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October 27, 2021

Labour Code accepted by employers, but still a political bone of contention

The Labour Code should encourage competition and the job creation process, consider the foreign investors and part of Romanian entrepreneurs, who approve the changes to the Code, but trade unions and even some employers’ associations still disagree with the new provisions. Employers, trade unions and Government officials are resuming talks over the new Labour Code today. The Romanian Council for Private SMEs (CNIPMMR) considers the measures proposed by the Government satisfactory “in principles,” as they will result in a well-balanced Code that will make the labour market more flexible, though there are still aspects that can be improved,” Mediafax reports. One of the most important – and controversial – modifications refers to extending the test period at work in view of a new job from 30 to 45 days for executive positions and from 90 to 120 days for management jobs. The idea is hailed by part of the employers, CNIPMMR included, and also by consultants.

Opposition parties however believe some of the provisions are clearly putting employers at advantage. PSD President Victor Ponta said Friday, after meeting representatives of five trade union confederations, that the Labour Code changes proposed by the Government are an attack against private employers. Furthermore, these proposals have not been requested by the International Monetary Fund (IMF). According to Ponta, the new Labour Code will deprive private employees of all the rights they won over the last two years, which were granting them a correct relation with employers.


UGIR-1903 and CONPIROM consider that the government-promoted changes to the Labour Code and the Social Dialogue Code contain some “unacceptable provisions” that lower the trade unions’ and employers’ role in negotiating and applying collective work contracts, a press communiqué points out. The absence of the compulsory character of the collective work contracts’ applicability will amplify tax dodging and will lead to uncompetitive practices through labour force dumping, the aforementioned source reads. UGIR-1903 and CONPIROM point out that there has to be a balance between making the labour market flexible, which is the employers’ demand, and the employees’ right to job security.

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