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Elina Valtonen, Minister for Foreign Affairs of Finland

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Milena Jakšić Papac, President of the FIC Human Resources Committee (Karanović & Partners o.a.d.)

New Times Call for Legislative Changes

Among the numerous recommendations for improving the labour legislation framework that are presented in the FIC White Book, we highlight the need for amendments to the Labour Law to allow the electronic signing of documents

Since the last significant amendments to the Labour Law, back in 2014, the FIC Human Resources Committee has continuously pointed out the need for further changes to labour legislation and the adapting of regulations to the global changes in the organisation of labour. Although many of these changes were initially driven by circumstances imposed by the global pandemic, it quickly became clear that these new forms of work are now part of our daily reality and need to be recognised and regulated in a way that doesn’t hinder business or discourage flexibility.

The proposals for improving the labour legislation framework that are outlined in the FIC White Book are extensive, but what has garnered the most attention from our members over the years is the need for the Labour Law to explicitly regulate the possibility of signing documents electronically, which entails its alignment with the Law on Electronic Documents, as well as amendments to various administrative procedures in the field of labour. At the same time, by-laws should be amended to more clearly regulate the use of advanced electronic signatures, allowing for the simple and efficient electronic signing of documents through platforms like DocuSign, which are recognised as reliable and valid within the EU.

By-laws needed to regulate safe and healthy work from home

FIC members will continue to advocate for improvements in labour legislation, focusing on adapting regulations to modern forms of work, which are now our new reality

Moreover, a practical need exists for by-laws to regulate health and safety when working from home or remotely. However, the Occupational Safety and Health Law doesn’t currently provide for the issuance of such by-laws, which makes it necessary to amend the law to include this possibility, followed by the adoption of by-laws that would regulate the specificities of risk assessment documents, preventative measures, employee training and the division of responsibilities between employee and employer when working from home or remotely.

The calculation of salary compensation during annual leave, paid leave and other absences has long been problematic and should be amended in such a way that the basis for calculating salary compensation is the employee’s agreed base monthly salary, increased by their length-of-service increment. Employees would thus receive a fair amount of salary compensation during absences that’s equivalent to what they earn when working. In contrast, the current legal solution takes into account the average salary over the previous 12 months as the basis for calculation, including bonuses and other extraordinary earnings, which can result in employees receiving higher earnings when absent than when working, leading to absurd disparities between the two. Bonuses are no longer uncommon, and an increasing number of employers are suffering from the consequences of these irrational legal provisions, which discourage employee rewards, complicate budget planning and foster a culture of feigned work absences.