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Transnational Provision of Services Act

The new Transnational Provision of Services Act (ZČmIS-1) was published in the Official Gazette of the Republic of Slovenia. The Ministry drew up the Act in order to comprehensively address the position of posted workers when carrying out transnational services provided by Slovenian companies and self-employed persons, economic operators, for clients in other EU member states.

The Transnational Provision of Services Act was adopted in March 2023; the basic objective and purpose of the Act is to ensure the relevant transposition of EU directives into national legislation in order to regulate the employment law status of all posted workers, as determined by the Employment Relationship Act.

For the first time since joining the European Union (EU), Slovenia approached the systematic regulation of the transnational business of all Slovenian business entities that carry out their registered activity through their own employees. The Act provides for equal treatment of the posted worker according to the nature of their work (temporary or occasional, or permanent, consecutive), lays down safeguards to effectively prevent violations and abuses of labour legislation, and establishes tools for the effective implementation of the monitoring of compliance with the rules of the transnational provision of services, both in terms of labour legislation, and in terms of ensuring adequate social security for posted workers.

The Transnational Provision of Services Act transposes Directive (EU) 2020/1057 with regard to special rules for posting drivers in the road transport sector. In this regard, specific new definitions delineating different types of transport set out in EU regulations were introduced into the Act. The conditions for the transnational provision of services in international transport, the obligations of employers and self-employed persons, holders of independent economic activity, are set out in the field of compliance with the rules for the transnational posting of workers; moreover, the Act lays down sanctions for violations of the rules.

The second part of the amendments to the Transnational Provision of Services Act regulates the procedure for issuing the A1 certificate for employees and self-employed persons who perform their employment or self-employment activities in at least two EU member states. The regulation is necessary, as it is necessary to ensure equal treatment of all Slovenian business entities that operate or carry out their registered activity through their own employees or as independent individuals, economic operators, in a transnational manner. The Act provides new common, national conditions for the transnational provision of services (i.e. in at least two member states) for all Slovenian companies established in the Republic of Slovenia, regardless of whether they provide a transnational service from time to time and temporarily, or frequently and over a long period of time.

A record of the roadside monitoring of foreign employers or self-employed persons in international transport, carried out pursuant to the Transnational Provision of Services Act, is being established for enforcement purposes. The provision of the Pension and Disability Insurance Act that has up to now enabled a reduction in the tax base to the statutory minimum for the payment of contributions for specific posted workers has been deleted from the Act. This provision is to take effect as of 2024.

This Act will enter into force on the fifteenth day following its publication in the Official Gazette of the Republic of Slovenia; the following provisions come into force on 1 January 2024:

  • the implementation of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part,
  • the transnational provision of services by employers and self-employed persons (Chapter II of the Act),
  • the keeping of records of applications for the provision of services, of issued A1 certificates, and of roadside monitoring of foreign employers or self-employed persons in international transport, (Chapter V of the Act, records),
  • provisions regarding the establishment of the veracity of the statement on the fulfilment of the conditions for issuing an A1 certificate or of the veracity of the self-employed person's statement, direct access to the electronic records of the Health Insurance Institute of Slovenia (ZZZS) regarding data on the issued A1 certificates, the obtaining of data on completed applications for the provision of services, and direct access to the electronic records of the Employment Service of Slovenia (ZRSZ) on applications for the start of services,
  • a provision regarding amendments to the Health Care and Health Insurance Act.