An EOR in Slovenia nullifies employment risks for foreign employers by ensuring compliant hiring. payrolling and benefits administration. By alleviating these aspects of employment,  employees can focus on screening the talent, creating a strong employer brand and managing the day-to-day activities of the employee. The EOR acts as the legal employer, easing administrative burdens for efficient compliance with Slovenian employment regulations. 

Misclassifying employees in Slovenia poses risks by potentially depriving them of legal protections. Engaging a PEO/EOR mitigates these risks, ensuring compliance with labor laws, accurate classification, precise payroll, and comprehensive benefits, allowing businesses to focus on core operations while entrusting employment responsibilities to experts.

In Slovenia, the primary legislation governing labor laws is the Employment Relationships Act (Zakon o delovnih razmerjih, ZDR-1). This act provides a comprehensive framework for employment relationships in Slovenia, covering various aspects such as employment contracts, working hours, annual leave, parental leave, termination of employment, and protection against unfair dismissal.

Slovenia diligently safeguards the rights of employees, encompassing the public and private sectors, as well as expatriates. The government places significant importance on aligning with the labor code in Slovenia, following guidelines set forth by the European Union.

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Employment contract

As per Slovenian labor laws, an employment agreement is established between an employer and an employee upon the employee's inclusion in the employer's organization. Slovenian labor regulations afford flexibility for employers and employees to tailor these laws to their specific requirements. The key provisions outlined in the employment contract include:

• Job vacancies and specific positions
• Mutual agreement through signatures of both parties
• Specifications on nature of work, working hours, and wages
• Considerations for temporary workload increases
• Provisions for seasonal or project-based work
• Arrangements for work preparation and training
• Classification of full-time or part-time status with weekly or daily time distribution
• Annual leave details
• Notice periods
• Acknowledgment of collective agreements by employer's by-laws
• Employment contract typically valid for two years
• Option for renewal by companies after the initial period

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Get an overview of what you need to know when hiring in Slovenia.

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Working time

A  workweek in Slovenia comprises 40 hours spread across five days, with a mandatory 30-minute lunch break included. To qualify as a full-time employee, individuals must work at least 36 hours per week, except for those employed in high-risk environments, who may have a weekly workload below 36 hours.

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Overtime

Any work beyond the standard weekly hours is considered overtime and is subject to regulation by the employment contract or collective agreement. When employees are asked to work overtime or on holidays, there are prescribed maximum limits, namely 8 hours per week, 20 hours per month, or 170 hours per year. These limits may vary for minors, pregnant women, and specific age groups. Overtime hours exceeding 40 hours per week are compensated at an overtime rate, which should be clearly outlined in the employment contract or collective agreement. Employers are obligated to provide written notice in advance of any planned overtime.

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Public Holidays

The country observes 15  public holidays that employees can take as paid days off.

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Minimum Wage

The monthly minimum wage is 1,203.36 EUR.

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Annual Leave

Employees have the right to a paid annual leave lasting at least four weeks each calendar year, regardless of their full-time or part-time status. This entitlement becomes applicable after six months of continuous employment, with the payment prorated accordingly. Employers must ensure that employees utilize their annual leave entitlement by the end of the current calendar year. A minimum of two weeks of annual leave must be taken before the year's end, and the remaining portion can be scheduled in agreement with the employer until June 30 of the following year. Additionally, employees with children under the age of 15 receive an extra day of leave for each child annually.

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Paid Sick Leaves

In Slovenia, employers are required to compensate employees for sick leave lasting up to 30 days; the specific amount is outlined in the employment contract or collective agreement. Employers must compensate employees for work-related illnesses or accidents at 100% of their regular salary, while regular sick leave typically receives 80% salary coverage. Social Security compensates sick leave extending beyond 30 days until the employee is deemed fit to resume work or their employment is terminated. It is mandatory for employees to furnish a medical certificate promptly after falling ill.

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Maternity leaves

In Slovenia, mothers are entitled to 105 days of paid maternity leave, commencing 28 days before the expected date of childbirth. A mandatory minimum of 15 days of maternity leave must be taken by the employee. To qualify for this paid leave, the employee should have made one year's worth of insurance payments to the Parent Protection Insurance within the three years leading up to the pregnancy. Social Security will provide compensation to the employee, determined by the contributions made to the Parent Protection insurance. This benefit ranges from 55% of the minimum base salary to twice the average monthly salary in Slovenia.

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Paternity leaves

Fathers or partners in Slovenia are eligible for 75 days of paid paternity leave. The initial 15 days must be taken within three months of the child's birth, while the remaining leave can be utilized at any point before the child turns 8 and can be taken intermittently. 

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Compensation for paternity leave is calculated based on the average earnings of the preceding year, with a range not falling below 55% of the minimum wage value according to the ZUTPG indexation and not exceeding double the value of the average monthly wage according to the ZUTPG indexation in Slovenia (ZUTPG refers to the Act regulating adjustments of transfers to individuals and households in the Republic of Slovenia).

Tax and Social Security contribution:

Both employees and employers contribute to the social security system. As part of the Social Security program, it is mandatory for employers to provide their employees with contributions towards the pension fund system, Medicare coverage, life insurance, and labor risk insurance. 

Employers are required to pay a corporate income tax. The nation follows a progressive taxation model, wherein the tax rate on income rises proportionally with the company’s earnings.

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Employee Income tax

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Termination 

The termination procedures differ depending on the existing employment or collective agreement and hinge on the contract type and the grounds for termination. Two categories of dismissals exist: regular and extraordinary. Regular dismissal occurs for reasons such as incompetence or misconduct, while extraordinary dismissal is invoked when an employee engages in criminal activities, rejects a transfer, or commits a similarly severe breach. All dismissals, irrespective of type, must be formally communicated to the employer in writing, and the employee is entitled to present a defense. In cases of extraordinary dismissal, the termination notice must be both in writing and delivered in person.

Severance Pay

Employees receive severance pay based on their length of service:

1. Employees with one to ten years of service are entitled to 1/5 of their average salary from the preceding three months for each year of service.

2. For employees with more than ten years of service, the severance pay is 1/4 of the average salary from the previous three months for each year of service.

3. Those with over 20 years of service receive severance pay equivalent to 1/3 of their average salary for each year of service from the past three months.

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Notice Period

In Slovenia, the notice period is contingent on the employee's tenure:

1. For service up to one year, a 15-day notice is applicable.

2. Employees with one to two years of service have a 30-day notice period.

3. Those with over two years of service require 30 days' notice plus an additional two days for each year served beyond two.

In cases where the employee has not completed their probation period, the notice period is shortened to 7 days; for at-fault dismissals, it is 15 days.

There is no notice period for an extraordinary dismissal. However, the employer must still communicate the termination within 30 days of the incident leading to termination.

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Probation period

In Slovenia, the probationary period is specified within the employee's employment contract and cannot exceed six months.

Expanding your team in Slovenia involves strategic hiring aligned with business needs. Navigating Slovenia's employment landscape requires a local entity to handle compliance, payroll, tax, and benefits management. The intricacies of Slovenian employment regulations can be challenging, emphasizing the need for meticulous compliance. Opting for Gloroots's global Employer of Record (EoR) service empowers you to delegate the complexities of payroll, tax, benefits, and compliance to experts. With Gloroots handling the administrative burdens, you can focus on what truly matters: nurturing your team and fostering company growth in Slovenia.