Romania: now that the Labor Code reform is adopted, the government commits itself to this text

Version adopted.  On Monday, Emil Boc’s center right administration, gathered for an extraordinary meeting, adopted the draft Labor Code reform after long weeks of tense (and unsuccessful) negotiations with unions (see our dispatch No.  110080).  The draft adopted notably provides for the removal of national collective agreements which currently define minimum regulations which sectors and then businesses can only improve.  In the future, sectoral agreements will determine minimum wage increases and working conditions.  The draft also provides for more flexibility for fixed-term contracts and mass layoffs as well as the enhancement of the fight against illegal labor by providing, notably, for prison sentences for some unscrupulous employers.  The displayed goal is to make labor law more flexible and increase businesses’ competitiveness.