Legal & Tax Alerts

Settlement of individual labour disputes and other news

New amendments to the Labour Code[1] have been published within the Official Gazette[2].

Among the most important changes, we list the regulation of the procedure for the amicable settlement of individual labour disputes. Thus, at the conclusion of the individual employment contract or during its execution, the parties may include in the contract a clause stipulating that any individual labour dispute is settled amicably, through the conciliation procedure.

The amicable settlement procedure will be included in the internal regulations. The amicable settlement will be made with the help of an external consultant specialized in labour law, who can be a lawyer, an expert in labour law or, as the case may be, a mediator specialized in labour law. The parties will bear the related fee according to their agreement.

It should be noted that during the conciliation, either party may be assisted by another external consultant specialized in labour law or by a representative of the trade union of which he/she is a member, at his/her own option. The term for challenging labour disputes in court is suspended during the conciliation.

If, after conciliation, the parties reach a solution, the external consultant will draw up an agreement containing the agreement of the parties and how to resolve the conflict.

In addition to the amicable settlement of individual labour disputes, the new amendments also provide for the following:

the right of employers to organize the human resources and payroll service and the specific ways of organizing;

the express provision of the right of employers to appoint a person, to establish a commission or to use the services of an external consultant specialized in labour law for conducting disciplinary investigations;

the right of employees to be assisted during the disciplinary investigation by an external consultant specialized in labour law.

The enactment enters into force on October 2nd, 2020.

 

[1] Law no. 53/2003 on the Labour Code, republished in the Official Gazette, Part I no. 345 of May 18, 2011;

[2] Law no. 213/2020 for the amendment and completion of Law no. 53/2003 – Labour Code, republished, with subsequent amendments and completions, published in the Official Gazette, Part I no. 893 of September 30, 2020.

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