1 Legal framework

1.1 Are there statutory sources of labour and employment law?

The main source of employment law in Slovenia is the Employment Relationships Act, which regulates employment relationships concluded on the basis of an employment contract. Since Slovenia is a member of the European Union, the Employment Relationships Act is in line with European legislation and incorporates all applicable and binding international conventions, EU directives and regulations.

Trade union activity, collective agreements and many other aspects of employment law, as well as special categories of workers, are governed by special regulations. In addition to the Employment Relationships Act, the employment relationships of public employees are regulated in the Public Employees Act. Certain aspects of employment relationships of mobile workers (working time and compulsory rest periods) are regulated by special legislation.

In collective agreements, the rights and obligations of employees and employers can be regulated differently or more favourably than those provided in the Employment Relationships Act.

1.2 Is there a contractual system that operates in parallel, or in addition to, the statutory sources?

Collective agreements are a very important autonomous source of law. While the Employment Relationships Act defines the rights and obligations of the contracting parties, collective agreements define their scope. Collective agreements are regulated in the Collective Agreements Act and are usually concluded for a specific sector or occupation, but may also be concluded by individual employers and employees. In accordance with the Employment Relationships Act, the contracting parties are limited when regulating the employment relationship, as they must follow the provisions of Employment Relationships Act and other acts, ratified and published international treaties, and other regulations. An employment contract or a collective agreement may only define rights that are more favourable to the employees than those in the Employment Relationships Act; however, certain rights can be also regulated differently (including less favourably).

1.3 Are employment contracts commonly used at all levels? If so, what types of contracts are used and how are they created? Must they be in writing must they include specific information? Are implied clauses allowed?

If all elements of an employment relationship exist, the contracting parties are obliged to conclude an employment contract. The employment contract must be concluded in writing. The employment contract is generally concluded for an indefinite duration. A fixed-term employment contract can be concluded only if one of the reasons stipulated in the Employment Relationships Act exist – for example:

  • if this is necessary to replace a temporary absent employee;
  • if the scope of work is temporary increased;
  • for the performance of seasonal work; or
  • for the performance of project-organised work.

The employment contract can be concluded on a full-time or part-time basis.

The Employment Relationships Act stipulates the obligatory elements of the employment contract, as follows:

  • information on the contracting parties;
  • the date of commencement of work;
  • the job title, including a brief description of the work;
  • the location of the work;
  • the duration of the employment contract and, if a fixed-term employment contract is concluded, the reason for the conclusion of the contract and a provision on annual leave;
  • a provision stating whether a part-time or full-time employment contract has been concluded;
  • a provision on daily or weekly working time and the allocation of working time;
  • a provision on the amount of the basic salary and other possible remuneration;
  • a provision on other components of the employee's salary, the payment interval, the payment day and the manner of payment of the salary;
  • a provision on annual leave and/or the manner of determining annual leave;
  • the length of notice periods;
  • a reference to collective agreements which bind the employer and/or the employer's general acts laying down the conditions of work; and
  • other rights and obligations in cases laid down in Employment Relationships Act.

If the contracting parties do not specifically stipulate in the contract matters concerning the following, the law will automatically imply its own statutory provisions to the employment relationship:

  • the length and distribution of daily or weekly working hours;
  • provisions on other payments or salary components, the payment period, and the date and method of salary payment;
  • provisions on annual leave or the method of determining annual leave; and
  • the length of any notice periods.

2 Employment rights and representations

2.1 What, if any, are the rights to parental leave, at either a national or local level?

The Parental Protection and Family Benefits Act regulates parental rights and stipulates the conditions for exercising those rights. The main rights are:

  • the right to maternity, paternity and parental leave; and
  • the right to wage compensation during the above stated leave.

2.2 How long does it last and what benefits are given during this time?

A mother has a right to maternity leave of 105 days and a father is entitled to paternity leave of 30 days. During this period, they are entitled to maternity/paternity compensation. Each of the parents is additionally entitled to paid parental leave of 130 days, which can be transferred. The father can transfer this leave to the mother (all 130 days), but the mother can only transfer a portion of this leave (100 days) to the father.

2.3 Are trade unions recognised and what rights do they have?

In accordance with the Slovenian Constitution, trade union activity is considered a fundamental human right. Trade union activity is governed by the Employment Relationships Act and a special Representativeness of Trade Unions Act, which sets out the conditions that a trade union must fulfil in order to become representative. Representative trade unions can:

  • conclude collective agreements with general validity and participate in the dealings of decision-making bodies in relation to economic and social security;
  • propose candidates from among employees who participate in management;
  • issue opinions on employers' draft acts;
  • consult with employers on changes in employee transfers;
  • consult with employers on large-scale terminations; and
  • consult with employers on the possibility of introducing night work.

2.4 How are data protection rules applied in the workforce and how does this affect employees' privacy rights?

The protection of employee's personal data is regulated in:

  • the Employment Relationships Act;
  • the Personal Data Protection Act; and
  • the EU General Data Protection Regulation.

The personal data of employees may be collected, processed, used and transferred to third parties only if:

  • a legal basis for this activities exists; and
  • this is necessary in order to exercise the rights and obligations arising from the employment relationship.

The monitoring of employees (their emails, telephone calls and use of the employer's computer system) is limited, as Slovenian legislation and court practice, as well as the information commissioner's decisions, strictly limit monitoring.

2.5 Are contingent worker arrangements specifically regulated?

Only employees who work based on an employment contract are entitled to statutory employment rights. However, the Employment Relationships Act also recognises a special category of self-employed persons – so-called ‘economic dependants' – as self-employed persons who:

  • perform work personally under a civil law contract in return for remuneration for a longer period of time in circumstances of economic dependency; and
  • do not employ workers.

Economic dependants must earn at least 80% of their income from the same client. Economic dependants enjoy limited protection under Slovenian labour law in relation to:

  • discrimination;
  • minimum periods of notice;
  • termination of an employment contract for unjust reasons;
  • payment for work completed; and
  • liability for damages.

3 Employment benefits

3.1 Is there a national minimum wage that must be adhered to?

In accordance with the Minimum Wage Act, an employee who works full time is entitled to payment for the work performed at least in the amount of the minimum wage. The amount of the minimum wage is determined based on a special formula and cannot be lower than the amount of the minimum cost of living increased by 20%, but no more than 40%.

In 2021, the minimum wage is €1,024.24 gross.

3.2 Is there an entitlement to payment for overtime?

In accordance with the Employment Relationships Act, employees are entitled to additional payment for overtime work. The amount of additional payment is determined in a collective agreement.

3.3 Is there an entitlement to annual leave? If so, what is the minimum that employees are entitled to receive?

The right to annual leave is one of the fundamental rights under the employment relationship. All employees are entitled to annual leave, which may not be less than four weeks. The minimum days of annual leave will depend on the distribution of working days within the week for a certain employee. Certain categories of employees (eg, older workers, disabled workers) have the right to additional annual leave in accordance with the Employment Relationships Act. Additional days of annual leave may also be determined in a collective agreement. Employees are further entitled to an annual leave allowance in the amount of at least the minimum wage.

3.4 Is there a requirement to provide sick leave? If so, what is the minimum that employees are entitled to receive?

Employees are entitled to absence from work in the event of illness or injury, based on a medical certificate. In such case the employee is entitled to wage compensation. The amount of wage compensation depends on the reasons for the employee's absence and the duration of the absence:

  • If the employee is absent due to illness that is unrelated to work, he or she is entitled to:
    • 80% of his or her salary; and
    • after 90 calendar days, 90% of his or her salary.
  • If the employee is absent due to injury that is unrelated to work, he or she is entitled to:
    • 70% of his or her salary; and
    • after 90 calendar days, 80% of his or her salary.
  • If the employee is absent due to an occupational illness or injury related to work, he or she is entitled to receive his or her normal salary payment (100%).

The employee is entitled to receive the wage compensation until he or she is deemed able to return to work.

3.5 Is there a statutory retirement age? If so, what is it?

The conditions for retirement are stipulated in the Pension and Disability Insurance Act. A person acquires the right to an old-age pension at the age of 65, as long as he or she has accrued a 15-year insurance period. An alternative condition is 60 years of age and 40 years of pensionable service without purchase. If an employee fulfils these conditions, he or she can retire or continue working (fulfilment of the conditions for retirement is not grounds for termination of an employment contract).

4 Discrimination and harassment

4.1 What actions are classified as unlawfully discriminatory?

Discrimination is prohibited. The Employment Relationships Act stipulates that the employer must ensure that both employees and job seekers are treated equally, irrespective of:

  • nationality;
  • race or ethnic origin;
  • national or social background;
  • gender;
  • skin colour;
  • state of health;
  • disability;
  • faith or beliefs;
  • age;
  • sexual orientation;
  • family status;
  • trade union membership;
  • financial standing; or
  • other personal circumstances.

Both direct and indirect discrimination based on any personal circumstance is prohibited. The Employment Relationships Act also explicitly stipulates that less favourable treatment of employees in connection with pregnancy or parental leave will be deemed discriminatory. Sexual and other forms of harassment will also be deemed to be discriminatory in accordance with the Employment Relationships Act.

4.2 Are there specified groups or classifications entitled to protection?

All employees are entitled to protection against discrimination.

4.3 What protections are employed against discrimination in the workforce?

In accordance with the Employment Relationships Act, the employer is obliged:

  • to provide a working environment in which none of its employees are subjected to sexual and other harassment or bullying from the employer, a superior or co-workers; and
  • to take appropriate steps to protect employees.

Protection is granted during the employment relationship and in connection with the termination of employment contracts. Employers must ensure equal treatment to both candidates and employees, especially regarding:

  • access to employment;
  • promotion;
  • training, education and requalification;
  • salaries and other benefits from the employment relationship;
  • absence from work;
  • working conditions;
  • working hours; and
  • the cancellation of employment contracts.

4.4 How is a discrimination claim processed?

If the employer violates an employee's rights, the employer can seek to exercise those rights with the employer and can also request judicial protection before the competent labour court. In the event of a dispute, the employer must demonstrate that the principle of equal treatment and the prohibition of discrimination have not been violated.

4.5 What remedies are available?

If the employer violates the prohibition of discrimination, it is liable to provide compensation to the employee. In determining the amount of compensation for non-pecuniary damage, the compensation awarded must:

  • be effective and proportional to the damage suffered by the candidate or employee; and
  • discourage the employer from repeating the violation.

4.6 What protections and remedies are available against harassment, bullying and retaliation/victimisation?

Since harassment, bullying and retaliation/victimisation are all forms of discrimination, the same protection as outlined elsewhere in question 4 is guaranteed.

5 Dismissals and terminations

5.1 Must a valid reason be given to lawfully terminate an employment contract?

An employment contract can be terminated only in the following cases:

  • upon the expiry of the period for which it was concluded;
  • upon the death of the employee or the employer (who is a natural person);
  • by agreement;
  • by ordinary or extraordinary cancellation;
  • by a court judgment;
  • under the Employment Relationships Act itself, in cases set out in the act; and
  • in other cases provided by legislation.

The reasons for ordinary cancellation are as follows:

  • business reasons;
  • incompetence;
  • misconduct;
  • incapacity to work due to disability; or
  • unsuccessful completion of a probationary period.

The Employment Relationships Act also stipulates unfounded reasons for ordinary cancellation of an employment contract, such as:

  • temporary absence from work due to inability to work because of an illness or injury;
  • trade union membership;
  • participation in a lawful strike; and
  • candidacy for the function of a workers' delegate.

The Employment Relationships Act stipulates reasons for the extraordinary cancellation of the employment contract by either the employee or the employer, which is possible in the event of serious breach of the rights and obligations arising from the employment relationship.

5.2 Is a minimum notice period required?

The minimum notice periods are stipulated in the Employment Relationships Act. If an employee or an employer terminates the employment contract during the probationary period due to unsuccessful completion of the probationary period, the notice period will be seven days.

If the employment contract is subject to ordinary termination by the employee, the notice period depends on the length of his or her service with the employer (15 days for up to one year of service and 30 days for a period exceeding one year of service). The notice period for ordinary cancellation due to business reasons or incompetence is 15 days for up to one year of service and 30 days for between one and two years' service. Thereafter, the 30-day notice period will increase for each year of employment with the employer by two days, up to a maximum of 60 days. After a period of 25 years of service, the notice period will be 80 days, unless a different notice period is specified by a branch collective agreement; but under no circumstances may it be less than 60 days. In the event of cancellation due to misconduct, the notice period is 15 days. No notice period applies in case of extraordinary termination of the employment contract.

5.3 What rights do employees have when arguing unfair dismissal?

If an employee believes that the dismissal is unlawful, he or she has the right to file a claim before the competent labour court within 30 days of receipt of the notice of termination.

5.4 What rights, if any, are there to statutory severance pay?

If the employment contract is terminated due to business reasons or incompetence, the employee is entitled to severance pay. The basis for calculating the severance pay is the average monthly salary of the employee in the last three months before cancellation. The amount of severance pay depends on the employee's length of service with the employer. The employee is entitled to:

  • one-fifth of the basis for each year of employment with the employer if he or she has been employed with the employer for more than one and up to 10 years;
  • one-quarter of the basis for each year of employment with the employer if he or she has been employed with the employer for a period of between 10 and 20 years; and
  • one-third of the basis for each year of employment with the employer if he or she has been employed with the employer for more than 20 years.

The amount of severance pay should not exceed ten times the basis, unless otherwise stipulated in a branch collective agreement.

6 Employment tribunals

6.1 How are employment-related complaints dealt with?

If an employee believes that the employer is violating his or her rights under the employment relationship, he or she can request in writing that the employer remedy such violation and fulfil its obligations within eight working days. If the employer fails to do so, the employee is entitled to enforce his or her rights before the competent labour court.

The employee may request the establishment of the illegality of cancellation of the employment contract within 30 days before the competent labour court.

The Employment Relationships Act also allows for alternative dispute resolution through mediation or arbitration.

6.2 What are the procedures and timeframes for employment-related tribunals actions?

Claims regarding the illegality of cancellation of the employment contract or other modes of termination of the employment contract and claims regarding disciplinary matters should be filed within 30 days of the date of service or the date on which the employee learned of the violation of his or her rights.

Money claims arising from an employment relationship become statute-barred within five years of the grounds for the claim arising.

If the employer fails to fulfil its obligations within eight working days of receipt of a written request from the employee, the employee must seek judicial protection within 30 days of the expiry of this eight-day timeframe.

Employment disputes are decided by specialised labour courts. There are four labour courts in Slovenia. The Higher Labour and Social Court is the court of second instance which hears appeals of first instance decisions. The Supreme Court is the competent court of final instance. If an employee believes that his or her constitutional rights have been violated, he or she may also file an appeal to the Constitutional Court of the Republic of Slovenia.

7 Trends and predictions

7.1 How would you describe the current employment landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

It is expected that 2021 will continue to be dominated by the COVID-19 pandemic. In 2020 the government adopted seven ‘anti-corona' legislative packages; two additional packages have been adopted thus far in 2021. The legislative packages include a number of measures relating to labour law, such as:

  • co-financing of wage compensation; and
  • financial aid for employers that introduce part-time work due to a temporary inability to provide work as a result of COVID-19.

The main goal of the legislation is to mitigate the consequences of the pandemic for citizens and the economy. Beyond these changes, no other developments are expected this year.

8 Tips and traps

8.1 What are your top tips for navigating the employment regime and what potential sticking points would you highlight?

As case law (which changes constantly) is another important source of labour law, we would advise clients to consult with an experienced legal expert on the rights and obligations of employees and employers, in order to avoid the negative consequences that can result from non-compliance with the labour legislation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.