Conference on Labor Markets, Growth and Poverty Reduction Strategies Thessaloniki, May 27-28, 2005 Stojan Trajanov State Advisor Ministry of Labour and Social Policy Republic of Macedonia The New LABOUR RELATIONS LAW

2 Reasons for preparation of new Labour Relations Law -Harmonization of the national labour legislation with the EU regulations and other international labour norms and standards -Continuation of the process of reforms in the field of labour -Provision of greater labor market flexibility and competitiveness -More precise definition of the rights and obligations of employees and employers -Improvement of the forms of protection of employee’s rights by the trade unions, labor inspection and judicial protection.

3 Preparation of the Law -Analysis of the existing Labour Relations Law, Collective Agreements and the international legislation. -Analysis of the judicial practice in settlement of labour disputes -Analysis of the experience from the work of the Labour Inspectorate -Experiences from the work of - the Ombudsman - trade unions - employer’s associations

4 Preparation of the Law Preparation of the Law (2) Active involvement of the social partners in the phase of Law preparation - Regular meetings of the Expert Working Groups - Working meeting with the representatives of the foreign investors in the country - Discussion at the Economic-Social Council’s meeting - Several work-shops were organized - Involvement of international experts - Transparency in the preparation of the Law - Media presentation of the Law, - Press Conferences, - Debates on the electronic media

5 Preparation of the Law Preparation of the Law (3) - The Law is reviewed and adopted by the Government at the beginning of May this year - The Law is submitted for review (first reading) to the Parliament - Public debate will be organized - Final adoptions of the Labour Relations Law in the Parliament – expected for the middle of July

6 The Main Points in the new Labour Relations Law -Prohibition of discrimination – more precise regulation of the issues regarding gender and other type of discrimination (direct and indirect) -More concrete and clear definition of the rights and obligations of employers and workers, during the hiring procedure, as well as during the working relationship -More precise regulation of the Employment Contract as a basis act for establishment of employment relationship

7 The Main Points in the new Labour Relations Law The Main Points in the new Labour Relations Law (2) -Simplification of the hiring procedures – reduction of administrative procedures -Simplification of the dismissal procedures, decreasing the financial obligations of the employers in case of termination of employment -Creation of basis for greater use of fixed-term contracts and part-time employment contracts -Fixed-term contract (up to 4 years) -Part-time contract with one or more employers -Work-from-Home Employment Contract -Housekeeper Employment Contract -Managerial contracts

8 The Main Points in the new Labour Relations Law The Main Points in the new Labour Relations Law (3) -More clear definition of conditions and forms of cancellation of employment contact – by employer and by employee -Volunteer On-the-Job Training period -Probation Work – (up to 6 months) -Precise regulation of the Over-time work – (up to 190 hours annually ) -Additional Work

9 The Main Points in the new Labour Relations Law The Main Points in the new Labour Relations Law (4) -Annual vacation - (20 – 26 working days) -Arbitration – for solution of individual and collective labour disputes -Introduction of representativity criteria for employers’ and workers’ associations -Regulation of the rights and obligations during the strike -The Law includes regulation regarding tripartite social dialogue – legal framework for the Economic and Social Council