We do not see employers as criminals and there is no fear that they will go to jail if they fail to pay salaries for objective reasons, said Bosnjakovic.

But if an employer could pay salaries but did not for his own luxury, for example to buy a new car, that has to be punished, he added.

Non-payment of salary is already a felony, but since it is very broadly defined, only one such case is currently being processed at the moment, he said.

He dismissed employers' accusations that the new bill humoured trade unions and was an attempt to score political points, saying the issue would be discussed by the Economic and Social Council as well as in parliament.

Employers maintain that existing legislation leaves enough possibilities for punishing employers who do not pay their workers.

There is forcible collection, distraint and bankruptcy proceedings, and imprisonment is absolutely unacceptable and does not exist anywhere in the European Union, said HUP president Ivan Ergovic, adding it would be bad for both employers and employees.

He complained that employers were expected to be the generator which would drag the Croatian economy out of the crisis, while being constantly given more burden.