Amendments to the Labour Market Regulation Act (ZUTD-C)
On November 27th 2013, the Act Amending the Labour Market Regulation Act (ZUTD-C) was adopted, with which provisions on carrying out the business of providing workers to users were amended. Amendments will take effect on March 1st 2014. The main purpose of the amendment is to remove from the market those employment agencies, which do not respect the basic rules for carrying out the activity. Market researches have shown that a large number of these staffing agencies exist on the market, which deliberately and regularly breach their obligations towards employees.
ZUTD-C is amending the conditions for carrying out the business of providing work by introducing the following amendments:
- The business of providing work will be carried out only by those employers, whose main registered business activity will be providing temporary workers;
- Furthermore, they will have to cumulatively meet the following conditions, namely that in the last two years (i) fine for breach of the regulations governing employment relationships, employment and work of foreigners, occupational health and safety, illegal employment and labour market, has not been finally imposed; (ii) has had no outstanding overdue obligations relating to the payment of workers, and (iii) has not been published in the list of taxpayers with overdue unpaid tax obligations and the list of tax evaders, and on the day of the application, it has no outstanding overdue tax obligations;The employer will have to provide a bank guarantee in the amount of EUR 30,000.00;
- Companies providing these services with the seat in another EU Member State, EEA or the Swiss Confederation, will have to establish a branch in Slovenia;
- Prior to commencement of carrying out the business of providing workers, the employers will have to obtain a permit from the Minister of Labour, and be registered in a register or a record;
- An employer, who has obtained a permit and is registered in the register or a record, can perform the activity for the citizens of the Republic of Slovenia and foreigners, who have a personal work permit and right of free access to the Slovenian labour market in accordance with the law governing employment and work of aliens;
- Control over this business will be increased by introducing a mandatory report by the independent auditor and the introduction of the expert committee.
Those employers already providing work, which are registered in the register or record on the date of application of the –ZUTD-C, have to submit to the Ministry responsible for labour appropriate evidence of compliance with the conditions for engaging in the business, which cannot be obtained ex officio, until June 1st 2014. If the Ministry of Labour establishes that the employer, who is providing work, meets the conditions for engaging in the business, it shall issue the permit to engage in the business. Otherwise, a decision on deletion from the register or records will be issued to the employer.
Legal and natural persons, both local and foreign, engaged in the business of providing workers to other users, are advised to comply as soon as possible with the changes described above, whereby the regulation of the main business activity and the corresponding value of bank guarantees are at the utmost importance. Special attention is particularly paid to foreign companies, which must establish a branch in the Republic of Slovenia during this period in order to be able to continue to provide workers to other users. After making the necessary changes, the corresponding supporting proof must be submitted to the Ministry of Labour, in order to obtain the appropriate licenses and the possibility for provision of their services.