The National Labor Inspectorate is set to acquire new powers that could significantly impact the treatment of civil law contracts. It is anticipated that the National Labor Inspectorate will gain the authority to mandate the conversion of civil law contracts into employment contracts under certain conditions. The goal of these changes is to enhance employee protection and address abuses associated with civil law contracts.
New National Labor Inspectorate Powers
Under the proposed changes, the National Labor Inspectorate would be empowered to order the transformation of civil law contracts into employment contracts. These new powers are intended to better align employment arrangements with actual working conditions. If it is determined that a civil law contract effectively constitutes an employment relationship, the National Labor Inspectorate will have the authority to require its conversion into an employment contract.
Conditions for Mandating Contract Transformation
The National Labor Inspectorate could mandate the conversion of a civil law contract into an employment contract under the following circumstances:
- The employee performs their duties under the direct supervision of the employer,
- The employee uses tools and equipment provided by the employer,
- The employee adheres to fixed working hours and complies with the company’s internal regulations.
Benefits of the New Powers
The introduction of these new powers for the National Labor Inspectorate aims to:
- Increase Employee Protection: Employment contracts offer a full range of employee rights, such as paid leave, sick benefits, and protection against unjust dismissal.
- Eliminate Abuses: Mandating the conversion of civil law contracts into employment contracts will help eliminate abuses where civil law contracts are used instead of employment contracts, despite effectively serving as permanent employment arrangements.
Ongoing Consultations
At present, the final form of the regulations remains uncertain as the project regarding the National Labor Inspectorate’s new powers is still under consultation. The final regulations may change based on the outcomes of these consultations. The effective date for these changes is also not yet known.
