If you are looking for legal services in Slovenia, you will want to understand the rules and procedures for cancellation of employment contracts under the Employment Relationships Act (ZDR-1). This act is the primary legal instrument in Slovenia that regulates employment relationships, related procedures etc., providing a legal framework for the rights and obligations of employers and employees in the workplace, including the procedures for cancelling employment contracts. In this article, a law firm in Slovenia will examine the provisions of the ZDR-1 regarding the admissibility, form, and content of cancellation notices, as well as the reasons for ordinary cancellations and the minimum periods of notice. Additionally, the conditions under which the employer is obliged to pay severance pay will be given some consideration in the text bellow.

Admissibility of Cancellation

Under Article 83 of the ZDR-1, an employer may effect an ordinary cancellation of an employment contract if a justified reason exists for the cancellation. The cancellation reason(s) must be listed explicitly within the notice of cancellation of the employment contract, and the employer must elaborat the actual reason for the cancellation in writing, as provided for under Article 87(2) of ZDR-1. The employer must, therefore, comply with these and other relevant legal provisions when cancelling an employment contract, as failure to do so may (be likely to) lead to legal consequences.

Reasons for Ordinary Cancellation

Article 89(1) of the ZDR-1 sets out the four reasons for ordinary cancellations of an employment contract by an employer. These reasons include:

1. Cessation of the need for the performance of certain work, which is primarily driven by economic, organizational, technological, structural, or similar reasons on the employer’s side (the so called “business reason”).
2. Failure of the worker to meet the expected performance results.
3. Violation of contractual or other obligations arising from the employment relationship (the so called “reason of misconduct”).
4. Incapacity to carry out the work under the conditions set out in the employment contract due to disability or unsuccessful completion of a probationary period.

One should note that an employer is not allowed to terminate an employment contract for reasons that are unfounded (e.g.) under Article 90 of the ZDR-1. These reasons include (temporary) absences from work due to an illness, an injury… parental leave and similar, trade union membership and/or participation in union activities, personal circumstances such as racial origin, age, marital status, religion, or political affiliation, etc. An employer’s violation of any of these provisions may result in legal action being taken against them by the (ex) worker.

Minimum Notice Period

Article 93 of ZDR-1 specifies that both the worker and employer may cancel their employment contract within a statutory or contractual notice period which shall be determined by both contracting parties, taking into account the minimum duration of the period of notice provided by ZDR-1.

Article 94 of ZDR-1 specifies the minimum notice period for different types of cancellations. In the events of the worker or employer cancels the employment contract during the probationary period due to unsuccessful completion thereof, the notice period shall be seven days. If the worker elects to cancel the employment contract, the notice period is to be 15-days for up to one year of employment with the employer and 30-days for a period exceeding one year of service with the employer. However, if a longer period of notice is (t.i. has been) agreed in the employment contract or is determined by a collective agreement, it may not exceed 60-days.

In the event that the employer choses to cancel the employment contract for a “business reason” or “reason of incompetence”, the notice period is 15-days for up to one year of employment with the employer and 30-days for a period exceeding one year of service with the employer. Once a two-year period of employment with the employer has been reached, the 30-day notice period increases (gradually) for each year of employment with the employer by two days, but shall not exceed 60-days. After a period of 25 years of service with the employer, the period of notice shall be 80 days unless a different notice period is specified by a branch collective agreement, and in no circumstances less than 60 days.

If the employer cancels the employment contract for reasons of misconduct, the notice period shall be 15 days.

Obligation to Pay Severance Pay

Finally, it is essential to consider the conditions under which an (ex) employer is obliged to pay severance pay to a (ex) worker whose employment contract has been cancelled by the employer (not by the employee). Under Article 110 of the ZDR-1, an employer must pay severance pay to an employee whose employment contract has been cancelled due to a “business reason” or “incompetence”. The employer is however not liable for paying severance pay if the worker has terminated the employment contract themselves (the cancelation is in line with the “will of the employee”) or if the employer has terminated the contract for misconduct or incapacity.

The exact calculated amount of severance pay is determined by factors that can be discerned from Article 108 of the ZDR-1, which specifies that it must be calculated based on the worker’s average monthly salary for the previous three months, all the time taking into account the number of years of service with the employer. 

Conclusion

The provisions of the ZDR-1 regarding the cancellation of employment contracts provide a legal framework for the rights and obligations of employers and employees in the workplace in Slovenia. A Slovenian law firm can provide legal services in Slovenia: including legal advice and representation, to employers / employees on matters related to employment law / procedures, including the cancellation of employment contracts.

Finding yourself in need of legal services in Slovenia and looking for a law firm in Ljubljana or (more specifically) a Slovenian civil law lawyer / employment law lawyer, consider contacting us using our contact details as published on our web page. A (qualified) employment lawyer in Slovenia can provide you with legal advice and representation – helping you navigate the complexities of Slovenian employment law and ensuring that your rights are protected.

In summary, the following are some key takeaways from this article:

• The ZDR-1 is the primary legal instrument that regulates employment relationships in Slovenia, including the procedures for cancelling employment contracts.
• An employer may effect an ordinary cancellation of an employment contract if a justified reason exists for the cancellation, which must be listed explicitly in the notice of cancellation of the employment contract.
• The reasons for ordinary cancellations include the cessation of the need for the performance of certain work, failure of the worker to meet the expected performance results, violation of contractual or other obligations arising from the employment relationship, and incapacity to carry out the work under the conditions set out in the employment contract due to disability or unsuccessful completion of a probationary period.
• An employer may not terminate an employment contract for reasons that are unfounded under Article 90 of the ZDR-1, such as temporary absence from work due to illness, injury, or parental leave, trade union membership, participation in union activities, racial origin, age, marital status, religion, or political affiliation, amongst others.
• The minimum notice periods for ordinary cancellations by the worker and the employer are provided under Article 94(2) and Article 94(3), respectively. 
• The employer is obliged to pay severance pay to an employee whose employment contract has been cancelled due to a business reason or incompetence.
• A Slovenian lawyer or law firm can provide legal services in Slovenia, including legal advice and representation, to employers and employees on matters related to employment law, including the cancellation of employment contracts.