CRA Timor News

The New Labour Code

As the country grows economically and its institutions strengthen, the law strives to accompany this development rhythm. The economical investments are ever more frequent and the employment level grows every day. Like so, it is necessary to create a new Labour Code, to substitute the current labour law, as the UNTAET law n.º 2002/5 of May 1st, establishes the minimal working conditions, the labour administration institutions and the procedures on unions and work relations, while new challenges are still not regulated. The new proposition for the Labour Code, to be analysed by the National Parliament (Proposition n.º 39/2010) intends to not only renew the former law’s dispositions, but mostly create a complete and self empowered legislation on the good relation between the parties.

In that sense, the new Labour Code firstly remodels the types of working contracts, determining fixedterm contracts, replacing the former contracts for specific tasks and occasional employment.

The rights, duties and guarantees of the parties in the work relation are also reinforced, with new rules on the performance of extraordinary hours and night shifts, as well as salary, with the creation of a new system of retentions and rebates. The new code also reinforces the special regimes on labour protection.

This new Law is innovative by inserting an absence regime, absent until now, and stipulating new ways of revocation of the Labour Contract as well as the reinforcement of the provisions on conflict resolutions that allow the solving of many daily conflicts. Lastly, the new code stipulates in a more comprehensive manner the collective labour relation, creating new protection, mediation and supervision entities.

The creation and inception of this Code will certainly represent a step forward in updating and modernization of the legal system, allowing the protection of the parties assuring the social peace in Timor-Leste.

Melisa Caldas / Sofia Cruz