This law affects all companies in the country, regardless of size. It will be effective in July 1st 2024, and there are 3 key points are:
- There is a new organ present in each company called the Employee Assembly. This organ is for employees to exercise their power of democratic governance of the company. There are two types, one is an assembly for all employees or an assembly for employee representatives. In general, companies with more than 100 employees will have an assembly for employee representatives, while less than 100 will have an assembly for all employees. The number of employee representatives must not be less than 5% of the total number of employees and also not be less than 30, while the number of managers and executives must not be greater than 20% the number of representatives. The trade union acts as the executive organ of the Employee Assembly.
- The Employee Assembly has access to basically all the information a company stores, which can be used to affect the worker benefits of employees. It also seeks to make sure the company is always following the labor laws present at the local and national level. When a company considers dissolution or applying for bankruptcy, it is required to listen to the opinions of its trade union and employees through the Employee Assembly or by other forms.
- All companies with at least 300 employees must have employee representatives at the board of directors, unless it already has a board of supervisors with employee supervisors elected by the Employee Assembly in it.
That all looks quite nice, just wonder how much change this will bring but it might not be much for now. They haven’t even set a number for how many employee representatives would be on the border of directors. But nevertheless, having the workers in positions of power should begin to change things and give other employees a taste of how things could be.
And an advantage of the law still being somewhat loose is that it should be easier to improve it later this way, by looking at what workers do, rather than setting something with problems that is then hard to go back on. Though they do need to improve on it.