How to Dismiss an Employee in Slovenia, Step-by-step Process, Notice Periods & Documents

Understanding how to dismiss an employee in Slovenia lawfully requires close attention to the Zakon o delovnih razmerjih (ZDR-1), the country’s principal employment-relationships statute. Slovenia maintains one of Europe’s more protective dismissal regimes: employers must establish a valid legal ground, follow a prescribed procedural sequence, observe statutory notice periods that scale with years of service, and, in many cases, pay severance. This guide sets out the complete dismissal process in sequential order, covering ordinary termination, extraordinary dismissal for serious cause, and mutual termination (sporazumna odpoved). It applies equally to Slovenian nationals and foreign workers employed under a Slovenian employment contract.

Overview of the Dismissal Process and Who It Applies To

Slovenian law recognises three principal routes to employer-initiated termination of an employment contract:

• Ordinary dismissal (redna odpoved). The employer cancels the contract for a legally recognised reason, business reasons (redundancy), employee incapacity, or the employee’s fault (misconduct or inadequate performance). A notice period and, in most cases, severance pay apply.
• Extraordinary dismissal (izredna odpoved). Immediate termination without a notice period, available only where a serious contractual breach makes the employment relationship impossible to continue.
• Mutual termination agreement (sporazumna odpoved). Both parties sign a written agreement ending the contract on terms they negotiate, including any modified notice period or settlement sum.

The ZDR-1 governs all three routes. Its protections extend to every person employed under an employment contract in Slovenia, regardless of nationality, part-time or full-time status, or the employer’s legal form. Before initiating any dismissal in Slovenia, employers should confirm the applicable collective bargaining agreement for their sector, because collective agreements may impose longer notice periods or additional procedural steps beyond the statutory minimum.

Lawful Grounds for Dismissal in Slovenia

A dismissal in Slovenia is lawful only if it rests on one of the grounds expressly permitted by the ZDR-1. Failing to identify and document the correct ground is the single most common reason terminations are overturned by the labour courts.

Ordinary grounds, examples and threshold

Under the ZDR-1, an employer may give ordinary notice for three categories of reason:

• Business reasons (poslovni razlog). The position is eliminated or the work becomes unnecessary due to economic, organisational, technological or structural changes. The employer must demonstrate the genuine nature of the business reason and that no suitable alternative position exists.
• Incapacity (razlog nesposobnosti). The employee does not achieve the required work results, lacks the knowledge or skills to perform, or fails to meet conditions imposed by law or regulation for the role.
• Employee’s fault (krivdni razlog). The employee breaches a contractual obligation. Before dismissal on fault grounds, the employer must generally have issued a prior written warning. The notice period for a fault-based dismissal is 15 days.

Extraordinary dismissal for serious cause

Extraordinary dismissal permits immediate termination, no notice period, but only in narrowly defined circumstances. The ZDR-1 lists specific grounds, which include: intentional or grossly negligent breach of contractual obligations, criminal conduct at the workplace, refusal to perform work, and failure to return to work within five days of an unjustified absence. The employer must serve the extraordinary dismissal within 30 days of learning of the grounds, and no later than six months after the grounds arose.

Protected categories and when dismissal is forbidden

Certain employees enjoy enhanced dismissal protection under the ZDR-1 and related statutes. Employers cannot dismiss:

• Pregnant workers and workers on parental leave, except in narrow insolvency or liquidation scenarios.
• Workers’ representatives and trade-union officials, additional consent or procedural requirements apply.
• Workers on sick leave or workers with disabilities, specific restrictions on the grounds and timing of dismissal.

Attempting to dismiss a protected employee without complying with additional statutory requirements exposes the employer to reinstatement orders and compensation claims.

Step-by-Step Dismissal Procedure in Slovenia

The following numbered procedure outlines how to dismiss an employee in Slovenia through an ordinary termination. Extraordinary dismissals and mutual terminations deviate from certain steps, as noted.

Step 1, Conduct internal fact-finding and document the reason

Before any formal step, the employer must identify and evidence the ground for dismissal. For business reasons, compile financial statements, board resolutions, or restructuring plans. For fault or incapacity, gather performance reviews, attendance records, written complaints, investigation notes, and any prior correspondence with the employee. Each document should be dated, signed by the relevant manager, and stored securely. A clear evidentiary trail is essential, Slovenian labour courts apply a strict standard of proof and will examine whether the stated reason was genuine and adequately documented.

Step 2, Issue a formal written warning (for fault-based dismissals)

Where the dismissal is based on the employee’s fault, the ZDR-1 requires the employer to have issued a prior written warning (pisno opozorilo) before serving notice. The written warning must:

• Describe the breach of obligation with specificity.
• State the corrective action required.
• Warn the employee that a repeat breach may result in dismissal.
• Give the employee a reasonable opportunity to respond, either in writing or at a disciplinary hearing.

Industry observers expect that any written warning issued from 2024 onward should reflect the amended ZDR-1 provisions, which clarify the employer’s obligation to specify consequences and the timeframe in which a repeat breach remains relevant. Employers should retain a signed acknowledgement of receipt.

Step 3, Consider alternative measures and offer mutual termination

For dismissals on business or incapacity grounds, the employer must verify whether the employee could be redeployed to another suitable position within the organisation, retrained, or offered reduced working hours. Documenting this assessment, even where no alternative exists, strengthens the employer’s position in any later dispute.

At this stage, many employers in Slovenia explore mutual termination (sporazumna odpoved). A mutual agreement allows both parties to negotiate an exit package, modify the notice period, and settle potential claims. The agreement must be in writing and signed by both parties. Employees should be aware that agreeing to mutual termination may affect their entitlement to unemployment benefits.

Step 4, Serve written notice of termination

The written notice of termination (odpoved pogodbe o zaposlitvi) is the core legal document. Under the ZDR-1, it must:

• Be in writing.
• State the legal ground for dismissal and the factual basis.
• Specify the notice period and the last working day.
• Inform the employee of their right to judicial protection (right to challenge the dismissal before the labour court).
• Where severance is due, include the amount or calculation methodology.

Service must be effected in a manner that allows proof of delivery, in-person handover with a signed receipt, or registered post. If the employee refuses to accept the notice, the employer should record the refusal in the presence of a witness.

Step 5, Pay entitlements and finalise the exit

On or before the termination date, the employer must pay:

• All outstanding wages through the last working day.
• Pro-rata compensation for accrued but unused annual leave.
• Severance pay, where triggered (see Costs section below).
• Pay in lieu of notice, if the employer waives the notice period and asks the employee to leave immediately.

Final-pay calculations should be documented on a detailed payslip and retained by payroll for tax and social-contribution purposes.

Step 6, Provide post-termination documents and notify authorities

The employer must issue a certificate of employment (potrdilo o zaposlitvi) on termination. This document confirms the dates of employment, the role, and the reason for termination; the employee will need it to register with the Employment Service of Slovenia and to access social-security benefits. In cases of collective redundancy (above statutory thresholds), the employer must notify the Labour Inspectorate and follow the collective-dismissal procedure under the ZDR-1.

Required Documents for Dismissal in Slovenia

A complete dismissal file protects the employer in the event of a labour-court challenge. The following table summarises the documents needed for dismissal and the practical requirements for each.

Employers should retain all dismissal-related records for a minimum of five years and, for high-risk cases, up to ten years to cover potential litigation timelines.

Dismissal Timeline and Key Deadlines in Slovenia

The notice period in Slovenia is a function of the reason for dismissal and the employee’s length of service. The ZDR-1 sets statutory minimums; collective bargaining agreements may extend them. The following dismissal timeline table summarises the core deadlines.

A collective bargaining agreement may stipulate a longer notice period than the statutory minimum but may not set a notice period shorter than 60 days for employees with over 25 years of service. Employers should always cross-reference the ZDR-1 text with the applicable sectoral collective agreement before calculating the final notice date.

Costs, Severance Pay and Tax Considerations

Severance pay in Slovenia is mandatory for ordinary dismissals on business or incapacity grounds, provided the employee has been employed for at least one year. It is not payable for dismissals based on the employee’s fault. The table below outlines the main cost items employers should budget for.

Severance payments up to certain statutory thresholds receive favourable tax treatment (exemption from income tax and social contributions). Amounts exceeding the threshold are taxed as ordinary income. Employers should obtain a payroll-specific calculation for each case.

What Changes Affect the Dismissal Process in 2026

The ZDR-1 has been amended several times since its original adoption, most notably through packages commonly referred to as ZDR-1A through ZDR-1D. The amendments introduced between 2023 and 2025 refined several aspects of the dismissal procedure that remain directly relevant in 2026:

• Written-warning requirements. The amended provisions clarify that a written warning for fault-based dismissal must explicitly state the possible consequence of dismissal and the timeframe in which a repeat breach remains relevant to the warning.
• Strengthened procedural requirements for employee hearings. Employers are expected to give the employee a meaningful opportunity to respond before any ordinary dismissal on fault or incapacity grounds is finalised.
• Collective-agreement interaction. Recent interpretive guidance from the courts has reinforced that where a collective agreement provides for a longer notice period or higher severance, the collective-agreement terms prevail over the statutory minimum.

Before initiating a dismissal in 2026, employers should verify the current consolidated text of the ZDR-1 on the PISRS portal and confirm whether any new amendments have been enacted since the most recent consolidation. Sector-specific collective agreements should also be checked for any recent renegotiations affecting notice or severance provisions.

Common Pitfalls When Dismissing an Employee in Slovenia

• Skipping the written warning for fault-based dismissal. The ZDR-1 requires a prior written warning. Proceeding directly to dismissal without it will almost certainly render the termination unlawful. Always issue the warning, document receipt, and allow the employee time to respond.
• Failing to check protected-category status. Dismissing a pregnant employee, a worker on parental leave, or a trade-union representative without the additional procedural steps required by law exposes the employer to immediate annulment. Verify the employee’s status before starting the process.
• Miscounting years of service for notice-period calculation. A one-day error in the service-length calculation can result in an incorrect notice period. Use payroll records and, where necessary, request the employee’s social-insurance history to confirm the exact start date of continuous service.
• Poor evidence chain for misconduct. Undated memos, unsigned witness statements, and retroactive documentation undermine the employer’s case. Maintain contemporaneous, dated, and signed records from the outset of any investigation.
• Not offering mutual termination where appropriate. A negotiated mutual termination often costs less than the combined risk of litigation, back pay, and reinstatement. Where the employer’s evidentiary position is uncertain, early engagement with the employee on a mutual exit can significantly reduce exposure.
• Serving notice by ordinary post without proof of delivery. If the employer cannot prove the employee received the notice, the dismissal may be deemed ineffective. Always use registered post or in-person delivery with a signed receipt and witness.

Sources

1. PISRS, Zakon o delovnih razmerjih (ZDR-1) consolidated text
2. Uradni list, ZDR-1 consolidated PDF
3. GOV.SI, Delovna razmerja (Ministry guidance)
4. CMS, Dismissals and Termination of Employment in Slovenia
5. OECD, Employment Protection Indicators: Slovenia
6. Hogan Lovells, Termination Questionnaire: Slovenia
7. Rivermate, Employment Termination in Slovenia
8. Pirc Musar, Amendments to the Employment Relationships Act (ZDR-1)