Sick pay will be amended to classify the first day of absence due to illness as a waiting day for which the employer would have no duty to pay wages unless otherwise stipulated in the collective agreement or employment contract. The waiting day would not apply to sick leave periods of five days or longer, or to cases in which the incapacity to work is due to a work-related accident or occupational disease.
There is no legislation governing sick leave waiting days. Several collective agreements stipulate that wages are paid from the first day of illness. All benefits are renegotiated when revising a collective agreement, meaning that such clauses may also be dropped. The statutory minimum would then apply when the collective agreement no longer governs this issue.
Provisions governing individual dismissal will be modified to make relevant grounds related to the individual sufficient for terminating an employment contract.
An employer may only terminate an employment contract on serious and relevant grounds arising from or related to the individual employee. The grievances of small businesses concerning difficulties in terminating employment were already addressed in an amendment to the Employment Contracts Act that took effect in July 2019. This amendment incorporated a provision on comprehensive assessment, enabling consideration of the number of employees in the employer's service and the overall circumstances of the employer and the employee when assessing the relevance and seriousness of the grounds for terminating employment.
The current provisions of the Employment Contracts Act governing temporary employment contracts will be amended to enable conclusion of an employment contract for a fixed term of one year with no special grounds. Legislation will also ensure that the amendment does not enlarge the unfounded use of successive temporary employment contracts.
Temporary employment may currently only be entered into on justified grounds. No temporary employment contract may be concluded when the need for labour is permanent. Employment contracts concluded with long-term unemployed workers form an exception to this rule.
The minimum restructuring negotiation periods under the Act on Cooperation within Undertakings will be halved.
The Act on Cooperation within Undertakings stipulates minimum restructuring negotiation periods of 6 weeks or 14 days, depending on the size of the enterprise, the number of employees affected by a proposed restructuring, and the duration of any layoff.
The Government will increase the threshold for applying the Act on Cooperation within Undertakings to the level permitted under EU provisions.
The Act on Cooperation within Undertakings applies to enterprises and organisations that regularly employ no fewer than 20 people.
The duty to re-engage an employee under the Employment Contracts Act will be abolished for enterprises and organisations that regularly employ fewer than 50 people. This provision will apply irrespective of any stipulation of a collective agreement.
The duty to re-engage applies to employees who have been made redundant, or who have been dismissed in the context of a restructuring procedure.
An employer must offer work to a former employee who was made redundant if the employer subsequently needs new employees for the same or similar duties within a certain period. This duty to re-engage currently continues for four or six months, depending on the duration of employment. It does not depend on the size of the employer.
The Government will reform legislation to increase opportunities for local bargaining at company level. The Government’s vision is that local collective bargaining will be equally possible in all companies regardless of whether the company is a member of an employer association or what kind of employee representation system is in place at the company.
The Government will expand the conditions for local bargaining by removing from labour legislation bans on local bargaining in non-organised companies that comply with a generally applicable collective agreement. Labour legislation will be amended to allow a company-specific collective agreement to derogate, by agreement, from the same provisions of labour legislation from which a derogation is now only possible by means of a national collective agreement.
Labour legislation fundamentally seeks to protect the weaker party in employment and impose a minimum standard of working conditions. Collective agreements specify the issues that are open to local collective bargaining and the negotiating parties. The minimum standards established in labour law may only be set aside under a collective agreement concluded by a trade union and a federation of employers. Only businesses organised in such a federation may conclude local agreements that set aside statutory minimum employment standards.
A provision will be included in the Act on Mediation in Labour Disputes preventing any settlement proposal issued by the Office of the National Conciliator or by a conciliation board from exceeding the general level of wage adjustments.
The National Conciliator has no statutory obligation to comply with the general policy.