The Institute of Arab Business Leaders (IACE) has released a study calling for a comprehensive overhaul of Tunisia's labor code, which was first introduced 60 years ago. According to the IACE, the cost of maintaining the current legal framework and making piecemeal revisions is now higher than implementing a thorough and structural reform. The study, titled "Sixty years after the promulgation of the Tunisian Labor Code: from the independent state to the platform economy," highlights the limitations of the current approach.
The IACE study notes that over 100 amendments have been made to the labor code since its introduction, but this approach has reached its limits and can no longer keep up with economic, demographic, and technological changes. As a result, around 43.9% of the active population is not covered by the code, according to World Bank data. The study emphasizes that a comprehensive reform is needed to address these issues and provide better protection for workers.
The IACE study identifies six key areas that could form the basis of a comprehensive reform of the labor code. These include drafting a new labor code to replace the current one, regulating new forms of employment such as telework and platform-based work, and establishing an integrated system that combines labor law and social security law. The study also recommends replacing penal sanctions with financial fines and reactivating the National Social Dialogue Council.
The study's authors warn of the risks associated with unilateral or rushed reforms under pressure from crises. They emphasize the need for a thorough and inclusive approach to reforming the labor code. The IACE study also highlights the importance of separating control and conciliation functions within the Labor Inspection.
The IACE recommends building a new social contract that addresses three strategic challenges: protecting workers against precariousness, creating an attractive and adapted legislative environment for investment and digital economy jobs, and ensuring the financial sustainability of social security funds in the face of demographic imbalances.
The study's findings are based on an evaluation of the current labor code and consultations with experts, worker representatives, and business leaders. The IACE emphasizes that a comprehensive reform of the labor code is essential to address the current challenges facing Tunisia's labor market and economy.
The IACE study is part of a broader effort to promote economic and social development in Tunisia. The institute's recommendations are expected to inform policy debates and contribute to the development of a more effective and equitable labor code.
Key points
- The IACE recommends rewriting Tunisia's 60-year-old labor code to address its limitations and provide better protection for workers.
- The current approach of piecemeal revisions has reached its limits and can no longer keep up with economic, demographic, and technological changes.
- A comprehensive reform of the labor code is needed to address the current challenges facing Tunisia's labor market and economy.
