New regulations on information and consultation of employees

The government has issued a draft law to transpose the provisions of the EU directive on the establishment of a general framework for informing and consulting employees in the European Community. Consultation with the social partners on this issue was initiated last year and their opinions have been summarised in an evaluation report which was commissioned by the Romanian Economic and Social Council and published in December 2005.

Timeliness of new law

According to the May 2006 Monitoring Report on Romania’s preparations for EU accession, prepared by the European Commission, the recent provisions on the information and consultation of employees are set to be transposed into national law.

The provisions of Directive 2002/14/EC on the establishment of a general framework for informing and consulting employees in the European Community are currently contained in several laws already in force in Romania, predominantly in Law No. 53/2003 on the Labour Code, Law No. 54/2003 on trade unions, Law No. 130/1999 on collective work agreements and Law No. 217/2005 on European Works Councils.

The actual transposition of the acquis communautaire (EU body of legislation) requires both a law to coordinate the various provisions and a mechanism to regulate and monitor its implementation.

Content of draft law

The law establishing a general framework for informing and consulting employees transposes Directive 2002/14/EC into the national legislation, and is applicable to undertakings employing at least 20 employees.

The means of information and consultation are implemented in line with the provisions of this law and of those stipulated in collective agreements, and will observe mutual rights and obligations, taking into account the interests of the undertaking and of its employees.

Explanatory terminology

The regulation includes explanations of:

• terms such as undertaking, employer, employee, employee representatives, information and consultation;

• scope of coverage: undertakings with their central management located in Romania, employing at least 20 employees;

• practical arrangements for information and consultation: covering recent and likely developments in the undertaking’s economic situation; employment profile and expected development in this regard, and anticipatory measures where there is a threat to employment; decisions likely to lead to substantial changes in work organisation or in contractual relations;

• consultation procedures: according to the law, consultation shall take place in such a way as to enable employee representatives to obtain a reasoned response, and to negotiate and reach agreement on decisions within the scope of the employer’s powers. This will take place while ensuring that the timeframe is respected, the relevant level of representation of the parties involved is present, and sufficient information is supplied by the employer.

The regulation also stipulates that collective agreements may define freely the practical arrangements for informing and consulting employees.

Protection of information

The law further provides for the safeguarding of certain information and prohibits the disclosure of information supplied in confidence. An employer is not obliged to communicate information or undertake consultation when the nature of the information or consultation is such that it would seriously damage the interests of the undertaking; the employer will duly inform employees of its reasons for the decision taken in such cases.

The new legislation includes provisions on adequate protection of and guarantees for the parties involved.

Government role

Finally, the law, which is scheduled to enter into force on 1 January 2007, sets the minimum and maximum limits of sanctions to be applied by the Ministry of Labour, Social Solidarity and Family (Ministerul Muncii, Solidaritatii Sociale si Familiei, MMSSF) for employer infringement of provisions on information and consultation.

The current law does not affect the regulations on information and consultation of employees in relation to collective redundancy, the protection of employees’ rights in the event of a transfer of undertakings or the establishment of European Works Councils. In relation to specific areas, government decisions will regulate procedures on information and consultation of employees.

Position of social partners

An evaluation report, Information, consultation and participation of employees in Romania, commissioned by the Economic and Social Council (Consiliul Economic si Social, CES) and completed in December 2005, was financed by the PHARE Programme and drawn up by the ICON Institute in Germany. According to the report, all representative trade unions and employer organisations declared that they were familiar with the legislation and kept their members informed of such. However, only 65% of employees and 57% of employee representatives were aware of any specific legislation related to information and consultation of employees. Many trade union organisations and the majority of employer organisations admitted that they did not advise employees on any specific legislation.

In general, employees are not informed of the current and future development strategy of the undertaking that employs them. Moreover, only half of the employers covered by the survey have implemented methods to evaluate their procedure of information, communication and consultation of employees.

Constantin Ciutacu, Institute of National Economy, Romanian Academy