Loyalty Check

Control of the Employees Compliance with the Slovenian Employment Law  /  Prohibition of Unloyal Competition

Control of Compliance or non-compete Clauses prohibiting Unloyal Competition is explicitly stipulated in the Slovenian Employment Law. Verification of Employee's Loyalty answers to the Question, if your Employee (-s) in their free Time for your Business Partner perhaps provide cheaper Services, or is / are even planning to open their own Business Plants based on your Know How. Also make Sure that your Competition doesn't bribe your Employees in order to "steal" Business Secrets and important Business Projects from you. Verify if your Employee performs the same Work for your Competition or enters into Transactions that fall within your Activity which might constitute or imply Competition for you.

The main Piece of Employment Legislation in Slovenia is the Employment Relationship Act which defines the Unloyal Competiton in Slovenia:

e) Prohibition of Competition
Article 37
Prohibition of Competition –Statutory Prohibition of Competitive Activity
(1) During the Employment Relationship, the Worker may not for his own Account or for a third Account carry out Work nor conclude Business covered by the Activity which is actually carried out by the Employer and represents or might represent Competition to the Employer without the Employer’s written Consent.
(2) The Employer may demand Compensation for the Damage caused due to the Worker’s Actions within three Months from the Day he learnt of the carrying-out of such Work or conclusion of such Business, and/or within three Years after the Work was completed or the Business was concluded.

Article 38
Competition Clause – Contractual Prohibition of Competitive Activity
(1) If in carrying out Work or in relation to Work the Worker gains technical, production or business Knowledge and Business Links, the Worker and the Employer may lay down in the Employment Contract the prohibition of Competition after the Termination of the Employment Relationship (hereinafter referred to as “Competition Clause”).
(2) The Competition Clause can be agreed for a Period not longer than two years after the Termination of the Employment Contract and only in Cases the Worker’s Employment Contract was terminated at his own Will or through his Fault.
(3) The Competition Clause has to be laid down with reasonable limitation Periods of prohibited Competition and may not exclude the Possibility of appropriate Employment for the Worker.
(4) If a Competition Clause is not laid down in Writing, it shall be assumed not to be agreed.