The new labor legislation - More flexibility for companies?

Mihai Anghel

Part I Labor Code Amendments

Part II New Social Dialogue Legislation

Part ILabor Code Amendments

Advantages and disadvantages for employers: problems, solutions, opportunities

-I-

INDIVIDUAL EMPLOYMENT CONTRACT

PROBATION PERIOD90 calendar days execution positions120 calendar days management positions

Written notificationNo prior noticeNo motivation

Maximum 12 monthsMore than 3 persons may be employed on the same position with a probation period

Repealed

FLEXIBILIZATION

Extension of the probation period

Termination of the employment contract during the probation period

Consecutive hiring during the probation periodInterdiction of using the probation period in case the employer was not previously informed

5 days / week 4 days / weekProportional reduction of the salaryREDUCTION OF THE WORK PROGRAMME

TEMPORARY REDUCTION OF THE ACTIVITYPRIOR CONSULTATION of the representative union/employees representatives> 30 working days

TERMINATION OF THE EMPLOYMENT CONTRACT

COLLECTIVE DISMISSALSFOLLOWING the performance evaluation of the employees based on the PERFORMANCE CRITERIA/OBJECTIVESRehiring with priority the dismissed employeeCriteria for establishing the order of the employees dismissals shall applyPosition re-created within the same line of activity45 calendar days from the date of dismissalInformation of the relevant employeesEmployees have a 5 calendar days limit to respondHiring other persons in case of refusal or in the absence of a timely answer

NOT APPLICABLE TOPUBLIC AUTHORITIES AND INSTITUTIONS

-II-

FIXED-TERM INDIVIDUAL EMPLOYMENT CONTRACT

Maximum 36 months

With the parties approvalFor the duration of a project, program or undertakingIncrease and/or temporary modifications of the activitys structureFor performing works, projects or programs

Fixed-term contracts concluded within 3 months from the termination of another fixed-term contractMaximum duration of 12 months/each consecutive contractMaximum 3 consecutive contracts concluded between the same partiesFLEXIBILIZATIONDURATION PROLONGATION

NEW CASES OF APPLICATION CONSECUTIVE CONTRACTSFIXED-TERM INDIVIDUAL EMPLOYMENT CONTRACT

Part II New Social Dialogue Legislation:

Are collective negotiations still mandatory?

COLLECTIVE NEGOTIATIONS

COMPANY LEVEL

GROUP OF COMPANIES

ACTIVITY SECTOR

AMENDMENTSLEVELS OF NEGOTATIONNATIONAL COLLECTIVE LABOR AGREEMENT

COLLECTIVE NEGOTIATIONS

ARE MANDATORY

COMPANIES with at least 21 employeesCONCLUDING a collective labor agreement is not mandatory !

ONLY FOR

EMPLOYERorEMPLOYERS ORGANISATIONCOLLECTIVE NEGOTIATIONS

NEGOTIATIONS INITIATIVEFINE RON 5.000 10.000 (i.e. EUR 1163 EUR 2326) THE COMPANYS OWN INITIATIVEUPON THE REQUEST OF45 CALENDAR DAYS

PRIOR TO: The expiration of the collective labor agreements

The expiration of the applicability period of the clauses stipulated within the additional acts to the collective labor agreementsThe representative unionThe employees representatives

10 CALENDAR DAYS

OR

Legal status as union

Patrimonial and organisational independence

Members 50% + 1 of the companys total number of employees

Collective negotiations shall be held with the UNION FEDERATIONand EMPLOYEES REPRESENTATIVESNON-AFFILIATED UNION / NON-EXISTENT

NON-REPRESENTATIVE UNION

COLLECTIVE NEGOTIATIONS

COMPANY COLLECTIVE LABOR AGREEMENT

REPRESENTATIVE UNION

BUT affiliated to a union federation representative at activity sector level

Collective negotiations shall be held with the EMPLOYEES REPRESENTATIVES

COLLECTIVE NEGOTIATIONS

COLLECTIVE LABOR AGREEMENT CONCLUDED AT ACTIVITY SECTOR LEVELLegal status as union federation

Patrimonial and organisational independence

Members at least 7% of the total number of employees from the respective activity sector

EFFECTS

it shall be applicable to all employees from the companies forming the respective activity sector and WHICH ARE PART OF the employers organizations which have executed the collective labor agreement

REPRESENTATIVEUNION

APPLICABILITY OF A CERTAIN ACTIVITY SECTOR

MAIN SCOPE OF BUSINESSRegistered with the Trade Registry(CAEN Code)

Legal status as employers federation

Patrimonial and organisational independence

Members companies with at least 10% of the total number of employees from the respective activity sector

REPRESENTATIVE EMPLOYERS

COLLECTIVE NEGOTIATIONS

COLLECTIVE LABOR AGREEMENT CONCLUDED AT GROUP OF COMPANIES LEVELLegal status as union federation

Patrimonial and organisational independence

Members at least 7% of the total number of employees from the respective group of companies

EFFECTS

it is applicable to all employees from the companies PART OF the group of companies for which the collective labor agreement was concluded

REPRESENTATIVE UNION

With the same scope of business, as per the CAEN Code

Voluntarily constituted as per the law

COMPANIES

COLLECTIVE NEGOTIATIONS

DURATION OF THE COLLECTIVE LABOR AGREEMENT

DETERMINEDMINIMUM : 12 MONTHSMAXIMUM: 24 MONTHSPROLONGATION PERIODMAXIMUM: 12 MONTHS

COLLECTIVE NEGOTIATIONS

REGISTRATION OF THE COLLECTIVE LABOR AGREEMENTCOMPANY COLLECTIVE LABOR AGREEMENTTERRITORIAL LABOR INSPECTORATETHE MINISTRY OF LABOR, FAMILY AND SOCIAL PROTECTIONCOLLECTIVE LABOR AGREEMENT CONCLUDED AT GROUP OF COMPANIES/ACTIVITY SECTOR LEVEL

QUESTIONS?

THANK YOU FOR YOUR ATTENTION