HST challenges transfer of two HT stores to franchise operation

The planned transfer of two Hrvatski Telekom stores to franchise operation has drawn opposition from the HST trade union. In a statement dated 25 October 2026, the union says the change at the stores in Požega and Velika Gorica is scheduled for 1 November and challenges the arrangements for employees’ future employment. It also announces plans to bring legal claims on behalf of workers who choose to take that step.

Dispute over the terms of the transfer, not the model itself

In its statement, HST accepts Hrvatski Telekom’s right to organise its business in the way it considers most profitable for shareholders. However, it argues that employees’ existing employment rights, pay and benefits must be protected when the way the stores are operated changes.

The union describes management’s actions as unlawful. This is HST’s legal assessment, not a court finding. Likewise, the statements about proposed contracts, severance payments and future earnings represent the union’s account of a process which, according to the same statement, is due to take effect at the beginning of November.

For Croatia’s franchise sector, the case raises a question about transferring an existing business to a partner: what happens to the people already working at the premises? The union’s objection centres not on new outlets or an expanded offering, but on the terms under which employees at two existing stores would continue working for the franchise partner.

HST raises concerns over contracts and lower earnings

According to HST, workers have been offered fixed-term contracts with a six-month probationary period. The union points out that some employees have worked in HT stores for more than ten years and questions the use of a new probationary period for people with that level of experience.

The statement cites an offered gross basic salary of €1,050, which HST describes as the minimum. By comparison, the union says the previous minimum gross starting salary was €1,150, while most of the employees affected had already progressed to a higher basic salary. These figures should therefore be read as the union’s comparison, rather than a complete breakdown of each employee’s earnings.

HST also warns of the loss of entitlements under the collective agreement. These include a fixed salary supplement, a Christmas bonus, a gift allowance for children, travel reimbursement, nursery subsidies, a holiday allowance, an Easter bonus, health insurance and routine medical check-ups.

The union further claims that workers were offered permanent contracts if they accepted a €100 pay cut. It presents this alongside its broader objection that employees moving to the partner would not retain their previous level of job security, pay and benefits.

Calls to preserve rights and plans for legal action

HST says the union and the Works Council requested a different approach. In their view, the employer should have transferred the business while protecting employees’ existing rights for at least a year, preserving continuity of service and providing protection in the event of a future change of franchise partner.

This is HST’s interpretation of the legal obligations. The union’s statement is not a court ruling on which legal mechanism must apply to this particular transfer of stores.

A second request was to allow workers who did not agree to move to the partner to remain with Hrvatski Telekom. A third concerned a bonus for voluntarily continuing to work for the franchise partner. According to HST, management rejected these requests.

A particularly sensitive claim is the union’s allegation that workers were offered additional severance pay in exchange for waiving their right to bring legal claims. HST also says it plans to bring claims on behalf of workers who still wish to take legal action. The announcement of planned proceedings does not mean they have already begun or that their outcome is known.

Union organising in franchise stores too

Beyond its response to the cases in Požega and Velika Gorica, HST announces plans to organise workers across all franchise stores. Its stated aim is to enable collective representation on pay and benefits. This extends its plans beyond employees at the two locations affected by the specific change.

For the franchise sector, the distinction between choosing a business model and implementing it is important. HST explicitly does not dispute the right to organise the business, but challenges the terms offered and the process for protecting workers. These are the issues that would be central to any disputes arising from the legal action the union has announced.

Practical takeaway: before moving an existing store to franchise operation, the old and new employment terms should be clearly compared: contract duration, probationary period, total earnings, additional benefits and continuity of employment. Workers and partners would benefit from a legal review of the relevant documents before signing.