For employees working in Slovenia, understanding the different ways an employment relationship can end is essential. One common option is the mutual termination of employment contract, often referred to as “sporazumna odpoved” in Slovenian. This allows both the employee and the employer to agree on ending the employment under conditions they set together.

Mutual termination is typically used when both sides want the employment to end quickly and by agreement, without the need for lengthy procedures. Below, we explain who can propose such an agreement, how the process works, and what to consider before signing.

Who can propose a mutual termination?

Either the employee or the employer can propose to end the employment relationship by mutual agreement.

  • In practice, the proposal is often given verbally.
  • However, it is strongly recommended to also submit it in written form for clarity and record keeping.

Signing a mutual termination agreement

If both parties agree, they must prepare and sign a written agreement on the termination of the employment contract.

  • A mutual termination is only valid if it is in writing.
  • The agreement must include all legally required warnings and statements about the consequences of termination, especially regarding the employee’s rights to unemployment benefits from the Employment Service of Slovenia (ZRSZ).
  • Without these warnings, the agreement is invalid.

What if an agreement is not possible?

Mutual termination works only if both sides agree.

  • If one party refuses, the employment relationship continues.
  • The party seeking termination may then proceed with a regular unilateral termination of the employment contract, either by the employee or by the employer, depending on the situation.

Notice period and shortening options

One of the main reasons employees and employers prefer mutual termination is to avoid or shorten the notice period.

  • In a mutual agreement, the parties can decide to shorten or even remove the notice period completely.
  • Even in unilateral termination, the notice period can be shortened if both sides sign a separate agreement covering only the shortened period.

Key considerations for employees

Before signing a mutual termination agreement, employees—especially foreign workers—should carefully consider the consequences:

  • Unemployment benefits: Signing a mutual termination may affect your eligibility. You may not qualify for full unemployment benefits compared to being dismissed by the employer.
  • Residence and work permits: For foreigners working in Slovenia, employment status often directly affects residence permits. Ending your job might impact your right to stay in Slovenia unless you already have another employer or permit arranged.
  • Legal protections: Ensure the agreement contains all necessary legal information. Do not sign if you feel pressured or uncertain.

Conclusion

Mutual termination of employment in Slovenia provides flexibility for both employees and employers. It can speed up the process of leaving a job, but it also comes with legal and practical consequences that should not be overlooked.

At SIBIZ, we specialize in advising foreign employees, entrepreneurs, companies, and corporations on Slovenian employment and immigration matters. Our team helps you understand your rights, prepare the necessary documentation, and avoid risks that could affect your legal status in Slovenia.

For tailored advice on employment and residence issues, contact us at www.sibiz.eu