What do I need to know when signing a copyright contract / contract for work?
In culture, most work is performed under a copyright contract or a contract for work. For certain intellectual works, a contract for work borders on a copyright contract, as there may be elements of a copyright work. Read on for more information.
Copyright contract
A copyright contract (in Slovene avtorska pogodba) may only be concluded for works that are designated as copyright works under the Copyright and Related Rights Act (ZASP).
With a contract to commission a work, an author undertakes to create or carry out a certain copyright work and deliver it to the person commissioning it, who undertakes to pay a remuneration to the author. An author is a natural person who has created a copyright work.
Copyright works are individual intellectual creations in the fields of literature, science and the arts, expressed in any way, in particular:
- spoken works, such as speeches, lectures,
- written works such as belletristic works, articles, manuals, studies and computer programs,
- musical works with or without words,
- theatrical or theatrical and musical works and puppetry works,
- choreographic works and works of pantomime,
- photographic works and works produced by a process similar to photography,
- audiovisual works,
- works of fine art such as paintings, graphic works and sculptures,
- works of architecture such as sketches, plans and built structures in the fields of architecture, urban planning and landscape architecture,
- works of applied art and industrial design,
- cartographic works,
- presentations of a scientific, educational or technical nature (technical drawings, plans, sketches, tables, expert opinions, three-dimensional representations and other works of a similar nature).
The parties to a copyright contract are the person commissioning the work and the author. The person commissioning the work can be a natural or legal person, and the author is the natural person who created the copyright work. The author can be:
- in a regular employment relationship (unless the contract contains a non-competition clause),
- the owner of a legal person,
- a sole trader,
- someone working under a contract for work,
- a full-time or part-time student.
Tax aspects of the copyright contract
The remuneration received under a copyright contract is the individual’s income, which is subject to personal income tax. The amount of contributions related to a copyright contract depends on whether or not the author already has compulsory pension and disability insurance.
Personal income tax
The advance payment of personal income tax on income from other contractual relationships is calculated and paid at a rate of 25% of the tax base, which is the income (including reimbursements of expenses) less standardised (flat-rate) costs of 10% and social security contributions payable by the author.
Social security contributions are also calculated and charged on the basis of income, depending on the author’s membership in the insurance scheme:
- contribution within the compulsory health insurance for insurance against occupational injuries and diseases under Article 17(5) of the Health Care and Health Insurance Act (ZZVZZ) at the rate of 0.53% of the income from the copyright work carried out,
- the author’s contribution for compulsory health insurance under Article 55a of the ZZVZZ at the rate of 6.36% of income,
- the author’s contribution for pension and invalidity insurance at the rate of 15.50% and the employer’s contribution (the payer of income) at the rate of 8.85% of the income, if the author is an insured person under Article 18 of the Pension and Disability Insurance Act (ZPIZ-2),
- contribution for special insurance cases under Article 20 of the ZPIZ-2 at the rate of 8.85% of income, if the author is not an insured person under Article 18 of the ZPIZ-2.
You cannot sign a copyright contract for non-copyright work and must choose another contract to carry out the work (e.g. a contract for work).
The copyright contract must be in writing. If not, any ambiguity is interpreted in favour of the author.
For more information on the copyright contract, visit SPOT, e-uprava.gov.si, the Association of Accountants, Treasurers and Auditors of Slovenia (ZVEZA RFR) and racunovodja.com.
We also recommend listening to the podcast Copyright is an asset (in Slovenian: Avtorska pravica je premoženje), produced by Novičnik za samozaposlene v kulturi (Trivia Art Association). Helping authors have a better-regulated relationship with their clients and a better understanding of authorship.
Contract for work
A contract for work (in Slovene podjemna pogodba) is for occasional work and work of limited duration. The subject of a contract for work can be:
- the production of items (this mostly applies to craft production and other major investment arrangements),
- the repair of items (craft services),
- physical or intellectual work.
In practice, a contract for work can cover all types of work that do not qualify as copyright work. For certain intellectual works, a contract for work borders on a copyright contract, as there may be elements of a copyright work, so in this case it makes more sense to conclude a copyright contract.
Parties to the contract
A contract for work can be concluded between a natural person and a person commissioning the work, who can be a natural or legal person. In practice, this can be an employee who does not conclude a contract with their employer. It can also be concluded between an employer and a worker who already have an employment contract, but only for work outside the scope of the regular job description.
A contract for work is only concluded for a fixed period of time, and the legal basis is laid down in the Obligations Code.
Tax aspects of the contract for work
The remuneration received under a contract for work is the individual’s income, which is subject to personal income tax.
Personal income tax
Advance payment of personal income tax on income from other contractual relationships is calculated and paid at a rate of 25% of the tax base, which is the income (including reimbursements of expenses and bonuses) less standardised (flat-rate) costs of 10% and social security contributions payable by the income recipient.
Social security contributions are also calculated and charged on the basis of income, depending on the income recipient’s membership in the insurance scheme:
- contribution within the compulsory health insurance for insurance against occupational injuries and diseases under Article 17(5) of the Health Care and Health Insurance Act (ZZVZZ) at the rate of 0.53% of the income for the work carried out under the contract for work,
- the income recipient’s contribution for compulsory health insurance under Article 55a of the ZZVZZ at the rate of 6.36% of income,
- the income recipient’s contribution for pension and invalidity insurance at the rate of 15.50% and the employer’s contribution (the payer of income) at the rate of 8.85% of income, if the income recipient is an insured person under Article 18 of the Pension and Disability Insurance Act (ZPIZ-2),
- contribution for special insurance cases under Article 20 of the ZPIZ-2 at the rate of 8.85% of the income, if the income recipient is not an insured person under Article 18 of the ZPIZ-2.
A special tax on certain types of receipts is also levied and paid on the income, at a rate of 25%.
For more information, visit the Financial Administration of the Republic of Slovenia and SPOT.
What do I need to conclude contracts?
The basic documents you need to conclude an employment contract are your identity document, tax identification number, personal identification number (EMŠO), transaction account, certificates of education, additional education and training, references, portfolio, etc.
Third-country nationals need a single residence permit in addition to the above. For more, visit here.
What is the minimum payment or recommended payment amount?
Copyright contracts and contracts for work: the amount of the payment is negotiated between the contracting parties.
We recommend that you follow the standards of collecting, guild, representative, etc. organisations regarding the level of payments.
Useful links
- EURES: EURopean Employment Services. They also provide legal support for mobile workers.
- European Commission: Your rights country by country.
- e-uprava.gov.si: government portal with information on registering as a self-employed person in culture.
- Info.tujci is the government’s information portal for foreigners.
- SOLVIT: A free online service for solving problems related to infringements of the rights of EU citizens and EU companies by EU public administrations, e.g. recognition of professional qualifications, visa and residence rights, employment abroad, health insurance, etc.
- Your Europe is managed by the Directorate General for Internal Market, Industry, Entrepreneurship and SMEs and is an official website of the European Union. You can also find information on health insurance during your temporary stay abroad.
- SPOT national system: the Slovenian Business Point offers a comprehensive system of support and free government services for business entities. SPOT brings together institutions that provide assistance, information and advice to companies and business entities under a single brand.
- Novičnik za samozaposlene v kulturi (Trivia Art Association) offers self-employed persons in culture advice on copyright and intellectual property, social and labour rights, accounting, etc.
- Asociacija assists professional non-governmental producers and independent artists in Slovenia with advice on administration, legal provisions, accounting obligations, legal issues and taxes.
Legislation
The overarching law governing employment is the Employment Relationships Act (ZDR-1), and for culture, the Collective Agreement for the Cultural Sector in the Republic of Slovenia.
When employing foreigners, the Employment, Self-employment and Work of Foreigners Act, the Foreigners Act, the Transnational Provision of Services Act and the Labour Market Regulation Act must also be taken into account.
- Employment Relationships Act
- Labour Market Regulation Act
- Employment, Self-employment and Work of Foreigners Act
- Collective Agreement for the Cultural Sector
- Foreigners Act
- Transnational Provision of Services Act
- Obligations Code
- Copyright and Related Rights Act
- Minimum Wage Act
- Personal Income Tax Act
- Pension and Disability Insurance Act
This article was written in cooperation with PIP Institute.