Towards Labor Law reform

1. Fixed term contract• extend the duration of fixed-term contracts and define in

which cases it can be used and how

2. Severance pay• change the method of calculation of severance payment

in case of redundancy by basing this amount solely on years of service of an employee with that actual employer.

3. Outsourcing and leasing workforce • It is necessary to regulate the Temporary Agency Work

What are the priorities for businesses?

What are the priorities for businesses?

4. Eliminate or limit the extended application of collective agreement

• Preferably the article would be deleted; alternatively, have strictly defined measureable criteria for such an extension.

5. Reallocation of working hours• Have more precise regulation, particularly because of

seasonal work.

What are the priorities for businesses?

6. Cutting red tape (e.g. for annual leave and payout slips for wages)

• Other ways to deliver the resolutions should be provided (e-mails, web presentations of the companies, etc.).

• Provide the possibility that the annual leave resolution can be issued immediately prior to the use of annual leave (at the request of the employee)

What are the priorities for businesses?

7. Overtime• There should be a possibility for longer overtime with

the approval of the employee.

8. Night work and shift work • Eliminate the possibility of misinterpretation.

9. Annual Leave• Provide the possibility to use annual leave in several

parts without obligation to issue the resolution 15 days in advance.

10. Minimum wage • The criteria for determining the minimum wage should

be amended to emphasize productivity growth and economic growth, while taking into account the social role of the minimum wage from the ILO Convention 131.

• The minimum period for the minimum wage should be 24 months, while allowing the possibility of defining a new minimum cost of labor in the event of a large increase in the cost of living in a calendar year (CPI + 10% per annum).

What are the priorities for businesses?

What are likely to be the most difficult issues in Labor Law drafting and negotiations?

• Whether and how much to extend the duration of fixed-term contracts?

• What should be the formula for calculating severance pay?

• How to determine representativeness and its periodic verification?

• How to regulate the temporary agencies work?• Whether to change the way of using annual leave?• New rules on overtime and reallocation of working

hours • How to define the minimum wage?

Once we finally have a more flexible Labor Law, it is not the end...

• Changes in other laws, such as Law on Health  and

Safety, Law on Employment, Law on Mandatory Social Security Contributions, Law on Strike, Law on Employment of Foreign Citizens and other relevant laws

• Better  regulation of collective bargaining, focusing on collective bargaining on company level

• Better inspection surveillance, improve the court practice, and the reform of education system (in order to avoid skill mismatch and the brain drain)

THANK YOU