Slovenia has reintroduced its shortened working hours scheme, a policy designed to help businesses navigate economic crises while protecting jobs and maintaining workforce skills. The initiative, which allows companies to reduce employee workloads with state financial support, was activated again amid growing concerns over external pressures affecting key industries. According to Mitja Gorenšček, executive director of the Slovenian Chamber of Commerce, this measure is part of a long-term legislative framework, though its implementation remains temporary and tailored to current market conditions. The legislation governing the shortened working hours program was established during the previous government term and modeled after systems in developed countries such as Germany, Austria, and Switzerland. This approach ensures that Slovenia does not need to pass new emergency laws during crises, instead relying on an already existing mechanism to provide financial assistance. During the COVID-19 pandemic, this system proved particularly effective, allowing countries with similar frameworks to respond swiftly without introducing ad hoc measures. Despite the long-term nature of the legal foundation, the actual application of the scheme is short-term and strictly targeted. Only activities currently facing crisis situations can apply for state co-financing of reduced working hours. A comparison between the latest activation and the previous one highlights changes in eligible sectors due to evolving causes of economic instability. Previously, American tariffs and the cooling of the European market were major factors, whereas recent challenges stem from developments in Iran and their impact on the Middle East. Currently included sectors range from textile, wool, and paper production to chemical manufacturing, metalworking, electrical equipment, furniture, and wood processing. Gorenšček emphasized that the wood industry is especially vulnerable due to the region around Dubai hosting many crucial buyers for Slovenian timber products. These adjustments reflect the dynamic nature of economic threats and the need for flexible responses. The shortened working hours scheme provides a transitional period for businesses to assess their situation and adapt accordingly. It offers time for companies to determine whether they face a temporary decline in orders that can be mitigated through the program or a more permanent shift requiring restructuring. If a company identifies a lasting change in demand, it can begin adjusting operations and negotiating with employees to align with new market realities. According to Gorenšček, the systemic nature of the measure benefits three key stakeholders: businesses, employees, and the state. For companies, the state’s partial coverage of financial burdens helps retain valuable knowledge and experience within the workforce rather than losing skilled workers through layoffs. Employees benefit from protection against sudden job loss and reduced social security risks, with the transitional period often leading to stabilized employment in their original organizations. For the state, the program prevents premature and potentially disruptive labor market adjustments that could arise without such support. The activation of the scheme underscores the importance of preparedness in addressing economic fluctuations. By leveraging an established legal structure, Slovenia aims to ensure resilience across various sectors while minimizing the adverse effects of external shocks. As the situation evolves, further assessments will be necessary to evaluate the effectiveness of the measure and its implications for future economic planning.
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