Technical unemployment-breathing for companies affected by the pandemic crisis

Many companies are or will soon be severely affected by the spread of SAR-CoV-2 coronavirus. Some companies will probably be in a position to adopt the solution of technical unemployment, which involves temporary cessation of activity, i.e. temporary suspension of employment, but also payment of minimum 75% of the basic salary.

Many companies are or will soon be severely affected by the spread of SAR-CoV-2 coronavirus. Some companies will probably be in a position to adopt the solution of technical unemployment, which involves temporary cessation of activity, i.e. temporary suspension of employment, but also payment of minimum 75% of the basic salary.

The measure adopted by the Government to mitigate the impact on the private environment is to bear from the unemployment insurance budget the allowance enjoyed by employees whose individual employment contracts are temporarily suspended by the employer, According to Article 52(1)(c) of Law No 53/2003 – Labor Code, as amended and supplemented as a result of the effects of the SAR-CoV-2 coronavirus.

We specify that in the case of technical unemployment, the compensation granted to employees is at least 75% of the basic salary corresponding to the job occupied. There are companies that negotiated in collective employment agreements benefits higher than 75%, but the amount of the benefit to be paid from the unemployment insurance budget is 75% of the average gross wage gain at the most!

This measure requires the employer to issue an internal decision requiring the measure of suspension of employees’ employment contracts, which must be registered in the General Register of employees (REVISAL) prior to the suspension.

The application of this provision is not without obligation, both for employers and for employees.

Thus, throughout the period during which employees are technically unemployed, they shall:

• are available at company request;
• cannot engage with another company;
• i cannot claim unemployment benefit.

Employers benefiting from these provisions shall be obliged to maintain the employment relationships of the persons concerned on a period of at least six months from the date of commencement of service after suspension of employment.

In addition, in order to benefit from these provisions, employers must submit by electronic mail to the employment agencies or to the Bucharest municipality. in which their registered office is situated:

An application, accompanied by an emergency certificate issued by the Ministry of economy, Energy and Business Environment. More details about this certificate and how to obtain can be found here.

The documents shall be submitted in the current month to pay the indemnity of the previous month, and the settlement from the unemployment insurance budget of the amounts paid as an allowance, it shall be done within 30 days.

The State will help companies directly affected by restrictive measures ordered by the authorities (hotels, restaurants, cafés, performing establishments, etc.) which have had to suspend their activities during the emergency situation and companies that have not been affected by restrictive measures, but they have been affected by various consequences of the coronavirus epidemic, they have to submit a statement showing that their incomes have dropped by at least 25%.

Companies that are not in a position to shut down but have reduced the workload, they can choose to reduce working time from 5 to 4 working days or from 8 to 6 hours or less.