Slovenia

An employment contract is the basis for establishment of an employment relationship. This relationship is set up between a employer and an employee. The employment contract is a constitutive element of an employment relationship. Normally the employment contract is concluded for unfixed -term. It can be concluded for fixed -term only exceptionally according to the law.

3. What does an employment contract need to contain?

In the section 6, article 29 of the Employment Relationships Act (ERA) 2003, the employment contract must contain :

identification of the parties

starting date

job title or brief description of work

place or places of work ( if there is no place mentioned in the employment contract it is assumed that the place of work is where the employer is seated )

in the case of non-permanent employment, the period for which it continues, if it is a fixed-term, the ending date and provisions about the vacation

working hours

wage ( basic, in Slovene tolars, others payments, other constituents of wage, payment period, payment day and the way of paying out the wage )

any terms relating to holidays and the way of determination of the holidays

notice period required to terminate the contract

particular collective agreements and general acts ( that directly affect the terms and conditions of employment )

all others rights and obligations that are determined with the Employment Relations Act 2003

4. Is there a legal requirement to provide an employee with a

written contract and if so, when does this have to be provided ?

In the section 2, article 15 of ERA 2003, determines that the employment contract must be in written form. The employer must present a written suggestion of employment contract to the employee three days before they attend to sign the contract and the written contract itself on the day of determination. If the employer does not present the written contract to the employee, he can demand this from the employer or claim for it. If the parties did not determine the employment contract in the written form this does not influence the existence and validity of the employment relationship an the rights and duties arising out of it. The reason is the protection of employees.

5. How would you define redundancy/economic dismissal?

Article 88. of the ERA determines the reasons for regular termination of the employment contract which can be brought out by the employer if:

There is no need for doing a specific job, under the conditions in the employment contract, because of economic, organizational, technological, structural or similar issues on the employer side ( economic dismissal ) – and liquidation, bankruptcy, ,….- which are not in the legal (act) definition directly pointed out.

other two reasons are incontestability and reason of guilt

6. What is the procedure that an employer must follow when

making a redundant/or dismissing on economic grounds?

The procedure is stipulated in the ERA.

By individual termination of employment contract the employer must firstly send the employee a written notice of termination. If the employee requires so the employer must inform the labour union about his intention to terminate the employment contract. The labour union has to respond in term within eight days. The termination has to be explained.

This termination has to be served to the employee in thirty days since the employer got familiar with the reason for regular dismissal or at latest in six months since the reason was objectively known. ERA provisions determine the termination time limit and the compensation for dismissal. Just in case of economic reason for dismissing the employee, the employer has to check if there is a possibility to employ the employee under different conditions. If there is a possibility and if the work is convenient (comparable with the work before) and the employee does not accept the offer, the employment contract is terminated and the employee doesn’t get the compensation for dismissal.

In cases of numerous terminations the employer must elaborate a program about redundant employees, then he has to inform and consult himself with the trade union and the employment institution.

7. Laws against discrimination, types of discrimination and their

definition?

In the section 1, article 6 of ERA 2003 sets up a general prohibition of the discrimination in employment relationship.

“ The employer can not put a candidate in unequal position in connection with his sex, race, colour of skin, age, health condition or invalidism, religion, political or other persuasion, membership in trade union, national or social origin, family status, property or financial condition, sex orientation, or other personal circumstances."

Our legislation distinguishes between direct and indirect discrimination.

8. Do you recognise harassment and again, how is this defined?

The section 7, article 45 of ERA determines that the employer has to assure that kind of working environment in which no employee will be exposed to unwilling treatment of sexual nature, which includes unwilling physical, verbal or other on sex grounded behaviour, which makes frightened, hostile or humbly relations and environment and also offences dignity of men or women by employer, superiors or co-workers.

9. What can an employee do about discrimination?

The employee can notify the employer and demand to dispatch his breach or to fulfil his obligation. If the employer does not act in term of eight working days, the employee can claim monetary compensation for immaterial damage that has to be determined by a competent labour court. The employee can bring a suit at the latest in thirty days since the term of eight days has expired. The court must take into account the detriment and the circumstances under which rights and obligations were breached.

10. What is unfair dismissal?

Unfair dismissal is unjustified according to the law ( ERA ).

11. What can an employee do about an unfair dismissal?

The employee can, in term of thirty days, since he has received the dismissal notice or since the day he was informed that his rights have been breached, bring a lawsuit, without a preceding a written notice to his employer.

12. If the dismissal is found to be unfair what compensation

can the employee demand?

The court can decide about reinstatement and compensation in the amount of paying back all the wages, insurance and contributions. But if the situation between employer and employee is such that reinstatement is not possible any more, the employee can instead of reinstatement demand the compensation.

13. Do you have collective/trade union law?

Yes.

14. If so, what rights does an employee have?

The right of an employee to become a member of the trade union is guaranteed by the Slovene Constitution. The membership in a trade union is not obligatory but if the employee is not a member of trade union that doesn’t mean that he has less rights then members.

Trade unions shall have the right to take part in labour relations including negotiation with the employer organizations and the state about the conclusion of collective contract. The employer is obligated to consult with the trade union about important organization changes in the company, because of the economic situation, work standards, etc.

The trade unions can be representative, if they fulfil conditions that are provided in the Slovene law. If they become representative, it means, that they can be a party of a collective contract with the state.

In the same cases when the law provides so, the employer is obligated to consult the trade union about opinion or to inform it about important future changes.

The Ministry of Labour, Family and Social Affairs registers trade unions.

Every trade union must have his own statute.

15. Does the employer have to accept collective/trade union law?

Trade unions are concluding collective contracts with the employers, employers organizations (Chamber of Economy) and the state.

The trade unions follow its purposes and programs, they adopt its internal acts, statutes and give their opinion on the employer general acts, decisions, ect. Employees also have to pay affiliation fee for membership.

16. Can any individual from another country come and work in your

county?

Yes, but he needs to prove that he was granted a work permit and a residence permit, except if he is from Ireland, Sweden, Great Britain and from a new EU member state.

17. If so, is there immigration controls/work permits that need

to be applied for?

An employer shall submit an application for a work permit and residence permit. The exception is in case when the foreigners are from Ireland, Great Britain, Sweden or new EU member state. In these cases the employer only has to register foreigner as an employee.

18. What criteria are used for such applications?

The general criterion is the quota system, if it is still not fulfilled and if there is no suitable domestic worker, then a foreign worker can apply. The employer shall submit an application for a work permit that is issued by the Labour Authority in the area where the employer has his seat.

More information on this topic can be found in my paper on immigration.

19. What does an employer have to do if he receives an

application from someone who is not a national in your

country for a job?

The employee can employ a foreigner if the quota is still not fulfilled and if there is no domestic worker has applied for this job. Firstly the employer has to decide to employ him, then he has to apply for a work and a residence permit. If both permits are issued the employer has to register the foreigner.

20. What is the tax position for a foreign employee?

Slovenia recently adopted a new Personal income tax, which is applicable from 1.1.2005.

Foreign employees can be treated as residents or as non-residents, depending on the conditions set out in the law. Residents are taxed on the principle of “world income”. During the tax year residents and non-residents are obliged to pay advanced income tax (calculated and paid by the employer) from on the income deriving in Slovenia. This tax is for non-residents, under certain conditions, as a rule definite. Of course the employee is subject to exception under international conventions regarding double taxation.

21. Are employees protected in the event of a sale or a

purchase of a business?

In case of sale or purchase of a businesses, the employment contract and other rights and obligations from employment relations on the day of change go over on the purchaser ( new employer ). In case of bankruptcy or other way of winding up of a company the employment contract doesn’t end on the base of this procedure itself. The authorised insolvency practitioner can cancel the employment contract only of an economic reason and this is the regular dismissal.

22. If so, what rights do employees have and what can they do

about it?

They have all the rights like the employees dismissed on the base of economic reasons.

The employer is obligated to reemploy these employees in case that he will employ in a period of one-year term.

23. What does the employer have to do in the event of a sale or

purchase of a business which includes employees?

Already explained in the question 22. and 23..

24. What is the position regarding agents in your country,

briefly outline how agents are dealt with and what

documentation is required?

Our legislation regulates different kind of agents. I assume that by this question is meant the commercial agent.

Our Code of obligations ( CO ) regulates the general agency contract. On ground of this CO the agent ( commercial agent ) obligated himself with the agency contract that he will endeavour that third parties will conclude contracts with his consignee and that he will interfere between them and also, after getting the authorization, he will in the name and for the account of the consignee concludes contracts, on the other hand the consignee binds himself to pay a suitable provision.

An agent after this definition is a natural or juristic person, who is registered to practice representation independently with gainful intention.

If the contract does not regulate contrary the, consignee can appoint more than one agent in for the same business on the same territory.

The agent can conclude a contract in the name and for the account of the consignee only, if he has a special or a general authorization to do so. The agent cannot claim and accept the outstanding debts of his consignee, if he is not especially authorised for this.

Vesna GORJUP ZUPANČIČ

Law firm Ivan GORJUP

SLOVENIA