The Impact of Globalisation on Employment in Slovenia

Globalisation – a word that is familiar to us due to its frequent use, but when we need to describe it in detail and define its meaning, we are often at a loss. The term began to be used in 1990. It has caused migrations of people who, in their desire for a better life, sought employment in more developed countries. Likewise, a worker in Austria is less burdened by taxes and contributions, with a larger share of taxes and contributions falling on the company. A subsidiary of a foreign company in Slovenia will achieve higher profits due to lower labour costs.

Problem

Globalisation – a word that is familiar to us due to its frequent use, but when we need to describe it in detail and define its meaning, we are often at a loss. The term began to be used in 1990. The meaning of the word derives from the English word 'global', which means worldwide, and in translation from English we also encounter the word ** global, which we understand as ** all-encompassing, boundless. ** Globalisation is a process affecting all areas of human life**, including employment.

Solution and Method

It has caused migrations of people who, in their desire for a better life, sought employment in more developed countries. European regulations since 1 May 2011 allow labour market mobility for all EU member states. Slovenian citizens can ** work in EU countries** without restrictions, do not require work permits, and are equal to other EU citizens on the labour market.

Employment is not tied to a single country. A consequence of globalisation is also that Slovenian employers, with their workforce and knowledge, successfully win contracts abroad, and thus we arrive at the phenomenon of posting workers abroad, which is a consequence of the common European market. To ensure this area is regulated as much as possible at EU level, several ** regulations** have been adopted, which have removed administrative barriers to the free movement of persons and services between member states.

The regulations have also established the rights of posted workers. When posting a worker to another country, the employer must respect the rules of that country if the standards there are more favourable for the worker. It is necessary to observe the minimum wage, ** working time, ** minimum rest and ** break periods, and ** annual leave to which the worker is entitled.

Countries have different regulations in different areas, with different minimum hourly rates. Employment in Austria has meant a solution for a large number of people during the economic crisis. Courageous and persistent workers accepted the challenge and found employment in the neighbouring country.

A worker in Austria receives a higher wage for work performed than they would receive in Slovenia.

Results

Likewise, a worker in Austria is less burdened by taxes and contributions, with a larger share of taxes and contributions falling on the company. A subsidiary of a foreign company in Slovenia will achieve higher profits due to lower labour costs. However, not for the reason one might first think of, that wages in our country are overtaxed.

It will achieve profits due to the lower wages it will have to pay employees. The minimum wage in **Austria , which will be legislated for all sectors in 2020, will be 1,500.00 euros gross, whilst ** the Slovenian minimum wage amounts to 886.63 euros. An Austrian subsidiary can pay a worker the Austrian minimum wage, and this wage will be considered very decent pay in Slovenia.

A worker under Slovenian legislation is substantially cheaper than a worker in Austria.