Collective Bargaining

The government announced the Short-time Working Allowance Amendment which will make it more easy for employers to obtain a short-time allowance after they have implemented short-time work. The arrangements entered into force retroactively on 1 March. Once short-time working measures apply to 10% of the workforce (rather than the previous figure of 30%), companies can apply to the authorities for financial assistance, after consulting their works council. Employees working short-time receive compensation from the Federal Employment Agency.

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The Ministry of Development announced a special bill introducing a protection package for enterprises due to the increased incidence of COVID-19. The new regulation should support businesses and minimise the effects of the epidemic by, among other things, introducing debt relief and postponement of the payment of taxes and social security contributions, protecting employees and supporting the labour market, including measures to support companies forced to suspend their business operations. In the case of short-time work, employees will be entitled to benefits from the Guaranteed Employee Benefits Fund of up to 100% of the unemployment benefit.

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Companies that are forced to close due to the state of national emergency will be able to access the simplified “lay-off” procedure. Companies that have been closed by administrative or legislative decision have access to the extraordinary employment support mechanism. According to the Minister of State, Economy and Digital Transition, the ordinance recently published that created the measure should be reviewed in order to simplify and clarify it. He added that it implies the suspension of the contract or the reduction of working hours. A general lay-off regime is already provided for in the Labour Code.

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In response to the impact of the COVID-19 pandemic on French economic activity, specific measures for employees and companies have been taken to deal with the current situation. An emergency act was enacted to allow the government to take exceptional temporary measures by means of ordinances. If there is a significant decrease in a company’s activity due to the COVID-19, the company may be eligible to apply for partial activity, allowing them to temporarily reduce working time or suspend the employment contracts of their employees. Employees on partial activity will receive a specific allowance of 70% of the gross remuneration, paid by the employer, but covered by the state up to the limit of 4.5 times the minimum wage.

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Finnish electronics and wiring systems manufacturer PKC Group has laid off 150 employees of its factory in Smederevo due to the supply problems caused by the coronavirus crisis. The 150 employees have been working part-time at the factory and were hired through an employment agency.

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Supermarkets and logistics firms in need of extra hands call for workers side-lined by the coronavirus crisis to fill crucial transportation and grocery vacancies. For this goal the national Chamber of Commerce’s House of Entrepreneurship launched the JobSwitch online employment platform.

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Call-centre workers are on strike because they are still doing non-essential work that should have been stopped. Call centres are among the workplaces most vulnerable to the spread of infection. Workers are at least 50 to a room, crammed onto shared tables with shared equipment and little space in between one another.

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The Employers’ Confederation and the Chamber of Commerce and Industry support the demand made by farmers to the government to admit foreign agricultural workers to ensure Estonian food production. Unions believe the jobs should be offered to Estonians first.

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To counter the economic impacts of the coronavirus, self-employed workers are free from paying minimum social and health taxes for six months, after the parliament approved a bill to suspend these payments. Other measures were also announced to support employers and employees.

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The government has approved a package of employment-related measures to cope with the economic and social impact of COVID-19. This package includes measures that employers can impose unilaterally, such as temporary suspension of contracts and reduction of working time by between 10% and 70%. Employees would be entitled to unemployment benefits to (partially) compensate the decrease of salary.

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