41 years and 5 months was the time period between Federal Law No. 8/1980 (the "Old Labour Law") and Decree Law No. 33/2021 (the "New Labour Law"). In this article we are highlighting some of the major differences between the Old and the New Labour Law.
Types of Contracts
According to the Old Labour Law, there are two types of contracts: limited & unlimited. However, the New Labour Law mentions a variety of new types of contracts such as: full-time, part-time, temporary work and flexible work. Yet, according to the New Labour Law any of these types of contracts must be limited in duration.
Probation Period
Unlike the Old Labour Law, employees and employers must serve a notice if any party wants to terminate the employment contract during the probation period and the duration of the notice differs according to the situation. For example, the employer may terminate the service of the employee during the probation period after notifying the employee 14 days before.
Annual Leave
Both laws managed to maintain the same standing on the calculation of annual leave upon the end of the employment relationship being calculated based on the basic salary. On the other hand, there is a difference in calculation during the employment relationship: the Old Labour Laws stipulated that the employee receives his/her basic salary in addition to housing allowance, if any, only during his annual leave; the New Labour Law stipulates that the employee receives his/her total salary.
Gratuity
One of the critical articles in the Old Labour Law was removed from the New Labour Law which stipulated that in case of resignation of the employee between 1 to 3 years the employee was only entitled to 1/3 of his gratuity and if the service period was between 3 to 5 years the employee was only entitled to 2/3 of his gratuity. This article or its requirements don't exist in the New Labour Law, therefore if you are an employee and you resign, and your service period is between 1 to 5 years you shall be entitled to full gratuity.
Termination
Prior to the New Labour Law, countless verdicts gave the employee unlawful termination compensation where they were terminated for reasons outside the one granted under the law. According to the New Labour Law there is only one condition that the employee is entitled for the unlawful termination compensation and that is restricted to one very special condition which occurs if such termination is due to the employee after filing a serious complaint or a lawsuit against the employer that has been proven to be valid.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.