Outline · [ Standard ] · Linear+ modificari in legea muncii, OUG 65

articolul e in engleza, sorry... nu pot da link direct, articolul e de pe www.businessromania.com, dar trebuie sa il cautati pe site folosind 'search'-ul lor. Amendments to the Labor Code On June 29, the government adopted Emergency Ordinance no. 65 regarding the amendment and completion of Law no. 53/2003 – the Labor Code. The normative act was awaited impatiently by employers in Romania, who were discontented with the numerous obligations and formalities imposed by the former regulation. By Andreea Ionescu The main grievances included the overtime system, non-competition clause, security fund for salary payment and taxes withheld from salaries. >     print this article The main grievances included the overtime system, non-competition clause, security fund for salary payment and taxes withheld from salaries. Government Emergency Ordinance no. 65/2005 solves some of the issues contained in the Labor Code, reduces certain obligations for employers but also imposes new ones. It was published in the Official Gazette no. 576/05.07.05 and entered into force three days after its publishing, according to the Constitution. The non-competition clause One of the most important amendments brought by the ordinance is the correction to the non-competition clause status. The previous regulation was at worst unnatural and, in any case, unusual. The employer was forced to pay the employee an indemnity of at least 25 percent of his or her salary for not carrying out any activity for competitive employers during the labor contract. In other words, something that other European countries would take as a normal obligation of the employment relation, namely loyalty to the employer, was regulated by the Romanian Labor Code as an additional obligation, as something for which the employee was entitled to extra pay. In exchange, if the non-competition clause had effects even after the termination of the labor relation, the Labor Law did not force the employer explicitly to pay any indemnity to the former employee. The ordinance states that a non-competition clause can become effective only after the termination of the labor contract, for a period of up to two years, in exchange of an indemnity of at least 50 percent of the salary. The indemnity is taxed to the former employee and is deductible for the employer. The obligation that the employer must specify explicitly in the labor contract the competitive activities that the employee is forbidden to perform has been retained. Moreover, the employer shall indicate the third parties in whose favor any activity is forbidden, as well as the geographical area where the employee can actually compete with the employer. Termination of individual labor contract In the old regulation, the Labor Law provided for the automatic termination of the individual labor contract on the date of fulfilling the conditions for retirement. Government Emergency Ordinance no. 65/2005 annulled this provision and introduced a new situation of dismissal for reasons related to the employee’s person: if the employee meets the standard age conditions and the fee subscription stage but did not request retirement, under the legal provisions the employer is entitled to cancel his/her labor contract. The provision covers a gap in the legislation, which stipulated the retirement conditions, but did not force the employee who reached retirement age to retire, nor allowed the employer to force him/her to do so. Consequently, persons reaching the retirement age will be able to work even after that date, based on an individual labor contract, if the employer wishes to continue to benefit from their services. In the event of dismissal for professional inadequacy, when a prior investigation procedure is necessary in order to establish the incompetence and to be able to cancel the labor contract, ordinance introduces the concept of an evaluation procedure. The procedure should be established by the collective labor contract at national level, by July, next year. If this is not accomplished, the employers will have to establish evaluation procedures in their internal regulations. Also, they will be free to complete the procedure provided by the collective labor contract at national level with provisions included in their own internal regulations, in order to adjust it to the specific activity. Collective dismissal Certain elements related to collective dismissal were amended: - Dismissal of at least 10 employees, instead of five, if the employer has between 20 and 100 employees; - Elimination of the social actions plan and the collective dismissal project, the only obligations of the employer remaining consultation with the trade union and providing them with information on the collective dismissal; - Reduction of all elements related to the collective dismissal procedure. Individual fixed-term labor contracts The maximum term of the fixed-term labor contract was extended from 18 to 24 months. In practice, it was stated that the employers tend to make excessive use of fixed-term contracts, which allow them to get rid of the employee at the expiration of the contract, without having to apply specific (and often cumbersome) dismissal procedures. In order to oppose such practice, the ordinance stipulated that a maximum of three successive fixed-term labor contracts can be concluded between the same parties, but only within the 24-month term. Fixed-term labor contracts that were concluded within three months of the termination of a previous fixed-term contract shall be deemed successive contracts. Extra hours The possibility to extend the working period to over 48 hours per week was introduced, but provided that the average working hours, calculated for a reference period of one calendar month, does not exceed 48 hours per week. Government Emergency Ordinance no. 65/2005 also stipulates the possibility for certain sectors of activity to negotiate, by collective labor contract, reference periods of more than one month, but which shall not exceed 12 months.

articolul e in engleza, sorry...
nu pot da link direct, articolul e de pe www.businessromania.com, dar trebuie sa il cautati pe site folosind 'search'-ul lor.

Amendments to the Labor Code
On June 29, the government adopted Emergency Ordinance no. 65 regarding the amendment and completion of Law no. 53/2003 – the Labor Code. The normative act was awaited impatiently by employers in Romania, who were discontented with the numerous obligations and formalities imposed by the former regulation.




By Andreea Ionescu


The main grievances included the overtime system, non-competition clause, security fund for salary payment and taxes withheld from salaries.

>
    print this article

The main grievances included the overtime system, non-competition clause, security fund for salary payment and taxes withheld from salaries.
Government Emergency Ordinance no. 65/2005 solves some of the issues contained in the Labor Code, reduces certain obligations for employers but also imposes new ones. It was published in the Official Gazette no. 576/05.07.05 and entered into force three days after its publishing, according to the Constitution.

The non-competition clause

One of the most important amendments brought by the ordinance is the correction to the non-competition clause status. The previous regulation was at worst unnatural and, in any case, unusual. The employer was forced to pay the employee an indemnity of at least 25 percent of his or her salary for not carrying out any activity for competitive employers during the labor contract. In other words, something that other European countries would take as a normal obligation of the employment relation, namely loyalty to the employer, was regulated by the Romanian Labor Code as an additional obligation, as something for which the employee was entitled to extra pay. In exchange, if the non-competition clause had effects even after the termination of the labor relation, the Labor Law did not force the employer explicitly to pay any indemnity to the former employee.

The ordinance states that a non-competition clause can become effective only after the termination of the labor contract, for a period of up to two years, in exchange of an indemnity of at least 50 percent of the salary. The indemnity is taxed to the former employee and is deductible for the employer. The obligation that the employer must specify explicitly in the labor contract the competitive activities that the employee is forbidden to perform has been retained. Moreover, the employer shall indicate the third parties in whose favor any activity is forbidden, as well as the geographical area where the employee can actually compete with the employer.

Termination of individual

labor contract

In the old regulation, the Labor Law provided for the automatic termination of the individual labor contract on the date of fulfilling the conditions for retirement. Government Emergency Ordinance no. 65/2005 annulled this provision and introduced a new situation of dismissal for reasons related to the employee’s person: if the employee meets the standard age conditions and the fee subscription stage but did not request retirement, under the legal provisions the employer is entitled to cancel his/her labor contract. The provision covers a gap in the legislation, which stipulated the retirement conditions, but did not force the employee who reached retirement age to retire, nor allowed the employer to force him/her to do so. Consequently, persons reaching the retirement age will be able to work even after that date, based on an individual labor contract, if the employer wishes to continue to benefit from their services.

In the event of dismissal for professional inadequacy, when a prior investigation procedure is necessary in order to establish the incompetence and to be able to cancel the labor contract, ordinance introduces the concept of an evaluation procedure. The procedure should be established by the collective labor contract at national level, by July, next year. If this is not accomplished, the employers will have to establish evaluation procedures in their internal regulations. Also, they will be free to complete the procedure provided by the collective labor contract at national level with provisions included in their own internal regulations, in order to adjust it to the specific activity.

Collective dismissal

Certain elements related to collective dismissal were amended:

- Dismissal of at least 10 employees, instead of five, if the employer has between 20 and 100 employees;

- Elimination of the social actions plan and the collective dismissal project, the only obligations of the employer remaining consultation with the trade union and providing them with information on the collective dismissal;

- Reduction of all elements related to the collective dismissal procedure.

Individual fixed-term

labor contracts

The maximum term of the fixed-term labor contract was extended from 18 to 24 months. In practice, it was stated that the employers tend to make excessive use of fixed-term contracts, which allow them to get rid of the employee at the expiration of the contract, without having to apply specific (and often cumbersome) dismissal procedures. In order to oppose such practice, the ordinance stipulated that a maximum of three successive fixed-term labor contracts can be concluded between the same parties, but only within the 24-month term. Fixed-term labor contracts that were concluded within three months of the termination of a previous fixed-term contract shall be deemed successive contracts.

Extra hours

The possibility to extend the working period to over 48 hours per week was introduced, but provided that the average working hours, calculated for a reference period of one calendar month, does not exceed 48 hours per week. Government Emergency Ordinance no. 65/2005 also stipulates the possibility for certain sectors of activity to negotiate, by collective labor contract, reference periods of more than one month, but which shall not exceed 12 months.