Draft Law Reforming Social Dialogue In Undertakings

A draft law reforming social dialogue was presented to the Luxembourg Parliament on February 25, 2013 aiming at re-evaluating and improving the social dialogue in undertakings (hereinafter "the Draft Law").

The purpose for the Draft Law is to adapt the social dialogue to a new economic reality, to simplify its functioning, to reinforce the transparency and to better integrate the social dialogue in the businesses.

The innovations may be summarised as follows:

1. The structure of the bodies representing the employees is simplified

   A staff delegation must be set up at different levels:

   At the level of an "undertaking" ("entreprise"); At the level of an economic and social entity ("entité economique et sociale") if any. Representatives of establishment may also be elected if the undertaking is composed of several separate establishments. Such representatives of establishment are part of the staff delegation set up at the level of the undertaking. Separate establishments are defined as any production or exploitation unit permanently endowed with material assets and personnel managed by a head supervising the establishment to whom the head of the undertaking has delegated limited powers.

2. The right for the staff delegation to have recourse to external counsels is enhanced

   Given the complexity of the issues with which the staff delegation must deal and the extension of the scope of their powers, the Draft Law enhances the right for the staff delegates to have recourse to external counsels.

3. The powers of the delegate responsible for occupational safety have been extended

   The powers of the delegate in charge of occupational safety issues include health issues.

4. The functions of the staff delegation have been clarified, grouped and completed

   It is worth mentioning the obligation to communicate to the staff delegation and to the delegate in charge of occupational safety and health issues, information on the evolution of the absence rate. Moreover, information and consultation requirements on the running of the undertaking are extended to vocational training, policies on the prevention of harassment and violence at the workplace, working time organisation, continuing professional development plans, the setting up of age management plans, the implementation of internal reinstatements and promotion of work-life balance and recourse to agency workers or to fixed-term employment contracts.

5. The Joint Works Council is removed

   One of the major changes...