Legal & Tax Alerts

Settlement procedure for Kurzarbeit and other support measures

The procedure for granting recently regulated support instruments for employers and employees[1] was published in the Official Gazette[2].

The Kurzarbeit allowance will be paid to the employee by the employer, and will afterwards be settled from the unemployment insurance budget.

Thus, the employer’s application for settlement, accompanied by an affidavit regarding the fulfilment of the granting conditions, as well as by the list of employees for which the settlement is requested, is submitted by the employer in electronic or letter format to the county employment agencies, respectively of the Bucharest municipality, where the employers have their registered office. The settlement is made within 10 days from the date of submission of documents and after payment of taxes and related contributions.

Some clarifications are also provided regarding the settlement of the following amounts:

the settlement from the state budget of a part of the salary of the staff concluding individual employment contracts for a determined period of up to three months until December 31, 2020, representing 41.5% of the salary related to the days worked in these jobs, for a work schedule of 8 hours a day;

an amount of 35% of the remuneration due per working day for day labourers whose activity is interrupted or restricted due to the effects of SARS-CoV-2 coronavirus for a period of three months, at the choice of the beneficiary, but not later than December 31, 2020;

the monthly allowance of 41.5% of the average gross salary for professionals whose activity has been temporarily reduced as a result of the establishment of the state of emergency/alert.

 

[1] Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth, published in the Official Gazette, Part I no. 720 of August 10, 2020;

[2] Decision no. 719/2020 for the approval of the procedure for settlement and payment of the amounts granted based on the Government Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth, published in the Official Gazette, Part I no. 794 of August 31, 2020.

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