TERMINATION OF EMPLOYMENT CONTRACT IN SLOVENIA

							       TERMINATION OF EMPLOYMENT CONTRACT IN
                      SLOVENIA



In order to protect the employee, being the weaker contracting party, the
Slovenian Employment Relationship Act defines the procedure of termination of
the employment contract at the initiative of the employer with the aim to protect
the employee against unfair and unjustified dismissal. This procedure, at the
same time, pursues to offer a proper amount of business flexibility to the
employer, allowing him to practice its managerial freedom.

The possibility of termination of employment contract at the initiative of the
employee is oriented towards the flexibility of labour market and is set to
guarantee the employee the choice of employment helping him to reach broader
personal satisfaction and personal competitiveness.

Possible methods of terminating the employment relationship are regular and
extraordinary termination of the employment contract.

Regular termination of the employment contract from the part of the employer

The Slovenian Employment Relationship Act defines the following reasons for
regular termination of the employment contract:

•     regular termination of the employment contract for business reasons
•     regular termination of the employment contract due to the reason of
      incapability
•     regular termination of the employment contract due to culpable reason

For a lawful regular termination of employment contract the following is
necessary: (i) valid reason, (ii) procedure prior to termination conducted in
accordance with the law, (iii) termination of employment contract within time
limitations set by the law.

The employer should also put to trial the possibility of a new employment
contract (in some cases).
The termination itself must be imposed in a written form and served personally
to the employee and should contain the reason of termination, its explanation,
notice on legal remedies and on rights from the unemployment insurance.

A special chapter of the Slovenian Employment Relationship Act is dedicated to
collective dismissals – termination of several employment contracts at the same
time for economic reasons, where the Employment Relationship Act stipulates
within other:

•     criteria on the number of “several employees”
•     special obligations of the employers to the Trade Unions and the
      Employment Service
•     reasons for regular termination of the employment contract
•     unjustified reasons for dismissal
•     notice periods
•     severance pay

Regular termination of the employment contract from the part of the employee

The employee may ordinarily terminate the employment contract without
explanation within periods of notice provided by law or employment contract.

Extraordinary termination of the employment contract

The law explicitly stipulates that both contracting parties are entitled to
terminate the employment contract in extraordinary circumstances without
period of Notice.

The contracting parties may terminate the employment contract for
extraordinary reasons only in case of severe violations of contractual obligations
which prevent the continuation of employment relationship until the end of notice
period or the end of term set. Severe violations of contractual obligations that
can lead to extraordinary termination of the employment contract are defined by
the law.