In Slovenia, the Employment Relationships Act governs employment, outlining various types of employment agreements that can be established between an employer and an employee.

Employment Contract for Indefinite Period

The employment contract for an indefinite period is the most secure type of employment agreement. It offers ongoing employment without a predetermined end date and provides the employee with the most benefits and protections under Slovenian labor law. The employer is obligated to register the employee for social insurance, which includes health, pension, disability, and unemployment insurance.

Fixed-Term Employment Contract

A fixed-term employment contract has a predetermined duration for the employment relationship. These contracts are typically used for temporary work needs, project-based positions, or replacing absent employees. However, there must be specific justifications for using a fixed-term contract.

Collective Bargaining Agreements

Collective bargaining agreements are negotiated between employee unions and employer associations for specific sectors or companies. They establish minimum employment standards, such as wages, benefits, working hours, and vacation time, that are more favorable than those outlined in the Employment Relationships Act. If a collective bargaining agreement applies to a workplace, its terms supersede the individual employment contract.

Agreements for the Performance of Work

Agreements for the performance of work are civil law contracts suitable for freelancers or independent contractors. They differ from employment contracts as the worker is not integrated into the employer's organization and is responsible for their own social security contributions.

Part-Time Work

Part-time work allows employees to work a reduced schedule compared to full-time positions. The terms and conditions are generally proportional to the reduced working hours.

Slovenian employment contracts are designed to protect both employers and employees by including specific information required by law.

Identifying Information

The contract should include the full names and addresses of both the employer and the employee.

Job Details

The employee's job title should be clearly outlined along with a brief description of their responsibilities.

Employment Terms

The contract should specify whether it is indefinite (permanent) or fixed-term. The primary work location should be indicated, and if the role requires remote work, this should be mentioned. The contract should also mention if it's a full-time or part-time position and include details on weekly or daily working hour distribution.

Compensation and Benefits

The contract should state the gross salary amount, payment frequency, and any allowances offered. The method of salary payment (bank transfer, cash, etc.) should be specified. The employee's entitlement to annual leave according to Slovenian law should be outlined.

Termination

The contract should define the required notice period for termination by both the employer and the employee.

Additional Clauses

The contract may reference any applicable collective agreements that govern the employment relationship. If the company has established byelaws (internal regulations), these should be mentioned in the contract. Clauses regarding the confidentiality of sensitive information and ownership of intellectual property created during employment may also be included.

The Slovenian Employment Relationships Act (ERA-1) provides guidelines for probationary periods in employment contracts.

Maximum Duration

In Slovenia, the legal maximum duration for a probationary period is six months. This is the standard unless a specific collective agreement governing the employment sector states otherwise.

Employer Discretion

Employers have the discretion to include a probationary clause within an employment contract, but it is not a mandatory requirement.

Termination During Probation

During the probationary period, both the employer and the employee have the right to terminate the employment contract. The notice period for such termination is just 7 days, which is significantly shorter compared to the standard notice periods that apply after the probationary period ends.

Collective Bargaining Agreements

Collective bargaining agreements for specific industries or professions may establish different rules regarding probationary periods. These agreements could potentially shorten or extend the six-month maximum depending on the job category.

Employment agreements in Slovenia often incorporate confidentiality and non-compete clauses to safeguard the employer's legitimate business interests. These clauses, however, are balanced against the employee's right to work and earn a living.

Confidentiality Clauses

Confidentiality clauses prohibit employees from revealing the employer's confidential information to unauthorized third parties. This information can include trade secrets, customer lists, technical processes, or any other information deemed confidential by the employer.

The Employment Relationships Act (ZDR-1) does not explicitly regulate confidentiality clauses, but they are generally enforceable under the Civil Code provisions on obligations arising from contracts. The clause should clearly define what constitutes confidential information and the duration of the confidentiality obligation, which typically extends beyond the employment term.

Non-Compete Clauses

Non-compete clauses limit an employee's ability to work for a competitor or engage in activities that compete with the employer's business after the employment relationship ends. These clauses are subject to stricter regulations under ZDR-1.

• Permitted: Employers can include non-compete clauses if the employee acquires "technical, production or business knowledge and business relationships" during their work.
• Time Limits: The non-competition period cannot exceed two years after termination.
• Reasonableness: The clause must be reasonable in terms of scope and geographic area. It shouldn't prevent the employee from finding suitable employment in their field.
• Compensation: If the clause significantly restricts the employee's employment opportunities, the employer might be required to provide financial compensation during the non-competition period.