Employers come up with proposals to improve business environment in Moldova
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4 November 2015

National Confederation of Employers of Moldova (CNPM) launched three position papers on 7th October 2015 with the aim to combat the informal economy, create more effective social dialogue and emphasize the need for more flexible labor laws.

The documents, prepared with the financial and technical support of the ILO, contain a set of policies to reduce informal economy and employment, recommendations for enhanced social dialogue as well as legislative proposals for the adjustment of the labor legislation to the current economic and social context.

The President of the National Confederation of Employers of Moldova (CNPM ) Mr. Cerescu, said that these documents are addressed to policy makers reflecting the CNPM position on the need for labour legislation flexibility, better quality social dialogue and reduction of informality. "Publication of these papers is part of a series of steps in which the National Confederation of Employers of Moldova promotes the idea of creating more favorable conditions for business activity," noted Cerescu.

In terms of labour law revision, the initiative was launched in 2010 within a roundtable event with the involvement of employers, policy makers, trade unions and scientific researchers. Following this initiative, a tripartite working group for Labour code amendment was established under the Ministry of Labour Social Protection and Family where the social partners managed to negotiate a draft for Labour Code amendment over 40 articles. The National Confederation of Employers considers that it is necessary to amend the current labour legislation in order to ensure successful and sustainable enterprises, job creation and appropriate social balance. Employers propose amendments to optimize hiring rules by simplifying requirements of individual employment contracts and by introducing the possibility to conclude fixed-term individual employment contracts. Other recommendations concern rules on employment relationship and the termination of individual employment contracts as well as optimization of provisions related to labour rights and interests protection.

Regarding the reduction of informal employment and informal economy, employers propose to introduce rules to limit the increase in tax rates and the introduction of a predictable, stable and gradual increase of the minimum threshold of taxable income. Employers also propose to create a one-stop shop for declaring all taxes and to simplify the procedures for obtaining licenses and permits.

To better explore the potential of social dialogue, CNPM believes that the Government should review and renew policies that hinder the creation of an effective social dialogue and to allocate necessary resources. Employers recommend the restructuring of the National Commission for consultations and collective bargaining (NCCCB) to ensure its permanent and more professional activity. Employers also propose to introduce legal amendments in line with the ILO’s International Labour Standards to promote functional collective bargaining in the country.

These papers are also based on the study developed by CNPM in cooperation with the Independent Analytical Centre “Expert Group”, entitled "The major constraints on the business environment in Moldova " in 2013 and CNPM Agenda for Improving the Business Environment "7 Obstacles for Business " also prepared with the financial and technical support of the ILO. These papers served as the basis for signing a Memorandum of Cooperation between CNPM and Government. This cooperation agreement set out the main directions of cooperation between the parties, one of which is Labour Code amendment to be submitted to decision makers.


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