New amendments on Labour Code

On 31.03.2011,  Law no. 40/2011 for amending and supplementing Law no. 53/2003 – Labor Code was published in Official Gazette no.  225/31.03.2011. The Law introduces several important amendments to the Labor Code as follows:

The conclusion of the Individual Employment Contract otherwise than in a written form was forbidden and also some additional obligations, prior to the beginning of the employee’s activity, were set for the employer (e.g. the registration of the individual employment contract with the general employees’ register). At the same time, sanctions were imposed for breaching these new obligations in the form of a fine ranging between RON 500 and RON 20,000 RON.

A series of new rights and obligations are introduced for employers, out of which we mention as an example:

– Employer’s obligation to prepare job descriptions before the conclusion of the individual employment contracts for the respective positions;

– The right of the employer to establish objective criteria for the evaluation of the employees’ activity, which will be taken into consideration also in determining the order of dismissal in case of collective dismissal. Also, some provisions related to the content of the employer’s internal regulation were modified.

– The employer’s right to establish individual performance objectives and assessment criteria regarding the achievement of these objectives;

– Obligation to mention in the individual employment contract the additional benefits amount, in cash or in kind, in relation to the mobility clause.

Par. 3 of art. 27 was repealed, so that the obtaining of a medical certificate for employment before signing Individual Employment Contract is mandatory; such certificate can no longer be presented after the conclusion of the contract as it was stipulated in the old form of the Labor Code.

The regime of the trial period has been amended, the following modifications being essential:

–  The trial period was extended up to maximum 90 calendar days for execution positions and 120 days for managing position;

A limit period of 12 months has been added, in which successive probation hiring for the same job can be made and it was removed the restriction on the number of people who can be hired on probation for the same sample position.

Several amendments to the regime of suspension and termination of individual employment contract were brought.

Certain regulations regarding temporary reduction of activity for economic or technical reasons have been modified.

A series of terms covered by the Labor Code have been amended, out of which we mention as examples:

–  The term in which, following collective dismissal, the employer is not allowed to hire other people on the positions canceled, was reduced from 9 months to 45 days.
the prior notice period in case of dismissal was extended from minimum 15 days to 20 days;
The prior notice period in case of resignation for was extended from 15 to 20 days in relation to the execution positions and from 30 to 45 days for management positions.

A series of amendments have been brought to the legal regime of the individual employment contract for a definite period. In the same sense,  a number of changes were brought to the legal regime of the Individual Employment Contract through Temporary Employment Agent.

The day-time work and the work at night legal regime were modified especially with regard to the following aspects: maximum number of working hours, overtime, how to compensate for night work hours, work rules, etc

Some changes have been made to the legal provisions regarding the rest leave: the holiday distribution, arrangements for approval or rejection of leave etc.

Changes have been brought ​​to the employee and employer rights and obligations during or in connection with internships or training courses.

Some amendments have been brought to the Labor Code Regarding the activity of trade unions / employee representatives and the treatment of unions members / employees’ representatives, out of which we underline the changes upon the dismissal regime for the union members / employee representatives.

A series of provisions within the Labor Code regarding the content, scope and manner of concluding collective labor contracts have been repealed.

Several changes have been made to the employees’ disciplinary liability regime and disciplinary research procedure as well as regarding the effects of disciplinary sanctions.

New ways of establishing the patrimonial liability of employees for damages caused to the employers have been introduced.

New contravention and / or criminal sanctions for noncompliance with the provisions of the Labor Code have been introduced.