Matters on the legal regime of employees' individual performance objectives

• Author: Radu Stefan Patru
• Pages: 119-123

MATTERS ON THE LEGAL REGIME OF EMPLOYEES’ INDIVIDUAL

PERFORMANCE OBJECTIVES

Ph.D. student Radu Ştefan PTRU

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Abstract

Law 40/2011 br ought significant changes to the work rela tions by the reorientation of certa in labour law

institutions on the one hand, and by the introduction of legal institutions that have never existed in the Romanian la w

system until the introduction of thi s law. Among the significant developments introduced by Law 40/2011, the

employees' individual per formance objectives will be hereby anal ysed in terms of the lega l regime and of the issues

occurring with their applica bility for employees.

Keywords: Law 40/2011, employees’ individual performance objectives, l egislative developments, balance between

employer and employee rights.

JEL Classification: K31

Introduction

Just like for the other contracts, the contents of the Individual Labour Contract consists of

rights and obligations of the parties.

Given the specificity of this contract, the content thereof is circumscribed to the rights of

the employer and of the employee.

Article 39 and Article 40 of Law 53/2003 (Labour Code) provide the rights and

obligations of the employer and of the employee with in order to execute the Individual Labour

Contract

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.

Law 40/2011

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changed the legal framework for the work relations, adding new labour law

institutions, some of them being regulated in the Romanian legal environment for the first time.

Among them, we will co ver the employees’ individual per formance objectives, which are

regulated by the Romanian labour law for the first time.

The Legal Regime of Employees’ Individual Performance Objectives

The relevant legal provisions relating to the employees’ individual performance

objectives are mainly Art. 40 (f) of the Labour Code, which establishes the employer’s right to

“set the individual performance objectives, as well as the evaluation criteria for their

accomplishment.”

Moreover, Article 69 of the Labour Code was supplemented with an additional paragraph,

i.e., par. (3), which provides that, in terms of collective redundancy, the accomplishment of the

performance objective will be important for employee categorisation, confirming a switch from

social criteria for employee categorisation to the professional ones.

The individual performance objectives are an advantage for the employer, which is free to

set these objectives on an individual basis after the conclusion of the individual labour contract.

In order to determine the legal regime of individual performance objectives, they must be

analysed in correlation with other related labour law institutions.

As such, when benchmarking the performance objectives and the evaluation criteria for

individual performance objectives, it must be noted that the latter are part of the employer’s

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Radu Ştefan Ptru, Bucharest University of Economic Studies, radupatru2007@yahoo.com

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Labour Code as updated in 2012 (Law 53/2003) and republished and re-numbered in the Official Journal no. 345 of the 18th of

May 2011, on the grounds of Art. V of Law 40/2011 amending and supplementing Law 53/2003.

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Labour Code as updated in 2012 (Law 53/2003) and republished and re-numbered in the Official Journal no. 345 of the 18th of

May 2011, on the grounds of Art. V of Law 40/2011 amending and supplementing Law 53/2003