Transcript Slide 1

EMPLOYMENT IN TRANSPORT SECTOR IN TIMES OF
CRISIS AND RESTRUCTURING
Maja Knafelc, Legal Adviser at ZDS
WHAT CHANGES HAVE OCCURRED DUE TO ECONOMIC
CRISIS?
 In accordance with the data of the Employment Office an almost
30% decrease in the demand for workers in storage and transport
sector has been recorded.
 Consequently, the demand for employment of foreign workers has
also decreased – highly complex procedure of employment of aliens
no longer needed.
 In terms of employment law, the challenges have not changed –
what has changed is the economic context of the employment
relations system in the sector.
 Focus on more flexible forms of employment like in all sectors
and in all EU Member States.
CONCLUSION OF AN EMPLOYMENT CONTRACT
 Regulating labour relations is particularly complex in transport
sector.
 The challenge primarily lies in a large number of complex working
time regulations, supplementary to the “general” labour law.
 The general labour law is complex – a two week activity required
to employ a worker.
 Can a business deal/an order wait two weeks?
EMPLOYMENT CONTRACT AND ITS SPECIFIC FEATURES IN THE
SECTOR
An employment contract creates an employment relationship.
 What is an employment relationship? Are its criteria really totally
clear?
 The content of an employment relationship is not totally clear as
suggested by the inspectorate’s opinion.
 The Employment Relationship Act stipulates the mandatory
components of the employment contract.
 In terms of the nature of work in transport sector two components
of the employment contract are particularly important: the system of
working time and the place of work.
 The working time system is particularly complex – Act on Working Time
and Compulsory Rest Periods of Persons Performing Mobile Road
Transport Activities, and on Recording Equipment (Tachographs) in Road
Transport.
FIXED-TERM EMPLOYMENT CONTRACT
 The Employment relationship Act stipulates as many as 13 cases
in which it is possible to sign a fixed-term employment contract.
 If these cases are read really carefully we see that their careful
use is necessary.
 If their interpretation is too flexible, this may very quickly be
harmful to the employer – a sanction of transformation into an
indefinite duration employment contract and administrative penalty
for an infringement (not only a symbolic one!).
A fixed-term employment contract is an exception – exceptions are
interpreted restrictively!
REMUNERATION FOR WORK AND REIMBURSEMENT OF
EXPENSES RELATED TO WORK
 Currently, no applicable signed collective agreement exists in the
road freight transport sector.
 The acts are used directly (Employment Relationship Act,
Minimum Wage Act, …).
 The Act only stipulates the type of remunerations rather than their
level (how much?).
An exception to what has been indicated: a minimum wage and a
minimum holiday bonus.
 Certain remunerations are not regulated/determined.
 Contractual arrangement or arrangement at the employer’s level is
needed – here applies the principle of contractual freedom.
PLACE OF WORK
 Determining the place of work is a mandatory component of
any employment contract.
 Act on Working Time and Compulsory Rest Periods of Persons
Performing Mobile Road Transport Activities, and on Recording
Equipment (Tachographs) in Road Transport stipulates the notion of
a place of work, yet this is not sufficient in the light of the
Employment Relationship Act.
 Certain rights/remunerations arising from the labour legislation are
bound to the contractually determined place of work.
WORKING TIME AND SPECIFIC FEATURES FOR MOBILE
WORKERS
 The aspect of working time also includes an aspect of health and
safety at work in the labour law.
 In road transport activity the notion of pursued safety is even more
important - safety of all road users is additionally ensured through
working time limitation.
 A different definition and concept of working time
 Working time cannot be regulated differently regarding: annual
leave and other paid or unpaid time off, whereby the Employment
Relationship Act stipulates the minimum rights.
ANNUAL LEAVE
 Currently, no applicable collective agreement is available for the sector.
 The Employment Relationship Act directly applies when calculating the
annual leave entitlement.
 Four weeks as a basis – additional days for circumstances on the side of
the worker in accordance with the Employment Relationship Act (disability,
bodily harm, age, parenthood, underage, night work…).
 The annual leave entitlement according to the Employment Relationship
Act is the minimum that can always be upgraded.
 The annual leave entitlement is calculated every year by taking into
account the relevant circumstances – workers are to be notified in writing of
their annual leave entitlements.
 Trend: Compensations for unused annual leave.
CONCLUSION
The economic downturn has changed the circumstances under
which transport operators are currently doing business.
 All challenges cannot be attributed to the crisis – the challenges
will also exist in the post-crisis period and therefore they should be
addressed seriously.
 No major novelties in labour law.
 Employers are limited in adjusting to change – the State has the
main role in changing the legislative frameworks.
The RITS Manual to facilitate the understanding of the complex
regulations.
Project »RITS- Restructuring and Industrial Relations in the Transport sector is financially
supported by European Commission.