Employment contract

A contract of employment is the basis of the an employment relationship. An employment contract can be for an indefinite or definite period of time.

What are the steps in the recruitment procedure?

First, a vacancy is advertised and a suitable candidate is selected whom the employer concludes an employment contract and registers him/her in the compulsory social insurance scheme.

Job vacancy advertising is compulsory. A vacancy may be advertised free of charge by the Employment Service of Slovenia (ESS) or in the media, on websites, or on the publicly accessible business premises of the employer.

When the ESS is notified of a vacancy, it may refer candidates from its records to the employer and thus assist the employer in the staff recruitment process.

The ESS may be notified of job vacancies in the following manners:

• directly, in person or by mail, using the PDM-1 form or through the e-services portal of the ESS;
• through the SPOT system.

In accordance with the Labour Market Regulation Act (ZUTD-A), the obligation to notify the ESS of any vacancy applies only to public sector employers and majority state-owned companies.

Job vacancy notification is also compulsory when a company wishes to employ an alien. In such case, the ESS issues to the potential employer written notice of suitable job seekers in its records before issuing an employment permit.

Employment contracts must be made in writing.

A contract is deemed to be concluded when it is signed by both parties, i.e. the employee and the employer.

Employment contracts can be made for a definite or indefinite period of time and for full and part-time work.

Part-time employees exercise the rights and obligations arising from the employment relationship proportionally to the time for which the employment relationship was concluded.

A fixed-term employment contract, i.e. a contract for a definite period of time, is an exception for which there must exist specific reasons.

A fixed-term employment contract can primarily be concluded for or in the following cases:

• work which by its nature is of limited duration;
• replacement of a temporarily absent employee (on sick leave, maternity leave, etc.), in which case it is only a temporary filling of a vacant position for the duration of the employee's absence. In this respect, it should be noted that this does not apply to the replacement of retired employees:
• a temporarily increased workload; 
• preparation for work and training;
• seasonal work;
• project work.

A fixed-term employment contract (for the performance of the same work obligations) is generally limited in time and may be concluded for a maximum of two years. The restriction regarding time does not apply to cases of replacing a temporarily absent employee and projects with a duration exceeding two years.

Employers may include a probationary period clause, which depends on the qualification level and position of employment.

What information is mandatory in an employment contract?

• In accordance with the Employment Relationships Act, the following data are required in employment contracts:
• the names of the contracting parties;
• the job title or type of work, with a short description of the work;
• the location of the work and the period for which the contract is concluded;
• a specification whether it is a full-time or part-time contract, the daily or weekly work time and the working time distribution;
• the amount of the basic salary and data on any other compensation;    the pay period, the day of payment and the manner of payment of the salary;
• the annual leave;
• the length of periods of notice;
• an indication of collective agreements and the employer's byelaws.

In the event of a change in the following:

• the job title or the type of work;
• the location of the work, the duration of the employment contract;
• the weekly/monthly workload (full-time or part-time),

the employee and the employer must conclude a new employment contract. Other changes may be determined in an annex to the contract.

The employment contracts of management staff may regulate the rights, obligations and responsibilities arising from the employment relationship in respect of the terms and conditions and restrictions of part-time employment, the provision of breaks and rest periods, remuneration for work, disciplinary responsibility and termination of the employment contract in a different manner.

A special employment contract can be concluded between an employer and an employee under which the employee is made available to another employer (user) under a valid concession contract.

Who can conclude an employment contract?

An employment contract is concluded between an employer and an employee. Employment can be taken up by any person older than 15. An employment relationship gives every employee the benefit of pension, disability, health and unemployment insurance.

Termination of an employment contract

There are different methods of terminating an employment contract, depending on the type of employment relationship and the reason for its termination.

On the conclusion of the employment contract, the employer is obliged to register the employee for health, pension, disability and unemployment insurance within eight days.

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