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AMENDMENTS TO LABOUR CODE AND THE ORDINANCE ON WORKING TIME, RESTS AND LEAVES

The Act amending and complementing the Labour Code as well as a Government Decree amending the Ordinance on working time, rests and leaves (the “Ordinance”) are published in State Gazette # 18/01.03.2011 and State Gazette # 21/15.03.2011, the provisions of which enter into force as of March 2011.

Some of the most important amendments introduced by the Act and the Decree are summarized below.

1. Using the Paid Annual Leave

Articles 172 and 173 of the Labour Code introduce new rules for the paid annual leave – the employee/worker shall use it at once or at different times, but only during the year for which it is due and according to a schedule approved by the employer. The employer shall approve this schedule no later than 31st of December of the calendar year prior to the year of the leave after consulting the representatives of the unions and of the employees/workers. The schedule for 2011 shall be approved no later than 31st March 2011.

The employer cannot deny the employee the use of the leave pursuant to the approved schedule, unless the use of the leave is postponed under Article 176 (important industrial reasons, written request by the employee, used leave for pregnancy, birth, adoption, etc.).

In the event that the employer denies the use of the paid annual leave under the schedule, the employee is entitled to determine the time for its use with a two-week notice to the employer in writing Given the employee has not requested the leave until the first due date under the schedule, the employer can provide him the paid annual leave without his written request or consent.