The Republic of Croatia has started an experimental program of the so-called School for Life and ensured implementation by purchase of about 91,000 tablets, 1,200 laptops and accompanying equipment for the implementation of educational reform in primary and secondary schools. Such a reform implies a significant digitalization of the educational process, virtual classrooms, new curriculum, webinars and many other changes that affect the learning process by introducing a new sphere of e-learning as a standard. It is about creating new generations with new skills and knowledge that will use technology from the earliest days, and that technology will shape them. Given that such a big step has been made in an education system that is difficult and slow to change due to the necessary consensus, it is unquestionable that digitalization and virtualization of business is coming much faster and in greater intensity in the market itself. In order to adapt to new market conditions that are changing rapidly, but also to new generations who have different preferences especially in terms of supply and demand, product availability from 0-24, as well as geographical independence to obtain desired products and services or their constant availability they had to change the organization of their business, sometimes even day to day. Such adaptation for survival implies digitalization and virtualization of business that enables the satisfaction of new market needs and new generations of consumers whose needs and the way of meeting them will change even faster, in accordance with which the adjustment of business organization never stops. In order to better understand these processes, the author of the paper starts from the analysis of social circumstances and processing of basic concepts that define the virtual organization of business, emphasizing the advantages and disadvantages of the same. After that, the author deals with labor law issues related to teleworking in both the European Union and the Republic of Croatia and finally analyzes the virtual economy in the Republic of Croatia as well as examples of virtualization as a result of regular adaptation and those accelerated by the COVID-19 virus epidemic.