Consultation on New Rules for Contract Labour

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The Ministry of Labour and Social Affairs has submitted a White Paper regarding amendments of the Working Environment Act for consultation. The White Paper proposes an overall regulation to recurrent issues in regards to contract labour.

According to The Ministry of Labour and Social Affairs, the purpose of the White Paper is to ensure security of permanent employment relationship and to create flexibility for the employer. The White Paper consists of three measures:

  • Introduce a definition of “permanent employment” in the Working Environment Act. The Bill includes three general conditions: The employment must be of no time limit, the employer must have employment protection in real terms, and the employee must be ensured predictability in terms of the extent of employment in real terms. The definition is mainly a codification of current law.
  • Introduce a new statutory basis for contract labour in staffing companies. This statutory basis shall only relate to employees who are contracted in genuine temporary positions in the hiring company.
  • Introduce a limited access to contract labour in terms of a quota directed towards certain industries. The Ministry is suggesting a quota of 10-15 per cent in the White Paper, but is asking for input.