THIRD WORKER CATEGORY-economically dependant persons in Slovenia dr. Luka Tičar Faculty of Law, University of Ljubljana Paris, November, 7th 2018

Overview of the presentation: 1. The notion of economic dependency 2 Overview of the presentation: 1. The notion of economic dependency 2. Its meaning for the Labour Law as we know it 3. Statutory regulation of economic dependency and legal status of economically dependant person - issues regarding legal regulation - issues regarding situation in practise 4. Conclusion

The notion of economic dependency (ILO) The notion of economic dependency (ILO) - dependence of the individual on the income he/she receives from his/her, usually the only client and does not employ other persons by him/herself. Economic dependency and traditional labour law - it is certainly a factor that can justify certain and limited labour protection - it can not replace the concept of classical personal subordination and thereby affecting the established concept of a traditional employment relationship

Legal definition of economically dependant person (EDP) Legal definition of economically dependant person (EDP) -″An economically dependant person is a self-employed person who on the basis of a civil* law contract performs work in person, independently** and for remuneration for a longer period of time in circumstances of economic dependency and does not employ workers. Economic dependency means that a person obtains at least 80% of his or her annual income from the same contracting authority.″ *employment contract is a contract of Labour Law, which is an independent legal branch and therefore not part of a civil law. ** meaning the absence of subordination

Limited Labour Law protection for EDP Limited Labour Law protection for EDP - provisions of ERA-1 apply, regarding: - ″prohibition of discrimination, – assurance of minimum notice periods, !– prohibition of termination of a contract in cases of unfounded/not valid reasons for termination, !– assurance of payment for contractually agreed work appropriate for the type, scope and quality of the undertaken work, taking into consideration the collective agreement binding the contracting authority, – enforcement of liability for damage.″

Enforcement of economic dependency ″In order to be entitled to the limited labour law protection referred to in the two preceding paragraphs, an EDP, after the termination of an individual calendar or business year, shall be obliged to notify the contracting authority on whom he is economically dependent of the conditions under which he operates by submitting to the contracting authority all evidence and information required for the assessment of the existence of economic dependency.″ - meaning that enforcement of a limited protection is in total discretion of an EDP - consequently we estimate that there are only few self-employed that have enforced their status in practise. (They are afraid of losing a client which are all usually very reluctant to be limited by any labour law provision).

ISSUES REGARDING POSITIVE REGULATION IN ERA-1 ISSUES REGARDING POSITIVE REGULATION IN ERA-1 - a definition of EDP is not clear enough or in other words it is not distinct enough from the concept of worker in employment relationship (we assume that many self-employed persons are not aware of the possibility of being EDP) - reflection on how to apply economic dependency is needed (system of certification?) - disputes regarding economic dependency should be put under jurisdiction of labour courts (at the moment regular courts)

Issues regarding situation in practise and risks of precariousness Issues regarding situation in practise and risks of precariousness - There is no official data on numbers of EDP - we strongly assume that economic dependency is hardly enforced in practise (reasons?) - we strongly assume that precariousness exists in many cases of self-employment, especially when economic dependency is not enforced.

CONCLUSION - The future of economic dependency in Slovenia CONCLUSION - The future of economic dependency in Slovenia? - Do we need a special statute on EDP as legislator has foreseen? - Measures on other fields (taxes, labour inspection, incentive legal culture?)

THANK YOU FOR YOUR ATTENTION!