The following changes are the most important for business:
- Non-competition agreements. Employers will have to pay their personnel additional compensation if they want to agree on non-competition during employment. The minimum amount of compensation is 40% of the individual‘s average remuneration (ie the same as in post-employment non-competition agreements).
- Summary working time regime. A summary working time regime may be introduced only when essential to organising work and considering the opinion of personnel representatives (eg works councils). Additionally, a new approved maximum working time is now set at 52 hours weekly (excluding additional working duties).
- Temporary employment agencies. Instead of previously planned licensing, as of 1 July 2018 temporary employment agencies must meet special criteria to be approved by the Government.
- Works councils. Employers with at least 1/3 of personnel belonging to a company-level trade union need not organise election of a works council.
Other changes to the new LC are less relevant and in most companies should not require significant preparation, eg adjusted requirements for information to be provided to works councils; extended guarantees to representatives of trade unions.
We are ready to help you implement the new LC in your company. In the nearest future we will invite you to a Sorainen business breakfast where we will share insights on the process of implementing the new LC and answer your questions.
More information on the new LC can be found below: