On the proclamation of the Law on Worker Participation in Management




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Pursuant to Article 107, paragraph 1 and Article 91, paragraph 1 of the Constitution of the Republic of Slovenia, I issue the
D E C R E E
on the proclamation of the Law on Worker Participation in Management
I hereby proclaim the Law on Worker Participation in Management, adopted by the National Assembly of the Republic of Slovenia at the session of 9 July 1993.

/Sgd./


Milan Kuèan,

the President

of the Republic of Slovenia

L A W


On Worker Participation in Management
I. GENERAL PROVISIONS
Article 1
This Law governs the methods of and conditions for worker participation in the management of commercial companies, irrespective of the type of ownership, and cooperatives (hereinafter: companies).
Under the provisions of this Law the right to participate in management shall also be exercised by workers in public commercial companies, banks and insurance companies, unless stipulated otherwise by a separate law.
Workers in institutes shall exercise their right to participate in management as individuals in accordance with the provisions of this Law, and collectively in accordance with a separate law.
Article 2
Workers shall participate in management in the following way:

- through the right to present an initiative and receive an answer to the initiative;

- through the right to be informed;

- through the right to give opinions, make proposals and receive answers to the proposals;

- through the possibility or the obligation of joint consultations with the employer;

- through the right to participate in decision-making;

- through the right to stay decisions of the employer.

Article 3


Workers shall exercise the right to participate in management as individuals or collectively through:

- a workers' council or workers' representative

- a workers' assembly

- workers' representatives in company bodies.


Article 4
The right of workers to participate in management individually and collectively shall be exercised in particular in making decisions about and influencing the intentions and organisation of work; and in the determination and execution of activities designed to improve the conditions of work, humanise the working environment and encourage the successful performance of the company.
Article 5
In addition to the modes of participation referred to in paragraph 2 of this Law, the workers' council and employer may agree on other modes of worker participation in management.
The exercise of rights and other questions as provided for by this Law may be defined in greater detail in a written agreement between the workers' council and employer; and the right to participate in decision-making may be extended beyond the scope provided for by this Law.
For the employer, the decision on an agreement shall be passed by the managing body.
The employer shall be bound to make the agreement public in the manner habitually used in the company.
The agreement referred to in this Article shall not determine rights in connection with labour relations, salaries and those working conditions which, consistent with regulations, are regulated by the generally applied collective agreements.
Those provisions in the agreement between the workers' council and employer which do not comply with the preceding paragraph shall be null and void.
Article 6
The agreement from the preceding article shall be applied directly.
The agreement shall be executed by the employer, unless provided for otherwise in specific cases.
A departure on the part of the employer from assuring the rights determined in the agreement shall only be possible subject to the consent of the workers' council.
The workers' council shall not be allowed to interfere with the management of the company through acts which depart from the agreement.
Article 7
The right of workers to participate in management shall not encroach upon the rights and duties of trade unions and employers to protect the interests of their membership.

The workers' council must refrain from involvement in any trades union conflict.

II. WORKERS' COUNCIL AND WORKERS' REPRESENTATIVE
1. Formation, Composition, Term of Office and Election of a Workers' Council
Article 8
Workers shall be entitled to elect a workers' council in conformity with this Law.
A workers' council shall be formed if the company employs more than 20 workers having the right to vote.
Article 9
In a company which employs less than 20 workers who have the right to vote, workers shall participate in management through a workers' representative.
In the election of a workers' representative the provisions of this Law relating to workers' councils shall meaningfully be applied.
A workers' representative shall be given the opportunity to carry out his duties, and shall be guaranteed the rights granted to a workers' council.
Article 10
The size of the workers' council shall be:

- three members in companies with up to 50 employees;

- five members in companies with between 51 and 100 employees;

- seven members in companies with between 101 and 200 employees;

- nine members in companies with between 201 and 400 employees;

- eleven members in companies with between 401 and 600 employees;

- thirteen members in companies with between 601 and 1,000 employees.
In companies with more than 1,000 employees the number of members of the workers' council shall be expanded by two per each extra thousand employees.
The term of office of workers' council members shall be four years. Members may be re-elected.
The number of workers' council members shall not change during the term of office, regardless of a change in the number of workers entitled to vote in the company.
Article 11
A workers' council shall cease to function if the number of workers with the right to vote falls below the number specified in Article 8 of this Law, unless stipulated otherwise in the agreement.
Article 12
The right to vote representatives onto the workers' council shall be granted to all employees who have worked in the company for at least six uninterrupted months (right to elect).
The Director, employees with special powers and responsibilities and company secretaries (hereinafter: management) shall not be entitled to vote representatives onto the workers' council.
The family members of management shall have no right to vote representatives onto the workers' council. Within the meaning of this Law family members shall include spouses, children (legitimate, illegitimate, adopted and foster-children), grand-children, parents (father, mother, foster-father, foster-mother), adoptive parents, brothers and sisters.
Article 13
The right to be elected onto the workers' council shall be granted to all employees having the right to vote under this Law and employed in the company for at least twelve uninterrupted months (right to be elected).
Article 14
In a newly founded company all workers from Article 12, paragraph 1 and Article 13 shall have the right to vote and to be elected, irrespective of length of employment.
Article 15
Workers' council members shall be elected in a secret and direct ballot.

Each worker shall have one vote.

Votes shall be cast in person.
Article 16
The workers council shall publish a resolution to schedule an election at most 90 days and at least 60 days before the expiration of the term of office of the council members.
The resolution to schedule an election shall include the day of the election and the number of members to be elected. The number of members to be elected shall be determined according to the number of employees in the company on the day of the adoption of the resolution to schedule an election.
The resolution on the scheduling of an election shall also contain information on the appointment of an electoral committee.
The resolution on the scheduling of an election shall be posted within company premises so as to be accessible for all employees.
Article 17
In a newly founded company a workers' assembly to elect a workers' council shall be convened by at least three workers or by trade unions represented in the company.
Article 18
In the case referred to in the preceding Article a workers' assembly shall be convened during working hours, in agreement with the director of the company.
The formation of the workers' council shall be decided in the workers' assembly by the majority vote of the participants who have the right to vote.
If the decision to form a workers' council is adopted, the assembly shall appoint an electoral committee and determine the day of election for the workers' council.
Candidates for the electoral committee may be proposed by any worker or by a trade union represented in the company.
The candidates who receive the most votes shall be elected to the electoral committee.

a) Electoral Bodies


Article 19
The procedure of the election and the recall of workers' council members shall be conducted by electoral committees and vote-counting committees (hereinafter: electoral bodies).
Electoral committees shall be appointed for a four-year term of office and vote-counting committees for each election to the workers' council.

Article 20


Electoral bodies shall be composed of a president, members and their deputies. Members of electoral bodies may only be chosen from among workers who have the right to vote.
Members of electoral bodies and their deputies may not be candidates for membership of the workers' council.
Membership of electoral bodies shall be voluntary. Membership of an electoral body shall be subject to the candidate for the electoral body giving written consent before the adoption of the decision to schedule the election.
Article 21
An electoral body shall be considered to have a quorum if two thirds of the electoral body members or their deputies are present.
If it is impossible to ensure a quorum of an electoral body in the way described above, the electoral body shall be considered to have a quorum if, instead of the absent members or their deputies, the deputies of the attendant members are present.
The president of an electoral body may only be replaced by his deputy.
Article 22
The work of the electoral bodies may be attended by representatives of the candidates for the workers' council and trade union representatives in the company.
A representative from the preceding paragraph may not himself be a workers' council candidate.
Article 23
The electoral committee shall be composed of a president, at least two members, and their deputies.
Article 24
The electoral committee shall:
- attend to the legality of the election of workers' council members;

- determine if the nominations for workers' council members are consistent with this Law and publish those nominations;

- decide upon the polling stations;

- determine the number of voters for the entire company and for individual polling stations;

- appoint vote-counting committees;

- determine the results of elections in individual polling stations and announce which candidates have been elected to the workers' council;

- direct technical activities directly connected with the election;

- perform other tasks stipulated by this Law.


Article 25
Voting in individual polling stations shall be monitored by vote-counting committees which shall attend to the regularity and secrecy of voting. Each polling station shall have one vote-counting committee assigned to it.
The vote-counting committee shall be composed of a president and an even member of members. Each of them shall have a deputy.
Article 26
In a company with up to 50 employees with the right to vote the appointment of deputies for members of electoral bodies shall not be required.
In the case referred to in the preceding paragraph the tasks of the electoral committee and vote-counting committee may be combined and performed by the electoral committee.
In the case referred to in the first paragraph of this Article the voting may not take place at a single voting station.

b) Nomination of council members


Article 27
The right to nominate workers' council candidates shall be exercised by:

- at least three employees with the voting right, in companies having between 20 and 50 employees;

- at least a tenth of the employees with the voting right, in companies having between 50 and 300 employees;

- at least one tenth of employees with the voting right, in companies having over 300 employees, a proposal supported by 50 employees always being valid;



- each trade union represented in the company.
Nominations of workers' council candidates, which shall be submitted to the electoral committee, shall be made in writing. The nominations from the first three clauses of the preceding paragraph shall be signed by the nominators.
Nominations for workers' council members shall enclose written statements of approval by the nominees.
Article 28
A workers' council may in its rules of procedure determine that candidates for the council be nominated and elected separately by individual groups of employees (eg. women, invalids, young employees etc.), by individual organisational units or segments of the working process, and by parts of the company located outside the headquarters.
Article 29
Nominations for workers' council members shall be submitted to the electoral committee within 21 days of the day of announcement of the decision to schedule an election.
Article 30
The electoral committee shall within three days of receiving nominations for workers' council candidates examine if the nominations were made in accordance with this Law and if they were filed in time.
Article 31
If the electoral committee finds formal deficiencies in individual nominations for workers' council membership, it shall ask the nominators to remove them within three days. If nominations are made on the basis of collected signatures, the proposal shall be made public within the company and the time limit for elimination of deficiencies shall start on the day of announcement of the public notice.
If the electoral committee determines that the deficiencies cannot be removed or that the nomination for workers' council membership came too late, it shall reject the proposal.
Article 32
If candidates for the workers' council are fewer than should be elected, the electoral committee shall immediately publish that information. The electoral committee shall determine the time limit for nomination of other candidates, which shall not be longer than seven days and shall start on the day of the public announcement.
The electoral committee shall reject the deficient and belated nominations for workers' council membership referred to in the preceding paragraph.
Article 33
In the cases referred to in the second paragraph of Article 31 and the second paragraph of Article 32 the electoral committee shall issue a decision against which the workers' council nominators and nominees may lodge a complaint with the competent court within eight days of the announcement of the public notice.
Article 34
If nominations for workers' council members are without deficiencies, or the formal deficiencies have been removed, the electoral committee shall rule that they are legitimate and shall publish them.
The electoral committee shall announce a decision to reject a nomination, or a decision declaring the nomination legitimate, no later than three days after the nomination was made; if the nomination was returned to be amended, the electoral committee shall issue a decision after the expiration of the time limit for amending the nomination.
If after the expiration of the time limit for amending the nominations for workers' council members or for the filing of new nominations for workers' council members the valid nominations filed are fewer than the number of workers' council members that are to be elected, the election may not be organised. In that case, a new election may only be scheduled after the expiration of three months.
If a workers' council candidate withdraws his nomination and the filed nominations for workers' council members are no longer at least as many as there are members to be elected, the nomination procedure for the number of candidates lacking shall be repeated.

c) Election of Workers' Council Members


Article 35
The electoral committee shall inform employees of the day and place of the election.
The election must be organised so as to ensure the secrecy of voting.
Article 36
The vote-counting committee may, in agreement with the electoral committee, decide that voters who will be absent on the day of election vote before that day.
The day referred to in the preceding paragraph shall be determined by the vote-counting committee.
The vote-counting committee shall make a record of its work during the voting.

Article 37


The voting shall be by ballot paper.
The ballot papers shall contain the names of candidates for workers' council membership arranged in the alphabetic order of their surnames, with an indication of how many members are to be elected.
Article 38
The voting shall be done by encircling the consecutive numbers preceding the names of the candidates for workers' council membership for whom the voter wishes to vote.

Article 39


Blank ballot papers or papers on which it is impossible to determine how the voter has voted shall be invalid.
Voting slips on which more candidates are encircled than the number of candidates for workers' council membership to be elected shall also be considered invalid.

Article 40


The vote-counting committee shall start counting the votes immediately after the time determined for voting has expired.
The work of the vote-counting committee shall be described in a record which shall contain:
- the day, time and place of the election, the composition of the vote-counting committee and the names of the persons referred to in Article 22 of this Law who attended the vote;

- the number of employees entitled to vote at each polling station;

- the number of votes cast;

- the number of invalid voting slips;

- the number of votes per individual candidate.
The record shall also contain remarks, if any, by the persons referred to in Article 22 of this Law who attended the voting.
The record shall be signed by all vote-counting committee members and shall be delivered to the electoral committee within 24 hours, together with the election material.

Article 41


The electoral committee shall determine the number of voters entitled to vote in the company, the number of votes cast, the number of invalid voting slips and the number of votes received by individual candidates for workers' council membership.
The electoral committee shall keep a record of its work in which it shall record the data from the preceding Article, the remarks, if any, by persons present under Article 22 of this Law, the remarks by electoral committee members and the personal data of candidates elected to workers' council.
The record shall be signed by all electoral committee members.
Article 42
The election shall be considered valid if more than a half of employees with the right to vote participated in it. If half or less than half of employees participated in the election, a new election may only be scheduled after six months.
The election shall be for as many candidates for workers' council membership as there are members of the council. The candidates who win the most votes shall be considered elected. if two candidates for workers' council membership receive an equal number of votes it shall be considered that the candidate with the longer length of service in the company has been elected.
Article 43
If the electoral committee invalidates the election because of irregularities a new election shall be scheduled within 60 days of the day the decision to invalidate the election came into force.
Article 44
In cases referred to in Articles 42 and 43 of this Law the electoral committee shall invalidate the election by a decision which may be appealed against at the competent court within eight days of the day the decision was made public.
Article 45
The election for workers' council membership shall take place at least 15 days before the expiration of the term of office of the workers' council members.
The electoral committee shall establish and announce the results of the election no later than five days after the election.
The management body, the director of the company and representatives referred to in Article 22 of this Law shall each receive a copy of the record of work of the electoral committee.
The record shall be made public so as to be accessible for all employees of the company.
The workers' council shall be considered elected with the announcement of the results of the election and shall start exercising its rights and discharging its obligations after the term of office of the preceding council has expired.
è) Termination of Workers' Council Membership
Article 46
An individual member shall have his membership of the worker's council terminated:
- if he dies;

- when his term of office has expired;

- if he loses the right to be elected to the workers' council;

- if he is recalled;

- if he resigns;

- if his employment in the company is terminated.


Article 47
If an employee has his membership of the workers' council terminated, the new member for the rest of the term of office shall be the candidate who had won most votes among the unelected candidates but not less than 5% of all the votes cast. In the case of two candidates having an won equal number of votes, the candidate with the longer length of service in the company shall become the workers' council member.
If for any reason the term of office of more than a third of workers' council members terminates before the expiration of the term of office and those members cannot be substituted in the manner referred to in the preceding paragraph, by-elections shall be scheduled within 15 days of the day the termination of the term of office was established.
Article 48
The procedure for the recall of a workers' council member shall start upon a written petition from at least 10% of employees having the right to vote, or upon a petition from a trade union if the workers' council member was nominated by that trade union.
If the recall is requested by a petition of employees the petition shall be signed by the employees referred to in the preceding paragraph.
The petition shall state the reasons for the recall.
The petition shall be addressed to the electoral committee.
In the procedure for the recall of a workers' council member the electoral committee shall not inquire into the reasons for the recall.
Article 49
If the electoral committee does not reject the petition for the recall of a workers' council member, the electoral committee shall within 30 days schedule a vote on the recall and determine the day of voting.
The provisions of Articles 30, 31, 33 and 34 of this Law shall meaningfully apply to the rejection of the proposal for the recall of a workers' council member.

Article 50


A workers' council member shall be considered recalled if the recall was supported by the majority of employees who have the right to vote at the time of voting on the recall.

Article 51


The provisions of this Law applying to the election of workers' council members shall meaningfully apply to the vote on the recall.

2. Protection of the Right to Vote and Election Expenses


Article 52
The voters shall be guaranteed the freedom and secrecy of elections.
No one shall be allowed to obstruct the election of workers' council members.
Elections shall be organised so as to enable all employees to participate in them.
The employer may not influence the voting by promising any benefits to employees or threatening them with the loss of benefits in connection with elections.
Employees shall have the right to express their opinion about elections, electoral bodies and candidates for workers' council membership and shall not on account of that be subject to disciplinary accountability.
No one shall be allowed to ask employees how they voted or why they did not vote.
Article 53
In the event of gross violations of the election procedure, which influenced or might have influenced the legality and regularity of the election, the proposers of and candidates for workers' council membership may within eight days demand at the competent court that the election be annulled.
The competent court shall be the court of jurisdiction in the territory in which the company headquarters are located.
Article 54
The necessary expenses for the technical execution of elections shall be borne by the company.

The time spent by electoral bodies in their duties and the execution of elections shall be paid as normal working time.


Elections shall be held during working hours and so as to affect the working process in the least possible degree.

3. Methods of Work of Workers' Councils


Article 55
The first workers' council session shall be chaired by the chairman of the electoral committee until the council elects a president from among its ranks.
The workers' council shall elect the president and his deputies.
The president shall act on behalf of and represent the workers' council.
The deputy shall act on behalf of and represent the workers' council in the absence of the president.
Article 56
Workers' council members may not be hindered in the performance of their duties in the workers' council or in their regular work.
Article 57
The method of work of the workers' council shall be regulated by the rules of procedure.
The rules of procedure shall determine in particular:
- the manner of convening the sessions;

- the quorum;

- the manner of adoption of decisions;

- the keeping of minutes;

- the participation of persons referred to in Article 61 of this Law;

- the manner of constituting workers' council committees.


Article 58
The workers' council may set up committees to deal with individual questions from its field of competence.
Workers' council committees may also be set up to deal with questions of concern to individual groups of employees (women, disabled workers, young workers etc.).
The workers' council may set up committees for individual organisational units of the company and segments of the working process, or for parts of the company outside the headquarters (hereinafter: detached units) if at least ten employees having the right to vote are working in such a detached unit.
Article 59
The field of competence of workers' council committees shall be determined by the workers' council in its rules of procedure.
A workers' council committee may have at most a third of its membership recruited from among employees who are not workers' council members.
The management body and the director shall be informed of the foundation of workers' council committees, their composition and their fields of competence.
Article 60
Workers' council committees shall deal with matters from their fields of competence and shall inform the workers' council of their conclusions and proposals upon which the workers' council shall take a final decision.
Article 61
The workers' council may invite to its sessions experts from inside or outside the company, management personnel, trade union representatives in the company and representatives of employer associations.
The persons from the preceding paragraph shall be sent the material from and part of the minutes relating to their presence in the session.
Article 62
The workers' council shall as a rule meet during working hours, taking account of the needs of the work process. The company shall be bound to allow workers' council members five paid working hours a month to enable their participation in workers' council sessions.
The director of the company shall be informed in good time of the time of the session.
If a session is held outside working hours because the needs of the work process so dictate, that time shall be counted as work time and shall be paid as the working hours referred to in the first paragraph of this Article.
Article 63
Workers' council members shall be entitled to three paid hours a month for consultations with employees and up to 40 paid hours a year for training necessary for the efficient operation of the workers' council.
The employer and the workers' council may make an arrangement determining a larger number of hours for the duties of workers' council members, longer leave against payment or without payment for training necessary for the efficient operation of the workers' council, a larger number of hours within working hours for consultations with employees and other benefits concerning the operation of the workers' council.
The company shall be bound to ensure that workers' council members are paid for the time spent on consultations at the same rate they would have been paid had they been working.
The time and place of consultations shall be determined in an agreement between the director and the workers' council, taking account of the needs of the work process.
Article 64
In a company with between 50 and 300 employees the number of workers' council members who on account of their function in the council are working part time shall be determined as follows:
- one member in a company with between 50 and 100 employees;

- two members in a company with between 100 and 300 employees.


In a company with a still larger number of employees the number of workers' council members who perform their function in the council on a professional basis shall be determined as follows:
- one member in a company with between 300 and 600 employees;

- two members in a company with between 600 and 1,000 employees;

- one extra member per each subsequent 600 employees.
A professional workers' council member shall be entitled to a salary which may not be smaller than the salary he was receiving before being elected a workers' council member, or to a salary equal to that received by employees with an equal level of education if the latter is more favourable for him. The salary of a professional workers' council member shall be reviewed in the same way as other salaries in the company.
Article 65
The employer shall cover the expenses for the work of the workers' council, the minimum being the expenses for the premises needed for the sessions, the reception of clients and the work of professional council members; as well as the expenses for the materials used by the council and administrative personnel working for the council.
The expenses for persons referred to in Article 61 of this Law shall be covered by the company if so agreed with the employer and in the amount agreed upon, which may not be less than 50% of the average monthly salary per company employee for each member of the workers' council.
The employer and workers' council may make an arrangement allocating a fixed amount of resources for the duties of the workers' council over a specific time period.
The workers' council shall employ these resources at its discretion, but only for the financing of its work.
Article 66
If the workers' council and employer cannot reach an agreement on matters referred to in Articles 63 and 65 of this Law each of them may request that the matters be decided by arbitration.
In taking a decision the arbitration body shall give consideration to the material position of the company and the needs of the workers' council.
Article 67
A workers' council member who during the discharge of his duties behaves in accordance with the effective laws, collective agreements and the agreement provided by this Law may not without the consent of the workers' council:
- be assigned to another work post or another employer;

- be included among any redundancies.


If a workers' council member behaves as cited in the preceding paragraph it shall not be possible to lower his salary, institute disciplinary or indemnification proceedings against him or place him in any other way in a less favourable or subordinate position.
Article 68
Workers' council members and persons referred to in Article 61 of this Law shall be bound to keep company business secret.

III. WORKERS' ASSEMBLY


Article 69
The workers' council shall have the right to convene a workers' assembly which shall be composed of all employees except management personnel. Assemblies may also be convened by individual organisational units or sectors of the company work process.
The assembly of a detached unit may also be convened by the workers' council committee of the detached unit.
The workers' assembly may discuss matters from the field of competence of the workers' council or of its committee. The workers' assembly may not decide upon matters falling within the competence of the workers' council or its committee.
Article 70
The workers' council or a workers' council committee may invite the persons referred to in Article 61 of this Law to a workers' assembly.
The director of the company shall be informed about the convocation of a workers' assembly. The company shall have the right to send a representative to attend the workers' assembly.
Article 71
The workers' council or its committee shall be bound to convene a workers' assembly if so requested by the director of the company and to put items proposed by the director on the agenda of the assembly.
Article 72
Once a year a workers' assembly may be convened during working hours, taking account of the needs of the work process.
A workers' assembly shall as a rule be convened outside working hours, except when agreed otherwise and in the case dealt with in the preceding Article.
The manner of convening a workers' assembly and the work of the assembly shall be detailed in the rules of procedure of the workers' council.

IV. WORKERS' COUNCIL OF CAPITAL-RELATED COMPANIES


Article 73
Capital-related companies shall establish a workers' council of capital-related companies.
The workers' council of capital-related companies shall comprise representatives of all the capital-related companies.
Article 74
Members of the workers' council of capital-related companies shall be appointed by the workers' councils of the individual companies. The total number of members and the number of members from individual companies shall be determined by agreement according to the size and the number of workers' council members of each individual company.
The workers' council of capital-related companies may only comprise members of the workers' councils of the individual companies.
Article 75
The workers' council of capital-related companies shall be competent to deal with issues of concern to employees in all the capital-related companies. The workers' councils of the capital-related companies may detail in a mutual agreement the competencies of the workers' council of capital-related companies and the matters falling within its sphere of activity.
Article 76
The provisions of this Law on the method of work of a workers' council shall meaningfully apply to the method of work of a workers' council of capital-related companies.
Article 77
The term of office of members of the workers' council of capital-related companies shall depend on their term of office in the workers' councils by which they were nominated.

V. WORKER PARTICIPATION IN MANAGEMENT BODIES


Article 78
Worker participation in company management bodies shall be implemented through representatives on a company supervisory board or the supervisory committee of a cooperative (hereinafter: the supervisory board), and may also be implemented through a representative of the employees in the management of a company (hereinafter: worker director).
Article 79
The number of workers' representatives on the supervisory board shall be determined by the company's articles of incorporation and may not be less than a third of supervisory board membership in a company with up to 1,000 employees and no less than a half of supervisory board membership in a company with more than 1,000 employees.
Workers' representatives to the supervisory board shall be elected and recalled by the workers' council which shall inform the assembly of the company thereof.
The manner of election and recall of workers' representatives on the supervisory board shall be determined by the rules of procedure of the workers' council.
Article 80
Workers' representatives on the supervisory board shall represent the interests of all workers within the powers vested in the supervisory board, consistent with a separate law and the articles of incorporation of the company.
Article 81
A company with more than 500 employees shall have a worker director in the company management nominated by the workers' council.
In a company with a smaller number of employees a worker director may be appointed if so agreed by the workers' council and the employer.
Article 82
The worker director as a member of the company management shall be appointed by a body of the owners of the company determined under a separate law.
The competent body shall appoint the worker director by a majority of votes of the members present.
Article 83
If the worker director is not appointed as provided in the preceding Article, the assembly committee shall within a month from the vote of the assembly propose a joint candidate to the assembly. The candidate shall be appointed worker director if voted for by a majority of the assembly members present.
The assembly committee from the preceding paragraph shall be composed of the president of the assembly and an equal number of representatives of the owners, appointed from among the members of the assembly, and representatives of the workers from among the workers' council members.
If the worker director is not appointed as provided by the first paragraph of this Article, the workers' council may request that he be appointed by the competent court.
Article 84
The worker director shall act on behalf of and represent the interests of workers with regard to personnel and social welfare issues, acting within the general rights and obligations determined for all company management members under a separate law and the articles of incorporation of the company.

VI. WORKER PARTICIPATION IN THE MANAGEMENT OF THE COMPANY


Article 85
Worker participation in the management of the company shall be implemented such a way that:
- workers are kept informed directly and can make proposals and give opinions directly;

- workers are kept informed through a workers' representative or workers' council through which they can make proposals and give opinions, request consultations with the employer, participate in decision-making on individual issues determined by this Law and stay the execution of individual decisions of the employer until they are finally decided upon by the competent court.


Article 86
The employer and the workers' council, or its committee, shall have meetings at the request of the employer or of the workers' council. Typically they shall meet once a month in order to exercise the rights and discharge the obligations stipulated by this Law.
Article 87
The workers' council shall in particular:
- attend to the implementation of laws and regulations, adopted collective agreements and agreements reached between the workers' council and the employer;

- propose measures which benefit the employees;

- receive proposals and initiatives from employees and, where justified, take them into consideration in negotiations with the employer;

- assist the disabled, older and other employees entitled to special protection in their incorporation into work.


Article 88
The employer shall be bound to enable the employee as an individual to participate in management.
The employee as an individual shall have the right to:
- give initiatives and receive answers to his initiatives if they relate to his job or his work or organisational unit;

- be rapidly informed of changes in his sphere of work;

- state his opinion about all questions bearing upon the organisation of his job and the work process;

- ask the employer, or the person authorised by him, to answer questions relating to salaries and other spheres of labour relations, and questions relating to the contents of this Law.


The employer shall be bound to provide the answer to the initiatives from the first clause of the preceding paragraph, and to questions from the fourth clause of the preceding paragraph, within 30 days at the latest.

a) Informing


Article 89
The employer shall be bound to keep the workers' council informed about issues relating in particular to:
- the economic position of the company;

- the development targets of the company;

- the state of production and sales;

- the economic position of the branch as a whole;

- changes of activity;

- any decline in economic activity;

- changes in the organisation of production;

- technological changes;

- the annual accounts and annual report;

- other issues under mutual agreement referred to in paragraph 2, Article 5 of this Law.


At a request from the workers' council the employer shall be bound to allow inspection of the documentation required to obtain an insight into the matters referred to in the preceding paragraph.

Article 90


The employer shall be bound to inform the workers' council on matters referred to in the fifth, sixth, seventh, eighth and ninth clauses of the preceding paragraph before taking a final decision.
b) Joint Consultations
Article 91
The employer shall be bound to inform the workers' council about and request joint consultations on the status of the company and personnel issues before taking decisions on these issues.
The employer shall be bound to give the workers' council the necessary information at least 30 days before taking the decisions, and organise joint consultations at least 15 days before taking the decisions.
Article 92
It falls within the duty of the employer to arrange consultations between the workers' council and the employer to keep the workers' council informed of planned decisions concerning status and personnel issues, to seek advice from the workers' council and to try and harmonize points of view.
Article 93
The status issues referred to in paragraph 1, Article 91 of this Law shall be considered to include:
- status changes;

- the sale of the company or of essential parts;

- the closing of the company or of essential parts;

- essential ownership changes.


Article 94
The personnel issues referred to in paragraph 1, Article 91 of this Law shall be considered to include:
- the need for new employees (number and profile);

- job systematisation;

- the movement of a significant number of employees to outside the company;

- the movement of a significant number of employees from one place to another;

- the adoption of enactments in the sphere of additional pension, disability and health insurance;

- a reduction in the size of the workforce;

- the adoption of general rules of disciplinary accountability.
A significant number of employees shall be considered to be 10% of all company employees.

c) Participation in Decision-Making


Article 95
The employer shall be bound to submit for approval by the workers' council draft decisions on:
- the organisation and execution of safety measures not stipulated by law or other regulations and not covered by collective agreements;

- the determination of measures to preclude injuries at work and occupational diseases, as well as measures to protect the health of the employees, not stipulated by law or other regulations and not covered by collective agreements;

- the bases for determining the use of paid leave and other instances of absence from work;

- criteria for the assessment of performance at work

- criteria for the remuneration of innovative activity in the company;

- the management of the housing fund, company vacation homes and other worker welfare facilities;

- employee promotion criteria.
The workers' council shall consider and form an opinion on the drafts referred to in the preceding paragraph within eight days of their submittal.
If the workers' council does not form an opinion on the drafts within the time limit mentioned in the preceding paragraph it shall be considered to have given consent to the drafts.
Consent given by the workers' council and delivered to the employer in a written form shall be considered as an agreement between the workers' council and the employer.
Article 96
The employer shall also be bound to obtain the consent of the workers' council if decisions bearing upon the fifth to eighth clause of paragraph 1, Article 89 of this Law and the first and second clauses of Article 93 of this Law result in an increase or reduction in the workforce in which a significant number of employees are concerned under employment regulations.
The workers' council may only deny the consent mentioned in the preceding paragraph if the proposal to reduce the size of the workforce does not include a draft programme for the solution of the problem of redundancies in accordance with employment regulations, or if the reasons for the decision to reduce the size of the workforce are not well-grounded.
If the workers' council denies consent in situations other than those in the preceding paragraph, the denial shall have no effect on the regularity and legality of the decision of the employer.
Article 97
The employer may not adopt the decision if the workers' council denies consent within eight days.
è) The Right to Stay Execution of a Decision of the Employer
Article 98
The workers' council shall have the right to stay the execution of individual decisions of the employer and to initiate procedures for the settling of the dispute:
- within eight days of receiving information that the employer has adopted a decision on the issues referred to in clauses 5 to 8, first paragraph, Article 89 of this Law without informing the workers' council in advance of its intention to adopt a final decision on these issues;

- within eight days of receiving information that the employer has adopted a decision concerning the status and personnel issues referred to in Articles 93 and 94 of this Law without acquainting the workers' council in advance with its intention to adopt the decision, in violation of the time limits referred to in Article 91 of this Law, and without requesting joint consultations on these issues.


In the cases referred to in the preceding paragraph the employer shall not be allowed to execute the decisions until the final decision of the competent court.

VII. SETTLEMENT OF DISPUTES


Article 99
Disputes between the workers' council and the employer shall be settled by arbitration.
The arbitration panel shall be composed of an equal number of persons appointed by the workers' council and the employer and a neutral chairman whose appointment has been agreed to by both parties to the dispute.
Article 100
The workers' council and the employer may by mutual agreement set up a permanent arbitration body in the company.
If a company has set up a permanent arbitration body the workers' council and the employer shall make a list of arbitrators for individual arbitrations. Whenever an arbitration procedure has been initiated the workers' council and the employer shall each appoint their arbitrators from the list.
If a company has set up a permanent arbitration body an agreement between the workers' council and the employer shall define the size of the arbitration panel, the start of the arbitration procedure and the procedure preceding the arbitration.

Article 101


The Minister of Labour shall, upon petition from trade union representatives and employer associations, determine a list of arbitrators.
If a company has no permanent arbitration body, the arbitrators shall be appointed from the list referred to in the preceding paragraph.
Article 102
The party which initiates the arbitration procedure shall appoint its arbitrator through a petition for arbitration. If the other party fails to appoint its arbitrator within 15 days of the initiation of arbitration procedure, the petitioner may propose that the arbitrator be appointed by the competent court.
The arbitrators appointed by the parties to the dispute shall jointly appoint the chairman of arbitration from the list of arbitrators from which they were appointed. If they cannot agree on a chairman either party may request the competent court to appoint the chairman of arbitration.
If a permanent arbitration body exists the court shall appoint the arbitration chairman from the list determined by the company; if a permanent arbitration body does not exist the court shall appoint the arbitration chairman from the list of arbitrators determined by the Minister of Labour.
Article 103
After hearing the parties to the dispute and examining the evidence the arbitration panel shall decide on the dispute by a majority vote.
The hearing, consultations and voting shall be conducted by the arbitration chairman. His duty shall be to see to it that all issues be examined comprehensively and thoroughly. The arbitration chairman shall be the last to vote.
Minutes of the hearing and voting shall be kept. The record on the voting shall be sealed and enclosed in the record of the hearing.
The verdict of the arbitration panel shall be stated in a decision made out in writing and signed by the arbitration chairman.
The decision shall be delivered to both parties to the dispute.
Article 104
The decision of the arbitration panel shall replace any agreement between the workers' council and the employer.
The decision of the arbitration panel shall be final. The parties to the dispute may challenge the decision before a competent court on the basis of reasons and following a procedure provided for by a separate law.
Article 105
If an arbitration procedure is not defined in detail in an agreement between the workers' council and the employer, the provisions of the Law on Civil Lawsuit shall be applied to the arbitration procedure unless stipulated otherwise by this Law.
Article 106
As defined by this Law the competent court shall be considered to be the court of labour disputes.

VIII. PENALTY CLAUSE


Article 107
A legal entity shall be fined at least SIT 250,000 for infraction:
1. if it fails to make agreements with the workers' council public in the manner habitually used in the company (paragraph 4, Article 5);

2. if it fails to implement agreements with the workers' council (paragraph 2, Article 6);

3. if it does not enable the workers' representative to work and exercise his rights (paragraph 3, Article 9);

4. if it fails to organise elections in such a way that all employees may participate in them (par. 3, Article 52);

5. If it promises benefits or threatens the loss of benefits in connection with elections, and thereby influences the result of the elections (par. 3, Article 52);

6. if it fails to cover the costs of the necessary technical activities in connection with elections (par. 1, Article 54);

7. if it fails to pay the employees for time spent on the work of electoral bodies or the time spent on elections (par. 2, Article 54);

8. if it hinders or does not render possible the duties of workers' council members or their regular work (Article 56);

9. if it fails to secure payment for workers' council members for their participation in workers' council sessions (Article 62);

10. if it fails to secure payment for workers' council members for the time spent on consultations with the employer (par. 3, Article 63);

11. if it fails to cover the necessary expenses for the operation of the workers' council (par. 1, Article 65);

12. if it fails to provide the special protection due to workers' council members in connection with their duties (Article 67);

13. if it fails to secure the right of employees as individuals to participate in management (par. 1, Article 88);

14. if it fails to provide within 30 days the answer to an initiative of an employee bearing upon his job or his work or organisational unit (par. 3, Article 88);

15. if it fails to keep the workers' council informed as stipulated by Article 90 of this Law;

16. if it fails to request joint consultations on status and personnel issues at least 15 days before adopting the decision (Article 91);

17. if it fails to submit for the consent of the workers' council the draft decisions which it is bound to submit in accordance with Articles 95 and 96 of this Law;

18. if it adopts decisions although the workers' council denied consent within eight days (Article 97);

19. if it executes a decision before receiving the final decision of the competent body (par. 2, Article 98).
The responsible person of a legal entity which commits an infraction referred to in the preceding paragraph shall be fined at least SIT 25,000.

IX. TRANSITIONAL AND CONCLUDING PROVISIONS


Article 108
In a company in which a workers' council has not yet been founded, one shall be founded as stipulated by Articles 17 and 18 of this Law.
Article 109
A workers' council shall not be formed in a publicly owned joint stock company or limited liability company in which a council of employees has been constituted. If, apart from company management bodies, a workers' council was also formed in such companies before the coming into force of this Law, that council shall have the competencies of a council of employees.
Article 110
Notwithstanding the provision of paragraph 3, Article 1 of this Law, the right of workers to participate in the management of institutes shall, until the coming into force of the law on collective negotiations or the coming into force of a separate law, be governed by collective agreement.

Article 111


This Law shall come into effect on the 15th day after the day of its publication in the Official Gazette of the Republic of Slovenia.
No. 300-01/92-12/3

Ljubljana, 9 July 1993

/Sgd./

The President



of the National Assembly

of the Republic of Slovenia

Herman Rigelnik
----------------------------------------------------

ACT AMENDING THE WORKERS' PARTICIPATION IN MANAGEMENT ACT (2001)

Article 1


In the Workers' Participation in Management Act (Official Gazette of RS, 42/03) Article 67a shall be inserted after Article 67, and read as follows:
»Article 67a
If the employer changes following the legal transfer of a company or part thereof carried out pursuant to an act, regulation, legal transaction, final court decision, or by virtue of a merger, a workers' council member shall preserve their status provided that the conditions exist at the transferee for their appointment in accordance with the Act.
The previous paragraph shall not apply if conditions are fulfilled for the new appointment of workers' council members.
A workers' council member whose term of office ends due to the change of employer shall enjoy the protection provided by the previous article for a further nine months after they have ceased to hold office, as well as protection against dismissal as envisaged in the Employment Relationship Act.«
Article 2
Paragraph 1 of Article 79 shall be changed to read as follows:
»The number of workers' representatives on the Supervisory Board shall be laid down in the Statute of the company, but may not be less than one-third or more than one-half of Supervisory Board members. The President of the Supervisory Board shall be a representative of the shareholders who, in the event of a tie, shall hold the casting vote.«
Article 3
At the end of Paragraph 1 of Article 91, the full stop shall be deleted and text inserted to read as follows: »and with regard to the issues of safety and health at work«.1
Article 4
In Article 92, after the word »issues«, text shall be inserted to read as follows: »and with regard to the issues of safety and health at work«.
Article 5
In Paragraph 1 of Article 95, the first and second indents shall be deleted.
Article 6
This Act enters into force on the fifteenth day following its publication in the Official Gazette of the Republic of Slovenia.
No. 300-01/92-12/12

Ljubljana, 20 June 2001


President of the National Assembly

of the Republic of Slovenia

Borut Pahor /signed/




1 This does not apply to the English translation. The amended Paragraph 1, Article 91 shall now read as follows:

“The employer shall be bound to inform the workers' council about and request joint consultations on the status of the company, personnel issues and issues of safety and health at work before taking decisions on these issues.”







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