EMCC European Monitoring Centre on Change

Slovenia: Redundant employees entitlement to public support

Slovenia
Phase: Management
Type:
Redundant employees entitlement to public support
Last modified: 10 December, 2021
Native name:

Zakon o urejanju trga dela (ZUTD)

English name:

Labour market regulation act (ZUTD)

Article

5, 21, 22, 23, 32, 34, 59, 60, 66, 66a, 113, and 114 

Description

Among the beneficiaries of the labour market measures are jobseekers whose employment is at risk, that is workers searching for a job during their notice period in the event of ordinary collective or individual termination of the employment contract by the employer. The public employment service has to provide the jobseeker with a career consultancy and job search assistance, which includes activities for acquiring new skills. In particular, the programme must provide: 

  • individual consultancy in creating an employment plan (for example, setting career objectives; assessment of interests, features, abilities and competencies; labour market research; making decisions on their own career);
  • in-depth career consultancy, including assessment of an individual’s competencies;
  • employment incentives, implemented in the form of employment subsidies;
  • the promotion of self-employment;
  • creation of an employment plan, that is a written agreement between an unemployed person and the Employment Service, in which they jointly define employment objectives, the time schedule of the unemployed persons' activities, and job-seeking migration area;
  • the right and obligation to participate in active employment policy measures on the basis of the employment plan.

Employers notify the Employment Service of Slovenia about the termination of employment contracts via ‘Employer Portal’. On the other hand, workers whose employment is at risk are invited to register with the Employment Service of Slovenia within three days after the notification of termination of employment. During the notice period, they can be absent from work for at least one day a week due to a job search. For the time of absence, the Employment Service of Slovenia reimburses wage compensation to employers. Wage compensation amounts to the average wage in the last five months. Employers’ requests must be submitted within three months after the termination of the employment contract.

The unemployed person gains the right to cash benefit after 10 months of insured work in the previous 24 months. For those under the age of 30, the requirement is six months of insured work. A person must be granted a cash benefit for the duration of:

  • three months for insurance periods ranging from ten months to five years,
  • six months for insurance periods of five to 15 years,
  • nine months for insurance periods of 15 to 25 years,
  • 12 months for insurance periods over 25 years,
  • 19 months for insured persons over 53 years of age and for insurance periods over 25 years,
  • 25 months for insured persons over 58 years of age and for insurance periods over 28 years.

Since January 2020, the unemployment cash benefit is limited from €530.19 to a maximum of €892.50 a month. A recipient of unemployment cash benefit who concludes a part-time employment contract retains the right to a part of cash benefit, proportional to full-time employment.

An unemployed person under the age of 30 receives a cash benefit for a period of two months for an insurance period of six to ten months.

Comments

Between 2018 and 2019, redundant workers were obliged to register with the Employment Service of Slovenia within three days after the notification of termination of employment. Redundant workers also had the duty to participate in the active labour market support measures. In December 2019, the amended Labour Market Regulation Act (ZUTD-E) cancelled this rule as sanctioning workers did not generate positive effects. In 2020, 1,915 employers notified the Employment Service of Slovenia about the 3,525 terminations of employment contracts via ‘Employer Portal’. One year earlier, 1,316 employers reported termination of employment contracts for 4,237 workers. For those who had registered during the notice period, the Employment Service of Slovenia made an employment plan, provided information and counselling within limits imposed by the COVID-19 pandemic. In 2020, 82 employers requested wage reimbursements for 147 workers who were absent during the notice period for the purpose of seeking employment.

Unqualified, low- and medium-qualified recipients of unemployment benefits may receive a special incentive in the amount of 20% of the last unemployment benefit if they get full-time employment. They may receive this bonus until the expiration of the period for which the right to unemployment benefits was recognised to them but no longer than 12 months after the start of employment.

Since January 2020, third-country nationals enlisted in the register of unemployed persons must pass the exam of the Slovenian language (A1 level) within 12 months (or longer if they continue receiving unemployment benefits). The first language course is free of charge.

Cost covered by
  • National government
Involved actors other than national government
  • Public employment service
Thresholds
No, applicable in all circumstances
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