The right to severance pay, as defined in Employment Relationship Act, is the right of an employee to receive financial compensation in particular cases of job loss, which provides the employee with minimum social security. Any change in labour legislation requires negotiation of terms of severance right, which facilitates economic adjustment of the employee in the event of loss of employment.
The right to severance pay in Slovenian labour legislation is extensively covered in Article 108 of ERA-1, regulating the severance right in case of termination of employment due to business reasons or incapacity reasons, the basis for calculating severance pay (and its amount), employee´s right to include the period of employment for the employers´ legal predecessors, the right to terminate the severance pay and severance payment terms. Master thesis presents case law and theory, which provide answers to additional questions about calculation and amount of severance pay and the possibility to terminate severance pay. Primary focus is on reviewing specific collective agreements, which may regulate severance rights differently than ERA-1. Furthermore, master thesis discusses severance right regulation in case of termination of employment contract in insolvency proceedings or in compulsory liquidation proceedings. Finally, master thesis details severance right regulation for workers with terminated fixed-term employment contracts, established with the introduction of ERA-1. Legislator intention with this novelty was to encourage employers to employ workers for an indefinite duration. However, fixed-term contracts are still the most common choice with employers.
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