East-West dialogue: problems of mutual comprehension

1. East-West dialogue: problems of mutual comprehension Mária Ladó Ministry of Labour and Social Affairs, Hungary

2. Example 1: Blurred use of employment and private contracts • WTD – amendment by European Parliament: • Where a worker has more than one employment contract, the worker's working time shall be the sum of the periods of time worked under each of the contracts. • Breaking point: • If per contract: AT,CY, DE, FR, GR, IE, IT, NL, UK • If per worker: CZ, DK, ES, FI, LT, LV, PT, SE, SK • In silence: HU (and PL) • Explanation: second, third, etc. contracts are not employment but various types of private contracts

3. Example 1: Blurred use of employment and private contracts • Ambiguity in HU national legislation: • If nature of work allows, parties can freely chose • Bogus contracts, when revealed, could be reclassified by labour inspectors • Guidelines issued with examples • Multiple contracts of distinct type(s) with the same employer • journalists • doctors • Contracts with (an)other employer(s)

4. Example 1: Blurred use of employment and private contracts • Form of contract is chosen: • by considering taxation, social security contributions, etc.– more preferable for both parties; • to get round administrative constraints (maximum personnel, budget allocated to wages/salaries and other personal payments, etc) • to avoid labour law regulations, especially collective labour law, etc.

5. Example 2: On call/stand-by – as full time job • WTD – on call time: • any period during which the worker has the obligation to be available at the workplace in order to intervene, at the employer's request, to carry out his activities or duties • distinction between active and inactive part • In HU legislation: • special category of jobs – work activities are not continuous • no clear definition in Labour Code, subject to interpretation by Court

6. Example 2: On call/stand-by – as full time job • Consequences for workers: • average normal working time is increased to a maximum of 12 hours a day, and to a maximum of 60 hours a week • not a voluntary opt-out • job classification is done by employers should no collective bargaining take place at given workplace • when national MW is paid – paid for increased working hours

7. Example 3:Regulatory role of social partners • Provision of labour law directives: possible derogation by CAs or other agreements between social partners • possibility to set lower standards should the overall objective of the directive is observed • For most old MSs: • way to achieve more flexible transposition and thus more meaningful national rules • recognises the regulatory role of social partners

8. Example 3:Regulatory role of social partners • For most new MSs: • source of distortion among MSs and of unfair advantages for some old MSs • Usual reaction of new MSs: • derogation by law (after due consultation of social partners) should also be provided

9. Bargaining coverage 2000-2006 (%)(by clusters of IRs as developed by Jelle Visser)

11. New MSs are the odd ones out ? • New MSs – how different they are? • Differences of old MSs are now more visible • Any reference to national interpretations, national practices and traditions in a directive could lead • not only tosome justified room for a meaningful transposition • but also to • unfair advantages for some (old/new) MSs • unfair competitive advantage of businesses, and • unfair differences in the level of workers protection without doing injustice to stated objectives