The new labor legislation - More flexibility for companies? Mihai Anghel

Part I Part II Part I – Labor Code Amendments Part II – New Social Dialogue Legislation

Part I Labor Code Amendments  Advantages and disadvantages for employers: problems, solutions, opportunities

-I- INDIVIDUAL EMPLOYMENT CONTRACT

PROBATION PERIOD 90 calendar days – execution positions 120 calendar days – management positions Written notification No prior notice No motivation Maximum 12 months More than 3 persons may be employed on the same position with a probation period Repealed FLEXIBILIZATION Extension of the probation period Termination of the employment contract during the probation period Consecutive hiring during the probation period Interdiction of using the probation period in case the employer was not previously informed

5 days / week 4 days / week Proportional reduction of the salary REDUCTION OF THE WORK PROGRAMME TEMPORARY REDUCTION OF THE ACTIVITY PRIOR CONSULTATION of the representative union/employees’ representatives > 30 working days

TERMINATION OF THE EMPLOYMENT CONTRACT

COLLECTIVE DISMISSALS FOLLOWING the performance evaluation of the employees based on the PERFORMANCE CRITERIA/OBJECTIVES Rehiring with priority the dismissed employee Criteria for establishing the order of the employees’ dismissals shall apply Position re-created within the same line of activity 45 calendar days from the date of dismissal Information of the relevant employees Employees have a 5 calendar days limit to respond Hiring other persons in case of refusal or in the absence of a timely answer NOT APPLICABLE TO PUBLIC AUTHORITIES AND INSTITUTIONS

-II- FIXED-TERM INDIVIDUAL EMPLOYMENT CONTRACT

Maximum 36 months With the parties approval For the duration of a project, program or undertaking Increase and/or temporary modifications of the activity’s structure For performing works, projects or programs Fixed-term contracts concluded within 3 months from the termination of another fixed- term contract Maximum duration of 12 months/each consecutive contract Maximum 3 consecutive contracts concluded between the same parties FLEXIBILIZATION DURATION PROLONGATION NEW CASES OF APPLICATION CONSECUTIVE CONTRACTS FIXED-TERM INDIVIDUAL EMPLOYMENT CONTRACT

Part II New Social Dialogue Legislation:  Are collective negotiations still mandatory?

COLLECTIVE NEGOTIATIONS COMPANY LEVEL GROUP OF COMPANIES ACTIVITY SECTOR AMENDMENTS LEVELS OF NEGOTATION NATIONAL COLLECTIVE LABOR AGREEMENT

COLLECTIVE NEGOTIATIONS ARE MANDATORY COMPANIES with at least 21 employees CONCLUDING CONCLUDING a collective labor agreement is not mandatory ! ONLY FOR

EMPLOYER or EMPLOYERS’ ORGANISATION COLLECTIVE NEGOTIATIONS NEGOTIATIONS’ INITIATIVE FINE RON – (i.e. EUR 1163 – EUR 2326) THE COMPANY’S OWN INITIATIVE UPON THE REQUEST OF 45 CALENDAR DAYS PRIOR TO: -The expiration of the collective labor agreements -The expiration of the applicability period of the clauses stipulated within the additional acts to the collective labor agreements The representative union The employees’ representatives 10 CALENDAR DAYS OR

Legal status as union Patrimonial and organisational independence Members – 50% + 1 of the company’s total number of employees Collective negotiations shall be held with the UNION FEDERATION and EMPLOYEES’ REPRESENTATIVES NON-AFFILIATED UNION / NON- EXISTENT NON-REPRESENTATIVE UNION COLLECTIVE NEGOTIATIONS COMPANY COLLECTIVE LABOR AGREEMENT REPRESENTATIVE UNION BUT affiliated to a union federation representative at activity sector level Collective negotiations shall be held with the EMPLOYEES’ REPRESENTATIVES

COLLECTIVE NEGOTIATIONS COLLECTIVE LABOR AGREEMENT CONCLUDED AT ACTIVITY SECTOR LEVEL Legal status as union federation Patrimonial and organisational independence Members – at least 7% of the total number of employees from the respective activity sector EFFECTS it shall be applicable to all employees from the companies forming the respective activity sector and WHICH ARE PART OF the employers’ organizations which have executed the collective labor agreement REPRESENTATIVE UNION APPLICABILITY OF A CERTAIN ACTIVITY SECTOR MAIN SCOPE OF BUSINESS Registered with the Trade Registry (CAEN Code) Legal status as employers’ federation Patrimonial and organisational independence Members – companies with at least 10% of the total number of employees from the respective activity sector REPRESENTATIVE EMPLOYERS

COLLECTIVE NEGOTIATIONS COLLECTIVE LABOR AGREEMENT CONCLUDED AT GROUP OF COMPANIES LEVEL Legal status as union federation Patrimonial and organisational independence Members – at least 7% of the total number of employees from the respective group of companies EFFECTS it is applicable to all employees from the companies PART OF the group of companies for which the collective labor agreement was concluded REPRESENTATIVE UNION With the same scope of business, as per the CAEN Code Voluntarily constituted – as per the law COMPANIES

COLLECTIVE NEGOTIATIONS DURATION OF THE COLLECTIVE LABOR AGREEMENT DETERMINED MINIMUM : 12 MONTHSMAXIMUM: 24 MONTHS PROLONGATION PERIOD MAXIMUM: 12 MONTHS

COLLECTIVE NEGOTIATIONS REGISTRATION OF THE COLLECTIVE LABOR AGREEMENT COMPANY COLLECTIVE LABOR AGREEMENT TERRITORIAL LABOR INSPECTORATE THE MINISTRY OF LABOR, FAMILY AND SOCIAL PROTECTION COLLECTIVE LABOR AGREEMENT CONCLUDED AT GROUP OF COMPANIES/ACTIVITY SECTOR LEVEL

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