Labor Law and Law on Retirement and the Disabled Insurance

July 18, the parliament members adopted changes to Labor Law with 190 votesfor as well as changes and amendments to the Law on Retirement and the Disabled Insurance.

Changes to the Labor Law imply the right to fee based on length of service of 0, 4% per year of service with the current employer.

Contract cancellation fee for surplus manpower will total minimum the sum of the third of an employee’s salary for every year of service with the current employer.

Retirement reimbursement will total two average employee’s salaries, not three as it used to be so far. An employee shall be entitled to a night work of 26% but not for the shift work.

Changes of the law imply that labor relation on indefinite period of time can last two instead of one year as well as that an employee is entitled to anannual vacation after a month of uninterrupted work and not as it used to be after six months.

New solutions include loss of rights to anunused annual vacation compensation, apart from the situation when an employee gets fired.

In the future, an employee shall be entitled to a smaller number of paid leave. An employee shall be entitled to five instead of seven days for awedding, birth of a wife, bereavement or his or her family members’ difficult disease leave and two days for a voluntarily blood donation.

During a vacation, an employee shall be entitled to the basic salary increased for a length of service during that month and not as it used to be to the average of his or her salary in the previous three months. An employee shall also be entitled to 60% of basic salary for a length of service, and notas it used to be to the average of his or her salary during the previous three months.

When it comes to the changes of the Law on retirement and the disabled insurance, apart from other things, they imply that as of January 2015 an age limit for retirement increases for women so that in 2032 it would total 65 years and equal to conditions for men. Minimal length of service is 15 years.

Premature retirement shall be entitled to anybody with 40 years of length of service, as of 2023 men 60 years old can retire prematurely and women with 59,6.

For lacking years of life, monthly penalties of 0,34% shall be paid. Retirement on that basis can be reduced by 20,4% maximum.

A woman who gave a birth to one child is entitled to additional six months of service and to two children for a year while a women who gave birth to three or more kids will be entitled to additional length of service of two years.

The opposition parliament members estimated that the Labor Law isdisastrous, point out that it will not increase employment rate and enable newinvestments.