Ketler & Partners l.f. LLC, member of Karanovic

1

GENERAL PRINCIPLES

Forums For Adjudicating Employment Disputes

Labour Courts (“Delovna sodišča”) have jurisdiction in employment disputes regardless of the value of the matter. The jurisdiction of other courts cannot be agreed upon by the parties. Out-of-court resolution of employment disputes is possible. Employer and employee may agree to resolve the dispute before arbitration after the dispute has arisen if this is provided for in the collective agreement which binds them.


The Main Sources Of Employment Law

Employment relationships are governed by the Employment Relationship Act (Zakon o delovnih razmerjih – ZDR-1), which is the main source of employment law of the Republic of Slovenia. Certain rights and obligations arising from the employment relationships are regulated by special acts such as Collective Agreements Act (Zakon o kolektivnih pogodbah – ZKolP), Worker Participation in Management Act (Zakon o sodelovanju delavcev pri upravljanju – ZSDU), Strike Act (Zakon o stavki – ZStk), etc.


National Law And Employees Working For Foreign Companies

The parties can choose the law applicable to the employment contract however, such choice of law must not deprive the employee of his minimum rights in accordance with the law of the place of employment. Therefore, if foreign law governs the employment contract with the employee working in Slovenia, the employer must guarantee the employee the minimum rights under the Slovenian Employment Relationship Act.


National Law And Employees Of National Companies Working In Another Jurisdiction

The employer must guarantee the employee the minimum rights in accordance with the Slovenian law and jurisdiction to which he is sent to work temporarily.


Data privacy

Employees' personal data may be collected, processed, used and passed on to third parties only if this is stipulated by the law or if this is necessary for the exercise of rights and obligations arising from the employment relationship or in connection with the employment relationship. Personal data of employees may be collected, processed, used and passed on to third parties only by the employer or an employee specifically authorized by the employer. Personal data of employees for the collection of which there is no longer a legal basis must be deleted immediately and ceased to be used.

If the personal data of the employees is processed for purposes that go beyond the purpose of the exercise of rights and obligations arising from the employment relationship or in connection with the employment relationship (e.g., for marketing purposes and other similar purposes), the consent of the employee for such processing must be obtained. The consent is valid only if refusal has no consequences on the employment relationship or employee’s legal position.

If the personal data of the employees is processed by third party (e.g., accounting service or similar subcontractors) a data processing agreement must be concluded with the third party. Employees should also be notified that their personal data is being processed by a third party, preferably with the privacy notice.

2

HIRING THE EMPLOYEE

Legal Requirements As To The Form Of Agreement

An employment contract (in written or oral form) is not required for an employment relationship to become effective. Under Slovenian law the employment relationship exists if the elements of the employment relationship exist, regardless of whether an employment contract has been concluded. However, the employer must conclude an employment contract with the employee in written form. If the employer refuses to do so, the employee may request the conclusion of the employment contract in written form through the court.


Mandatory Requirements
  • Trial Period

    • Trial period may not be longer than 6 months. The trial period may be prolonged if the employee was temporarily absent from work. The trial period is not mandatory and has to be agreed upon between the parties. If the employer determines during the trial period or after the trial period that the employee has not successfully completed the trial period, it may ordinarily terminate the employee's employment contract. During the trial period, the employee may ordinarily terminate the employment contract.

  • Hours Of Work

    • An employment contract may be concluded for a maximum of 40 hours per week (full-time employment relationship). Overtime work can last a maximum of eight hours per week, a maximum of 20 hours per month and a maximum of 170 hours per year (with the consent of the employee up to 230 hours per year). The working day can last a maximum of ten hours.

  • Special Rules For Part-time Work

    • An employee who has concluded a part-time employment contract has the same rights and obligations arising from the employment relationship as a full-time employee and exercises them in proportion to the time for which he concluded the employment contract. Unless otherwise agreed upon in the employment contract, the employer may not impose overtime work on an employee working part-time. An employee may enter into a part-time employment contract with several employers and thus achieve full-time employment.

  • Earnings

    • Remuneration for work carried out on the basis of an employment contract shall be composed of the salary, which must always be paid as a sum of money, and other types of remuneration if so stipulated in the collective agreement. The employer must comply with the requirements on the minimum amount of salary, determined by the law or collective agreement.

    In accordance with the Minimum Salary Act the minimum salary is calculated according to the minimum costs of living, which the minimum wage must exceed by at least 20 % but no more than 40 %. The minimum wage for 2021 amounts to EUR 1,024.24 gross (for full-time employment).

  • Holidays/Rest Periods

    • Employees are entitled to a minimum of 4 weeks of paid annual leave. Older employees, disabled employees and employees who are taking care of a child with special needs are entitled to an additional 3 days of paid vacation. Employees are entitled to one additional day of paid vacation for each child under the age of 15.

    Employers are obliged to make an annual payment for annual leave (“regres”) to employees who are entitled to annual leave, in the amount of at least the minimum salary in the Republic of Slovenia. Such payment must be made at the latest until 1 July of each year.

  • Minimum/Maximum Age

    • The work of children under the age of 15 is prohibited (with certain exceptions). There is no maximum age determined for employees.

  • Illness/Disability

    • In cases of inability to work due to illness, the employees are entitled to salary compensation. The amount of salary compensation depends on the basis for compensation, the reason and duration of temporary absence from work and the method of valorisation. Sick leave for up to 30 days is approved by a personal physician. The approval of sick leave for more than 30 days is decided by a commission appointed by the Health Insurance Institute of Slovenia. The salary compensation for the first 30 days of absence is paid by the employer (except in certain cases), and from the 30th day onwards by the Health Insurance Institute of Slovenia.

    All employers who employ at least 20 employees in the Republic of Slovenia are obliged to employ disabled persons within a certain share of the total number of employees. If the employer fails to meet the quota, it has to pay a special contribution to the Disability Fund. Disabled people are a specially protected category of employees and a special procedure is envisaged for the termination of the employment contract with a disabled employees.

  • Location Of Work/Mobility

    • The location of work is stipulated in the employment contract. The employee may be sent to temporarily work abroad if this is provided for by the employment contract. The employee may decline work abroad if justified reasons such as pregnancy, childcare, etc., exist.

    The employers can order employees to work from home or other places, even if this is not provided for by the employment contract, due to exceptional circumstances (such as COVID-19 pandemic). Employees must be ordered to work from home in writing. When ordering work from home, the employer must pay particular attention to the fact that such a way of working is ordered only to employees in suitable job positions, that employees have the necessary means of work and that their safety and health at work are ensured. In principle, the employer must notify the Labor Inspectorate of the Republic of Slovenia in advance of the order to work from home, but in exceptional cases, it is allowed to send the notice as soon as possible.

  • Pension Plans

    • Pension plans are not mandatory. If pension plans are established certain legal requirements must be observed.

  • Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)

    • Slovenian law provides for three paid leaves connected with the birth of a child, namely maternity leave, parental leave and paternity leave. Maternity leave generally begins 28 days before the expected date of birth and lasts for maximum of 105 days, whereby the use of at least 15 days is obligatory). Fathers are entitled to paternity leave which lasts for maximum of 30 days. Both parents are entitled to parental leave in the maximum total amount of 260 days (130 days belong to the mother and 130 to the father, whereas the parents can transfer the days to each other in accordance with certain rules).

    One of the parents has the right to work part-time (at least 20 hours per week) due to the parenthood of a child up to 3 years of age. The employer must grant such employees the request for part-time work, regardless of the needs of the work process. The employee receives a part-time salary.

  • Compulsory Terms

    • The employment contract must include the following compulsory terms: information about the parties; date of commencement of work; job title or type of work with a brief description of the work that the employee must perform under the employment contract; place of work; the period for which the employment contract has been concluded; the reason for concluding the fixed-term employment contract and the provision on the manner of using the annual leave, if the fixed-term employment contract has been concluded; determination whether it is a full-time or part-time employment contract; determination of daily or weekly working hours and scheduling of working hours; the amount of employee’s basic salary in EUR and any other payments; other components of the employee’s salary, payment period, pay day and the method of payment; provision regarding the annual leave; notice periods; indication of collective agreements which bind the employer and other general acts of the employer regarding the performance of work and other rights and obligations, in cases as specified by the Employment Relationship Act.

  • Non-Compulsory Terms

    • The parties can agree on more favourable terms and conditions than statutory determined as long as they do not conflict with mandatory provisions.


Types Of Agreement

Slovenian law differentiates between the following types of employment contracts: full-time / part – time, fixed term – indefinite period, employment contract with a manager/director or procurator and employment contract with a senior worker (“vodilni delavec”). Special rules apply for certain types of employment contracts.


Secrecy/Confidentiality

The Employment Relationship Act stipulates that the employee may not exploit for his personal use or disclose to a third party the employer's business secrets, which are determined as such by the employer, and which were entrusted to the employee or of which he was otherwise acquainted.


Ownership of Inventions/Other Intellectual Property (IP) Rights

The ownership of inventions related to employment is governed by Employment Related Inventions Act (Zakon o izumih iz delovnega razmerja). The parties may regulate the inventions and other IP rights created during the employment relationship in the employment contract or by concluding other special agreements.

Under the Employment Related Inventions Act, the employee who has made an invention shall with no delay and in writing notify the employer thereof. The employer has the option to assert an either unlimited or limited claim to such invention no later than within three months from receipt of the notification. Pursuant to the Slovenian case law, once the deadline is exceeded, the right of the employer to claim the invention ceases to exist (although the employer has the possibility to obtain the invention on some other grounds, e.g., purchase of the invention). If the employer does not assert a claim to an invention, the latter is placed at the free disposition of the employee. In case the claim is asserted, the employee has the legal right to receive a reward in the form of financial compensation for their invention.


Pre-Employment Considerations

Public announcement of a vacancy is required by law for all employers. Prior to the employment, the employer has to send the employee to a preventative medical examination and cover the expenses.


Hiring Non-Nationals

A non-national can be employed in Slovenia only if he has obtained a uniform residence and work permit issued by an administrative unit. EU, EEA and Swiss citizens do not require a work permit to work in Slovenia. The employment of EU citizens is equated with the employment of Slovenian citizens.

 

Hiring Specified Categories Of Individuals

The Employment Relationship Act provides for five special categories of employees who have a special protection under the law: women (prohibition of preforming underground work), pregnant employees and parents, employees under the age of 18, disabled employees and older employees.


Outsourcing And/Or Sub-Contracting/Temporary Agency Work

Outsourcing, sub-contracting and temporary agency work are specially regulated, certain restrictions apply. An employer who professionally leases out his employees to other companies requires a special permit.

3

MAINTAINING THE EMPLOYEE RELATIONSHIP

Changes To The Contract

Change of the employment contract is permissible upon proposal by each of the parties to the contract and upon mutual agreement.

Change of the employment contract is not permissible in case of the changes of the following elements of the employment contract: (i) the title of the job or type of work, (ii) the location of the work, (iii) the duration of the employment contract, (iv) a provision on part-time or full-time employment relationship. In case of above changes, the parties must conclude a new employment contract, save for changes resulting from the exercise of the right to part-time work in accordance with the regulations governing health insurance or parental protection.


Change In Ownership Of The Business

The change of ownership shall not in any way automatically affect the terms and conditions of the employment contract. If due to any legal transaction, final court decision or any legal transfer of (part of) an undertaking the employer is changed, the contractual and other rights and obligations of employees arising from the employment relationship with the previous employer (i.e. the transferor) shall transfer to the new employer (i.e. the transferee). If the transferor was bound by any of the rights and obligations under the collective agreement, these rights and obligations must be guaranteed to the employees by the transferee for at least one year after the transfer took place, unless the validity of the collective agreement expires prior to the expiration of one year or a new collective agreement is concluded within this time period.

If the rights under the employment contract with the transferee deteriorate for objective reasons within a period of two years from the date of transfer or the employee’s conditions of employment relationship with the transferee significantly change and the employee thus terminates the employment contract, the employee shall have the same rights as if the employment contract was terminated by the employer due to business reasons. In determining the notice period, the right to severance payment and all other rights relating to the years of service, the employee’s period of service with both employers (i.e. transferor and transferee) shall be taken into account.

If an employee refuses the transfer and carrying out of work at the transferee, the transferor can extraordinarily terminate the employment contract.


Social Security Contributions

The employer shall calculate, deduct and pay the obligatory social security contributions for employees (i.e. contributions for compulsory pension and disability insurance, compulsory health insurance, unemployment insurance and parental protection insurance). The monthly salary the employee receives thus represents a net income, deducted for the amount of applicable tax and contributions.


Accidents At Work

Employers are obliged to ensure safe and healthy work conditions, whereas the employees are obliged to respect and implement the measures on safety and health at work and perform their work with due care in order to protect their own life and health and the health and lives of others.

Employers are obliged to pay salary compensation in cases of employees’ inability to work due to illness or injury not related to work for a period of up to 30 working days for each such absence but limited to 120 working days in a calendar year. In cases of a worker’s inability to work due to an illness related to work or injury at work, the employer is obliged to pay the employee a salary compensation for a period of up to 30 working days for each absence from work. Salary compensation for longer absence is covered by health insurance.

In case of employee’s absence from work due to illness or injury which is not related to work, the salary compensation covered by the employer amounts to 80 % of the employee’s salary in the preceding month for full-time work. Salary compensation for work related illness or injury amounts to 100 % of the employee’s average salary of the last three months.


Discipline And Grievance

If an employee suffers damages at work or in relation to work, the employer shall compensate the employee for such damages in line with the general rules of civil law.

If employees breach obligations arising from their employment relationship, the employer may impose on them disciplinary sanctions, all under the condition that the employer previously informed the employees on the alleged violations in a written form and gave the employees the opportunity to reply within a reasonable time period. Upon authorization of the employee, a trade union or works council and/or the workers’ representative may participate in disciplinary proceedings. A disciplinary sanction should not not permanently change the legal status of the employee.


Harassment/Discrimination/Equal pay

Direct or indirect discrimination of the job seeker or employee on the basis of any personal circumstance (including but not limited to nationality, race or ethnic origin, national or social background, gender, skin colour, health status, disability, faith or beliefs, age, sexual orientation, family status, trade union membership, financial status) is prohibited. Equal treatment in respect of the personal circumstances must be granted before the employment relationship is concluded (i.e. during the job-seeking process), within the course of the employment relationship and at termination of the employment relationship, especially with regard to the job-seeking process, promotion, training, education, re-qualification, salary and other remunerations connected to the employment relationship, absence from work, working conditions, working hours and the termination of employment contracts. Equal pay for women and men must be guaranteed, any prohibition contrary to this rule shall be deemed void and null.

Unequal treatment is not considered as discrimination if, considering the nature or circumstances of the work, a certain personal circumstance represents a significant and decisive condition in respect of the work and is proportional to and justified by a legitimate objective.

Sexual and other forms of verbal, non-verbal or physical harassment and workplace bullying are prohibited. Victims of the harassment or bullying should not be exposed to any kind of unfavourable consequences and/or rejection of any action or behaviour considered as any type of harassment should not serve as a ground for discrimination.


Compulsory Training Obligations

In general, employees are entitled and obliged to continuous education and training in accordance with the requirements of the working process, with the purpose of maintaining and/or improving their work skills, to retain employment relationship and increase employability. Employers are obliged to provide education and/or training of workers if the working process so requires or if education or training can prevent termination of an employment contract due to incompetence or business reasons.

If an employer refers an employee for above education or training, the costs of such education or training shall be borne by the employer and the employee is entitled to paid absence from work during the attendance of such education or training.

When concluding an employment contract, before the employee is being assigned to another job, before introducing new technology or other means of work, and when there is a change in the work process that may cause affect safety at work, the employer is obliged to train employees to ensure safe performance of their work. The training must be adapted to the specifics of the workplace.


Offsetting Earnings

An employer shall not offset any of its claims against an employee without the worker’s previous written consent. Such consent can only be validly given after the occurrence of the employer’s claim.


Payments For Maternity And Disability Leave

Employees are entitled to salary compensations in case of maternity, parental and/or paternity leave. In each above cases the salary compensation for full absence of work amounts to 100 % of the average basis on which the parental care contributions were calculated considering the last 12 continuous months.

The amount of salary compensation for maternity leave is unlimited, whereas salary compensation for paternity and parental leave is limited to two and a half of the amount of the average salary in Slovenia. The salary compensation during maternity, paternal and paternity leave is covered by the state.

Slovenian law does not recognize the term disability leave, but it does, however, recognize the absence due to health reasons. In case of the absence from work due to illness or injury which is not related to work, the salary compensation amounts to 80 % of the employee’s salary in the preceding month for full-time work. The salary compensation for the first 30 days of absence is paid by the employer (except in certain cases), and from the 30th day onwards by the Health Insurance Institute of Slovenia.


Compulsory Insurance

The employer is obliged to register the worker for compulsory pension, disability and health insurance, unemployment insurance and parental protection insurance and provide employee with a photocopy of such registration within 15 days following the day of commencement of work.


Absence For Military Or Public Service Duties

Employees are entitled to absence from work (among others) in case of:

  • performance of a non-professional function to which the employee has been elected within the direct national or local elections,
  • elections to the National Council of the Republic of Slovenia,
  • a function or duty to which the employee has been appointed by a court;
  • participating in the Economic and Social Council or in bodies which consist of representatives of social partners;
  • employees are called upon to perform defence duties, military duties, including training in the contract reserve formation of the Slovenian Armed Forces, and duties of protection, rescue and relief.

The employee is not entitled to absence from work (among others) in case of:

  • recruitment to mandatory or voluntary military service,
  • the performance of tasks in the reserve police forces,
  • the recruitment of a contractual member of the reserve formation of the Slovenian Armed Forces to perform peace-time military service and tasks of protection, rescue and relief of a contractual member of the Civil Protection Service.
  • In above listed three cases the employment contract shall not be terminated but automatically suspended. The employer shall have the right and obligation to return to work within five days after the grounds for suspension of the employment contract have ceased to exist.

Works Councils or Trade Unions

If the total amount of the employees with an active voting right exceeds 20, an establishment of a works council is mandatory. If less than 20 employees are employed with the employer, the company may elect a workers’ representative. The number of members in a works council depends on the number of employees.

The main functions of a works council are (i) representing employees’ interests against employers’ interests, (ii) ensuring compliance with labor law regulations, (iii) receiving information on all important decisions of the employer which may relate to employees interests and (iv) consultation with employers on several issues, especially regarding the status, human resources and safety at works. Certain decisions of the employer require the consent of the works council.

Members of a works council, workers’ representatives, members of a supervisory board representing workers, workers’ delegates and appointed or elected trade union representative enjoy special protection against the termination of the employment contract.


Employees’ Right To Strike

Organizing strikes or participating in strikes under the statutory determined conditions shall not constitute a breach of work obligations, shall not be the basis for initiating proceedings to establish any disciplinary and material liability of employees and shall not result in termination of employment.


Employees On Strike

The worker participating in the strike exercises the rights arising from the employment relationship, save for the right to salary compensation, unless such salary compensation is specifically determined under the collective agreement or general acts by the employer.


Employers’ Responsibility For Actions Of Their Employees

Employers are responsible for damages caused by employees at work or in connection with work to a third party, unless the employer proves that the employee acted appropriately given the circumstances. If the employee caused damages intentionally or due to grossly negligent behaviour, the employer is entitled to demand a compensation of paid damages from the employee. Such employer’s right is subject to limitation period of 6 months following the payment of damages.

4

FIRING THE EMPLOYEE

Procedures For Terminating the Agreement

The procedure for terminating the employment contract vary depending on the type of the termination of the employment contract. There are two types of termination of the employment contract, extraordinary termination (without notice period) and ordinary termination (with notice period), which is further divided into five subtypes due to the reason for termination, namely: (i) business reason, (ii) reason of incompetence, (iii) reason of misconduct, (iv) unsuccessful completion of a probationary period and (v) incapacity to carry out the work under the conditions set out in the employment contract owing to disability.

In all above cases the notice on termination must be in a written form, must include explanation of the reason for termination and information on legal protection and rights deriving from insurance against unemployment and obligation to register in the job seeker register and must be served on the employee. Prior to ordinary termination due to reasons of misconduct, the employer is obliged, in 60 days following the identification of the violation and no later than six months from the occurrence of the violation, to inform the employee in writing on the obligation to comply with his obligations and the possibility of termination of the employment contract if he will repeat the violation of employment relationship obligations within one year of the receipt of the written warning. Prior to ordinary termination due to reasons of incompetence or misconduct and prior to extraordinary termination of the employment contract, the employer must acquaint the employee in writing with the alleged violations and give the employee the opportunity to defend himself within a reasonable time period. A trade union delegate or any other person delegated by the employee may be present at such defence meetings.

If requested by the employee, the employer must inform trade union or works council or worker representative on intended ordinary or extraordinary termination and ask them to issue their opinion on termination. Negative opinion does not prevent employer from terminating the employment contract.

In case of ordinary termination the employer must comply with statutory determined minimum notice periods.


Instant Dismissal

An employer can terminate employment contract without notice period if, taking into account all the circumstances and interests of both contracting parties, it is not possible to continue the employment relationship until the expiry of the notice period or term of employment contract and one of the statutory determined reasons applies.

The notice of extraordinary termination of an employment contract must be served on the employee in 30 days following the day of identifying the reasons for the extraordinary termination and no later than six months following the occurrence of the reason. If a reason of misconduct that has all the characteristics of a criminal offence exists, an employer can terminate the employment contract within 30 days following the day of identifying the reasons for the extraordinary termination and the offender, whereby this applies to the entire period in which the employee may be subject to criminal prosecution. Additionally, prior to extraordinary termination of the employment contract, the employer must acquaint the employee in writing with the alleged violations and give the employee the opportunity to defend himself within a reasonable time period.


Employee's Resignation

Employment contract can be terminated at the will of the employee. In case of ordinary termination of the employment contract by the employee, the statutory notice period must be complied with, namely: (i) 15 days for up to one year of service with the employer and (ii) 30 days for a period exceeding one year of service with the employer. A longer notice period may be agreed in the employment contract or collective agreement, but it should not exceed 60 days. In case of extraordinary termination, the employment contract is terminated without notice period.


Termination On Notice

In case of the ordinary termination of the employment contract by the employer, the following minimum notice periods have to be observed. In case of termination of the employment contract by the employer for reasons of misconduct, the notice period shall be 15 days. All other types of ordinary termination require the notice period in the minimum amount of: (i) 15 days for up to one year of service with the employer, (ii) 30 days for more than one year of service with the employer, (iii) after two years of service with the employer, the notice period shall increase for 2 additional days per year. The longest permissible notice period is 60 days, the only exception being in case of over 25 years of service with the employer, when the notice period shall be 80 days (unless specifically determine otherwise by the collective agreement).


Termination By Reason Of The Employee's Age

Pursuant to Employment Relationship Act, termination of the employment contract on grounds of age constitutes illegal discrimination. Older employees are entitled to special protection against the termination of the employment contract.

If the employee is at least 58 years old or has up to five years or less left to qualify for an old-age retirement, his employment contract shall generally not be terminated due to business reasons without the employee’s written consent. This applies until the worker fulfils the conditions for an old-age retirement. Certain statutory exceptions apply to that general rule.


Automatic Termination In Cases Of Force Majeure

Employment Relationship Act does not include any specific provisions on automatic termination in case of force majeure.


Collective Dismissals

Special rules apply in case the employer plans to terminate employment contracts with the following number of employees due to business reasons:

  • at least 10 employees, if total number of employees is between 21 and 99,
  • at least 10 % of employees, if total number of employees is between 100 and 299,
  • at least 30 employees, if total number of employees is 300 or more.

In addition to general obligations of the employer, in case of collective dismissals the employer is also obliged to:

  • set up a dismissal programme for redundant employees,
  • inform the trade unions and Employment Service of Slovenia on several aspects of the collective dismissals (including but not limited to the reasons for redundancies, the number and the categories of all employees, the categories of redundant employees, the time period in which the work of employees will no longer be needed, the criteria for the determination of redundant employees),
  • consult with the works council and obtain its consensus.

Termination By Parties’ Agreement

Consensual termination of the employment contract is permissible if concluded in a written form.


Directors Or Other Senior Officers

Employment contracts concluded with directors, procurators or other senior workers (“vodilni delavci”) can contain provisions on termination of the employment contract that derogate from certain statutory determined conditions (e.g. regarding the reasons for termination, severance payment, notice periods, etc.)


Special Rules For Categories Of Employee

There are several specific rules on termination of the employment contract for certain categories of employees, namely:

  • pregnant women and nursing mothers up to 1 year of a child’s age,
  • parents during parental leave and for one month following parental leave,
  • disabled persons,
  • older persons,
  • persons on sick leave,
  • employees’ representatives.

Such employees are either protected from dismissal entirely or the possibility to terminate their employment contract is subject to additional conditions.


Whistleblower Laws

Employment Relationship Act does not contain any special, direct protection to whistleblowers. The basis for the protection of whistleblowers derives from Article 39 (freedom of expression) of the Constitution of the Republic of Slovenia and certain provisions of the Criminal Code. The Integrity and Prevention of Corruption Act (Zakon o integriteti in preprečevanju korupcije) contains provisions on protection of applicants of corruption acts.


Specific Rules For Companies in Financial Difficulties

Special rules are only applicable with regard to termination procedures within the bankruptcy, compulsory liquidation and compulsory settlement procedures. In case of bankruptcy and compulsory liquidation procedures, the administrator can terminate the employment contracts with a notice period of 15 days, whereas in case of a compulsory settlement procedures, the notice period is 30 days.


Special Rules For Garden Leave

The Employment Relationship act does not contain any specific rules for garden leave. Nevertheless, it is permissible that employee and employer agree on a garden leave clause.


Restricting Future Activities

Non-competition clauses are valid if agreed in a written form in an employment contract for a maximum period of two years following the termination of the employment contract and contain a compensation for compliance with the non-competition clause during its duration. Non-competition clauses are only permissible if the employment contract is terminated by agreement between the parties, due to ordinary termination by the employee, ordinary termination by the employer due to reason of misconduct or extraordinary termination by the employer, save for extraordinary termination due to employee’s refusal to work for the transferee.

The competition clause shall not include unreasonable time limits of prohibition of competition and shall not exclude the possibility of suitable employment of the employee.

If complying with the non-competition clause prevents the employee from gaining earnings comparable to previous salary, the employer must pay the employee a monthly compensation amounting to at least one third of the employee’s average salary during last three three months prior to termination of the employment contract.


Severance Payments

An employee is entitled to severance payment in case of (i) termination by the employer due to business reasons or reasons of incompetence, if the employee was in employment relationship with the employer for more than one year, (ii) expiration of the fixed term employment contract (save for certain specifically determined exceptions), (iii) termination by offering conclusion of a new employment contract, if new workplace is unsuitable for employee, (iv) termination within the bankruptcy, compulsory liquidation and compulsory settlement procedure, (v) extraordinary termination by the employee, (vi) termination due to unsuccessful probation and (vii) termination due to retirement, if the employee was in employment relationship with the employer for at least five years.

In general, the basis for the calculation of severance payment is the average monthly salary during the last three months before the termination of the employment contract. If not specifically determined otherwise under the collective agreement, the severance payment shall not exceed tenfold such basis. The exact amount of severance payment varies depending on the duration of the service of the employee and reason for termination.


Special Tax Provisions And Severance Payments

Severance payment to which the employee is entitled under the conditions of the Employment Relationship Act in case of termination of the employment contract due to reason of misconduct and/or business reason is tax exempt up to the amount of ten average monthly salaries in Slovenia (in January 2021, the average monthly salary amounted to EUR 1.977.20 gross).

Severance payment to which the employee is entitled under the conditions of the Employment Relationship Act in case of termination of the employment contract for fixed term is tax exempt up to the amount of three average monthly salaries in Slovenia.


Allowances Payable To Employees After Termination

The Employment Relationship Act does not contain any special provisions on allowances payable to employees after termination.


Time Limits For Claims Following Termination

A general time limitation for claims arising from an employment relationship is five years.

In case of violation of employer’s obligations or employee’s rights arising from the employment relationship, the employee must request in writing from the employer to eliminate such violation and/or fulfil the obligations. If the employer fails to fulfil obligations or to eliminate the violations within eight working days following the service of the written request, the employer may request judicial protection before the competent labour court within 30 days following the expiration of the eight days’ time limit.

Claims regarding the illegality of termination of the employment relationship must be brought before the labour court in 30 days following the day of service of the termination notice or the day the employee became familiar with the violation.

5

GENERAL

Specific Matters Which Are Important Or Unique To This Jurisdiction

There are no other specific matters which are important or unique to this jurisdiction.



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Contact a Contributing Author:
Minu Anamaria Gvardjančič
Ketler & Partners l.f. LLC, member of Karanovic
Slovenia


Saša Oražem
Ketler & Partners l.f. LLC, member of Karanovic
Slovenia


Maja Bosnič
Ketler & Partners l.f. LLC, member of Karanovic
Slovenia


Monika Jejčič
Ketler & Partners l.f. LLC, member of Karanovic
Slovenia


Disclaimer:

© 2021, Ketler & Partners l.f. LLC, member of Karanovic. All rights reserved by Ketler & Partners l.f. LLC, member of Karanovic as author and the owner of the copyright in this chapter. Ketler & Partners l.f. LLC, member of Karanovic has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this Guide.

The information in the How to Hire and Fire Guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: June 2021