Legal & Tax Alerts

Recent amendments upon the Labor Legislation

The gross national minimum salary guaranteed in payment valid in 2021

Starting with 13 January 2021, the value of the gross national minimum salary guaranteed in payment increased from RON 2,230 to RON 2,300/month (excluding allowances and other additional amounts)[1]. This salary relates to a normal working program having an average of 169,333 hours/month, representing RON 13,583/hour.

For personnel having job positions that require higher education, with at least 1 year of seniority in the field of higher education, the value of the gross national minimum salary guaranteed in payment has been maintained to the amount of RON 2,350/month (excluding allowances and other additional amounts), relating to a normal working program having an average of 169,333 hours/month, representing RON 13,878/hour.

Suspension of the individual employment contract during the temporary suspension of the activity and/or its reduction as a consequence of the decree of state of siege or state of emergency

According to a new amendment of Law no. 53/2003 – the Labour Code[2] employers may dispose of the suspension of the individual employment contracts during the temporary suspension of the activity and/or its reduction as a consequence of the decree of state of siege or state of emergency. Employees affected by this measure shall benefit from an allowance (technical unemployment allowance) paid from the unemployment social insurance budget, amounting 75% from the base salary corresponding to the occupied job position, however not more than 75% from the average gross salary used to substantiate the state social insurance budget in force, throughout the maintenance of state siege or state of emergency, as the case may be. The allowance may be supplemented by the employer with amounts up to the difference of minimum 75% from the base salary corresponding to the occupied job position, to the extent that the employer’s budget for personnel costs allows.

The technical unemployment allowance is subject to taxation of income from salaries and assimilated to salaries and mandatory social contributions, however for this it is not due to the insurance contribution for work.

Employees having in place more individual employment contracts out of which at least 1 remains active throughout the state of siege or state of emergency do not benefit from the technical unemployment allowance. In case all of the individual employment contracts of the employee are suspended, then this benefits from the technical unemployment allowance relating to the individual employment contract having the most advantageous salary rights.

With a view to granting the amounts necessary to pay the technical unemployment allowance, employers electronically submit to the county employment agencies, as well as of Bucharest, where they have their registered office, a request (signed and dated by the legal representative), accompanied by a statement and the list of the individuals who shall benefit from the allowance. Settlement of the amounts is done in maximum 15 days as of the submission of the documents, and payment of the technical unemployment allowance to employees is performed in maximum 3 working days as of the moment employers received the amounts from the unemployment social insurance budget.

Employers are prohibited to cancel the job positions occupied by the individuals of whose individual employment contracts have been suspended (i) due to the temporary suspension of the activity and/or its reduction as a consequence of the decree of a state of siege or state of emergency or (ii) as a result of the temporary interruption or reduction of the activity for economic, technical, structural and similar reasons for a period at least equal to the suspension period for which they benefitted, for these employees, from the payment of the technical unemployment allowance from the unemployment insurance budget. Non-compliance with this prohibition represents minor offence sanctioned with the reimbursement by the employer of the amounts received as technical unemployment allowance for the cancelled job positions.

These amendments regarding the possibility to suspend the individual employment contract during the state of siege or state of emergency entered into force as of 27 December 2020.

 

[1] The Government Decision no. 4/2021 establishing the gross national minimum salary guaranteed in payment, published in the Official Gazette, Part I, no. 40 as of 13 January 2021;

[2] Law no. 298/2020 for the supplement of aw no. 53/2003 – the Labour Code, as republished and further amended, published in the Official Gazette, Part I, no. 1293 as of 24 December 2020.

Cookie Settings