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| A Code to Render the Labor Market More Flexible 01/03/2011 |
| (2011-03-01) |
| Last updated: 2011-03-02 13:07 EET |
Challenged by trade unions and the opposition alike, the draft law amending the Labour Code has been approved by the Romanian government. Prime Minister Emil Boc says one of the main advantages brought about by the new code is a more flexible labor market, which would give Romanians the opportunity to find a job more easily, to find a second job or to be better paid. By this amendment, the government intends to curtail illegal work by applying tougher sanctions on employers who hire people without labour contracts.
Prime Minister Emil Boc: ”More people will receive pensions, unemployment benefits and healthcare insurances because a labor contract offers them guarantees, for instance the right to receive pensions, healthcare and unemployment benefits; whereas as long as you work without legal documents, you don’t have any protection”.
Under the new code, employers who hire more than 5 people without a labor contract might be sentenced to 1-2 year imprisonment, can receive criminal fines, or can lose all forms of assistance, the right to receive EU funds and are banned from public procurement. The document also provides for the duration of the labour contract for a definite period of time to increase from 2 to 3 years, for the trial period for a working position to go up from 30 to 90 days and for executive positions to go up to 120 days. The maximum number of working hours further stands at 48 hours per week, extra time included.
Prime Minister Emil Boc has also added: ”The current Labour Code does not eliminate collective labor agreements at national level, it only stipulates that this issue will be regulated under the collective labor agreement law, which will be passed after the Labor Code has been endorsed.”
In another move, trade unionists are dissatisfied with some provisions of the new Labour Code. They say several articles in the draft code create a breach, allowing employers to commit abuses. Therefore unionists plan to take to the streets in Bucharest and other big cities across the country. In turn, the opposition which says the new code allegedly instates a formula of modern slavery intends to introduce a censure motion.
The President of the Social Democratic Party, Victor Ponta:”A new battle is looming ahead, as we should block these amendments, if we can, before they start producing effects, against those who either employ or get employed in this country.”
The government has announced a motion of confidence will be introduced in parliament on March the 8th, and afterwards a censure motion can been filed within three days.
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