The Act defines terms of operation of the so-called work councils (‘Councils’) and related duties of employers.
At unionised companies, Councils will basically need to be elected within two months of the Effective Date. In other cases employers will have to inform their staff within four months and then, within the next two months, organise elections.
Which employers will be affected?
The Act applies basically to employers carrying on economic activity and employing at least 50 employees. However, until 23 March 2008 the Act will apply only to companies with 100 or more employees.
Attention (!): the Act will not apply to employers that have entered into relevant arrangements with their staff before the Effective Date (on 24 May at the latest) provided that such arrangements keep statutory standards.
How big will Councils be?
The size of Councils is related to employment level, amounting to three, five or 7 members, according to up to 250, more than 250 and no more than 500, or more than 500 employees. Basically, each representative union may elect at least one member unless the number of unions exceeds the statutory size of the Council, in which case each of them may elect just one member.
How will Councils be elected?
Councils will be elected by staff from among candidates submitted by at least 10 or 20 employees, depending on whether a company employs up to 100 or more people. While voting rights may be exercised by nearly each employee, candidates should have a one-year employment record and not belong to senior executive, accounting, legal or juvenile staff.
At unionised companies representative unions or their executive bodies will elect Councils and notify the employer. If unions fail to agree on election and operation of Council, the latter will be elected by staff from among candidates submitted by unions.
Elections will be organised by employers at the request of at least 10 per cent of employees. Employers will have to inform employees of the date of elections and the deadline by which candidates should be submitted. At unionised companies, it will be the unions’ job to start elections.
Technically, elections involving staff will be organised by electoral commissions according to by-laws agreed between employers and staff or unions (in case unions submit candidates). Unless otherwise agreed, elections will be held on working days (where possible) at the general meeting of staff. Elections will be direct and secret, and will only be valid if at least half the staff participate. Where less than 50 per cent participate, elections will be repeated, in which case quorum does not matter.
Employers will have to notify the Labour Minister once Councils are appointed. Basically, costs related to the operation of Councils will be borne by employers or – in the case of unionised companies – the unions.
Council terms of office will be four years. Meanwhile, they may need to be completed as a result of members ceasing to be employed, resigning or being dismissed from Council.
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How are Councils members protected?
Basically, all members of Councils will be protected from termination of their employment or employment terms. In addition, members of Councils will be entitled to participate in Council activities during their working hours while remaining entitled to remuneration.
Any departure from statutory template?
Terms of operation of Councils should be agreed between Councils and employers and may differ from the statutory template, provided that such arrangements respect minimum statutory standards. Points to be agreed may cover issues such as procedures for informing and consulting staff and settling disputes, costs related to the operation of Councils and different sizes of Council.
What is meant by ‘ inform and consult’ Councils?
Employers will have to inform the Council of data including employers’ operations and economic position (!), the size and structure of employment, anticipated developments regarding the above, and activities that may cause basic changes in work organisation or grounds of employment.
Employers will have to inform the Council each time they anticipate developments or intend activities or receive request from the Council. Data must be passed to the Council so that it can become familiar with and review the matter, and prepare for consultation. Councils may present employers with their opinions on the above.
Employers will also have to conduct consultation with Councils in respect of labour matters. Such consultations should be conducted in good faith and so that data exchanged between parties is the basis for consultation and agreement can be achieved between them.
Business confidential data at risk?
Council members will have to keep company secret data confidential for a maximum period of three years after ceasing to fulfil their roles. Employers can deny such data to the Council where revealing such data could seriously impede their business activities or expose them to material damage. Each case of data claimed to be confidential or denying such data to the Council may be challenged by the latter before the court.
Penalties
Actions aimed at precluding the establishment and operation of Councils, as well as discriminating against Council members, can be penalised with fines or restriction of freedom.
© Jarosław Król
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