26 August 2019

In its recent decision the Constitutional Court of the Republic of Slovenia (“Constitutional Court”), nos. U-I-55/16-19 and U-I-196/16-15, dated 13 June 2019, ruled that the exclusion of worker’s participation in bank’s management under Article 33(4) of the Banking Act (“ZBan-2”) violates the constitutional principle of equality as enshrined in Article 14 of the Constitution, and was therefore repealed.

The Worker Participation in Management Act (“ZSDU”) provides that workers, employed in a company having a two-tiered management system, may have their representative both in the supervisory body as well as in the management board, and those employed in a company with a single-tiered system, may have a representative in the board. In any event, workers have the right to have their representative in a management board or a board if a company employs over 500 workers.

One of the arguments supporting the previously valid exclusion of worker’s participation in banks’ management are the special requirements, duties and conditions that members of management bodies must satisfy under ZBan-2. Namely, knowledge, skills, experience in managing a bank’s business, reputation, and the lack of any management position in another company.

The question which – if any – requirements under ZBan-2 must workers’ representatives satisfy in order to be validly appointed to a management position in a bank, has not been addressed by the Constitutional Court.

By: Suzana Bončina Jamšek, Partner

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