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Technical unemployment regime until the end of 2021

An important change in the technical unemployment rate, which only applies until 31 December 2021, was introduced by Emergency Ordinance No 111 of 2 October 2021.

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Practically, from 4 October to the end of 2021, for the period of temporary suspension of the individual employment contract, on the initiative of the employer, in the event of temporary interruption or reduction of activity due to the effects of the coronavirus, The employees will be entitled to an allowance set at 75 percent of the basic salary corresponding to the employment, which is covered by the unemployment insurance budget, but not more than 75 percent of the average gross salary gain stipulated by the Law on the State Social Insurance budget for 2021.

Who benefits from this provision:

  • Employers’ employees, during the temporary break of activity, in whole or in part, in the context of the increasing incidence of the spread of the SAR-CoV-2 coronavirus and the measures to diminish the impact of the type of risk provided by the Government decisions to prolong the alert state on Romanian territory;
  • employees of employers whose activity has been suspended as a result of the epidemiological inquiry, with the exception of employees on sick leave and who receive the social security allowance relating thereto.

Compensation: 

  • it shall be calculated for the number of days on which the activity has been suspended;
  • shall be paid by the employer from the proceeds from the unemployment insurance budget;
  • is subject to taxation and compulsory social security contributions;
  • is not subject to payment of the insurance contribution for work;
  • it may be supplemented by the employer at his option.

More work contracts?

  • where an employee has more than one individual contract of employment and at least one contract is active for the period from which he receives income at the level of the allowance referred to above, he shall not be entitled to that allowance;
  • if, however, the employee has more than one individual contract of employment and all are suspended, he or she shall be entitled to the benefit of the individual contract of employment with the most advantageous labor rights.

How will employers pay for the allowance?

  • Submit to the AJOFM in whose name the registered office is situated an application signed and dated by the legal representative accompanied by a declaration on his own responsibility and a list of the persons to be entitled to the allowance;
  • the documents shall be submitted in the current month for payment of the allowance in the previous month;
  • the payment of the allowance shall be made in the accounts opened by employers with credit institutions no later than 15 days after the submission of the documents;
  • employers shall pay the compensation to employees within a maximum of 3 working days of receipt of the sums settled.

Very important!

Pursuant to Article 4 of the order,

  • During a calendar month, employers may apply for the same period of the month, for different employees, for the granting of the allowance provided for in Article 1(1) and for the settlement of the allowance provided for in Article 1(7) of the GEO 132/2020, on support measures for employees and employers in the context of the epidemiological situation as a result of the spread of SAR-CoV-2 coronavirus, and to boost employment growth
  • During the same calendar month, employers may benefit, for different periods of the month, from the allowance provided for in Article 1 (1) and from the settlement of the allowance provided for in Article 1 (7) of the said EGO 132/2020.

Sometimes red tape and the complexity of situations discourage employers from applying to access legal facilities.  We, Ascent Group, are here for you, documented and ready to give you the necessary support in the bureaucratic and legislative maze.

We invite you to contact us to expose us to your particular situation.