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Employer of Record System in Slovenia

Employer of Record System in Slovenia

Skuad’s Slovenia EOR service is your one-stop centralized human resource (HR) platform managing your organization’s entire hiring and payroll process so that you can focus on the business side of your expansion. We can look after hiring, onboarding, contracts, probation, termination, taxes, and employee benefits for you in compliance with the local laws. Book a demo with us today to know more about our service offerings for your organization.

Slovenia at a Glance

Estimated population: 2,078,938 (2020)

Currency: Euro (EUR)

Capital: Ljubljana

Officially recognized languages: Three

Languages frequently used: Slovenia, Italian, and Hungarian

Gross Domestic Product (GDP): USD 63 billion (2017)

Employment in Slovenia

As per the Slovenia employment laws, it is mandatory to have an employment contract in writing to start an employment relationship. Employees can work full-time or half-time.

Given below are the full details of employing workers in Slovenia.

Key Legislation Details
The main source of employment law
Key act The Collective Agreements Act , in collaboration with the Representativeness of Trade Union Act, regulates Trade Unions and collective bargaining relations.
Specific labor issues Various laws govern specific labor issues, including,

Minimum Wages Act

Employment, Self-employment, and Work of Foreigners Act

Prevention of Undeclared Work and Employment Act

Vocational Rehabilitation and Employment of Persons with Disabilities Act

Recent development The Slovenia Labor Law had a contractless employment clause. However, it has recently been changed to contractual employment.

Employment in Slovenia begins with an employment relationship that is established between a worker and an employee. The worker is integrated into the employer’s organization voluntarily, and in exchange, the employer provides remuneration and other mandatory benefits required under the Slovenia employment laws. The employment laws are mostly applicable to workers and laborers and less so to managerial staff and CEOs.

The various clauses mentioned in the Slovenia Labor Laws are tabulated hereafter.

Contracts, Collective Bargaining, and Trade Union Rules

Employment contract
  • The contract is legally implied when the employment relationship is organized, remunerated, and voluntary.
  • The employment contract should contain mandatory provisions.
  • It must be in writing and needs to be drafted at least three days before signing the contract by employees.
  • The contract is valid for a fixed term and an indefinite term.
Information that needs to be mentioned in the employment contract The following information should be mentioned in the contract.
  • Names of the contracting parties
  • Date of start of work
  • Job title or job description
  • Work location
  • Contract type: part-time or full-time
  • Work timing
  • Basic salary
  • Payment terms
  • Annual leave
  • Notice period and duration
  • Collective agreement reference
If any clause mentioned in the contract is not as favorable as the statutory standards, it is taken to be null and void.
Collective bargaining The clauses mentioned in the Employment Act can deviate when collective bargaining takes place.
  • Clauses that can be deviated include notice periods, work schedule, overtime pay, leaves, holidays, and training.
  • Collective bargaining usually happens at the industry level.
  • The parties that collectively bargain are trade unions and employer associations.
  • In certain cases, company-level collective agreements also take place.
Trade union policies
  • The Representativeness of the Trade Unions Act
  • The Strike Act, and
  • The Collective Agreements Act
Rights of trade unions
  • Freedom of association
  • Signing collective agreements
  • Electing members to the Economic and Social Council of Slovenia (ESCS)
  • Nominating jurors to the Labor Court

Holidays and Leaves in Slovenia

Public holidays
Date Holiday
January 1 New Year’s Day
January 2 New Year’s Day
February 8 Preseren Day
April 4 Easter Sunday
April 5 Easter Monday
April 27 Resistance Day
May 1 May Day Holiday
May 2 May Day Holiday
May 23 Whit Sunday
June 25 Statehood Day
August 15 Assumption Day
October 31 Reformation Day
November 1 Day of Remembrance of the Dead
December 25 Christmas Day
December 26 Independence and Unity Day
Sick leave
  • Employees can take sick leave in case of any illness or injury.
  • They are entitled to get 80% of their wage.
  • If the injury or illness is related to the workplace, workers are entitled to receive their standard salary till they are ready to get back to work.
Maternity leave
  • Female employees need to make payments to parental protection insurance for a year to be eligible for paid maternity leaves.
  • Such women can claim 105 days off.
  • The leave can begin 28 days before the tentative date of birth of the child.
  • Women need to take at least 15 days of leave mandatorily.
  • Eligible mothers can also claim social security benefits calculated using past contributions to social security.
  • The payment is 55% of the minimum base salary and twice the monthly salary.
Paternity leave
  • Fathers are entitled to 30 days of leave.
  • By law, 15 days need to be taken after the child’s birth within six months, and the balance of 15 days can be used till the child completes their first grade.
Caring for a child
  • Both parents are entitled to a total of 130 days to look after a sick child.
  • As per the law, the mother can transfer about 100 days of her paid leaves to the father, while the father can transfer 100% of his allocated child care leaves.
Adopting a child Employees get up to 130 days of paid leaves when adopting a child. The leave should be taken within 15 days of getting custody of the child and be taken in parts until the child completes their first grade.

Working Hours and Wages

Working hours
  • The permitted working hours are 40 hours.
  • The working hours are spread over five days.
  • Full-time workers need to work for a minimum of 36 hours over four days.
  • For dangerous work, employees will work less than 36 hours every week.
Overtime
  • Overtime cannot be more than eight hours every week, 20 hours a month, or 170 hours a year.
  • At any cost, it cannot be more than 230 hours a year.
  • The only exception to working overtime is in case of a natural or an imminent disaster, where overtime is essential to save human lives or protect from material damage.
  • Overtime is not allowed for certain categories of people. For example, pregnant ladies or workers younger than 18 years or more than 55 years cannot work overtime.
Overtime pay
  • Additional payment is required to be made by the employer in case the employees work overtime.
  • The collective agreement helps determine the overtime pay.
Rest breaks
  • Every worker working for eight hours daily gets a 30-minute break.
  • When workers work consecutively for seven days, they are entitled to a rest period of 24 consecutive hours.
Wage
  • As per the Minimum Wages Act and 2021 revisions, the minimum wage must exceed the calculated minimum cost by at least 20%.
  • The monthly minimum wage in 2021 has been determined to be EUR 1,024.24 gross.
Bonus
  • It is common for employers to pay bonuses in Slovenia.
  • In most cases, a 14th month’s salary is paid at Christmas time or just before New Years Day.
  • There is also a performance-based bonus.
  • Jubilee bonus is paid on completion of a work anniversary.
Health insurance benefits
  • Employees contribute a portion of their salary toward public healthcare insurance.
  • The employer, too, contributes a portion toward health insurance.
  • The National Health Insurance provides comprehensive coverage to children's health costs, but only the prescription drugs for adults are covered.
  • Besides national insurance, employees can purchase additional private health insurance.

Data Protection and Privacy

Data protection laws
  • Employees’ data can be collected, accessed, stored, transmitted, destroyed, and modified by employees only within the legal gamut.
  • Third parties can be involved only when they are authorized when employers authorize so.
  • The data is required to be deleted immediately and made inaccessible once the legal basis is over.

Anti-discrimination Laws

Discrimination Discrimination against employees is not permitted in Slovenia on the following grounds.
  • Gender
  • Skin color
  • Disability
  • Religious belief
  • Medical conditions
  • Nationality or ethnic background
  • Family status
  • Age
  • Sexual orientation
  • Financial condition
  • Trade union membership
  • Any other personal conditions
In case any such discrimination has occurred, the employers need to compensate the employee.

With the assistance of Skuad’s Slovenia EOR solutions, organizations can effectively expand into Slovenia while complying with the tax and employment laws. You can benefit from the world-class infrastructure, competent resources, and know-how of the legal compliances in Slovenia to help in your global expansion plans. Contact Skuad experts to know more.

Contractors vs. Full-time Employees

The Slovenia employment laws treat full-time employees and contractors differently. When employers wrongly classify employees as contractors or vice versa, there could be penalties and fines.

Full-time employees are eligible for several state benefits mentioned in the employment contracts in Slovenia. These benefits include health insurance, pension, worker compensation insurance, unemployment insurance, and parental leaves. The employment agreement in Slovenia determines and regulates the employment relationship and is a mandatory requirement. The employee gets hired by the employer and has a fixed job description for which they get remuneration.

On the other hand, the organization employs an independent contractor for certain specific jobs for which the contractor has a specialization. Therefore, in return for their services, the organization compensates the contractor. However, the contractor is a self-employed person and is responsible for taxes and other responsibilities.

An EOR service provider such as Skuad helps in the legally correct and compliant employment contract law in Slovenia, thereby eliminating misclassification risks. We can take care of all your hiring needs, whether you require contractors or full-time employees.

Hiring in Slovenia

To hire employees in Slovenia, your business entity needs to be established in the country.

Once the legal entity is established, you can help professional hiring companies in Slovenia recruit local and foreign workers. Some of the top hiring websites in Slovenia are as follows

With Skuad’s EOR solution, hiring in Slovenia is a stress-free and hassle-free process. You can pass on the burden of meeting the local laws and compliances, navigating the complex taxation systems, and handling the payroll system to us. Request Skuad experts for a demo today!

Probation & Termination

Probation period in Slovenia The ZDR-1 mentions that the standard probation period in Slovenia is up to six months until any other period is decided through collective bargaining.
Termination of employment Slovenia Two types of termination are permissible in Slovenia.
  • Regular termination: Such kinds of dismissals occur when employees are terminated due to incompetence, misconduct, or redundancy. In these cases, the employee may be subjected to severance pay.
  • Extraordinary termination: Such terminations happen if the employee has committed a crime or serious breaches of the contract, including not showing up for work, compromising data, and giving false data.

It is mandatory to provide the termination in writing to the said employee, clearly stating the reason behind the dismissal.

The termination should be delivered in person to the employee.

The employee must be allowed to present their defense.

Notice period The notice period in case of regular dismissals is directly dependent on the term served by the employee in the company.
  • Employees working for one year should be given 15 days ’notice
  • Between one to two years, employees will be given 30 days’ notice
  • Employees working for more than two years need to be given more than 30 days’ notice

To ensure your expansion endeavors adhere to the laws regarding probation and termination in Slovenia, talk to Skuad experts and book a demo today.

EOR Solution in Slovenia

An EOR is a service provider that is legally established in a region to offer HR services to clients. Some of the core areas of expertise of an employer of record service are legal compliances, taxation and payroll handling, HR tasks such as recruiting and onboarding employees, and overseeing probation and termination.

Outsourcing Employment through an Employer of Record

Whether your business is looking for employees to meet strategic expansion requirements or you need able professionals for specific undertakings, an outsourced EOR service provider such as Skuad can expedite your growth. Skuad is an automated platform with versatile features and an intuitive interface. It acts as the perfect one-stop EOR service for business entities that wish to expand in the Slovenia market without incorporating a business there. Our high-tech, unified platform has a user-friendly interface helping you manage employee contracts and payouts seamlessly. We are one of the most renowned EOR companies in Slovenia. Contact us to learn more!

Types of Visas in Slovenia

Types of Visas in Slovenia The main types of visas in Slovenia are,
  • Tourist visa
  • Study visa
  • Business visa
  • Visiting family and friends visa
  • Medical treatment visa
  • Work visa
  • Visas for spouses of Slovenian citizens
Working in Slovenia To enter Slovenia and work on a long-term basis, foreign nationals must obtain a Slovenia single work and residence permit (known as a Single Permit) and a work visa.
Slovenia work visa requirements Citizens of the EU or European Economic Area (EEA) need not apply for a work visa in Slovenia. However, other nationals need to apply for a Single Permit. The requirements to get the Single Permit include,
  • Passport
  • Photo and fingerprints
  • Health insurance coverage application
  • Police verification certificate to check the criminal background of the applicant.
  • Bank statement to prove you have the financial means to support yourself in Slovenia

Talk to us and get more information and guidance related to types of visas and work visa requirements in Slovenia. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.

Work Permits

Work permit in Slovenia
  • The work permit is mandatory for non-EU nationals willing to work in Slovenia.
  • It is a single residence permit that guarantees work and residence in Slovenia.
  • The permit is issued by Upravna enota wherein the consent of the Employment Service of Slovenia (ESS) is required.
Slovenia work permit for foreigners The purpose of a Slovenia work permit is to allow people to be self-employed or hired by an organization in the country. Foreign nationals can also apply for work permits to obtain EU blue cards, attend training, or work for an agent.

Non-EU nationals cannot get a Slovenia work permit without a job offer.

To learn more about work permits in Slovenia and how Skuad’s EOR solution for Slovenia can secure them for you, talk to Skuad experts.

Payroll & Taxes in Slovenia

Things You Must Know to Set Up Payroll in Slovenia

There are four options to set up payroll in Slovenia.

  • Internal: To help the company pay all the employees under one roof, internal payroll is a good option. An extensive HR department is needed to ensure compliance with the local laws.
  • Remote: In a remote payroll system, the employees in Slovenia are added to the parent company’s payroll located in another country. The company needs to ensure the correct tax laws and the right salary is paid to the employees based on their country of employment.
  • Remote: In a remote payroll system, the employees in Slovenia are added to the parent company’s payroll located in another country. The company needs to ensure the correct tax laws and the right salary is paid to the employees based on their country of employment.
  • Outsourcing with a global EOR service: The best option for organizations is to utilize the services of a global EOR solution like Skuad for its payroll management. The EOR company becomes the legal entity for the parent company and is held responsible for any compliance issues. Skuad can provide bespoke expansion solutions as an EOR service for Slovenia.
Slovenia payroll taxes for employers The employer tax is about 16.10% of the salary paid to the employees
Tax head Percentage
Pension 8.85%
Unemployment 0.06%
Work injury 0.53%
Health insurance 6.56%
Maternity 0.10%
Total employment cost 16.10%
Slovenia payroll tax rates for employees Employees need to pay about 22% of their salary as mandatory taxes.
Tax head Percentage
Pension 15.50%
Unemployment 0.14%
Health insurance 6.36%
Maternity 0.10%
Total employment cost 22.10%
Employee income tax The income tax rates for employees are as follows.
Income Range (EUR) Tax (Percentage)
0– 8,500 16%
8,500– 25,000 26%
25,000–50,000 33%
50,000–72,000 39%
72,000 + 50%

Appointing Skuad as your EOR helps in effective payroll outsourcing in Slovenia to expedite your expansion. To know more about our tech-enabled, unified HR platform, contact Skuad experts.

Incorporation: How to Set Up a Subsidiary in Slovenia

Incorporating a holding company in Slovenia requires submitting the right documents with the required officials. The documents required are,

  • The company’s registered name
  • Business address
  • Activities of the company
  • Slovenian value-added tax (VAT) identification number of the founders of the company
  • Denomination of the directors

Starting capital required for a business in Slovenia is as follows.

  • Branch office: No authorized capital
  • Ltd company: EUR 7,500
  • Private entrepreneur: No authorized capital
  • Subsidiary: EUR 7,500

There are incredible business opportunities in Slovenia. For businesses, appointing an EOR service in Slovenia is a big help since they do not have to invest their time and resources in setting up an office in the nation. In addition, Skuad’s tailor-made Slovenia solution helps in the ensuing smooth flow of operations without incorporating a business in Slovenia.

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