Law no. 298/2020 for the completion of Law no. 53/2003 – Labor Code
The Romanian Parliament adopted the law to complete Law no. 53/2003 – Labor Code
Changes regarding the situations in which the individual employment contract may be suspended at the initiative of the employer:
- the individual employment contract may be suspended at the initiative of the employer and during the temporary suspension of the activity and / or its reduction as a result of the decree of the state of siege or state of emergency.
Clarifications regarding the temporary suspension of the activity and / or its reduction as a result of the decree of the state of siege or the state of emergency:
- in the case of temporary suspension of the activity and / or its reduction as a result of the decree of the state of siege or state of emergency , the employees affected by the reduced or interrupted activity, who have their individual employment contract suspended, benefit from a unemployment benefit paid from the unemployment insurance budget, in the amount of 75% of the basic salary corresponding to the job occupied, but not more than 75% of the average gross salary used to substantiate the state social insurance budget in force, throughout the maintenance state of siege or state of emergency, as appropriate;
If the employer’s budget for the payment of staff costs allows, the above-mentioned allowance may be supplemented by the employer with amounts representing a difference of up to at least 75% of the basic salary corresponding to the job held;
- if an employee has concluded several individual employment contracts, of which at least one full-time contract is active during the establishment of the state of siege or state of emergency, he does not benefit of the above-mentioned allowance;
- in the event that an employee has concluded several individual employment contracts and all are suspended as a result of the establishment of the state of siege or state of emergency , he benefits from the above-mentioned allowance related to the individual contract with the most advantageous wage rights;
- employers may gradually take other measures to reduce or stop work, as appropriate. In the situation when the employer adopts the measure of suspension of the individual employment contract, replacing, in whole or in part, the measure of reducing the weekly work schedule from 5 to 4 days, ordered under the conditions of art. 52 para. (3), the payment of the allowance is granted only from the date of suspension of the individual employment contract in case of temporary interruption or reduction of activity, without termination of employment, for economic, technological, structural or similar reasons or during temporary suspension of activity and / or or its reduction as a result of the decree of the state of siege or the state of emergency;
- Employers may not terminate jobs held by persons whose individual employment contracts have been suspended in the event of temporary interruption or reduction of employment, without termination of employment, for economic, technological, structural or similar reasons or during the temporary suspension of the activity and / or its reduction as a result of the decree of the state of siege or state of emergency, for a period at least equal to the period of suspension for which they benefited, for these employees, from the payment of allowances from the unemployment insurance budget; violation of this obligation constitutes a contravention and is sanctioned by the return of the amounts received as compensation during the temporary suspension of the activity and / or its reduction as a result of the decree of state of siege or state of emergency, for abolished posts;
Note: the provisions apply only in case of termination of employment of persons whose individual employment contracts have been suspended in case of temporary interruption or reduction of activity, without termination of employment, for economic, technological, structural or similar reasons after the date entry into force of Law no. 298/2020.
Clarifications regarding the fiscal obligations during the temporary suspension of the activity and / or its reduction as a result of the decree of the state of siege or the state of emergency:
- the indemnity mentioned above is subject to the taxation and payment of compulsory social contributions, according to the provisions of Law no. 227/2015 on the Fiscal Code, with subsequent amendments and completions;
- in the case of the above-mentioned allowance, the calculation, withholding and payment of income tax, state social insurance contribution and social health insurance contribution shall be made by the employer from the benefits received from the unemployment insurance budget;
- the term of payment and declaration of the fiscal obligations specified above is the date of 25 inclusive of the month following the month in which the payment is made from the unemployment insurance budget;
- for the indemnity mentioned above no insurance contribution is due for work according to the provisions of art. 2205 of Law no. 227/2015, with subsequent amendments and completions;
- the period for which the employees whose individual employment contracts are suspended and the employers of these employees do not owe the insurance contribution for work constitutes a contribution period without paying the contribution in the social health insurance system for social insurance holidays and allowances of health provided by the Government Emergency Ordinance no. 158/2005, approved with modifications and completions by Law no. 399/2006, with subsequent amendments and completions.
- for establishing and calculating the social health insurance benefits provided by the Government Emergency Ordinance no. 158/2005, approved with modifications and completions by Law no. 399/2006, as subsequently amended and supplemented, the minimum gross basic salary per country guaranteed in payment shall be used, in force during the period of temporary suspension of the activity and / or its reduction as a result of the decree of state of siege or state of emergency;
- if the contribution period corresponds to a fraction of a month, the minimum gross basic salary guaranteed in payment, in force during that period, corresponding to the fraction of a month, shall be used.
Clarifications regarding the granting of the amounts necessary for the payment of the allowance:
- In order to grant the amounts necessary for the payment of the above-mentioned allowance, the employers submit, by e-mail, to the county employment agencies, as well as to the municipality of Bucharest, within the radius of which they have their registered office:
- an application signed and dated by the legal representative,
- a statement on one’s own responsibility,
- the list of persons to benefit from this allowance, assumed by the employer’s legal representative, according to the model approved by order of the Minister of Labor and Social Protection;
- the documents are submitted in the current month for the payment of the allowance from the previous month;
- the payment from the unemployment insurance budget of the indemnities is made in maximum 15 days from the submission of the documents to the accounts opened by the employers at the commercial banks, and the indemnity payment is made to the employee within maximum 3 days employee upon receipt of these amounts by the employer.