Legal & Tax Alerts

New rules on Kurzarbeit

Government Emergency Ordinance no. 211/2020 on the extension of the applicability of certain social protection measure within the context of the spread of SARS-CoV-2 coronavirus as well as for the amendment of 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 for stimulating employment growth has been approved through Law no. 58/2021[1] (“Law no. 58/2021”).

The main amendments of the Kurzarbeit brought by Law no. 58/2021 refer to the following aspects:

the employers have the possibility to reduce the working time of employees by up to 80% of the daily, weekly or monthly duration computed by taking into consideration the duration provided in the individual employment contract, as a result of the temporary decrease of the activity  determined by the set up of the emergency/alert/siege state under the conditions of law;

the reference period for setting the minimum period of applying Kurzarbeit is 30 calendar days;

the decision of the employers regarding the reduction of the working time, work schedule, the distribution of the schedule on days and the related salary rights are communicated to the employee, exceptionally, with at least 24 hours before the effective application of the measure, if an amendment of the working schedule is determined by an increase in activity of the employer which needs a staff supplementation or in case it is required  to replace an employee who is unable to work according to his work schedule;

the prohibition to hire staff for performing identical or similar activities with those performed by the employees whose working time has been reduced, as well as to subcontract the activities performed by employees whose working time was reduced is reported to the level of the subsidiary, branch or other secondary establishments, where the decision of reducing working time is implemented;

by means of exception, the above-mentioned prohibition does not apply in case of replacing an employee whose individual employment contract terminated ope legis, by dismissal, for reasons related to the employee or by resignation.

Law no. 58//2021 will enter into force on April 7th, 2021.

 

[1] Published in Official Gazette of Romania, Part I, no. 345 of April 5th, 2021.

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