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Monitor Prawa Pracy

no. 10/2019

Labour shortage deserves attention also from the point of view of labour law as it affects one of its basic theoretical pillars through the dissolution of the subordination bond between the parties. In tight labour markets, employers themselves need to create a bond that will retain workers within their organization. In our view, a favourable labour market situation never means a complete cessation of subordination. Instead, labour shortage only makes it easier to find a new job, but the employee will still be subordinated in that next job too. For most employees, they simply need wages to maintain their lives and it is unconditional to the current supply-demand relation at the market.

DOI: 10.32027/MOPR.19.10.3
Szilvia Halmos
Visiting lecturer, Department of Employment Law.
Gábor Kártyás
Labour Law Department, Pázmány Péter Catholic University.
Abstract

The results of the research convinced us that there is no need for an overarching labour law reform in the present labour market situation. Labour law shall not mirror the prevailing and quickly changing reality of the market, instead it shall mean a stable framework for the parties. We specifically consider it a trap if legislation changes the core pillars of law because of temporary demands. This is not to say, naturally, that clarification of the regulation or revision of some details would not be reasonable. To mention some examples, the efficiency of enforcing employers’ claims against employees breaching the law shall be enhanced, or the law shall enable a more effective legal review of absences due to sickness. The annual maximum of overtime was raised recently, now the labour inspection shall closely watch the employers’ practice concerning „extra-overtime” and its administration. Indeed, the aim of the new regulation is not to grow further overtime levels but to legalise the previous practice.

While we are advocating a cautious intervention for legislation, it is rather active, quick steps that employers shall take. Probably the most important task for employers in labour shortage is to create the subordination of employees by themselves, as the market conditions would not do it automatically. First and foremost, employers need to encourage employees with comparative advantages to remain in their company and perform well. It is not enough for the top management to see the new requirements dictated by the labour market situation, but the employer must make efforts to adopt these into the daily work of middle-level managers, because they are in direct contact with the workers, they represent the „employer” for the staff.

Finally, shall the employer meet the most extreme situations due to labour shortage? In our view, the tight labour market can provide many precious lessons that are valid not only in the current situation. Employers’ attitudes to appreciate employees more, to use comparative advantages rather than sanctioning, or to pay more attention to the training of middle-level managers are good investments also in the long term, and their introduction and practice will pay off even if the market conditions will change over time.