Modernising Labour Law The European Commission s Green Paper

Transcription

1 Modernising Labour Law The s Green Paper Paul Cullen Labour Law Unit DG EMPL Insurance Sectoral Social Dialogue Committee Brussels 10 September 2007

2 How can labour law, whether at national or at EU level, support the Lisbon Strategy for growth with more and better jobs?

3 Who is protected under the employment relationship? Classification as worker is the gateway to basic rights and exercise of crucial life course options security of employment can vary with types of work /workers characteristics (engaged in what, where, by whom?) contractual forms (duration, continuity, degree of subordination, etc) national policy mix (fiscal implications)

4 Focus on contractual arrangements Looking beyond limits of labour law and traditional binary distinction Worker vs Self-employed. Legitimise diversity, easy entry into mainstream employment, reduce segmentation, combat precariousness, explore ways of guaranteeing employment security Should there be a core of rights to cover all workers regardless of the form of their work contract? Workers perceive that social protection and efficient job replacement may provide better guarantees of employment security than some aspects of traditional employment protection legislation

5 Non-Standard Contracts Transitions negative/positive stepping stones ; durable traps ; or just revolving doors Importance of transparency of terms, responsiveness to choice over working time, etc, and voluntariness in choice of status. Implications of life cycle approach for contract diversity and ease of transitions. Need to innovate beyond stereotypes from which labour law/social insurance evolved

6 From National to EU Level Despite the diverse legal and industrial relations systems, problems of employee status are present in most Member States. Better Regulation should count the costs & benefits of employment law and consider its impact on SMEs Can the EU assist the Member States in successfully tackling these problems and what form should Community level support take?

7 A diverse mix of EU social policy instruments Labour law directives (Art 137, 49, 94) Freedom of Movement regulations (Art 39) Internal Market measures that can ensure safeguards under particular contractual forms (Directive 86/653) Social dialogue (Art 138) at inter-professional and sectoral levels European Employment Strategy/ Social Inclusion - open method of coordination (OMC) processes Financial instruments: ESF, PROGRESS, Globalisation Adjustment Fund (EGF)

8 7 Themes x 14 Questions A Flexible & Inclusive Labour Market Facilitating employment transitions - good practice models (not for export!) Uncertainty with regard to the law - misclassification/avoidance of social contributions Three Way Relationships Organisation of Working Time Mobility of Workers What scope for greater convergence in scope of national definitions? Enforcement of employment rights & combating undeclared work

9 Outcome of Public Consultation Institutions EP, EESC, 25 MS EU Social Partners UNI-Europa & CEA EU Industry bodies, NGOs, etc National Social partners National NGOs & regional authorities Enterprises Labour Specialists & Think Tanks Individuals

10 Social Partner Responses Relationship between Labour Law Green Paper & broader Flexicurity agenda Why public consultation, not Article 138 social partner consultation? Focus on individual employment relationship too restrictive? Analytic framework : significance of standard employment contract vis-à-vis new flexible work contracts continued/

11 Social Partner Responses II Integrity of Industrial Relations systems and autonomy of labour law Subsidiarity shared disinclination to avoid harmonisation of labour rules or to establish a uniform Community definition of worker Labour law & commercial law codes - differentiating their respective contract forms Differences in views on added value of EU in promoting labour law reform and setting minimum standards

12 EP Resolution 11 th July 2007 Treaty competences in social policy field & principle of subsidiarity Priority concerns in labour law field Conduct of social dialogue and its relation to Better Regulation agenda Technical Support & Trans-national Agreements Development of the Open Method of Coordination of Employment Policies

13 EP Resolution - Labour Law Priorities Complementarity of individual & collective labour law Indefinite employment contracts of an indefinite duration = general norm ensuring respect for fundamental rights strengthen rights for parental leave and childcare provisions at EU & national levels ensure working time arrangements are flexible for employers and employees continued/

14 «Coreof Rights» applicable to standard as well as non-standard contract types

15 «Core of Rights» any form of employment, whether nonstandard or otherwise, should carry with it a core of rights regardless of the specific employment status, which should include: equal treatment, workers health and safety protection and provisions on working/rest time, freedom of association and representation, collective bargaining, collective action, and access to training;

16 Uncertainty in Law How to distinguish between Disguised Employment, Economically Dependent Workers & genuine independent self employment

17 Uncertainty in the law adopting a single definition of a worker and a selfemployed person under Community law is extremely complex because of the very different social and economic realities and traditions in the individual Member States, an initiative [is required to achieve] the level of convergence necessary to guarantee that the implementation of the Community acquis is coherent and more efficient; this convergence should respect the rights of the Member States to determine the existence of an employment relationship

18 Affording protection to workers in multiple employment relationships

19 Regulating for Joint & Secondary Liability For the Commission and the Member States to clearly establish who is responsible for compliance with labour law and for paying the associated wages, social security contributions and taxes in a chain of subcontractors by means of the regulation of joint and several liability for general or principal undertakings, in order to deal with abuses in the subcontracting and outsourcing of workers.

20 Enforcement of labour standards and Combating Undeclared work continued/

21 Role of the Social Partners The EP Resolution highlights the role of the social partners in informing and training workers and employers on their rights and obligations in an employment relationship and on the enforcement of existing law in this area.

22 Awareness - raising For Commission and the MS to launch an information campaign directed at employers and workers. drawing attention to the applicable EC minimum rules and regulations and to the adverse effects clandestine work can have on national social security systems, public finances, fair competition, economic performance and on workers themselves;

23 The Green Paper Follow up Seeking to generate consensus on directions of reform to respond to new types of work and a changing economic environment Complementing employment policy debates and assist the development of common principles on Flexicurity in 2007 Follow-up Communication providing feedback on responses in October, 2007

24 Modernising Labour Law to meet 21 st Century challenges: The public consultation on the Green Paper resulted in a very extensive response with over 450 submissions received the consultation began.