Slovenia faces an ageing population and a shortage of staff

Slovenia is grappling with an aging population and a shrinking workforce, prompting new legislation aimed at improving the transition from employment into retirement while allowing older workers to continue working if they wish. The revised provisions in the Law on Intervention Measures for the Development of Slovenia (ZIURS) introduce greater predictability and flexibility for both employees and employers. This change comes amid growing concerns over labor shortages and the increasing value of experience among senior workers. The law introduces a new mechanism under Article 119a of the Labour Relations Act, which allows employment contracts to terminate upon meeting legally defined conditions for entitlement to old-age pension. This provision ensures clarity for both parties, employers can plan for staff transitions more effectively, and employees gain certainty regarding their future status. The change is particularly relevant given the demographic challenges facing Slovenia, where life expectancy has increased and younger generations are entering the workforce later than previous cohorts. For employers, this legal framework enables better planning. Companies can anticipate when positions will become vacant, identify potential successors, and manage knowledge transfer more efficiently. This is especially crucial for industries reliant on specialized skills, where the expertise of seasoned workers is difficult to replace quickly. For employees, the change offers clarity about their future status once they meet pension eligibility criteria, reducing uncertainty and ensuring that personal and professional decisions can be made with confidence. A key aspect of the reform is the retention of the option to continue working beyond pension eligibility. Employees who have fulfilled the conditions for old-age pension may still choose to remain employed. They can submit a written request up to 90 days before the anticipated end of their contract to extend their employment relationship. This flexibility is essential because many older workers remain active due to health, passion for work, or the continued relevance of their expertise within their organizations. This approach addresses the diverse needs of the workforce. Some individuals may prefer to retire early, while others wish to stay engaged, contributing their experience and maintaining a sense of purpose. By offering a structured pathway for continuation, the reform supports both individual choice and organizational continuity. It also helps mitigate the pressure on employers to recruit foreign workers, although demographic trends suggest such measures may remain necessary in the long term. The reform is supported by the Business Circle, a coalition of 17 economic and agricultural organizations representing a broad spectrum of Slovenian businesses. These groups argue that the changes bring greater order to the transition process and enable more effective human resource planning. Employers can now more accurately forecast staffing needs, while employees benefit from clearer rights and protections. The law also includes safeguards, such as the right to judicial protection for employees whose requests for extended employment are rejected. By introducing clear rules around the termination and possible extension of employment relationships after retirement, the reform aims to contribute to a more stable labor market. Predictable regulations support better long-term planning and efficient knowledge transfer between generations. The Business Circle emphasizes that simple, well-defined rules are essential for an effective functioning labor market and sustained competitiveness of Slovenia’s economy.