Trade unions, Socialists criticise, employers welcome labour draft

Budapest, July 22 (MTI) - The Federation of Hungarian Trade Unions (MSZOSZ) and the opposition Socialist Party voiced criticism of the Economy Ministry s draft new Labour Code, published on Friday, saying that it would grant employers benefits to the detriment of employees.

The Federation of Entrepreneurs and Employers (VOSZ), however, welcomed the draft seeing it as an effort to increase flexibility in employment.

MSZOSZ head Peter Pataky said that his federation disapproved of components in the draft that would lead to lower wages and higher working hours. He said that he also expected heated debates about the planned rules of holiday leave. Pataky added that changes in the rules of dismissal should be carefully examined, too.

Tibor Szanyi, a member of the Socialist Party s board, said that the government, which seeks to have employers pay higher wages to low-income staff, wants to compensate them through the labour changes.

It is "unprecedented", said Szanyi, that "pregnant women or mothers with babies could be simply given notice by way of a letter".

Szanyi added that though about one million voters in the government s social consultations supported the idea of ensuring employment protection to people during the last five years before retirement, "the government would now allow for anybody to be dismissed with a regular notice".

VOSZ head Ferenc David praised the draft for offering more room for mutually beneficial agreements between employers and employees.

The ministry published its draft on the government s website earlier in the day, seeking broad consultations over the planned legislation.

According to the draft, employers would have fewer restrictions concerning dismissal of employees during their last five years before retirement.

Employees on sick leave, pregnant women or those on maternity leave, people on unpaid leave taking care of sick family members or doing voluntary military service could also be dismissed.

According to the draft the rules of holiday leave would also be modified; unless a different agreement is made, employees could take no less than 10 days off at one time, and the employer would have the right to set holiday dates with the exception of five days a year, which would be set as requested by the employee.

The draft also suggests that the government should annually define the minimum wage in a decree.

The government has not discussed the draft yet.