Lex localis - Journal of Local Self-Government_11(1)_January

714 L EX LOCALIS - J OURNAL OF L OCAL S ELF -G OVERNMENT D. Senčur Peček, S. Laleta & S. Kraljić: Labour Law Implications of Outsourcing in Public Sector by private law and back to the former. This is explicitly stated in the Directive 34 and in decisions of the Court of Justice of the EU, 35 which also confirmed such opinion in several cases relating to a contractual transfer of the provision of various services from legal entities governed by public law to private service providers (for example, Clece, UGT-FSP, Abler and Others, Hidalgo and Others). Outsourcing of ancillary activities (surveillance, food preparation, cleaning, transport, etc.) is a common practice in both Slovenian and Croatian public sectors. In 2014, the Croatian Government envisaged a large-scale outsourcing of ancillary activities in the public sector based on Project Plan 2014-2016. 36 One of the most important goals was the consolidation of public finances and the lowering of budgetary deficit in the period of the economic crisis. 37 Trade unions have heavily opposed the Plan, which lead to a referendum initiative for the prohibition of the outsourcing in the public sector. 38 The Croatian Government finally gave up on the mentioned Plan. Interestingly, one of the crucial issues emphasised in the Project Plan was the protection of the existing human resources and respectively the protection of workers and safeguarding of their acquired rights (Directive 2001/23/EC, Article 133 of LA on the transfer of undertakings and intersectoral and sectoral collective agreements). In regard to the contracting-out of ancillary activities as an economic entity (complete outsourcing) as the priority model, it was envisaged that „the service provider takes over the economic entity with all the resources“. In other words, it would have been realised through a transfer of undertakings, and respectively, through a transfer of the employment contract on a new employer, whereas „he/she is selected in a process of public procurement“. 39 After the Project Plan failed in the autumn of 2014, the Croatian Government announced a reform of ancillary activities in the public sector based on a single model of in-house improvement of efficiency. However, this model included the possibility of outsourcing to a great extent. 40 The reform is based on two decisions issued in September 2014, which prohibited new employment in public services and governmental bodies. 41 An analysis of the prohibition of new employment in public services shows that the intention was to improve the ancillary-technical services performance and their rationalisation by using, first and foremost, “the organisation of the work and working time of the present employees (clerks) (according to the special regulation and employment contract)”. If that is not possible, as a secondary measure, the performance of activities would be given to the external service providers, according to special regulations. New decisions dating from 2016 42 added another condition stipulating that the outsourcing was allowed only if it is financially beneficial for the public service. As a last resort, new employment is possible, but only with the approval of the head of the public body. 43 The latter decision has no time limit. 44 According to the Civil Servants Act (CSA), 45 depending on the organisation and needs of the service, ancillary-technical and other services (that are necessary for a timely and