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Amendment to the Employment Relationship Act (ZDR-1)

Newsletter – 23.11.2023

On 16 November 2023, the amendment to ZDR-1 entered into force. It introduces the following changes.

1 Unpaid care leave

The amendment introduces up to five working days of unpaid leave to care for a family member or a person with whom the worker lives in the same household and who needs “substantial care for health reasons”. The employee shall inform the employer about planned absence in advance and provide appropriate supporting documents.

2 Special protection for victims of domestic violence

Employees who are victims of domestic violence will be entitled to five working days of paid absence to deal with protection, legal and other procedures and to deal with the consequences of domestic violence. The employee shall inform the employer about planned absence in advance and provide appropriate supporting documents.

3 Employee’s right to disconnection

The employer shall ensure to the employee the right to disconnection. This means that the employee shall not be at the employer’s disposal during the rest of the non-working hours of the day, vacation, or sick leave. To ensure this, the employer shall take appropriate measures.

4 Possibility to propose improvements to employment relationship or working conditions

The amendment states that:

  • an employee can propose to the employer an amendment or conclusion of a new employment contract for the purpose of improving employment or working conditions,
  • an employee, who is a parent of a child age up to 8 years, can propose conclusion of an employment contract for a part-time for a specified period, to find balance between professional and personal life,
  • an employee, who is a victim of domestic violence, may propose a part-time employment contract during protection, to find balance between professional and personal life.

In these cases, the employer is obligated to provide justified decision in written form on proposed improvement within a legally prescribed time.

5 Written warning and employee’s statement on alleged breaches

The period during which an employee, after receiving the first written warning before regular termination, shall not repeat his breach has been reduced from one year to six months.

6 Increased protection for labour representatives

For a representative of employees, who has received the termination of an employment contract (due to incapacity, culpable reasons, or extraordinary termination) and has filed a lawsuit in front of the court, the termination effect is suspended until the decision of the court at the first instance is adopted, or for a maximum of six months. During the suspension, the employer can prohibit the employee from work, but the liability to pay salary reimbursement of 80 % (previously 50 %) remains.

7 Offset

The amendment allows offsetting employees liabilities not only wages, but also reimbursement of work-related expenses and other benefits payable to employees.

8 Subsidiary liability for construction sector

The amendment introduces subsidiary liability of the contractor (i.e., client of subcontracting services) for the non-payment of salaries to employees of the subcontractor (employer). The liability is limited to construction sector only.

9 Higher salary reimbursement for agency employees

The salary reimbursement for agency workers for the time when the agency does not provide work to the employee is increased. The salary reimbursement is 80 % of the base set out in Article 137/7 of the ZDR-1 (previously 70 %).

Abolition of the compulsory solidarity contribution

On 10 November 2023, an amendment to the Act on Intervention Measures to Eliminate the Consequences of Floods and Landslides of August 2023 was adopted. The Act has abolished the solidarity contribution, which was introduced in September 2023 to finance the reconstruction of Slovenia after floods and landslides for the years 2023 and 2024.

New contribution for mandatory health insurance replaces the supplementary health insurance contribution after 1 January 2024.

The amendment to the Act on Health Care and Health Insurance (ZZVZZ-T) abolishes supplementary health insurance as of 1 January 2024. Consequently, the insurance premium for supplementary health insurance, which is currently paid by individuals, will be also abolished. Instead, a new mandatory contribution for health insurance is introduced in the fixed amount of 35 EUR per month.

The new obligation applies to individuals, who are in an employment relationship, individuals who independently carry out economic or professional activities as their sole or main profession, partners in companies where they are also executive officers, etc. For employees, the employer shall deduct the contribution from the salary and pay it in the same manner as for other mandatory social security contributions.

The fixed amount will be adjusted annually on 1 March, in line with the increase in the average gross salary in the Republic of Slovenia in the previous year. The first calculation of the compulsory contribution will be processed in course of the payroll for January 2024.

authors

  • Jure Mercina
    Tax Advisor | Partner

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