Important Changes in the Labor Code - Your strategic HR partner - Smartree

Important Changes in the Labor Code

As of October 3, new amendments to the Labor Code, introduced by Law No. 213/2020, have come into effect. These changes concern the signing and modification of individual contracts, disciplinary investigations, and the conciliation of individual disputes, as well as the operations of employers’ HR departments.

1. Signing or Modifying Individual Contracts

When negotiating, signing, or modifying an individual employment contract, employees can now be accompanied by an external consultant specializing in labor law or a union member. Therefore, discussions between the employer and the employee can be attended by either an external consultant (such as a lawyer, a labor law expert, or a labor law mediator) or a union member.

2. Conciliation of Individual Disputes

Individual issues with employees can now be resolved through conciliation before reaching the courts. Before an employee’s grievance is taken to court, the parties will attempt to resolve it amicably through conciliation. The conciliator for individual labor disputes can be an external consultant specializing in labor law (such as a lawyer, a labor law expert, or a labor law mediator).

Either party may contact the external consultant to initiate the conciliation procedure for the individual labor dispute. The consultant will send a written invitation to the other party through the communication methods specified in the individual employment contract.

3. Disciplinary Investigation

For disciplinary investigations, the employer will appoint a person or establish a committee, or use the services of an external consultant specializing in labor law, who will be authorized to conduct the investigation.

The employee will be summoned in writing by the designated person, the committee president, or the authorized external consultant, specifying the purpose, date, time, and place of the meeting.

During the preliminary disciplinary investigation, the employee has the right to present and defend their case, provide evidence and arguments they deem necessary, and request assistance from an external consultant specializing in labor law or a union representative.

4. New Rules for HR and Payroll Department Activities:

Each employer can organize their HR and payroll activities in the following ways:

(i) By having the employer assume specific HR and payroll responsibilities;
(ii) By designating one or more employees (who will have HR and payroll duties included in their job descriptions);
(iii) By contracting specialized external HR and payroll services (which will be coordinated by a labor law expert).

Stay informed about all the latest legislative updates in the labor field! Download Smart Update October No. 1 2020 and share it with your colleagues!

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