{"id":3316,"date":"2017-06-30T00:00:00","date_gmt":"2017-06-30T00:00:00","guid":{"rendered":"https:\/\/new.leinonen.eu\/ltu\/the-new-labour-code\/"},"modified":"2017-06-30T00:00:00","modified_gmt":"2017-06-30T00:00:00","slug":"the-new-labour-code","status":"publish","type":"post","link":"https:\/\/leinonen.eu\/ltu\/news\/the-new-labour-code\/","title":{"rendered":"The new Labour Code"},"content":{"rendered":"
\n

Will the employers be obliged to amend the existing employment contracts after NLC comes into force?<\/span>
<\/b>The revision of the existing employment contracts is not necessary, it may be useful though. Leinonen team recommends the clients to review the existing employment contracts in order to achieve more clarity in the legal matters of the employment relations. Below we identify key aspects to take into consideration when reviewing the existing employment contracts. We note that the list set out is not exhaustive since the employment contracts of the companies are different.<\/p>\n

The revision \/ amendment of the employment contracts:<\/u><\/p>\n

The amount of the work time<\/b>. Based on NLC the amount of work time must be clearly defined in the employment contracts (i.e. the accurate number of working hours must be indicated). The amount of work time shall be indicated as the working hours per week, working hours per day or other accounting period. <\/p>\n

Non-competition<\/b>. First, employers should pay attention to the employment contracts of those employees, which have obligated not to compete with the company. Part of the employers were paying the compensations for non-competing before NLC came into force, now, however, it is important to note that the amount of compensation for non-competition is regulated by NLC. The amount of compensation for non-competition shall not be less than 40 percent of the average monthly salary paid to the employee. <\/p>\n

Annual Leave<\/b>. The annual leave is being counted in working days according to NLC. There are cases when the duration of annual leave is specified in exact number of days in the employment contract. Our recommendation is to amend the employment contract so that the annual leave would be provided according to the valid legal acts. <\/p>\n

Compensation of the learning costs<\/b>. It is worth paying attention, that the parties may agree on the compensation that the cost of the employee\u2019s learning and improvement of the qualification, which were incurred by the employer during the last 2 years, when the employment contract is terminated upon the employee\u2019s will or the will of the employer for the fault of the employee. By enclosing the appropriate wording of the provision into the employment contract may grant the employer a right to claim to the compensation of the additional expenses related to the employee\u2019s learning (for example, travel and accommodation costs). The amendments of the existing employment contracts might be favourable for the employers which invest in the staff development.<\/p>\n

Confidentiality Agreement<\/b>. NLC provides the ability to agree on forfeit for the violation of the confidentiality agreement. In the light of the fact that this regulation is new, it would be worthwhile to complement the existing employment contract including a confidentiality agreement with a provision of forfeit for violation thereof. <\/p>\n

Is the amount of the fixed-term employment contracts in the company limited?<\/span>
<\/b>The fixed-term employment contracts were suitable only for the works that had not any features of the constancy (e.g. substitution of the employee on parental leave, etc.) before NLC came into force. NLC provides the ability to conclude the fixed-term employment contracts with the employees whose work is of constant manner. However, the number of fixed-term employment contracts in the company may not exceed 20 percent of the total number of contracts concluded in the Company. <\/p>\n

What types of internal documents shall be drafted?<\/span>
<\/b>NLC establishes an obligation to prepare new Internal Rules and Policies in the companies. We list the main documents that companies shall prepare and enforce due implementation in the table below.<\/p>\n\n\n\n\n\n\n\n
\n

Document<\/b><\/p>\n<\/td>\n

\n

Average number of employees 20 and more<\/b><\/p>\n<\/td>\n

\n

Average number of employees 50 and more<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

The procedure of usage of the information and communication technologies, monitoring of employees and control in the work place<\/p>\n<\/td>\n

\n

<\/p>\n

+<\/p>\n<\/td>\n

\n

<\/p>\n

+<\/p>\n<\/td>\n<\/tr>\n

\n

Scheme of payment for work<\/p>\n<\/td>\n

\n

+<\/p>\n<\/td>\n

\n

+<\/p>\n<\/td>\n<\/tr>\n

\n

The policy of equal opportunities<\/p>\n<\/td>\n

\n

\u00a0<\/p>\n<\/td>\n

\n

+<\/p>\n<\/td>\n<\/tr>\n

\n

The policy of personal data protection<\/p>\n<\/td>\n

\n

\u00a0<\/p>\n<\/td>\n

\n

+<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

There shall be listed in the scheme of payment for work the categories of the employees according to their positions and qualifications, the ways of payments and amounts of payments (minimum and maximum), the grounds and order of allotting the additional payment (bonuses), salary indexation system.<\/span><\/p>\n

What should be defined in the Internal Rules?<\/span>
<\/b>According to NLC there are no strict requirement set for the companies to have the Internal Rules. However, it shall be prepared if the employer aims to protect its own interests or the ones of the employees. We would like to inform you that the information indicated below should be renewed in the companies’ Internal Rules: <\/p>\n