- Overview: Slovenia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Slovenia
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Slovenia Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Slovenia, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Slovenia and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Slovenia.
If the company is new business unit in the national market of Slovenia, and it does not know the specifics of the country’s legislation and the basic principles of building local accounting, the best solution will be to use the services of Acumen International.
This is also due to the need to keep abreast of all changes in legislation relating to regulatory documents on social security, corporate governance and insurance claims management. Worse still, the violation of these mandatory requirements can lead to such consequences as a fall in the share price, dissatisfaction with shareholders, irritation of employees and a tarnished reputation of the company.
In case of cooperation with Acumen International, the company acquires a reliable partner with a deep understanding of the local market and knowledge of the legislation of Slovenia, ready to provide service for the corporate client in accordance with international standards and company policies.
Discover the ways of hiring and firing an employee in Slovenia below.
Hiring and Firing Workforce in Slovenia Guide
# Employment contracts
Generally in Slovenia the employment contract should be concluded in writing form for an indefinite period and is valid when signed by both parties: employee and employer.
But there are different types of employment agreements:
Fixed-term employment is concluded through a fixed-term employment agreement with a pre-established date of termination of the agreement.
Special employment agreements may also be concluded between employees and employers who, on the basis of a valid concession contract, provide employees for another employer.
Employment agreement s may be concluded for part-time work. The employees who have signed a part-time employment agreement have the rights and obligations deriving from employment in proportion to the time for which the employment has been agreed.
The employment agreements may contain different provisions for the rights, obligations and responsibilities deriving from employment in relation to the conditions and restrictions of fixed-term employment, working hours, the provision of breaks and rest periods, remuneration, disciplinary liability and termination of the employment agreement.
In employment contracts, management personnel may make different provisions for the rights, obligations and responsibilities deriving from employment in relation to the conditions and restrictions of fixed-term employment, working hours, the provision of breaks and rest periods, remuneration, disciplinary liability and termination of the employment contract.
Another important thing in employment that the rights and obligations and the inclusion in social insurance start on the day of commencement of work agreed in the employment agreement. Moreover the employer is obliged to register the employee with the competent state authorities (for purposes such as statutory pension, disability and sickness insurance and unemployment insurance), in accordance to special regulations, and will give a copy of the application within 15 days of commencement of work.
# Minimum (Statutory) Employment Rules and Regulations in Slovenia
# Hours of work:
Officially in Slovenia five-day working week is established with standard duration of 40 working hours per week and with 8 hours per day with lunch break of 30 minutes (paid).
# Probation period:
The probation period should be agreed by the employee and employer and established in the employment agreement. But its duration can`t exceeds more than 6 month. In case of absence in the work the probation period could be prolonged. The termination of the employment agreement could be initiated from the side of employee but from the side of employer only for justified reasons.
# Annual leave:
The employees with five-day working week are eligible to four weeks of paid annual leave. Besides, the employees over age 55, disabled employees and persons nursing a disabled child are entitled to additional annual leave up to three days according to the collective agreement. Persons taking care of children have the right to one additional day of annual leave for every child under age 15.
# Parental leave:
A female employee is entitled to maternity leave of 105 days. During this period, she is entitled to maternity compensation. A worker who breastfeeds a child that has not yet turned 18 months old, and who works on a full-time basis, is entitled to a breastfeeding break during working hours that lasts at least one hour per day. During the breastfeeding break, she is entitled to a salary compensation in the amount of the proportionate part of the minimum wage until the child turns nine months old, and to her social security contributions being paid from the proportionate part of the minimum wage in the period when the child is from nine to 18 months old.
In order to receive paid maternity leave, an employee must have been insured a day prior to entering into the leave, or the contributions to parental protection insurance must have been made for a period of at least 12 months in the last three years prior to claiming the leave. The amount of the paid maternity leave is calculated based on an average of the employee’s salary, though there is a minimum amount of 55% of the minimum net monthly wage in Slovenia.
Based on the new Parental Protection and Family Benefits Act, a father is, from 2018 onwards, entitled to paternity leave of 30 days and to a paternity compensation (in 2017 a father is entitled to paternity leave of 50 days: for 25 of these days a father is entitled to a paternity compensation, while the remaining 25 days of paternity leave are unpaid). The right to paternity leave of the same duration is enjoyed by the mother’s spouse or common-law partner, partner or partner in a registered same-sex civil partnership who actually cares for and protects the child (which is the case when the father does not exercise this right).
In order to receive paid paternity leave, an employee must have been insured a day prior to entering into the leave, or the contributions to parental protection insurance must have been made for a period of at least 12 months in the last three years prior to claiming the leave. The amount of the paid paternity leave is calculated based on an average of the employee’s salary, though there is a minimum amount of 55% of the minimum net monthly wage in Slovenia and a maximum amount prescribed for paternity leave in the amount of two times the average monthly salary in Slovenia per month.
# Sick leave:
The employee who provide a medical certificate are generally entitled to unlimited time of for illness or injury.
If the absence is not due to a work related illness or injury, the employee is entitled to 80% of his/her prior month’s salary.
If the absence is due to work, the employee is entitled to receive 100% of his/her pay, based on the average salary from the prior three months. The employee receives pay until s/he is determined to be permanently disabled and the employment contract is terminated as a result.
The employer pays for the leave for the first 30 work days. The state generally pays the leave from then on.
Under certain conditions, an employer can order overtime work without the employee’s consent. However, this cannot be for more than eight hours per week, 20 hours per month and 170 hours per year. If the employee consents to the overtime work, it cannot be longer than 230 hours per year. An exception to the general rules governing overtime work is that overtime work must be performed in cases of natural or other disasters (or when such a disaster is imminent), and that overtime work can last as long as is necessary for human lives to be saved, human health to be protected or material damage to be prevented.
Overtime work cannot be ordered for certain categories of workers (for example, pregnant workers, employees younger than 18 years of age and those older than 55 years of age).
The statutory provisions regulating working hours, breaks and rest are mandatory and cannot be avoided by contractual provisions.
# State minimum salary:
The minimum state salary in Slovenia was established in January 01, 2015 in the amount €790.73 per month for all employees.
# Employee dismissal:
The employer can set a probationary period in the employment contract of up to 6 months. A notice period of 7 days must be provided if an employee is terminated during the probationary period.
If an employee is dismissed for business reasons or employee incompetence, the following notice periods apply:
- 15 days if employed up to 1 year;
- 30 days if employed more than 1 year but less than 2 years;
- 30 days plus two days for each additional year of service over 2 years, up to a maximum of 60 days if employed for more than 2 years;
- 80 days if employed for 25 years or more.
If an employee is dismissed for business reasons or as a result of incompetence, they are entitled to severance pay in the following amounts:
- 1/5th of the employee’s basic monthly salary for each year of service if employed for at least 1 year or up to 10 years;
- 1/4th of the employee’s basic monthly salary for each year of service if employed for more than 10 years and up to 20 years;
- 1/3rd of the employee’s basic monthly salary for each year of service if employed for more than 20 years.
There is severance pay limit of 10 times the employee’s basic monthly salary stipulated by law. Severance pay for fixed-term contracts may also apply.