- Overview: Slovenia
- Global HR Compliance
- Global PEO and Payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. Employee: Which Is Better?
Global HR Compliance in Slovenia
If you hire an international workforce in Slovenia or plan to hire, then the Hiring and Firing Workforce Guide below will help you understand the nuances of labor legislation in the country.
Companies hire an international workforce for various reasons, but in most cases, they are:
- entering 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 particular foreign market or engaging a global talent, the company must understand how it can make local hires and reward its workers every month. Growing companies often face the 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 it, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with 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 of Slovenia’s local tax, social security, and immigration requirements.
If the company is a 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, violating these mandatory requirements can lead to consequences such as a fall in the share price, dissatisfaction with shareholders, irritation of employees, and a tarnished company reputation.
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 following international standards and company policies.
Discover the ways of hiring and firing an employee in Slovenia below.
Hiring and Firing Workforce in Slovenia
An employment contract may be drawn up for a full-time (40 hours per week) or part-time role for an indefinite period or a fixed term.
Permanent employment contracts
An employment contract in Slovenia must be concluded for an indefinite term. The law requires that an employment contract must cover the following mandatory matters:
- Names and other data of the contracting parties.
- Date of commencement of the work.
- Title of the position of employment or type of work, with a brief description of the work.
- Place of performance of the work.
- Description of whether the employment contract is for full-time or part-time work.
- The length and distribution of daily or weekly working hours
- The amount of the basic salary
- Provision on other payments or salary components, the payment period, and the date and method of salary payment
- Provision on annual leave or the method of determining annual leave.
- Length of notice periods.
- Binding collective agreements and the general rules of the employer.
The rights and obligations and the inclusion in social insurance start on the day of commencement of work agreed upon in the employment contract. The employer is obliged to register the employee with the competent state authorities (for purposes such as a statutory pension, disability, sickness insurance, and unemployment insurance) following special regulations and shall give a copy of the application within 15 days of commencement of work.
Temporary employment contracts
In Slovenia, the term “casual work”, as a rule, implies a working relationship and not an employment relationship. When the post does not require permanent and uninterrupted work or if the duration of work is expected to be short, a civil law contract (contract for services) may be concluded.
Employment contracts may only be concluded for a fixed period under specific statutory conditions and for the period required for the realization of work in the cases mentioned above. The statutory reason for the conclusion of a fixed-term agreement shall be explicitly stated in the agreement. Employment contracts that are not concluded in written form are deemed to be concluded for an indefinite period. The same rule applies to employment agreements concluded for a fixed term without a justified cause.
Collective agreements in Slovenia
Collective agreements are an essential legal source for the regulation of relationships between employees and employers in Slovenia. The Constitution recognizes the freedom of association and the related right to collective bargaining, while a particular act regulates the system of collective bargaining. The latter is based on the principles of free and voluntary collective bargaining. The autonomy of collective bargaining is also granted, as the contracting parties are generally free in the determination of issues that will be settled in the collective agreement and their regulation.
Employment Termination and Severance Pay (Dismissal) in Slovenia
The employee may extraordinarily terminate the employment contract if:
- The employer has failed to provide him or her with work for more than two months and has also failed to pay him or her the wage compensation.
- He or she has not been able to perform his or her work due to a decision by a competent inspection service on the prohibition of performing the working process or on the prohibition of using the means of work for more than 30 days, and the employer has failed to pay him or her wages in compensation.
- The employer has failed to pay his or her salary or has paid him or her a substantially lower salary for more than two months.
- The employer has failed to pay his or her salary twice in succession or within a period of six months, taking into consideration the legally and/or contractually stipulated period.
- The employer has failed to pay in total social security contributions three times in succession or within a period of six months.
- The employer has failed to ensure the worker’s health and safety at work. The worker has requested the employer to eliminate immediate and avoidable dangers to life and health.
- The employer has failed to ensure the equal treatment of workers.
- The employer has failed to ensure protection against sexual or other harassment or mobbing in the workplace.
Before extraordinary termination, the employee must remind the employer in writing of its obligation to comply with its obligations and inform the Labour Inspectorate in writing thereof. If within a period of three working days following receipt of the written notice, the employer fails to fulfill its obligations or fails to correct the violation, the worker may extraordinarily terminate the employment contract within a 30-day period. Employers may only terminate an employee’s contract if a justified reason exists for ordinary termination.
Unlawful Employee Dismissal in Slovenia
Special legal protection against regular dismissal is enjoyed by the following:
- Employee representatives
- Workers near retirement
- Parents on parental leave in the form of a complete absence from work and for another month after taking such leave
- Pregnant and nursing workers
- The disabled
- Workers who are absent on account of disease.
The employer cannot terminate the employment contract of the following employees without the consent of the works council or the trade union (provided that this person acts following the law, the collective agreement , and the employment contract):
- A member of a works council
- A workers’ representative
- A member of a supervisory board representing workers
- A workers’ representative in the council of an institution
- An appointed or elected trade union representative.
Notice Period In Slovenia
The minimum notice periods for regular dismissals are as follows:
- Employed for up to one year: 15 days’ notice
- Employed for more than one year but less than two years: 30 days’ notice.
- Employed for two years or more: 30 days notice, plus an extra two days’ notice for every additional year’s service above two years, up to a maximum of 60 days’ notice.
- Employed for 25 years or more: 80 days notice (unless a collective agreement governs otherwise).
- For a dismissal for at-fault reasons, the notice period is 15 days.
- For a dismissal for a failed probationary period, the notice period is seven days.
The contracting party must deliver the notice of extraordinary termination within 30 days of identifying the reasons for the termination and no later than six months from the occurrence of that reason.
Severance Payments in Slovenia
In the case of a regular dismissal for business reasons (redundancy) or employee incompetence, employees are entitled to severance pay. Severance pay is calculated based on the employee’s average monthly salary over the last three months before the dismissal (the basic monthly salary). It is paid according to the employee’s length of service:
- Where the employee has been employed for at least one year and up to ten years, one-fifth of the employee’s basic monthly salary will be paid for each of those years of service.
- Where the employee has been employed for more than ten years and up to 20 years, one-fourth of the employee’s basic monthly salary will be paid for each of those years of service.
- Where the employee has been employed for more than 20 years, one-third of the employee’s basic monthly salary will be paid for each of those years of service.
However, there is a maximum severance payment limit of ten times the employee’s basic monthly salary stipulated by law.
Employee Benefits and Contributions in Slovenia
Mandatory Benefits in Slovenia
Statutory holiday entitlement, annual leave, and annual allowance paid leave and entitlement to sickness pay, overtime payment, maternity and paternity leave and compensation, contributions for compulsory insurance (pension and disability insurance, health insurance, unemployment, parental care , and injuries at work).
Voluntary Benefits in Slovenia
Bonuses can be paid if they are agreed upon in a collective agreement or employment contract. These include the 13th salary, the Christmas bonus, the Jubilee bonus , and the performance-based bonus. Most collective agreements provide for a Jubilee bonus in several amounts, depending on the employee’s length of service. Employee profit sharing can also be given as a form of bonus , which is agreed upon in the employment contract.
Probationary Period in Slovenia
The worker and the employer may agree on the probation period in the employment contract. The probation may not last longer than six months. The probation may be extended in case of temporary absence from work. The employee or the employer may (due to unsatisfactory work in the probationary period) terminate the employment relationship during the probationary period, with a notice period of 7 days.
Overtime in Slovenia
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 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.
Working Hours in Slovenia
Full-time work cannot exceed 40 hours per week. The law or the collective agreement may set full-time working time to less than 40 hours per week but not less than 36 hours per week. Rest breaks. Workers who work eight hours per day are entitled to a 30-minute break. If they work at least four hours per day, the rest period is proportionate to the time worked. Over a period of 24 hours, workers are entitled to rest for an uninterrupted duration of at least 12 hours, while over a period of seven consecutive days they are entitled to an additional 24 consecutive hours of rest. A more extended break and rest period are mandatory for workers younger than 18. They are entitled to a 30-minute break per day even if they work less than eight hours per day, and over a period of seven consecutive days, they are entitled to an additional 48 (instead of 24) hours of rest.
Annual Leave in Slovenia
All employees are entitled to paid annual leave of no less than four weeks. The duration of annual leave depends on the working week’s length. Older workers (those older than 55), the disabled, and caretakers are entitled to at least three additional days of annual leave, with each collective agreement containing different provisions which govern the duration of the annual leave. In addition, workers are entitled to paid absence from work of up to seven days within a calendar year for personal circumstances. The right to unpaid leave is not a statutory right, but this is possible where it has been agreed with the employer.
Sick Leave in Slovenia
In the case of an absence from work on an illness or injury unrelated to work, a worker is entitled to 80% of their salary or wage in the previous month. In the event of an occupational illness or injury related to work, they are entitled to receive their regular salary payment, calculated as an average of their salary over the previous three months. There is no time limit for this and the worker will receive the payment until he/she is deemed permanently disabled and has his/her employment contract terminated. In the event of illness or injury, workers are entitled to be absent from work provided that they have provided a medical certificate to their employer, with no maximum amount of time prescribed by law. The employer pays compensation for absence from work lasting up to 30 work days from their own funds. The state refunds salary compensation paid for longer than 30 days (depending on the reason for and duration of the absence). There is no time limit for this and the worker will receive the payment until he/she is deemed permanently disabled and has his/her employment contract terminated.
Parental Leave in Slovenia
A mother 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 works full-time 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 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.
Based on the new Parental Protection and Family Benefits Act, a father is entitled to paternity leave of 30 days and paternity compensation. The right to paternity leave of the same duration is enjoyed by the mother’s spouse, 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).