EMPLOYMENT IN TRANSPORT SECTOR IN TIMES OF CRISIS AND RESTRUCTURING Maja Knafelc, Legal Adviser at ZDS

WHAT CHANGES HAVE OCCURRED DUE TO ECONOMIC CRISIS?  In accordance with the data of the Employment Office an almost 30% decrease in the demand for workers in storage and transport sector has been recorded.  Consequently, the demand for employment of foreign workers has also decreased – highly complex procedure of employment of aliens no longer needed. – what has changed is the economic context of the employment relations system in the sector.  In terms of employment law, the challenges have not changed – what has changed is the economic context of the employment relations system in the sector.  Focus on more flexible forms of employment like in all sectors and in all EU Member States.

CONCLUSION OF AN EMPLOYMENT CONTRACT  Regulating labour relations is particularly complex in transport sector.  The challenge primarily lies in a large number of complex working time regulations, supplementary to the “general” labour law.  The general labour law is complex – a two week activity required to employ a worker.  Can a business deal/an order wait two weeks?

EMPLOYMENT CONTRACT AND ITS SPECIFIC FEATURES IN THE SECTOR  An employment contract creates an employment relationship.  What is an employment relationship? Are its criteria really totally clear?  The content of an employment relationship is not totally clear as suggested by the inspectorate’s opinion.  The Employment Relationship Act stipulates the mandatory components of the employment contract.  In terms of the nature of work in transport sector two components of the employment contract are particularly important: the system of working time and the place of work.  The working time system is particularly complex – Act on Working Time and Compulsory Rest Periods of Persons Performing Mobile Road Transport Activities, and on Recording Equipment (Tachographs) in Road Transport.

FIXED-TERM EMPLOYMENT CONTRACT  The Employment relationship Act stipulates as many as 13 cases in which it is possible to sign a fixed-term employment contract.  If these cases are read really carefully we see that their careful use is necessary.  If their interpretation is too flexible, this may very quickly be harmful to the employer – a sanction of transformation into an indefinite duration employment contract and administrative penalty for an infringement (not only a symbolic one!).  A fixed-term employment contract is an exception – exceptions are interpreted restrictively!

REMUNERATION FOR WORK AND REIMBURSEMENT OF EXPENSES RELATED TO WORK  Currently, no applicable signed collective agreement exists in the road freight transport sector.  The acts are used directly (Employment Relationship Act, Minimum Wage Act, …).  The Act only stipulates the type of remunerations rather than their level (how much?).  An exception to what has been indicated: a minimum wage and a minimum holiday bonus.  Certain remunerations are not regulated/determined.  Contractual arrangement or arrangement at the employer’s level is needed – here applies the principle of contractual freedom.

PLACE OF WORK  Determining the place of work is a mandatory component of any employment contract.  Act on Working Time and Compulsory Rest Periods of Persons Performing Mobile Road Transport Activities, and on Recording Equipment (Tachographs) in Road Transport stipulates the notion of a place of work, yet this is not sufficient in the light of the Employment Relationship Act.  Certain rights/remunerations arising from the labour legislation are bound to the contractually determined place of work.

WORKING TIME AND SPECIFIC FEATURES FOR MOBILE WORKERS  The aspect of working time also includes an aspect of health and safety at work in the labour law.  In road transport activity the notion of pursued safety is even more important - safety of all road users is additionally ensured through working time limitation.  A different definition and concept of working time  Working time cannot be regulated differently regarding: annual leave and other paid or unpaid time off, whereby the Employment Relationship Act stipulates the minimum rights.

ANNUAL LEAVE  Currently, no applicable collective agreement is available for the sector.  The Employment Relationship Act directly applies when calculating the annual leave entitlement.  Four weeks as a basis – additional days for circumstances on the side of the worker in accordance with the Employment Relationship Act (disability, bodily harm, age, parenthood, underage, night work…).  The annual leave entitlement according to the Employment Relationship Act is the minimum that can always be upgraded.  The annual leave entitlement is calculated every year by taking into account the relevant circumstances – workers are to be notified in writing of their annual leave entitlements.  Trend: Compensations for unused annual leave.

CONCLUSION  The economic downturn has changed the circumstances under which transport operators are currently doing business.  All challenges cannot be attributed to the crisis – the challenges will also exist in the post-crisis period and therefore they should be addressed seriously.  No major novelties in labour law.  Employers are limited in adjusting to change – the State has the main role in changing the legislative frameworks.  The RITS Manual to facilitate the understanding of the complex regulations.

Project »RITS- Restructuring and Industrial Relations in the Transport sector is financially supported by European Commission.