worker and employer by the provisions of theLabourLaw.

PART III RIGHTS, DUTIES AND POWERS

Article 31

(1) In carrying out inspection activities the senior economic authority inspector, the economic authority inspector, the junior economic authority inspector, the seniorlabourinspector, thelabourinspector, the senior electricity authority inspector, the electricity authority inspector, the senior mines inspector, the mines inspector, the senior pressure vessels inspector and the pressure vessels inspector (hereinafter: inspector) shall beauthorisedto inspect: buildings, civil engineering works, forest nursery, woodlots, growing stocks and other land; workplaces and other facilities; ports andharbours, and temporary construction sites; the carrying out of working activities, civil engineering works which house workplaces and appurtenant structures and installations; domestic premises, that is dwelling-constructions, apartments and houses for rent whererestaurationand tourist services are distributed to thetravellingpublic and tourists; products, appliances, equipment, elements of work and fishing gear; vehicles and vessels; books, registers, documents, contracts, papers and other records that are proof of the working activities of the legal or natural person and of the implementation of the regulations laid down in Articles 3, 4, 5, 6 and 7 of this Law, and they shall carry out other activities pursuant to other regulations.

(2) In this Law, "workplaces" shall mean dwelling premises registered as office space and other facilities, means of transport and so forth, in which the surveyed legal and natural person carry out their registered activity or work.

Article 46

(1) If in the process of inspection the inspector establishes a violation of the Law or other regulations, he may issue a notice requesting the elimination of the established irregularity and he shall determine a time limit within which this irregularity shall be eliminated.

(2) If this Law or any other regulation stipulates the implementation of a particular administrative measure for an established irregularity, the inspector shall state so in his notice.

(3) The inspector shall issue immediately the notice referred to in paragraphs 1 and 2 of this Article or at the latest eight (8) days following the completion of the inspection during which the facts contained in the notice were established. Failure to issue the notice within this time limit shall not nullify the obligation to issue the notice.

(4) The inspector shall not issue the notice referred to in paragraphs 1 and 2 of this Article if the established irregularities have been eliminated during the inspection or up to the issuance of the notice as determined in paragraph 3 of this Article and the inspector shall enter thereof in his report.

Article 47

(1) Against a decision taken in accordance with this Law or any other regulation by the inspector of a regional office or regional branch office of the State Inspectorate an appeal may be lodged with the State Inspectorate within eight (8) days following the day of the receipt of the decision.

(2) If the inspector of the regional office or of the regional branch office of the State Inspectorate determines that the appeal lodged is justified and that it has been lodged within the prescribed time limit and signed by a person authorized to do so, and if the inspector has not taken a new decision which would nullify the decision against which the appeal has been lodged, then within five (5) days of the receipt of the appeal the inspector shall submit it to the State Inspectorate for review.

(3) An appeal lodged against a decision taken pursuant to this Law shall delay the execution of the decision, unless otherwise determined by this Law.

Article 59

(1) In carrying out inspection activities in the area of safety and health protection at the workplace, thelabourinspector shall enter in his book of inspection a notice whereby:

the employer shall be ordered to suspend from work a worker acting in contravention of occupational safety and health regulations, or a worker who is not applying the required individual protective devices and equipment or for whom there is justifiable cause to believe that he is under the influence of alcohol or other addictive substances;

the employer shall be ordered to suspend a worker from such work activities for which the worker does not meet the conditions determined in the occupational safety and health regulations, or if, as a consequence of such activity, there is a direct threat to the life and health of any other worker;

he shall prohibit the use of deficient elements of work (buildings which house workplaces, machines and devices, scaffolding and work space, and so forth), until the deficiency has been eliminated, or for as long as the conditions which directly endanger the life and health of any worker are present;

heshall prohibit the employer from acting in a way or from undertaking such a procedure that is in contravention of the law or other regulations, or he shall order the employer to eliminate an established irregularity.

(2) The measure referred to in paragraph 1, subparagraph 3 of this Article shall be implemented when high risk machines and devices, or the working environment have not been inspected in the determined time limit and if there is reasonable doubt to believe that there is a direct threat to the life or health of the worker.

(3) If within eight (8) days following the day thelabourinspector has entered his measure into the book of inspection the employer requests a reasoning for such a measure, thelabourinspector shall issue a notice witha reasoningas referred to in paragraph 1 of this Article.

(4) In order to ensure the implementation of the prohibitions referred to in paragraph 1, subparagraph 3, and paragraph 2 of this Article thelabourinspector may affix a seal on the work facilities and work space, or machines and devices thereof.

(5) Unless otherwise determined by the law or other regulation, thelabourinspector shall issue a notice prohibiting the scrutinized legal or natural person from carrying out such activities for which it has not been registered or for which it does not have a paper (authorization, permit,licence, and so forth) thereof issued by anauthorisedbody.

Article 60

(1) Thelabourinspector shall carry out inspection in the place where an event has caused a death, a group injury or a serious injury to a worker, or has caused a disruption in the work procedure which may have threatened the safety and health of workers, and he shall do so immediately upon receipt of notification of such an event from the employer, worker, police or physician who has administered first-aid to the worker.

(2) Thelabourinspector shall carry out inspection of an employer where an occupational disease has been established.

(3) Thelabourinspector shall immediately inform the Inspector General of an event that has resulted in the death or a group injury of workers.

(4) Following the receipt of an opinion of theauthorisedMinistry, the Inspector General shall issue a recommendation as to what data the notice referred to in paragraph 3 of this Article shall contain.

Article 61

Thelabourinspector shall have the right and duty to issue a notice ordering the employer to eliminate the establishedlabourrelations violation, except if such an act constitutes a right the worker can realize in court.

Article 62

(1) The employer shall not transfer work within his field of activity to workers of other employers who have a contract of co-operation or are working for him on any other legal basis, if he has not registered such workers with the retirement, invalidity and health insurance agencies, or if they are foreign workers without work permits.

(2) If thelabourinspector establishes in the course of inspection:

thatforeigners without work permits work for a employer,

-thatthe employer and the worker have signed an agreement of collaboration or any other agreement but not a work contract and the law stipulates that they should have signed a work contract,

thatthe employer who has concluded a work contract with a worker has not registered the worker with the retirement, invalidity and health insurance,

thatthe employer has not carried out thelabourinspector'sexecutorynotice,

that the employer has transferred work to workers of other employers in contravention of the provisions laid down in paragraph 1 of this Article, the inspector may issue a notice temporarily prohibiting the employer from carrying out his activity up to the elimination of the established deficiency or irregularities.

(3) The decision referred to in paragraph 2 of this Article shall be carried out by the affixing of seals to the entrance of the workplace, to any other elements of work or in any other appropriate manner.

Article 63

An appeal lodged against a decision in a notice taken pursuant to the provisions laid down in Article 59, paragraph 1, subparagraphs 2 to 4, and in Article 62, paragraph 2, subparagraph1, of this Law shall not delay the implementation thereof.

PART IV PENALTY PROVISIONS

Article 71

(1) An employer shall be liable to a fine of 30,000 to 120,000kunasfor the offence of failure to register within the time limit determined therein a worker with the retirement, invalidity and health insurance and the employer who transfers work to workers of an other employer in violation of the law or other regulation (Article 4, paragraph 1, and Article 62, paragraph 1).

(2) The responsible person of a legal person shall also be liable to a fine of 10,000.00 to 30,000.00kunasfor the offence referred to in paragraph 1 of this Article.

(3) For the offence referred to in paragraph 1 of this Article, the employer may be charged a summary fine of 10,000.00kunasand a responsible person of a legal person a summary fine of 3,000.00kunas.

Article 80

(1) On the day this Law enters into force the following shall be quashed:

3.theLaw onLabourInspection (Narodnenovine, nos. 59/96 and 94/96),