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Board-level Representation

There is employee representation at board level in larger Slovenian companies. Employee representatives have between a third and a half of the seats on the supervisory board of Slovenian companies with a two-tier structure. In companies with a single board they have at least a third.

 

Slovenian employees are entitled to board level representation in any company which meets two of the following three criteria: 50 or more employees; a turnover of at least €8.8 million; and assets worth at least €4.4 million; as well as in a company, which is a bank, an insurance company or is quoted on the stock exchange.

 

Slovenian companies can choose between a two-tier structure, with a supervisory and a management board, or a single board. The choice depends on the company’s articles of association – its rules. (Until 2006 larger Slovenian companies did not have this choice – they had to have a two-tier structure with a supervisory board.)

 

In companies with supervisory boards, which meet the thresholds for employee board level representation, employees have between a third and a half of the members – the precise proportions are determined by the companies themselves. In companies with a single board, there must be at least one employee representative and at least one for every three board members. The employee members cannot chair the board, as the chair has a casting vote in the event of a tie.

 

Employee representatives at board level, on both supervisory boards and the single board, are chosen by the works council from among the employees.

 

In addition, in companies with more than 500 employees (fewer than this, if the company and works council so agree), the employees can propose a labour director to deal with human resources issues. In companies with a two-tier structure, the labour director is a member of the management board. In companies with a single board, the labour director is one of the board members. The labour director is appointed by the shareholders on the basis of a nomination from the works council. In practice there are fewer than 30 such labour directors in Slovenia.

L. Fulton (2013) Worker representation in Europe. Labour Research Department and ETUI. Produced with the assistance of the SEEurope Network, online publication available at http://www.worker-participation.eu/National-Industrial-Relations.