Work is underway on a draft bill by the Ministry of Family, Labour and Social Policy regarding collective labour agreements and social agreements; the draft is currently at the consultation stage.
What are the main assumptions of the draft law?
The draft proposes comprehensive regulations defining the principles for concluding and recording collective bargaining agreements and collective agreements based on the Act. It provides for a broader definition of employer than that provided for in the Labor Code.
It addresses the most important demands that social partners have been making for many years. In particular, those concerning simplifying the procedure for concluding and registering collective bargaining agreements.
What are the expected effects of the regulation?
The expected effect of the regulations will be to invigorate negotiations and expand the scope of application of collective agreements. The adopted regulations aim to balance the expectations of both trade unions representing employees and employers and their organizations.
When preparing the project, on the one hand, the complicated registration procedure was abandoned, and on the other, the issue of increasing the dynamics of negotiations through their annual evaluation was taken into account.
The proposed solutions also address the issue of concluding fixed-term collective labor agreements. The goal of this solution is to encourage employers to enter into agreements. The fixed duration of agreements means that employers will not be bound by them indefinitely. At the same time, it will serve as a mechanism to encourage parties to engage in collective bargaining and update the provisions agreed upon by the parties.
What solutions does the draft law provide?
The bill provides for the possibility of using a mediator, which is intended to facilitate the parties' negotiations on a collective bargaining agreement in the event of disagreement. The bill also includes, among other things, an easier procedure for withdrawing from a collective bargaining agreement, a simplified process for registering company-level collective bargaining agreements, as well as multi-company collective bargaining agreements, and an open catalog of matters regulated by collective bargaining agreements (working time and standards, overtime, remuneration conditions, work organization, and the creation of a company social benefits fund).
The Act is scheduled to enter into force in January 2025.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 30, 2024
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