Slovenian parliament votes unanimously for tighter rules in job agencies

Slovenian parliament votes unanimously for tighter rules in job agencies

 

Review by Christos T. Panagopoulos –

The Labor, Family and Social Affairs Committee voted unanimously on Wednesday that the legislative changes tightening the regulation of temping and recruitment agencies are fit to be passed at the plenary session of parliament.

Key changes include a clearer distinction between the activity of recruiting workers for companies and providing services on the basis of temporary contracts (File photo)

The coalition-sponsored amendment means the financial requirement for agencies would be a bank guarantee in the amount of 30,000 euros, the same as the requirement for sole proprietor, while the original proposal was a share capital in the same amount.

Labor Ministry official, Peter Pogačar, admitted that the amendment differed from what was agreed with the social partners, but underscored that the solution was comparable internationally.

The trade union representative did not take a position on the amendment, but Lojze Šket of the temping agencies’ association said that some agencies even now had difficulties obtaining bank guarantees and that they would be forced to pay deposits to get them.

He also expressed the concern that the changes would only benefit large international agencies and that the amendment would again embolden the unpopular small agents as they would not need to secure share capital.

Deputies did not discuss the motion at length with Andrej Vizjak of the opposition Democrats (SDS) noting that the given changes to the labour law were a fulfilment for the promise he had made as labour minister to social partners when the labour market reform was passed at the beginning of the year.

Minister of Labour, Family, Social Affairs and Equal Opportunities Anja Kopač Mrak said the changes, which are being processed in a shortened procedure, were aimed at limiting violation of workers’ rights and precarious forms of work and at improving the quality of job agencies’ services.

Key changes include a clearer distinction between the activity of recruiting workers for companies and providing services on the basis of temporary contracts. Only companies that will register the recruitment of workers as their main form of activity will be able to operate as job agencies.

Foreign companies will be required to have full-fledged subsidiaries in Slovenia while associated companies will be banned from establishing employer (agency) – user (company) relationships. Oversight will also be stepped up, also with stiffer fines, which are increasing from up to 10,000 euros to up to 30,000 euros. It will, moreover, be possible to strip repeat offenders of their license.

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