The idea of limiting the use of fixed-term contracts and at the same time, create a “conciliatory regime” of dismissal for new contracts, provided the report prepared by a group of economists to the PS, promises to generate controversy.
The working group coordinated by economist Mario Centeno identifies the job insecurity as a main problems of the country (90% of new hires unemployed are at term and 70% of workers entering the unemployment was because of the end of non-permanent contracts) . So whether that fixed-term contracts cease to be the rule and be replaced by permanent links.
It is with this aim that proposes an amendment to the Labour Code (Law this Government amended nine times) to restrict these contracts only to cases where it is necessary to replace absent workers and to create “a new conciliatory and voluntary scheme” dismissal “in a position treated as collective redundancies”
With regard to fixed-term contracts, the current law allows companies to admit these conditions workers to replace workers or in case of seasonal work, exceptional growth of the business, occasional task execution and execution of works or defined and temporary project. Proposed project, the intention is that all these reasons disappear, maintaining only the replacement workers.
If you go, the measure substantially limit the use of this form of contract, thereby forcing companies to opt for permanent links. And although the report economists do not establish such a direct relationship, that require ease restrictions on individual dismissal.
As said Mario Centeno, inspired by the example of Germany and the model that is being implemented in Italy, which is to adopt the model of the single contract and to facilitate redundancies.
What seems to be on the table, although the report is little concrete, is an attempt to bring the dismissal for post extinguishing work of collective redundancy in procedures and requirements.
It is that although in both cases, the process can be initiated by reason of economic reasons, employees of the selection criteria fire are very different. On dismissal by the withdrawal of the job, the employer must respect a set of criteria defined in the law, while the collective it is for the company to define these criteria (provided they are not discriminatory).
The idea is that this conciliatory process begins with consultation with the representative structures of the workers and that in the end, the compensation paid to workers are higher than current and are not subject to tax.
The employee receives 18 days per year in the first three years and 15 days for each additional year, at least 30 days and up to 15 months (now the damages shall be 12 days for each year of service with a maximum of 12 months for the most recent contracts ).
This mechanism is intended to apply only to new contracts and will not involve an extension of the cause. In the study, experts ressalvam the worker “always have access to the courts, if it considers that the reasons given are inadequate or discriminatory.” And when it does, apply the current rules to the level of compensation and the possibility of reinstatement.
In anticipation of the controversy, economists invited by PS ensure that the worker will be doubly protected, because it limits the use forward contracts and combines “the legal protection of permanent contracts, with the highest compensation applied towards conciliatory.”
At the end Mário Centeno group expects these changes induce “an increase in the duration workers’ productivity jobs. “
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