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Financial support for reducing extended working time until 31.12.2022

The Government adopted OUG no. 73/2022, extending until 31.12.2022 the period for which employers have the possibility to reduce the working time of employees by no more than 80% of the daily, weekly or monthly duration and obtain financial aid from the Government.

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The Government adopted on 30.05.2022 O.U.G. no. 73/2022, on the amendment of O.U.G no.123/2020, regarding support measures for employees and employers in the context of the COVID pandemic, in the sense that it extended until 31.12.2022 the period for which employers have the possibility to reduce the working time of employees by no more than 80% of the daily, weekly or monthly duration, stipulated in the individual employment contract and obtaining financial aid from the Government.

These provisions were valid until the expiry of the period of 3 months from the date of the cessation of the alert state, respectively until June 8, 2022. Consequently, the new provisions apply from 08 June 2022.

As companies still face difficulties in carrying out their activity, this time due to the current political and economic situation, the Government decided to extend the period within which employers can decide to reduce their working time, but the conditions they have to meet have changed, the measure was also adopted to support companies facing a decline in production.

Thus, the new conditions for the application of the Kurzarbeit mechanism are as follows:

  • the reduction of activity is justified by a decrease in the turnover in the month before the application of the measure or, at the latest, in the month before the month before it, by at least 10% compared to the similar month or to the monthly average of the turnover in the year before the declaration of state of emergency / alert, respectively 2019;
  • the novelty lies in the fact that, if there is no decrease in turnover of 10%, the decrease in production achieved in the month for which the measure is requested or, at the latest, in the month before the month preceding the month before it, is taken into account, at least 10% compared to the same month or the monthly average of production in the year before the declaration of emergency/alert;
  • in the case of an employer established between 1 January and 15 March 2020 and having at least one employee, the decrease in production shall be related to the production achieved in the month before the application of the measure of reduction of working hours;
  • the measure affects at least 10% of the number of employees of the unit.

Also, in order to reduce the risk of social exclusion of those who are economically active, but who are also in a situation of terminating their activity, the normative act also provides for the extension of the period of granting the indemnity of 41,5% of the average gross salary provided by the Law on the Social Insurance budget for professionals provided by the Civil Code, for individuals who obtain income from copyright and related rights, according to Law no. 8/1996, and for individuals with individual labor conventions under Law no. 1/2005.