The Government of the Republic of Slovenia has officially adopted the proposed Employee Ownership Cooperative Act (ZLZD) — also known as the ESOP Law — marking a significant step toward building a more resilient, sustainable and competitive Slovenian economy.

This milestone follows nearly a decade of dedicated efforts by our Institute.This includes extensive coordination with trade unions and employer representatives, two years of intensive collaboration within ministry working groups, a public hearing, and interministerial consultations. With today’s adoption, the final formal step before parliamentary reading has been completed. 

The ESOP Law offers numerous benefits for business owners, employees, and the economy at large. If implemented broadly, the model could also generate substantial positive social impacts throughout the country. Read more about the benefits of the law here.

Employee Ownership Cooperative Act (Esop law)

The Esop Law promotes a fairer economy by encouraging the rewarding of work through employee co-ownership. It introduces a range of tax incentives designed to help companies reward employees more efficiently — but only for those that choose the path of socially responsible ownership. By connecting work, ownership, and community, this law represents a vital development opportunity for Slovenian businesses. For employees in ESOP-participating companies, work will pay again.

Would you like to know more about the specific solutions of the law? Interested in switching to the Esop model? Would you like to join the team that brought the world's most widespread employee co-ownership model to Slovenia? Complete contact form or contact us at info@ied.si.

If you’d like to find out more about what the law entails — or get practical insights on how to implement employee co-ownership — we warmly invite you to attend the 2025 Congress of Economic Democracy, which will be held in October.. 

Reserve your free spot and fill the few empty seats at the event. You can register here.

We are committed to keeping the event independent of vested interests, which is why it is organized exclusively with the support of Slovenian companies. If you are interested in becoming a sponsor, please contact us at masa.petrovic@ied.si