Update Labor Market Balancing Act: bill passed by House of Representatives

Back in November 2018, I gave you a brief update regarding the developments surrounding the balanced labor market bill (WAB). Read this update here. Meanwhile, the House of Representatives approved the bill on February 5, 2019, with some changes.

Amendments bill

Some of the salient changes to the bill agreed to by the House of Representatives include the so-called "cumulation ground" in dismissal law that allows combining grounds for dismissal, the extension of the chain-of-contract rule to three contracts in three years, and the accrual of the transitional compensation from the first day of work.

A number of proposals also failed to pass. The bill also included an extension of the probationary period to a maximum of five months for an employment contract for an indefinite period of time. This amendment, which had already met with much criticism, was not adopted by the House of Representatives, as a result of which the current regulation regarding the probationary period remains unchanged. The proposed regulation regarding on-call contracts for seasonal work has also been relaxed; seasonal work does not have to be offered a fixed-term contract after one year.

And now?

With the approval of the House of Representatives, now the Senate will consider the bill. The new law is expected to take effect from January 2020. We will keep you informed of developments. Should you have any questions in the meantime, please feel free to contact one of our attorneys.