The Ministry of Family, Labor, and Social Policy announced the finalization of work on a bill that will allow periods of self-employment and work performed under civil law contracts to be included in the length of service. According to the ministry's announcement, self-employed individuals and those who are parties to civil law contracts will be able to include such employment in their length of service.
Currently, work under a contract of mandate or other service agreement is not included in the period that determines, among other things, leave entitlements, because, according to the Labor Code, it is not considered a period of employment. It is also not included in the awarding of significant employee benefits, such as anniversary bonuses or seniority allowances.
The above-mentioned inconsistencies in the law often lead to absurd situations in which the period of conducting non-agricultural activity or cooperation in carrying out such activity is not, in principle, included in the length of service required to acquire employee benefits or entitlements, but the period of receiving unemployment benefits is, in principle, included in such length of service.
The justification for the amendment to the bill states that the goal of the proposed changes is to implement the constitutional principle of equality. Current regulations unjustifiably differentiate the legal status of entrepreneurs and employees. The fact that the period of non-agricultural business activity is not included in the length of service affects, for example, the amount of insurance benefits received and the length of vacation leave. If the change comes into effect, employers will be required to include previously completed periods of non-agricultural business activity or cooperation in such activity, for which social security contributions were paid, in the periods on which employee benefits or entitlements depend.
The amendment to the Act aims to expand the scope of employment to include running a business individually or in the form of a civil partnership, performing mandates, providing services by an individual, and agency agreements. Periods of employment under civil law contracts will also be included in the so-called company-wide length of service with the current employer.
These changes are beneficial for many people who previously weren't able to count periods spent running a business or working under civil law contracts toward their employment. The new regulations may make it easier for them to receive higher salaries, promotions, or vacation benefits, among other benefits.
For now, we can only monitor the work on this bill. We will keep you updated on its progress.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of April 4, 2024
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