The new Labour Code has been in effect since November 24, replacing the one that dated back to 1993. Its main objective: to align with various international conventions ratified by the country over the years, and more importantly, to adapt to the context of regional and international integration. Insight by Me Rodrigue Majambere, Partner at BNM & Co. Advocates and a specialist in labour law.
The previous code had only 307 articles, while the new one contains 639—more than double. Like the former code, the new Labour Code applies solely to employees and employers in the private sector. Civil servants, magistrates, defense and security personnel, and members of the national intelligence service are excluded.
Key Innovations
Fixed-term contracts (FTCs) are now only permitted for specific, short-term, or non-permanent tasks. Any other form of contract not meeting these criteria is considered a permanent (open-ended) contract (PEC). Permanent contracts are now recognized as the standard form of employment relationship.
Greater Flexibility in Contracts
Under the new Labour Code, a probation period is now allowed even in fixed-term contracts. A security deposit mechanism has also been introduced. In the event of loss or theft of work equipment entrusted to an employee, the employer may recover the equivalent value from the deposit.
Employees can now negotiate part-time contracts according to their preferences. In other words, an employee who wishes to reduce their working hours—for personal reasons—can request it. This provision also gives the green light for employees to work for multiple employers.
Another key change: unilateral contract modification is now possible in four specific cases—physical incapacity confirmed by a doctor, an accident or non-occupational illness, financial hardship of the company, or business restructuring.
More Refined Procedures
The concept of leave of absence has also been introduced. For any valid reason, an employee may request to be placed on unpaid leave for a certain period.
The formula for calculating damages in cases of wrongful dismissal has been clarified. Instead of the widely used court practice of awarding six months’ salary per year of service, the new formula now grants compensation equal to one-third of the sum of the employee’s age and years of service, multiplied by their monthly salary. Compared to the former method, the new calculation is more favorable to employers.
