These include simpler and less formal layoff procedures, shorter notice periods, lower severance pay, improved internal flexibility and temporary and occasional forms of work, Vizjak told the Association of Employers (ZDS) annual congress in Ljubljana on Tuesday.

He also noted that the labour market reform consists of both the changes to the employment relationships act as well as the labour market regulation act.

Vizjak's response comes after ZDS President Milan Lukić warned that a facelift would not be enough to tackle what he termed a dramatic situation in the over-rigid labour legislation in Slovenia.

"We do not demand new inventions but a set of laws comparable to what they have in Germany and Austria. Cosmetic touch-ups in the proposed changes to employment relationship act are not enough," Lukić was critical.

The initial proposal presented in July by Prime Minister Janez Janša reflected more flexibility, but the September draft had been watered down and would only put additional burdens on the employers, Lukić stressed.