The Labor Code is the body of law that governs relations between employers and employees. All the procedures that must be carried out between these two legal subjects are present there. The question then arises as to what is the actual usefulness of this code?
Inform and protect employees in relation to their rights
The Labor Code brings together the rules that protect employees. Its implementation aims to improve the living conditions of the latter. Employee wages are set by code. The interest of the Labor Code is especially noticed when the employee is indebted to the bank. It is the law which indicates the maximum that the bank can withdraw monthly from his salary.
The Labor Code has been more flexible and adjusted to allow employees to live in more humane conditions and have a life outside of work. For example, a day off is now granted to an employee who has lost a loved one even if the latter is not his or her direct ascendant or descendant.
Supervise employees legally
For businesses, the labor law is not really favorable. The sole interest of the Labor Code is its use as a reference. The provisions of the Labor Code serve as the basis for creating the contract between the employee and the employer. Based on the Labor Code, a company has the obligation to remunerate the employee. The salary scales are determined by the labor code according to the services that the employee performs within the company in question. In addition to this rule, the company is also required to provide its employees with the means to carry out their mission.
As an advantage, the Labor Code allows the company to punish or fire the employee if the latter fails to fulfill his role. The procedures associated with these measures are already provided for by the code.
Influence the economic filed
By "relaxing" or strengthening the provisions of the Labor Code, the reaction of banks towards their employee customers is changing. Indeed, if the Labor Code makes the labor market more flexible, the income received by bank customers is not easy to determine. Therefore, the interests that they will be able to obtain per individual will be uncertain.
For the business economy, the interest of the Labor Code lies in the promotion of fixed-term contracts and dismissals. The more flexible the application of the code, the more companies will be tempted to renew their employees in order to recruit only super competent people at low cost. This is a source of instability in relation to employee income.