Labor legislation on the path to the EU: will it be possible to maintain a balance between the interests of workers and businesses?

Discussions are continuing in Moldova on a new package of amendments to labor legislation, drafted as part of efforts to bring national regulations into line with European Union standards. The draft affects the Labor Code, the Code of Administrative Offenses, the Law on the State Labor Inspectorate, and legislation on occupational safety and health.

A preliminary consultation took place on July 14 at the Ministry of Labor and Social Protection. On July 27, the draft was discussed again at a meeting of the working group of the Economic Council under the Prime Minister, with the participation of representatives from government agencies, labor unions, employer organizations, the business community, and civil society.

The Labor Code is set to introduce new concepts, including definitions of comparable employees—those employed for an indefinite term and on a full-time basis—as well as “mobile workers.”

The draft provides for strengthening the principle of equal treatment for employees working part-time or under fixed-term contracts. It is proposed that hours worked by a part-time employee in excess of the hours specified in their individual employment contract be compensated as overtime.

Employers’ obligations to inform employees and their representatives are being expanded. Additional requirements are set forth for collective layoffs and the transfer of a business to another owner. Certain provisions concern the organization of working hours, night and shift work, the work of mobile workers, employment in private households, and certain industry-specific features.

There are also plans to clarify the powers of the State Labor Inspectorate. This concerns procedures for issuing orders, drawing up plans to remedy violations, deadlines for implementing prescribed measures, and the application of sanctions. It is proposed to amend the Code of Administrative Offenses to include employer liability for failing to fulfill the obligation to inform employees about their working conditions.

The Ministry of Labor notes that the draft transposes the provisions of six European directives into national law. These directives primarily ensure transparency and predictability in working conditions.

The Economic Council’s materials additionally mention the EU Directive on Temporary Agency Work. However, the official list from the Ministry of Labor and the Particip.gov.md platform list six directives. This discrepancy requires clarification in the final version of the draft.

For workers, the proposed changes mean clearer guarantees, expanded rights to information, and stronger protections for certain categories of employees. For employers, they may require a review of internal procedures, employment contracts, HR documentation, and the process for interacting with employee representatives.

It appears that the practical application of the new regulations will be the main focus of discussions. The Ministry of Labor reports that participants in the consultations have already discussed the impact of the proposed provisions on employees and employers; however, the detailed positions of business associations, labor unions, and individual companies have not yet been publicly presented. As far as we know, the main concern for businesses is the ability to dismiss an employee who fails to fulfill their duties without subsequently facing legal action. Current legislation protects employees more than the employers who hired them. Employers must have a fair opportunity to dismiss an employee without subsequently being subjected to possible manipulation on the employee’s part or threats of legal action.

This is also important for government agencies, which are employers as well. In Moldova, there have been numerous cases of civil servants being dismissed who later won their jobs back in court, along with a year or two’s worth of back pay—the duration of the legal proceedings. The budget hardly benefited from this, not to mention the legal costs.

It is still too early to say whether the draft places an excessive burden on businesses or, conversely, fully resolves the issues of worker protection. This will become clear after the final version is published, the proposals received are evaluated, and the costs that businesses may incur to comply with the new requirements are analyzed.

Moldova has long needed modern and predictable labor legislation. At the same time, the adoption of European standards should not be reduced to a mere formal addition of new obligations to the labor codes. It is important to determine how clearly the requirements are formulated, whether they allow for ambiguous interpretation, and whether businesses—especially small and medium-sized enterprises—can implement them without excessive administrative costs.

The draft is part of Moldova’s National Program for Accession to the European Union. According to the Economic Council, its adoption is scheduled for December 2026. Proposals regarding the draft are being accepted on the official platform Particip.gov.md until August 5.

The outcome of the reform will depend on whether the authorities and the business community can strike a reasonable balance. Employees must receive real, rather than merely declarative, guarantees. Businesses, in turn, need clear rules, feasible procedures, and sufficient time to adapt. // 30.07.2026 – InfoMarket.