The rules on severance pay in detail

Statutory termination pay is available in Slovenia in the following circumstances:

Termination of a fixed-term employment contract:

This may be because the end of the term has been reached, or the work has been completed, or that the reason for which the contract was concluded no longer applies.

In such cases, the employee is not entitled to severance pay for a fixed term contract that comes to an end if that contract was made for the purpose of (i) replacing a temporarily absent employee, (ii) performing seasonal work for less than three months in a year, (iii) performing public works or (iv) getting the unemployed back to work via a government scheme.

The ‘basis’ for severance pay is the average monthly salary of a full-time employee during the last three months prior to termination of the fixed-term employment contract.

If the fixed-term contract was concluded for one year or less, the employee is entitled to severance pay in the amount of 1/5 of the basis.

If the employment contract was concluded for more than one year, the employee is entitled to severance pay of 1/5 of the basis, increased by a proportion of this for each month of work.

Termination of the employment contract for business reasons, incapability or the behaviour of the employer:

The ‘basis’ for severance pay in these cases is the average monthly salary of the employee over the last three months prior to termination.

The employee is entitled to:

  • 1/5 of the basis for each year of employment with the employer, if the employee is employed with the employer for between one and ten years;
  • 1/4 of the basis for each year of employment with the employer, if the employee is employed with the employer for between ten and twenty years;
  • 1/3 of the basis for each year of employment with the employer, if the employee is employed with the employer for over twenty years;

The amount of severance may not exceed ten times the basis, unless otherwise stipulated by a collective agreement.

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Author: Šelih & Partnerji 

Date: December 2018

 

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