Do you plan to start a business in Europe and employ workers? Then you would need an employment contract. The contract is the basis of any employment relationship. In addition to the Employment Relationships Act (ZDR-1), the employer must also take into account other grounds. Those can be the collective agreement, internal acts and other acts in the field of labor law. The employer has to to submit a written proposal to the new employee for review 3 days before the signing of the contract.
The employment contract and its content
Article 31 of ZDR-1 says that the employment contract must contain:
- the data on the contracting parties,
- the date of starting of the job,
- job title or the type of work, with a short description of the work,
- place of work,
- the time for which the employment contract has been concluded. Also, the reason for concluding the fixed-term contract. It must also include the provision on the manner of using the annual leave, if a fixed-term employment has been concluded,
- state whether it is a full-time or part-time job,
- a provision on daily or weekly work hours and the distribution of work hours,
- data on the amount of the worker’s basic salary in EUR and on any other payments,
- data on other elements of the employee’s salary, payment period, payment day and the method of payment of salary,
- a provision on annual leave or the method of determining annual leave,
- the length of the notice periods,
- data if there are any collective agreements that bind the employer. Also, other general acts of the employer which state the working conditions of the employee, and
- other rights and obligations in cases determined by this Act.
Additional components of the contract
The employment contract often also contains a non-compete clause. The non-compete clause must have a reasonable time limit of the obligation. It must not exclude the option of suitable employment of the worker. If the non-compete clause is not stated in writing, it shall be deemed not to have been agreed.
You may also specify in the contract the method of refund of the costs of the employee in connection with the performance of work. This applies in the case of the meals during the work day, the transport to and from the work. It can also include business trips on the basis of a travel order, etc. You can also enter the conditions for long-service awards in the contract.
Does the employment contract have to be in writing?
According to the law, the employment contract has to be in writing. An employer who fails to hand over a written employment contract to an employee commits an offense. But a written form is not a condition for the existence and validity of an employment contract, as a contract concluded orally or otherwise is equally valid.
What does the employer have to do after signing the contract?
The employer has to register the employee for the pension, disability, health and unemployment insurance. It has to be no later than on the day of starting the work. He must submit a copy of this application or an M1 form to the employee.
Do you need help with your business in Slovenia, EU? Contact DATA for support!
Do you plan to start a business in Slovenia and want to learn more about the employment contract? Send us an email to [email protected] You can also call us on +386 1 6006 270/+386 1 6006 274 (our landline). You can also use our Viber/Whatsapp +386 40 530 718/+386 64 173 023. We are also available on skype data.business7. Also, you can follow us on Facebook. Also, you can attend our webinar on company registration in Slovenia.