Slovenia is increasingly reliant on foreign labour force to mitigate staff shortages. While the majority still come from countries of the former Yugoslavia, the numbers of workers from India, Nepal, Bangladesh and the Philippines have been rising. Steps are also being taken to make hiring easier.

The share of foreigners in the active working population has been increasing rapidly. Having stood at just 6% in 2017, it rose to 14.2% by 2022 and hit a record 15.8%, farmers excluded, in May this year, according to the Statistical Office.

Of the 146,400 foreign citizens working in Slovenia in May, just under half or 71,515 were from Bosnia-Herzegovina, 16,775 came from Kosovo, 16,175 from Serbia and 11,090 from Croatia.

Most Asian workers from India

The number of foreign workers from South Asia has been increasing in recent years. In May there were 1,200 workers from India, 409 from Nepal, 266 from Bangladesh and 184 from the Philippines.

According to the Labour Ministry, 859 work and residence permits were issued to citizens of India in the first four months of the year, which compares to 976 in all of 2023 and 322 in 2022. The trend is similar for workers from Nepal, Bangladesh and the Philippines.

Also on the rise is the number of workers from these countries who are sent to work in Slovenia by foreign employers.

Data from the Employment Service shows that most permits for workers from South Asia were issued in construction, manufacturing, hospitality, transport, warehousing and retail and wholesale, and vehicle maintenance and repair sectors.

Employment of Bosnian and Serbian workers is made easier through Slovenia's agreements with the two countries, whereas the hiring of workers from other non-EU countries is governed by the Aliens Act and the Employment, Self-employment and Work of Foreigners Act.

The hiring process requires the cooperation of administrative units, which issue work and residence permits, and the Employment Service, which needs to issue its consent.

Memorandum with the Philippines pending

Slovenia would like to reach more bilateral agreements. It was supposed to sign a memorandum of understanding with the Philippines in spring as the first step to a new employment agreement, but this has not happened yet.

"Because the Philippines need the consent of several departments, coordination is sometimes more time-consuming," the Labour Ministry told the Slovenian Press Agency, adding that they have been finalising the memorandum for some time.

"We are still waiting for their final answer. Regardless, it has been agreed with the Philippines that the signing is expected in the autumn," the ministry said.

Foreign labour hiring sped up

According to employer associations, the hiring procedures for foreigners take three to four months whether they are based on bilateral employment agreements or the relevant legislation. The added value of the agreements is that the workers are better informed and more protected from potential abuse.

In the second half of July, legislative amendments were passed removing the need for requests to be processed locally, where companies hiring workers are based. Foreigners can also start working in Slovenia before the authorities have completed their procedures.

According to the Employers' Association, the changes are already producing results, allowing companies to employ foreigners in 3-4 weeks based on temporary work permits. The regular procedures for the final permit continue in the meantime.

"We have to take into account that the changes were made during the summer holidays which might have affected the number of foreign workers arriving in Slovenia and the time to issue the permit," the association said.

Trade unions, on the other hand, are concerned. "What if at the end of these procedures it turns out that the foreigners do not meet the requirements," Andrej Zorko from the ZSSS, the country's largest trade union association, wonders.

"The ministry's response is that in such a case the foreigners will not enjoy the social benefits from health and retirement insurance even if they have paid the contributions. That puts people into an unequal and risky position," Zorko said.

The unions demand for the law to be amended so that the workers doing the work and paying their contributions should also enjoy all the benefits.

More changes in the works

The Labour Ministry is drafting changes to the Employment, Self-employment and Work of Foreigners Act to transpose an EU directive on the conditions of entry and residence of third-country nationals for the purposes of highly qualified employment.

This will create more flexible admission conditions for highly skilled foreign workers. The minimum length of the required work contracts is to be shortened from one year to six months. Their salary will have to be at least equal to average gross pay, down from currently required 150% of average gross pay.

The proposed changes are also expected to introduce seasonal work of foreigners in tourism and hospitality - seasonal work is currently restricted to agriculture - and a new register of employers sanctioned for labour law offences.

"The aim of the Labour Ministry is not only to ensure a sufficient number of workers but to provide suitable working conditions and fair pay. We cannot agree to pay dumping policies and importing cheap labour," the ministry said.

"Decent salaries mean decent pensions in the end and serve as a guarantee that the competitiveness of the economy is not based on cheap labour but on knowledge and innovation," the ministry added.