What is the new Labour Code bringing about?

The matter of increased flexibility of employment relationships has been intensely debated lately, and employers have challenged the various constraints and limitations imposed by the Labor Code. The legislative inflexibility of the regulations on employment relationships and the lack of options and solutions for particular situations that employers have to deal with has had a negative impact on the labor market’s potential to attract investors in general and foreign investors in particular.

The amendments proposed by the Government in relation to the Labor Code are particularly focused on increasing the flexibility of certain regulations, so as to provide solutions supporting employers and stimulating labor efficiency and performance, also ensuring a higher employment rate.

The measures proposed for implementation under the Labor Code are part of the modernization process of the current regulation, devised to meet the current labor market needs, according to Romania’s development stage and to the undertaken economic goals. To what extent such amendments shall trigger positive changes in the investors’ perception of the labor market, ensuring the better use of workforce, is yet to be determined.

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