Slovenia makes history: fourth country in the world with Esop legislation

Yesterday, Slovenia stepped up to the plate USA, UK and Canada - countries that understand that employee co-ownership one of the key foundations of a sustainable, inclusive and innovative economy. The National Assembly adopts Employee Ownership Cooperative Act (Slovenian: ZLZD) - a law which, for the first time in Slovenia's history, establishes legal framework and brings tax incentives to implement the Esop model. Slovenian law is an inspiration to others to European countries - Denmark has taken the model almost entirely and drafted its own law, which is now in public consultation.

The Prime Minister called it an action of civilisational proportions - as it promotes a solution that builds and keeps Slovenian businesses strong. 

The Institute for Economic Democracy (IED) was a fundamental driving force of this story:

• we have set up conceptual starting points for Esop,
• built bridges between the social partners, business and the state and
• have been actively involved in ministerial working groups, that brought the law to its destination.

The Employee Ownership Cooperative Act (ZLZD) brings tax benefits for:

• owners – lower capital gains tax rate on the sale of the stake to Esop;
• companies – reduced tax base for income tax on the co-financing of employee share buybacks;
• Staff – tax-advantaged profit distributions through the Esop scheme.

The adoption of the Employee Ownership Cooperative Act represents the culmination of nearly a decade of work by our Institute and an important milestone on the road to a more democratic, inclusive and resilient economy. But our story does not end here. We will continue to advocate for the employee ownership model, to support companies that want to make the transition, and to work to make Slovenia a role model in introducing economic models that combine fairness, efficiency and cooperation.

We continue to work for democratising ownership in the Slovenian and European economy, because we believe that the time is coming when employee co-ownership become the standard for the most pioneering and innovative companies. The Esop model is a central approach for owners embarking on the path of employee co-ownership.

Companies, contact us - We'll help you understand how Esop can become part of your story.