The Slovenian National Assembly has taken a step forward in strengthening workers’ co-ownership rights with the adoption, on 24 October, of the ‘Employee Ownership Cooperative Act’ (in Slovene: ZLZD). The Act establishes a legal framework enabling employees to participate in company ownership through a new legal entity known as a “ownership cooperative”. The legislation provides tax incentives for implementing the Employee Stock Ownership Plan (ESOP) model.
Slovenia becomes the fourth country in the world to introduce dedicated legislation on employee share-ownership plans, following the United States, the United Kingdom and Canada — countries that recognise employee co-ownership as one of the key pillars of a sustainable, inclusive and innovative economy.
The Act sets out the legal framework for acquiring shares of a parent company through an intermediate legal entity, the ownership cooperative, with the aim of ensuring stable, long-term employee participation in the ownership of the companies where they work.
The legislation addresses the need to secure the stability and sustainability of local businesses, offering an additional regulated option for ownership succession and generational transfer — in this case through stable, locally anchored, long-term co-ownership.
A source of inspiration
The Slovenian law, which will enter into force in 2026, is also serving as a source of inspiration for other European countries, such as Denmark, which has adopted the model almost in its entirety and drafted its own bill, now in public consultation.
Slovenian Prime Minister Robert Golob described the adoption of the ZLZD as “an action of civilizational proportions, as it promotes a solution that strengthens and preserves the robustness of Slovenian companies”.
The Institute for Economic Democracy (IED) has been one of the institutions driving this measure, through initiatives such as conceptual research and dissemination; the building of bridges between social partners, businesses and the state; and its active participation in ministerial working groups that steered the legislative process to completion.
The adoption of the Employee-Owned Cooperatives Act marks the culmination of nearly a decade of work by the Institute and a significant milestone on the path toward a more democratic, inclusive and resilient economy.
For more info: https://www.gov.si/novice/2025-10-23-drzavni-zbor-sprejel-zakon-o-lastniski-zadrugi-delavcev/
