Draft amendments to the labor code spur controversy

Extending the trial period for employees and forcing them to pay for material damage for which they are responsible are only some changes that could be brought to the Romanian labor code. Many of the proposed amendments are welcomed by local companies who have been calling for more flexible labor contracts. Union leaders on the other hand, argue that changes are abusive and fear that the government will assume responsibility for the bill.

The draft amending Romania’s Labor Code was sent this week to unions and employers’ associations for debates. It brings together the first proposals received by the government from foreign investors and academics, said Labor Minister Ioan Botis.

Under the draft bill cited by Mediafax, the trial period for new employees will be extended and labor contracts may be terminated without notice during this time, or at the end of the period. The trial period for new employees is to be specified in the individual labor contract and may last as long as 45 days (compared to 30 days presently) for rank-and-file employees and up to 120 days (up from 90) for management positions.

The maximum length of the workweek is kept at 48 hours, but the period of reference according to which working hours can be added will be extended by one month, to four months. The employee will be allowed to take hours off, with remuneration, 60 days after putting in overtime, not 30 days, as per current legislation. Employers will have to ensure each employee gets at least ten days of uninterrupted leave, compared to 15 days previously.

When resigning, employees have to give a notice of at least 20 working days. The draft bill extends the requirement to 20 days from 15 in the case of ordinary employees, and to 45 days from 30 in the case of the management.

Also, definite-period labor contracts will run for three years instead of two and they can be extended after termination under certain conditions.

The draft specifies that an individual work contract can be suspended if the employee takes part in a strike, an amendment which was labeled as unconstitutional by union leaders.