Will the new draft of amendments to the Labour Code become an instruction how to abuse the crisis?

On 26^th March 2009 the Czech Minister of Labour and Social Affairs Mr Petr Nečas submitted to the formal consultation procedure a draft of an extensive amendment to the Labour Code, which - if adopted, would severely affect the development of workers' rights and collective bargaining in the Czech Republic. The fundamental position of the Czech-Moravian Confederation of Trade Unions (CMKOS) on this document is based on the fact that present Government lost confidence of the Parliament and thus does not have any mandate to make fundamental changes.

According to the CMKOS the most serious risks contained in the amendment are following:

1.     Treacherous notice without reason

The amendment worsens the conditions of termination of employment relation. It merges the notice reasons and introduces the dismissal "due to other reason, which lies in the person of the employee". This would enable the employer to give notice to a worker for instance for being often ill. It in fact means dangerous hidden notice without reason. It enables paying out money instead of keeping the notice period and introduction of shortened one week notice period

It shortens the period of notice to one month and introduces graduated severance payment depending on the length of work in the company.

The probation period is prolonged by one month. Thus an employee will be in insecurity for four months.

2.     Immediate termination of employment relation

The draft again means a significant weakening of workers' protection. Due to more vague formulation it would be possible to fire an employee immediately in more cases than before.

3.     Fixed-term contract

The amendment loosens the rules for concluding fixed-term contracts. The amendment especially prolongs the basic period during which it is possible to conclude fixed-term contracts without any limitations from two to three years. It simplifies the regulation of reasons enabling prolongation or repeated conclusion of such employment relation. This means increase of insecurity of employees. Even the present period - two years - is from this point of view quite long. There is a risk of worsening the position of employees who in fact lose the prospect of achieving permanent employment contract.

4.     Overtime pay

The draft is a typical example of abusing the crisis at the expense of workers. It is a regulation discriminating against employees working overtime. It proposes to agree wages taking into consideration overtime work. A part of EU Member States is considering - in the interest of maintaining jobs for as many workers as possible during the crisis - shortening of weekly working time. The right wing in the Czech Republic goes totally opposite. They give advantage to overtime work and thus in fact directly invite the employers to reduce number of employees. Those workers who stay - afraid of losing their job - will certainly agree to work one month more in a calendar year for a symbolic or even none increase of wage.

5.     Working time

It is proposed to abolish the duty of employer to negotiate beforehand with the trade union organisation measures concerning mass regulation of working time, overtime work, possibilities to order work on weekends and holidays and night work with regard to health and safety.

6.     To curb trade unions

The intention is to eliminate as much as possible the influence of trade union organisations and to de-motivate workers to join unions. The amendment tries to make the activity of trade union organisations in companies as difficult as possible.

7.     To restrict collective bargaining

The amendment proposes - without any objective reasons - total abolishment of the possibility to extend higher level collective agreements. This is against the pledge of the State to promote collective bargaining as contained in the ILO Conventions by which the Czech Republic is bound. It also goes against economic interest to combat social dumping and creation of conditions of fair economic competition, to which the Czech Republic pledged itself by joining the European Union.

According to the CMKOS, the amendment submitted by Minister Nečas is in contradiction with the European concept of "flexicurity". It takes on board only flexibility in employment relations, especially in concluding and termination of employment contract and in the sphere of working time. The need for corresponding protection of workers is not taken into account at all.

For workers the draft brings about high level of risk due to the fact that the interpretation of the Labour Code provisions will depend on the case law of courts much more than in the past. It will take some time before a body of case law is built, which will significantly reduce legal security of workers. This draft aims at weakening the position of workers as well as of unions. In the consultation process the CMKOS will reject these intentions.