Chambers of Commerce: Labor Code change will affect companies in Romania

The French and the German Chambers of Commerce in Romania said that approving the amendments to change the current Labor Code will result in company closings, loss of investments, and loss of jobs. It will also reduce the flexibility of work conditions, eventually leading to a loss in competitiveness. The two associations said that the new bill would introduce a regulatory framework even more rigid than in 2011, when the Labor Code was changed. The Coalition for Romania’s Development, which includes members of various local business organizations, such as the Foreign Investors Council and AmCham, also asked the Parliament not to approve any measures that would distort the labor market and asked for a dialog on the proposed changes. The Chamber of Deputies is currently discussing the bill on amending the Labor Code, after the Senate passed it without any debate. According to the new bill, employees that have been selected through competition will not have to go through a probation period anymore. Individual performance goals and evaluation criteria can be set only through collective bargaining. The new legislative proposal also removes the lack of performance as grounds for collective layoffs. However, some of the new measures are in favor of employers. Part time employees will have fewer days off, and employees in sectors such as medical services or surveying services will be able to carry out more overtime. editor@romania-insider.com