LEGISLATIVE CHANGES – EMERGENCY ORDINANCE (EO) 132/2020
I. State allowances for reduced working time
Employers who reduce employees’ working times receive a state allowance amounting to 75%
of the difference between the gross base salary stipulated in the employment contract
and the gross base salary calculated on the basis of the hours effectively worked.
Conditions for granting the aid:
- The working time may be reduced by a maximum of 50% of the working time stipulated in
the employment contract (EC). Before communicating the decision to the employees, the
trade union, employee representatives or employees must be informed and consulted. - Short-time work is determined by a management decision for a period of at least five
consecutive working days, with the employer being obliged to determine the working time
for the entire month. - The decision to introduce short-time work must include the working time, the way in which
the time is allocated and the corresponding wage entitlements, must be notified to the
employee at least five days before the measure is actually applied, and must be reported
in the REVISAL database at least one day before it takes effect. - The allowance is initially borne by the employer and paid on the day of payment of the
corresponding monthly salary. It is then reimbursed from the unemployment insurance
budget, after the employer has fulfilled its obligations to register and pay income from
wages and salaries for the period for which the application is made. If the employer does
not reclaim the allowance from the state, it does not entitle him to reclaim it from the
employee! - The employer may order the measure of reduction of working hours and apply for
reimbursement of the allowance if the following conditions are simultaneously met:
a. The measure concerns at least 10% of the number of employees of the company.
b. The reduction in business activity is evidenced by a fall in turnover in the month or in
relation to the month preceding the previous month before the measure is applied of
at least 10% compared with the same month of the previous year. In the case of
freelancers, family businesses, sole proprietors, the decrease refers to the revenues
effectively realised.
Obligations of the employer:
During the period of application of the measure
- it is forbidden to employ personnel to carry out activities identical or similar to those of
workers on short-time work and to outsource activities by means of contracts performed
by workers on short-time work. - the employee has all the rights provided for in the individual or collective employment
contract, proportional to the time effectively worked. - employees whose working hours have been reduced may not work overtime for the same
employer. - the working time of the workers concerned may not be reduced.
- Employers who apply this measure may not grant bonuses and other supplements to basic
salary for the management structure of the employer until the end of the period of validity
of the measure. - the employer may not make collective redundancies
Attention: - Accepting one or more workers outside the prescribed working hours or performing any
other type of work, including telework or from home in the employer’s interest, is an offence
punishable by a fine of 20,000 lei/person, with a maximum of 200,000 lei. - The allowance represents income from employment, for which we are liable for income
tax (taking into account the allowance), pension and health insurance and the employer’s
contribution to unemployment insurance. - Short-time work can also be ordered for apprentices, shift work and in case of unequal
working hours. - This state aid and the support measures according to Art. I and III, DV No. 92/2020
(allowance amounting to 41.5% of the basic salary, or 50% of the salary in case of hiring
unemployed persons over 50 years of age or between 16 and 29 years of age) cannot be
claimed at the same time. - The procedure for the reimbursement of the allowance and the implementation of this
measure is determined by a government decree.
II. Entrepreneurs receive a monthly state allowance in case of temporary
reduction of activity
Entrepreneurs (natural persons who are self-employed) and persons who have concluded
employment contracts under the Cooperation Act are entitled to a monthly allowance of 41.5%
of the average gross wage planned for 2020 (payment is made via ANPIS) in the event of a
temporary reduction in activity on application, on the basis of the declaration made at their
own responsibility.
The allowance is subject to income tax, pension and health insurance, and the tax obligations
specified in the declaration (exception: contracts under the Cooperation Act, for which tax
obligations are withheld and paid by the cooperative).
By way of exception, in 2020, this allowance will also be paid to entrepreneurs and persons
who have concluded contracts under the Cooperation Act that also include the tax obligations
specified in Art. XV para. 1 DV No. 30/2020 (allowance amounting to 75% of the average
gross wage).
Note: The actual duration of the application of the measure, the categories of private
entrepreneurs and the procedure for the payment of the allowance will be determined by
government decree.
III. Day-workers who are affected by the interruption of activity receive state
support for a period of three month
For day-workers (persons performing occasional unskilled work) affected by the
interruption/restriction of activity, the State grants an allowance equal to 35% of the
remuneration due per working day for a period of three months, to be determined by the
employee but not after 31.12.2020.
The allowance is paid by the beneficiary of the work and is refunded to him/her by ANPIS at
a later date on the basis of an application submitted electronically for the previous month by
the 5th of each month. It represents wages for which the wage tax and pension insurance is
due.
IV. For employees with a fixed-term employment contract, reimbursement of
a percentage of the salary for the days worked is granted
For employees with a fixed-term contract of up to 3 months, until 31.12.2020, but not longer
than 3 months, the refund is 41.5% of salary for the days worked, but not more than 41.5% of
the expected average gross salary for 2020 from the unemployment insurance budget.
The employer is obliged to pay in full for the work performed during the specified period, the
allowance will be refunded at a later date, upon application, on the basis of a declaration made
at the employer’s own responsibility and the list of beneficiaries after fulfilling the tax
declaration and payment obligations in relation to the salary income during the period for which
the application was made. The refund will be made within a maximum of ten days of the date
on which the application is submitted.
V. For teleworkers, financial support is granted to employers for IT
equipment
In order to carry out teleworking, employers are granted a one-off financial support of 2,500
Lei for each teleworker for the purchase of technological goods and services required for
carrying out teleworking. The amounts are granted in the order of submission of applications
until 31.12.2020, from the budget of the unemployment insurance fund, by the ANOFM, within
the framework of the funds allocated to this support measure, for employees who were
teleworking for at least 15 working days during the state of emergency. Within 30 days of the
granting of the amount, the employer is obliged to submit to the ANOFM Labour Office receipts
for the purchase of the goods; in case of non-compliance with the obligations, the amounts
must be repaid.
This provision of DP No. 132/2020 does not apply to public institutions, employers in
bankruptcy, dissolution, liquidation, with suspended activity, and to those registered in
jurisdictions classified as non-cooperative in tax matters.
Note: The method of granting and the categories of items that can be acquired are determined
by decision of the MMPS within 10 days of the publication of this regulation