EY Law Alert: ERA-1

Amendment proposal to the Employment Relationships Act (ERA-1)

On 20 October 2023, the government of the Republic of Slovenia proposed amendments of the Employment Relationships Act (hereinafter ‘’the ERA-1 proposal’’) under the urgent legislative procedure to the National Assembly.

The ERA-1 proposal aims to harmonize Slovenian legislation with European legislation, specifically the Directive 2019/1152/EU of the European Parliament and the European Council of 20 June 2019 regarding transparent and predictable working conditions in the European Union as well as the Directive 2019/1158/EU of the European Parliament and the European Council of 20 June 2019 on work-life balance for parents and caregivers. The text of the ERA–1 proposal does not necessarily represent the final draft, as the content will be further discussed in the National Assembly, where the provisions of the proposal may be additionally amended. The National Assembly must adopt the new ERA-1 by 15 November 2023, otherwise Slovenia may face a lawsuit by the European Commission due to non-transposition of the directives.

The ERA–1 proposal also introduces additional alterations in other areas. Following is a summary of the main provisions contained in the latest version of the ERA -1 proposal.

Changes are expected in the following areas:

1.     Caregiver’s leave: An additional five days of caregiver's leave is introduced, which is available to employees who care for or provide assistance to family members, or individuals living with the employee in a shared household, requiring extensive medical support or care. Employees are required to inform their employer of their absence and provide appropriate evidence.

2.     Protection of victims of domestic violence: An employee is entitled to five paid days of absence, per calendar year, in cases of arranging protection, legal or other procedures at institutions and for mitigating consequences of domestic violence. Employees are required to notify their employer and provide appropriate evidence.

3.     Written notice prior to employment contract termination due to misconduct: Additional procedural provisions regarding written warnings given to employees before termination and modifications to the notice period for the termination of employment contract due to misconduct have been introduced.

4.     The right to disconnect: The employer must ensure employees the right to disconnect, meaning that during the employees predetermined rest time/absence or during their authorized leave in accordance with the legislation, collective agreement and/or general act, the employee will not be available to the employer. The proposal mandates the employer to take necessary measures to achieve this.

5.     The amendment of the employment contract: A provision is added that enables employees to suggest a change to the employment contract or the adoption of a new contract to improve employment or working conditions. The employer must provide a written justification of his decision within 30 days.

6.     Information on employment relationship: The employer must provide written information on employment relationship to the employee. New mandatory elements of the the employment contract are added concerning pay and the right to training.

7.     Protection against dismissal of employee representatives: If an employee representative claims unlawful termination of their employment relationship in court proceedings, the proposal introduces a postponement of termination until the dispute has been resolved at the first instance, and up to a maximum of 6 months. Additionally, the proposal mandates higher compensation during the period when the employer prohibits the employee from work.

8.     Special fund for the reimbursement of paid compensations: The proposal introduces the possibility of establishing a special fund for the reimbursement of paid compensations to employees when the court finds that the termination of employment was lawful. Details regarding the fund are determined in the industry-level collective agreement.

9.     Changes in the regulation of part-time employment contracts: Employees with children up to the age of eight are entitled to propose a part-time employment contract. Furthermore, the proposal permits part-time work for employees who are victims of domestic violence, for the duration of procedures at institutions, and dealing with the consequences of domestic violence.

10.  Subsidiary liability in subcontracting: If an employer who is a subcontractor and performs construction services to the principal contractor, fails to provide the employee with remuneration in accordance with the provisions of ERA - 1, the principal contractor, whose direct subcontractor is the employer, is subsidiarily liable for upholding this obligation.

11.  Changes regarding agency work: Temporary agency workers on furlough will be entitled to 80% of the basis compensation under the seventh paragraph of Article 137 of ERA - 1, instead of 70% of the minimum wage, as currently established. The temporary agency worker must be informed on the user of agency services, work conditions, as well as their rights and obligations while working at the user of the agency services.