Legal & Tax Alerts

NEW AMENDMENTS IN EMPLOYMENT RELATIONS

There are new amendments in employment relations with respect to:

National minimum gross base salary[1]
Free paid days for parents for supervision of children[2]
Overtime[3], under-declared work[4], delay in payment of salary[5]

The main amendments are:

Starting with 1st January 2022, the national minimum gross base salary will be lei 2,550 per month.

Free paid days are granted to one of the parents for the supervision of children up to and including the age of 12, as well as to parents who have dependent children or adults with disabilities in some form of education, respectively enrolled in a preuniversity education unit, including early preschool education, during the alert state and after its termination, but not later than the end of the school year 2021-2022, without including holidays, in case of limitation or suspension of teaching activities that involve the physical presence of children in the educational units and in the preschool early education units where they are enrolled, under the conditions provided by the applicable law.

Overtime will be compensated with free paid hours within the next 90 calendar days after it is performed.

The “under-declared work” is introduced in the Labour Code and represents the granting of a net salary higher than the one recorded and reported in the payroll statements and in the monthly statement of social security and income tax obligations and the nominal register of insured persons submitted to the tax authorities, the sanction, in this case, being a fine from lei 8,000 to lei 10,000 for each employee identified in this situation without exceeding the cumulative value of lei 100,000.

Failure by the employer to pay the salary to which an employee is entitled to more than one month as of the payment date provided in the employment contract, applicable collective labour agreement or internal regulations, as the case may be, is sanctioned with a fine from lei 5,000 to lei 10,000 for each employee whose payment is delayed to this extent, except for the situation when the employer is subject to Law 85/2014 on preventing insolvency and insolvency proceedings, as further amended and supplemented.

 

[1] Decision no. 1071/2021 for establishing the national minimum gross base salary guaranteed in payment, published in the Official Gazette, Part I no. 950 of October 5, 2021.

[2] Emergency Ordinance no. 110/2021 on granting free paid days to parents and other categories of persons in the context of the spread of the SARS-CoV-2 coronavirus, published in the Official Gazette, Part I no. 945 of October 4, 2021.

[3] Emergency Ordinance no. 117/2021 for amending and supplementing Law no. 53/2003 – Labour Code, published in the Official Gazette, Part I no. 951 of October 5, 2021.

[4] Emergency Ordinance no. 117/2021 for amending and supplementing Law no. 53/2003 – Labour Code, published in the Official Gazette, Part I no. 951 of October 5, 2021.

[5] Emergency Ordinance no. 117/2021 for amending and supplementing Law no. 53/2003 – Labour Code, published in the Official Gazette, Part I no. 951 of October 5, 2021.

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