The regulations that will enter into force on 1 January provide for exclusion from public tenders of companies whose representatives (e.g. management board members) have been punished for offences against employees.

This can be avoided if the company proves that it has carried out an internal investigation procedure, remedied the irregularities and compensated the wronged employee. 

Who is punished for offences?

HR Directors are often general proxies or management board members. As a result, they are exposed to liability for offenses against employee rights. These include, for example, offences under the Labour Code, such as working time breaches, failure to grant holiday time, failure to pay remuneration on time, breach of social labour inspection rights et al. From 1 January a company whose management board member, supervisory board member or general proxy has been punished for such offence will be excluded from participation on public tenders for 3 years. 

How to avoid the exclusion?

The company will avoid such consequences if it proves that it has carried out an internal investigation procedure and cooperated with external authorities, e.g. the State Labour Inspection Service. It is also required to prove that it has drawn conclusions for the future, e.g. supplemented the procedures, carried out training and dismissed the persons guilty of the breaches. This requires implementation of a compliance system in the organization.

Find more in the PRO HR October 2020.