The Council of Ministers has recently approved draft amendments to the Labor Code that include an increase in maternity leave, more flexible regulation of fixed-term employment and new provisions on collective dismissals. According to the government, these measures are intended to increase the flexibility of the labor market and encourage women’s participation in the labor force.
The proposed amendments to the Labor Code would:
The draft law also includes provisions calling for the Ministry of Labor to issue new regulations on the determination of arbitrary dismissal and on the rights of workers in the event dismissal is deemed to be arbitrary. Currently, the decision on whether a dismissal is arbitrary or not (and the entitlements of workers affected) is not specifically defined in the Labor Code.
Employers should monitor the progress of the proposed changes, especially those concerning collective dismissals (which have not been well received by labor unions), and be ready to adjust their policies once legislation is final.