New obligations for insolvency administrators in relation to employees in companies in difficulty

The law no. 138 of 13.05.2021 which adds to Law no. 53/2003 – Labor Code, was published in the Official Gazette no. 0501 of May 13, 2021 and provides for a new Regulation for employers who are in insolvency, bankruptcy or liquidation proceedings.

The judicial administrator or, where applicable, the judicial liquidator shall be obliged:

• Issue to employees a document attesting to the work done;
• To cease and operate in Revisal the termination of individual employment contracts.

This law shall enter into force on 16 May 2021 and shall bring into force a necessary Regulation, given that the Labor Code so far only provided for obligations in the event of termination of the employer’s activity.