After the new regulations come into force, the length-of-service allowance will no longer be included in the minimum remuneration for work. The aim is to ensure a transparent model of remuneration for employees receiving the lowest level of remuneration. The new rules will apply from 1 January 2020, while the transitional rules will apply from 1 September 2019.
According to the legislator, the length-of-service allowance is defined as:
an allowance to be paid to an employee for reaching an agreed period of employment, in accordance with the principles set out in separate regulations, a collective agreement, another collective agreement based on the act, remuneration regulations, a statute defining the rights and obligations of the parties to an employment relationship, an employment contract or a cooperative employment contract.
Examples of the length-of-service allowances:
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