Facilities for employers regarding the labor force in 2021

 In Fiscal news

By GEO 211 from 07.12.2020, the Government ordered the extension of the application until June 30, 2021 of the following facilities:

1.    The technical unemployment provided in GEO 30/2020 for the fields of activity provided by Law no. 55/2020 on some measures to prevent and combat the effects of the COVID-19 pandemic, with subsequent amendments and completions.

For the period of temporary suspension of the individual employment contract, at the initiative of the employer, according to art. 52 para. (1) lit. c) of Law no. 53/2003 – Labor Code, republished, with subsequent amendments and completions, as a result of the effects produced by the SARS-CoV-2 coronavirus, the allowances granted to the employees are set at 75% of the basic salary corresponding to the job and are supported from the unemployment insurance budget, but not more than 75% of the average gross earnings provided by the Law on the state social insurance budget for 2020 no. 6/2020.

In order to grant the amounts necessary for the payment of the indemnity provided in the previous paragraph, the employers must submit, by e-mail, to the competent employment agencies, within whose radius they have their registered office, an application signed and dated by the legal representative accompanied by an affidavit and by the list of the persons who benefit from this indemnity, assumed by the employer’s legal representative, according to the model approved by order 1468/2020 of the Minister of Labor and Social Protection.

2.    The allowance for professionals provided by GEO 132/2020.

Other professionals, as regulated by art. 3 para. (2) of Law no. 287/2009 on the Civil Code, republished, with subsequent amendments, as well as the persons who have concluded individual labor conventions based on Law no. 1/2005 regarding the organization and functioning of the cooperation, republished, with the subsequent modifications, who interrupt the activity as a result of the effects of the coronavirus SARS-CoV-2, during the state of emergency established by Decree no. 195/2020 on the establishment of the state of emergency on the territory of Romania, benefits, from the state budget, based on the declaration on its own responsibility, a monthly allowance of 75% of the average gross salary provided by the Law of the state social insurance budget for 2020 no. . 6/2020.

Lawyers whose activity is reduced as a result of the effects of the SARS-CoV-2 coronavirus also benefit from the indemnity provided in the previous paragraph, during the state of emergency, if in the month for which the indemnity is requested they had revenues with 25% lower than the monthly average from 2019, but which do not exceed the average gross salary provided by Law no. 6/2020. The indemnity is paid based on the lawyer’s affidavit that he fulfills of the granting conditions, which he must send to the county agency for payments and social inspection, respectively to the Bucharest agency for payments and social inspection, in whose territorial area the fiscal domicile is located.

Individuals who obtain income exclusively from copyright and related rights, as regulated by Law no. 8/1996 on copyright and related rights, republished, with subsequent amendments and completions, which interrupt the activity as a result of the effects of the SARS-CoV-2 coronavirus, benefit of a monthly allowance of 75% of the average gross salary provided by the Law no. 6/2020 on the state social insurance budget for 2020, based on the documents requested by the National Agency for Payments and Social Inspection from the state budget through the county agencies for payments and social inspection, respectively the Bucharest agencies for payments and social inspection.

The model of the application / affidavit based on which the above-mentioned indemnity is granted to professionals was approved by the Order of the Ministry of Labor and Social Protection no. 848/2020.

For the indemnity received by the professionals, the income tax, the social insurance contribution and the social health insurance contribution are due, in the quotas provided in Law 227/2015 on the Fiscal Code, with the subsequent amendments and completions. It is not due the insurance contribution for the work regulated by Law no. 227/2015, with subsequent amendments and completions .
The calculation of the fiscal obligations is performed by the beneficiary natural persons by applying the quotas provided in the Fiscal Code, on the gross indemnity received from the county payment and social inspection agencies, respectively by the Bucharest payment and social inspection agency.

For the incomes realized in 2020, the fiscal obligations mentioned above are declared through the single Declaration regarding the income tax and social contributions due by the natural persons and are paid by the beneficiary natural persons until May 25 of the year following the realization of the incomes.

3.    The measure regarding the reduced working time for employees (Kurzarbeit) provided by GEO 132/2020

By derogation from the provisions of art. 8 para. (1) and art. 112 para. (1) of Law no. 53/2003 – Labor Code, republished, with subsequent amendments and completions, in case of temporary reduction of the activity determined by the establishment of the state of emergency / alert / siege, according to the law, the employers have the possibility to reduce the working time of the employees by 80% from the monthly duration calculated by reference to the duration provided in the individual employment contract, with the information and consultation of the union, of the employees’ representatives or of the employees, as the case may be, prior to the communication of the decision to the employee.

The reduction of the working time in the above conditions is established by the employer’s decision, for a period of at least 5 working days, monthly, the employer having the obligation to establish the work schedule for the entire month. The reduction of the working time is also applied in the case of the shift work schedule, as well as in the case of the unequal work schedule.

During the reduction of the working time, the employees affected by the measure benefit of an indemnity of 75% from the difference between the gross monthly basic salary provided in the individual employment contract and the gross monthly basic salary related to the hours actually worked.

The indemnity is borne by the employer, from the chapter related to personnel expenses from its income and expenditure budget, and is paid on the date of the payment of the salary for that month and will be settled from the unemployment insurance budget after the employer will fulfil the declaratory and the payment obligations related to the incomes from salaries and assimilated to the salaries from the period for which the request is made.
Indemnizatia reprezinta venit de natura salariala si este supusa impozitarii si platii contributilor sociale, in conditiile legii. 

During the period of the applicability of the measure, it is forbidden to hire staff to perform activities identical or similar to those provided by employees whose working time has been reduced, as well as subcontracting activities carried out by the employees whose working time has been reduced. The interdiction applies to the level of the branches, subsidiaries or other secondary offices defined by the Companies Law no. 31/1990, republished, with the subsequent modifications and completions.

During the period of the applicability of the measure, the employee benefits from all the other rights provided in the individual employment contract or in the collective labor contract, in proportion to the actual time worked.

The employer may order the measure to reduce the working time and may request the settlement of the indemnity if the following conditions are cumulatively met:

a) the measure affects at least 10% of the number of employees of the unit;

b) the reduction of the activity is justified by a decrease of the turnover from the month prior to the application of the measure or, at most, from the month previous of the month before the application of the measure by at least 10% compared to the similar month of the previous year. In the case of employers in the category regulated by the Government Emergency Ordinance no. 44/2008 regarding the development of economic activities by the authorized natural persons, the individual enterprises and the family enterprises, approved with modifications and completions by Law no. 182/2016, the decrease is related to the realized incomes.

During the application of the measure, the employees affected by this measure cannot perform additional work at the same employer.

During the application of the measure, the work schedule of the affected employees cannot be reduced based on art. 52 para. (3) of Law no. 53/2003 – Labor Code, republished, with subsequent amendments and completions (technical unemployment).

The granting of bonuses, at the basic salary, for the management structure of the employer, is made after the end of the period of application of the measure.

In the months when the reduction of working time is applied, the employer cannot initiate collective dismissals.

In order to settle the amounts, the employer must submit an application accompanied by the following documents:

a) copy of the decision regarding the reduction of working time, signed by the employee that he tooks note of it;

b) the monthly verification balance, for the month prior to the application of the measure and for the similar month from the previous year;

c) an agreement concluded with the representatives of the union within the unit or, in case there is no union, with the representatives of the employees, regarding the percentage of the number of employees for whom the reduction of working time was ordered;

d) the list of persons to benefit from the indemnity;

e) copy of the salary payment documents, highlighting the payment of the indemnity.

The settlement request and the other necessary documents are submitted by the employer, in electronic or letter format, until the 25th of each month for the payment of the previous month’s allowance, at the county employment agency, as well as the employment agency in Bucharest, within the radius of which it has its registered office.


By GEO 220 of 31.12.2020, a series of measures regarding the labor force were also extended as follows:

1.    For employers who conclude individual employment contracts for a determined period of up to 3 months, until June 30, 2021, but not more than a period of 3 months, at the choice of the employer, the settlement from the insurance budget for unemployment of a part of the salary representing 41.5% of the salary related to the days worked for a working period of 8 hours per day, but not more than 41.5% of the average gross salary.

2.    The granting of the amount representing 35% of the remuneration due to the working day granted to the daily labourers, for a period of 3 months, at the choice of the beneficiary of works, will be extended until June 30, 2021.

3.    The financial aid representing 50% of the gross salary but not more than 2,500 lei will be granted for each unemployed employee, for 12 months, to the employers who, between January 1, 2021 – September 1, 2012, conclude individual employment contracts with unemployed over 50 years of age fired during the state of emergency or alert, for reasons not attributable to them and / or young people between 16 and 29 years of age registered as unemployed or Romanian citizens, included in the same age categories, who in 2020 ceased labor relations with foreign employers on the territory of other states, for reasons not attributable to them.

4.    Parents will benefit from days off paid with 75% of the gross salary, but not more than 75% of the average gross salary, during the online courses, until the end of the 2020-2021 school year.

Consultancy department
Especial Audit SRL

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