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Amendments to Law on salaries with positive impact for employees

22.11.2016

cnsm-e1474351117367

On the 17th of November, the Parliament adopted in the second reading the legislative initiative no. 28 of 02.11.2016, submitted by MP Valentina Buliga, aimed at amending and supplementing Law on salaries no. 847 of 14.02.2002, ie the completion of art.12 and change of art.14 of the law. Trade unions exposed in countless rows to Government and Parliament on the need of their review.

The purpose of amendments and completions to the Law on salaries consist on improving wage rules, diminishing wage payment “in envelopes” and increase of the social protection of employees in the real sector of the national economy.

Thus, article 12 of law has been supplemented by two new paragraphs, (4) and (5), stating that the minimum guaranteed salary in the real sector is the basis for  wage differentiation (tariff) in relation to the qualification, the degree of training and competence of the employee, and the degree of responsibility that the executed work (functions) and their complexity involve. Subsequently, social partners, together with the Government, will agree on a mechanism to enforce that provision.

It was also stipulated that the minimum guaranteed wage in the real sector does not include additional salary and other incentive payments or compensation.

The new version of article 14 of the law provides for establishment of tariff salary for category I of qualification (remuneration) in the real sector, through collective bargaining at the branch level, in size of at least equal to or exceeding the minimum guaranteed wage in the real sector, but in economic unity, of the respective branches, in the amount not less than the amount set at the branch.

Simultaneously, social partners – parties to the collective agreement at branch level – have been invested with the right to order the implementation of the amount of tariff salary for I category of qualification (remuneration) negotiated in the agreement for all employees and employers in the branch that apply the system of tariff or just for employees and employers who have authorized their representatives to sign the agreement.

In this context it is worth mentioning that economic unities applying tariff system, but employees and employers had not authorized its representatives to participate in collective negotiations at branch or unit level, they are required to establish salary for I category of qualification in size of at least equal to or exceeding the minimum guaranteed salary in the real sector.

Thus the amendment introduced will spur collective bargaining at branch and unity level, thus increasing the size of salaries and counteract the current practice applied by some employers that establish for all its employees salary according to the level of the minimum guaranteed salary in the real sector, regardless of qualifications, competence and level of responsibility that it involves the function.