Tunisia: Historic labor reform passed
Hailed as a 'social revolution' by analysts, the new law introduces fairer working conditions and greater job security.
Key Provisions of the New Labor Law:
1. Indefinite-term contracts (CDI) become the standard
– The reform establishes permanent contracts (CDI) as the default employment arrangement.
– Fixed-term contracts (CDD) are now restricted to specific cases, such as:
– Temporary replacement of absent employees
– Exceptional workload increases
– Seasonal work
– Any CDD that does not meet these criteria will automatically convert to a CDI.
2. Ban on labor subcontracting
– The law prohibits labor subcontracting, a practice deemed exploitative and precarious.
– Service contracts between companies remain permitted, but under strict conditions to prevent disguised subcontracting.
3. Permanent hiring of subcontracted workers
– Employees previously working for subcontracting firms will be permanently hired by the client company as of the law's enactment.
– This measure ensures job stability and full labor rights for affected workers.
4. Protection for workers on fixed-term contracts
– Employees whose CDD contracts were terminated between March 6, 2024, and the law's effective date are entitled to:
– Automatic permanent employment OR
– Severance compensation (equivalent to two months' salary per year of service, with a minimum of four months' pay).
5. Stricter workplace health & safety enforcement
– Heavier penalties for violations of occupational safety standards.
– An automated fine collection system will ensure compliance.
6. Regulation of remote work
– Recognizing modern work trends, the law introduces clear remote work policies, balancing flexibility for employees and operational needs for employers.
A reform welcomed by social stakeholders
The labor code reform is seen as a major step forward for workers' rights in Tunisia, reflecting a strong political will to break with precarious employment practices and promote decent work for all.
Trade unions and workers' rights organizations have praised these measures while calling for ongoing vigilance to ensure their effective implementation.
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