Employment in Slovenia: Hiring processes, regulations, and considerations for employing foreigners

Navigating employment in Slovenia requires a comprehensive understanding of hiring processes, regulations, and considerations, especially when it comes to employing foreigners. In this article, we delve into the intricacies of employment in Slovenia, shedding light on the essential aspects that employers and foreign workers need to know. From the initial hiring procedures to compliance with local regulations, we explore how the employment landscape in Slovenia operates, providing valuable insights for businesses and individuals alike.

Hiring processes and regulations for Employment in Slovenia

This area is in Slovenia primarily regulated in the Slovenian Employment Relationships Act (hereinafter: ZDR-1) as well as collective agreements and general acts of the employer.

Any employer wishing to recruit new employees must publish a vacancy/job publicly. Vacancies may be published with the Employment Service of Slovenia in the media, on websites or on publicly accessible business premises. Published vacancies must include details of the employer, details of the job and the job requirements, and must also indicate how to apply and the application deadline, which must not be less than 3 days.

Before work commences, the employee has to enter into a written employment contract with the employer. The minimum permitted age for employment is 15 years. An employment relationship is either fixed-term or permanent, full-time or part-time. In an employment contract, employers may also specify a probationary period of up to six months.

After signing an employment contract, the employer is required to register the employee for compulsory social insurance (pension and disability insurance, health insurance, parental care insurance and unemployment insurance) from the day the employee starts working under the employment contract and provide the employee with a photocopy of the registration within 15 days of the commencement of work.

Apprenticeships and traineeships are carried out only at those employers for which this is provided in a special law or collective agreement for a specific sector, such as state institutions, healthcare, education system, etc.

Slovenian laws also include several special forms of employment for one-off, occasional or short-term work, for example, work on the basis of contracts governed by civil law, e.g. contract or copyright contracts, and work on the basis of a referral from the student employment service. It also recognises occasional or temporary work by retired persons, personal supplementary work or short-term work, especially for seasonal workers and tourism (such work is usually performed by workers under a fixed contract pursuant to the Employment Act, and also by students (student work)).

An individual can also obtain a special status that allows you to pursue certain activities on an independent basis (e.g. cultural worker, journalist, farmer) without having to establish a company or enter a relationship of employment.

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Employment contract

In regards to concluding the employment contract, ZDR-1 stipulates the elements/information that an employment contract must contain:

(i) the contracting parties,

(ii) the job title,

(iii) the place of work,

(iv) the period for which the contract is concluded,

(v) whether it is for full-time or part-time work,

(vi) the daily or weekly working time and the distribution of working time,

(vii) the amount of basic pay and any other remuneration,

(viii) the payment period, the day of payment and the method of payment of wages,

(ix) annual leave,

(x) the period of notice,

(xi) and information on the relevant collective agreement or employer’s articles of association.

An employment contract must be drawn up in written form. Employment agreements, appendixes, notices, and terminations must be in writing and confirmed with a wet signature or secure e-signatures (a QES recognised in the EU). The employer also is required (in line with ZDR-1) to give the employee the proposal of the employment contract for review three days prior to the signing of the contract. In regard to the local language requirements, Slovene is mandatory, but bilingual documents are acceptable.

After the employee concludes the employment contract, the employer is required to register the employee for health insurance, pension/disability insurance and unemployment insurance from the day you start working under the employment contract as outlined above.

In regard to the Employment Termination, the reasons for standard dismissal could be:

(i) cessation of the need to perform certain work (business reason);

(ii) employee incompetence;

(iii) violation of employee obligations (misconduct);

(iv) incapacity for work due to disability, and

(v) unsuccessful completion of the probation period. Reasons for extraordinary dismissal are determined for the most serious breaches of employment obligations.

The minimum notice periods are determined by law and depend on the employee’s years of service with the employer and the reason for termination. Employees are entitled to severance pay for regular dismissal for business reasons or employee incompetence. The amount of severance pay depends on the employee’s length of service and their average monthly salary. Special protection against dismissal is granted to certain categories of employees.

Key Practical Things Regarding Employment Relationships

As outlined above this area is mainly regulated in ZDR-1. Please see below for more information on practical aspects of employment relationships.

Salary

Slovenia has a regulated minimum wage salary which is obligatory and is updated annually. Employers in Slovenia who do not pay the minimum wage may be subject to minor offence proceedings. The current minimum wage in Slovenia is EUR 1,253.90 per month (before tax) in 2024.

Working hours

Regular (full-time) weekly working hours amount to between 36-40 hours per week. Daily regular working time comprises 8 hours, including a 30-minute paid lunch break.

Overtime Rules

Overtime must be requested in advance in writing. Overtime work may not exceed 8 hours a week, 20 hours a month, or 170 hours a year. If an employee consents, overtime work may exceed this limit, but it must not exceed 230 hours a year. The employee is entitled to additional payment for overtime work. The amounts are specified in a collective bargaining agreement. Overtime pay is usually 130-150% of an employee’s regular hourly pay rate.

Annual Leave

20 days for a 5-day week, of which at least 2 weeks should be consumed in succession. Some categories of employees are entitled to an extra leave of up to 3 additional days. Employees are entitled to 100% of their wages during annual leave and to an annual leave holiday allowance in an amount equal to at least the minimum wage.

Sick Leave

For the first 20 business days of sick leave, the employer covers the wage compensation (illness or injury not related to work – 80% of the employee’s salary, illness or injury related to work – 100% of the employee’s salary). For a longer absence from work, the employer pays wage compensation, but the compensation is covered by health insurance.

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Considerations for Employing Foreigners

EU citizens can enter the territory of Slovenia without any visa, and if entering from another country belonging to the Schengen zone, they will not be subject to border controls. If staying for more than three months, they must register their residence with the relevant administrative unit. This signifies that citizens of the EU Member States and the European Economic Area – EEA (Norway, Liechtenstein, Iceland) and Switzerland are equal in job seeking and getting employment with the Slovenian workers. This means that if the person gets employment, he/she does not require a permit to work in Slovenia.

For non-EU citizens:

(i) a visa-free regime (if applicable) – an individual should not spend more than 90 days in all Schengen countries cumulatively during a 180-day period;

(ii) holders of a short-stay visa (C type) and holders of a long-stay visa (D type) – an individual should not spend more than 90 days in all Schengen countries cumulatively during a 180-day period or until the expiry of the visa, whichever occurs first,

(iii) a residence permit (obtained after arriving in Slovenia). A non-EU citizen can only find employment in Slovenia and legally perform work if he previously obtained a single residence and work permit.

More information can be found on the following web page of the Employment Service of Slovenia (a key Slovenian labour market institution).

Conclusion

In conclusion, understanding the nuances of employment in Slovenia is crucial for both employers and foreign workers seeking opportunities in the country. By familiarizing oneself with the hiring processes, regulations, and considerations outlined in this article, businesses can navigate the employment landscape with confidence while ensuring compliance with local laws. Staying informed and proactive is key to success in the dynamic employment landscape for companies looking to expand their workforce or individuals pursuing employment in Slovenia.