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

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

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)

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.

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

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

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

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

Bargaining coverage (%) ( by clusters of IRs as developed by Jelle Visser) NorthCentreSouthWestTransit 86,882,875,435,334,5 Denmark Finland Sweden Austria Belgium Germany Luxembourg Netherlands Slovenia France Greece Italy Portugal Spain Cyprus Ireland Malta United Kingdom Bulgaria Czech Republic Estonia Hungary Latvia Lithuania Poland Romania Slovakia

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 to some 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