Amendments to the Labor Code: Retirement Age Is No Longer a Basis for Terminating a Contract

The draft law on amendments and additions to the Labor Code has been fully adopted by the National Assembly.

The Ministry of Labor and Social Affairs announced that the retirement age has been removed as a ground for terminating an employment contract at the employer’s initiative.

According to the amendments, employers are now allowed to sign indefinite-term contracts with employees who have reached retirement age, unlike the previous regulation, which required contracts with such employees to be for a fixed term.

Working hours for employees under 18 have been reduced, with the condition that they can only work outside the hours required for mandatory education.

The rights of employees with children have been expanded. Now, employees caring for a child up to two years old (previously one year) have the right to reduce their working hours.

The regulation on additional breaks for breastfeeding mothers has been revised. Previously, a mother could take an extra break every three hours until the child was one and a half years old. Under the new law, the requirement to breastfeed is removed, and mothers with children up to two years old are entitled to an additional break of at least 30 minutes every three hours, in addition to normal rest and meal breaks.

The amendments also formally define the concepts of workplace violence and sexual harassment, and clearly establish prohibitions against them.

Vacation regulations have been revised. For example, if an employee avoids or refuses their annual leave for two and a half years, the employer can grant it without the employee’s request.

If the employer fails to provide annual leave within the statutory period, they are now required to pay compensation to the employee. Annual leave can also be granted with mutual agreement before the employee completes six months of continuous work with the employer.

Employees are now allowed to take educational leave for up to two years while retaining their position.

Employment contracts must now explicitly include the procedures for notification between the employer and employee.

The amendments introduce the internship (traineeship) institution, which will allow students or recent graduates (within one year of graduation) to gain work experience.

Grounds for terminating a contract due to loss of trust in an employee have been added.

Employers can terminate contracts if an employee’s violation of workplace safety rules endangers life or health.

Termination is also permitted if an employee illegally uses the employer’s computer or information systems to access work or personal data, or otherwise disrupts the normal operations of the employer.

Employers may require overtime work without exceptional circumstances if the employee has given written consent.

Flexible rules for employee-initiated termination are now in place. Employees can end their contract within the period specified in their resignation notice without adhering to the 30-day advance notice previously required, with compensation obligations established for failure to comply.

In cases of staff reductions, priority for remaining employment is given to former military personnel entitled to disability or retirement benefits, as well as to family members of deceased, missing, or disabled former military personnel.

The amendments clarify cases of unpaid final settlements and revise the rules for providing breaks. Employment contracts may now be signed via mail or electronic communication between parties.

Compensation for unused leave may now also be reclaimed if an employee leaves at the end of a fixed-term contract or by mutual agreement.

The amendments ease the rules for declaring a strike. Unlike previous regulations, a strike can now be declared with the consent of at least half of employees rather than two-thirds.

Rules regarding employee representatives have also been revised. Employees now have the right to challenge decisions or actions by the employer or their authorized representatives in court if their rights are violated.

Employers are also required to provide necessary conditions, space, and material resources for employee representatives to exercise their duties, either by collective agreement or mutual consent.

The amendments address social partnership, collective labor relations, the role of trade unions, employer-organized professional training, and align the Labor Code provisions with International Labour Organization conventions and the Revised European Social Charter.