Technical unemployment was until recently a concept included in the Romanian Labor Code. After various legislative changes, however, the term “technical unemployment” was removed, and his place was taken by the expressions “suspension of employment” or “a temporary interruption of employment”. However, in common language, the phrase” technical unemployment” is still used when we want to refer to such interruption or temporary suspension of employment contracts.
Regarding the payment of salaries and social contributions during such period, the Government is trying to help the employers in this period, through the Emergency Ordinance no. 28/2009 published in 25 March 2009:
Technical unemployment was until recently a concept included in the Romanian Labor Code. After various legislative changes, however, the term “technical unemployment” was removed, and his place was taken by the expressions “suspension of employment” or “a temporary interruption of employment”. However, in common language, the phrase” technical unemployment” is still used when we want to refer to such interruption or temporary suspension of employment contracts.
Regarding the payment of salaries and social contributions during such period, the Government is trying to help the employers in this period, through the Emergency Ordinance no. 28/2009 published in 25 March 2009:
“Article 2. – (1) During the temporary interruption of employer’s activity as by art. 53 (1) of Law no. 53/2003 – Labor Code, but not for more than 3 months, employer and employees are exempt from paying social security contributions related to salaries, employees receiving the allowance of not less than 75% of the basic salary corresponding to its workplace.
(2) the allowances paid to the employees, of at least 75% of the basic salary corresponding to their workplace, paid during the temporary interruption of the activity as by Article 53. (1) of Law no. 53/2003 – Labor Code, are not included in the income and therefore are not taxable for a period not exceeding 3 months as by the provisions of the Law no. 571/2003 – the Tax Code regarding the income tax.”
In conclusion, during the technical unemployment, provided that it does not exceed a period of 3 months, employers will be exempt from payment of taxes and contributions to the state budget related to the 75% allowance paid to employees.
It is also not mandatory that all employees of a company to be sent in technically unemployment at the same time. The company may conduct a further series of support activities (eg administrative activities), while the main activities (eg. Production) is interrupted.