Benefits and profit- Invest in Brazil!

Benefits and profit- Invest in Brazil!

Profit is achieved through investment-Invest in Romania!

Profit is achieved through investment-Invest in Romania!

Sunny beaches. Charming culture. New opportunities. Visit Brazil!

Sunny beaches. Charming culture. New opportunities. Visit Brazil!

Charming traditions. Hospitality. Enthralling Landscapes. Visit Romania!

Charming traditions. Hospitality. Enthralling Landscapes. Visit Romania!

Business Opportunities. Quality services. Benefits for members.

Business Opportunities. Quality services. Benefits for members.

News

Labour Law News

14 JUN 2011 Labour Law News

Law no. 40/2011 for amending and supplementing Law no. 53 /2003 - Labour Code, published in the Official Gazette of Romania, Part I, no. 225 of 31 March 2011, makes substantial changes to the Labour Code. The new law comes into force from 1 of May 2011. The new provisions aim to adjust the labor relations to the current socio-economic realities and the dynamics of the labor market in the current context of economic crisis, and also to harmonize Labour Code regulations with the European Directives. The amendments and addendums to the Labour Code have been initiated as a result of the main problem in business environment, the rigidity and lack of flexibility of the labour law provisions. The main changes and addendums focused the following aspects:

  • obligations of i) signing the individual employment contract in written form as an ad validitatem condition and ii) registration in the register of the employees;
  • elimination of the provisions stating that in case the employee presents the medical certificate after signing the individual employment contract, the contract remains valid;
  • extension of the trial period for checking the employee’s skills: for executive positions increases from 30 days to 90 calendar days, and for management positions from 90 days to 120 days;
  • amendments regarding the contents of general register of the employees;
  • the employer has now the right to establish individual performance objectives as well as the criteria for evaluating their achievement;
  • adjustment of the conditions in which the employee can be assigned;
  • review of ipso jure termination cases of individual employment contract;
  • changes of the provisions for temporary cutback of activity;
  • change of the criteria in case of collective layoffs (i.e. differentiation of employees will be made based on the performance criteria);
  • increase of the notice period from 15 to 20 days in case of dismissal for reasons not related to the individual;
  • increase of the notice period from 15 to 20 days for executive positions and from 30 to 45 days for management positions, in case of resignation;
  • period for which the individual employment contract can be signed is extended from 24 months to 36 months; however, the maximum period of the individual contract can be extended in case of a project or program based work;
  • institution of temporary labor agent is reviewed and previous restrictions are removed;
  • reference periods used for computing the average working hours are changed; the new law provides the exceptions in which the work may exceed 48 hours per week;
  • night work allowance will be increased from 15% to 25% of the base salary;
  • binding period for uninterrupted holiday decreases from 15 to 10 days;
  • overtime shall be compensated with paid hours off; to be taken during the following 60 days (30 days previously);
  • the employer may ask the employee to cover the amount of damages brought within certain conditions;
  • disciplinary misconduct will no more be sanctioned with suspension of the contract;
  • new sanctions were provided;
  • employees who have benefit from a training course or an internship training cannot initiate the termination of the employment contract for a period as determined by addendum (in the previous regulation, the wage of the employee trained could have been reduced, depending on the period in which the employee was out of work);
  • the interests of employees within companies with more than 20 employees and which have no trade unions, can be promoted and defended by their representatives, elected and commissioned specifically for this purpose;
  • collective negotiation at enterprise level is mandatory, unless the employer has hired fewer than 21 employees;
  • new infringements and additional sanctions are entering into force.

« Inapoi la news

© 2011 BRACC. All rights reserved Developed by Telliso