Company’s internal rules are recognized as source of labour law binding only within the given place of employment. They fulfill a significant role, enabling the employer to shape certain employment aspects independently – even otherwise than in the act of law. In addition, some categories of company’s internal acts have been deemed obligatory by the legislator.
An example of such act is work rules – an obligatory document in companies employing at least 20 employees – regardless of their employment basis. Work rules set forth the rights and obligations of the parties of an employment relationship. Its main purpose is to adjust the regulations of labour law to the specific features of a given company.
Another common internal act is the remuneration rules. Similar to the previous case, it is deemed obligatory in companies employing at least 20 employees. It determines the components of salaries, potentially available bonuses and, most of all, the terms and conditions of gratification for the work as well as awarding benefits.
In both cases the introduction of such acts takes similar form. The employer may draft them in consultation with a professional body acting within the given company, or, in lack thereof, simply make the drafts available to view for the employees. The act enters into force with the lapse of a specific period of time. Should the number of employees decrease below 20 – this will not affect the binding effect of the acts.
As pointed out above, the opportunity to regulate certain aspects in a way other than the one statutorily stipulated is well worth taking a closer look. Yet, this option remains subject to certain limitations – the position of the employee must not be set forth less favorably than stipulated by the generally binding provisions of law. Imposing extra obligations on employees is prohibited, but granting extra rights is not.
In companies employing less than 20 employees, the employer may, but is not obliged to, issue an announcement covering the rights and obligations of parties, work rules of different kind and make it available to view for the employees. Another example of an internal act is the collective employment agreement. It is an agreement concluded voluntarily between the employer and the employees regulating predominantly the rules of work and of remuneration.
CGO Legal law firm offers assessment of already existing company’s internal rules of various sorts in the light of their compliance with labour law. Upon request of our Clients, our lawyers also draft such documents anew.
To find out more please do not hesitate to contact us.