TERMINATION OF EMPLOYMENT CONTRACT IN SLOVENIA
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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.