Regulation of temporary agency work and the modern labor market: a case study of Slovenia

Abstract

Temporary Agency Work (TAW) is a unique employment model involving a three-way relationship between a posted worker, an employment agency, and a client organization, enabling clients to adjust their labour force in response to fluctuating demands, but also raising concerns about job precariousness. Achieving a balance between flexibility and employment and social security is crucial for integrating TAW effectively into the labour market.TAW arrangements within the labour markets of the EU are confronted by specific contemporary dynamics, including fluctuations and seasonality of labour demands, labour scarcity in some professions and labour migration. Building on a case study of the TAW legislation development in Slovenia, this study aimed to elucidate the repercussions of these challenges on the regulatory landscape of TAW, potentially illuminating the prospective evolution of labour law standards throughout the EU.Despite the inherent limitations of case studies, the findings suggest that a detailed legal framework providing strong rights for posted workers and controlled flexibility for clients can be operational in addressing particular labour market challenges. TAW has the potential for further growth, particularly in supporting groups with limited labour market access and in filling professional gaps, by facilitating the integration of foreign workers.