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Slovenia

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Slovenia

Notice period

In Slovenia, the Employment Relationships Act (ERA) Zakon o delovnih razmerjih (ZDR-1) outlines the legal requirements for notice periods during employment termination. These periods vary depending on who initiates the termination and the length of service with the employer.

Minimum Notice Periods

The ERA sets minimum notice periods. While employers and employees can agree to a longer notice period in the employment contract, they cannot reduce the legal minimums.

  • General Notice Period: The minimum notice period is 30 days for both the employer and the employee, regardless of the termination reason.

Exceptions to the General Notice Period

  • Probationary Period: During the probationary period (maximum of three months), either party can terminate the employment with a shorter notice period of seven days.
  • Collective Bargaining Agreements: Industry or company-specific collective bargaining agreements may stipulate different notice periods, but these cannot be lower than the statutory minimum of 30 days.

Increased Notice Periods for Long Service

  • Employee Notice Period: If the employee has been employed for more than 25 years with the same employer, the notice period increases to 80 days, unless otherwise specified in a collective agreement.

Notice Period Start Date

The notice period begins on the first day of the calendar month following the receipt of the notice. For example, if an employee receives a termination notice on April 15th, their official notice period starts on May 1st and ends on May 31st.

Severance pay

In Slovenia, employees may be entitled to severance pay, known locally as 'odpravnina', under certain circumstances when their employment contract is terminated. This is governed by the Employment Relationships Act (ERA).

Eligibility for Severance Pay

Severance pay is mandatory if the employer initiates employment termination due to:

  • Business Reasons: Termination based on economic, organizational, or technological changes within the company that result in the position becoming redundant.
  • Employee's Inability to Perform Duties: If an employee is unable to perform their work due to valid (non-culpable) reasons, not attributable to a work-related injury or illness.

Calculation of Severance Pay

The severance pay amount is calculated based on the duration of the employee's service with the employer:

  • Up to 1 year of employment: One-fifth of the average monthly salary for each year of employment.
  • 1-10 years of employment: One-quarter of the average monthly salary for each year of employment.
  • 10-20 years of employment: One-third of the average monthly salary for each year of employment.
  • Over 20 years of employment: One-half of the average monthly salary for each year of employment.

The severance payment is capped at a maximum of ten times the employee's average monthly salary.

Additional Information

  • The employer is obligated to pay severance.
  • Collective bargaining agreements may stipulate a higher severance pay amount, but they cannot reduce it below the statutory minimum.
  • Severance pay is not generally required if the employee resigns, or terminates the contract due to their own fault.

Termination process

In Slovenia, the termination of an employment relationship is regulated by the Employment Relationships Act (ERA). There are several methods to end an employment contract, each with its own set of rules and procedures.

Termination Methods

The primary ways to terminate an employment contract in Slovenia are:

  • Termination by Agreement: This is when both the employer and employee mutually agree to end the employment contract in writing. This method does not require specific reasons.

  • Termination by Notice (Ordinary Termination): This is when either the employer or employee terminates the contract by providing written notice. The employer must have a valid reason for termination, such as business reasons, the employee's inability to perform tasks, or culpable employee behavior.

  • Immediate Termination (Extraordinary Termination): In exceptional circumstances, either party can annul the employment contract with immediate effect. This is only permitted in specific cases, such as a gross breach of work obligations by the employee or conviction of a work-related criminal offense for employer-initiated termination, or serious violation of contractual obligations or failure to pay wages for at least two months for employee-initiated termination.

Probationary Period Termination

During the probationary period (up to three months), either party can terminate the contract without specific reasons, with a shorter notice period of 7 days.

Formal Requirements

Termination notices must be in writing and clearly state the reasons for termination (if applicable). The notice must be physically delivered to the other party.

Protection Against Unfair Dismissal

If an employee believes their dismissal was unjustified, they have the right to challenge it in a labor court.

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