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Under the emergency ordinance of the Romanian Government no. 117 published in the Official Gazette on October 5, 2021, amendments were made to the Law no. 53/2003 – the Labor Code.Read article
Definition and sanction of “under declared work”: “For the purposes of this act, under declared work means the granting of a net wage higher than that established and shown in the payroll and in the monthly statement on social security obligations, income tax and nominal records of insured persons, submitted to the tax authorities.’ is one of the first provisions of this order and has been regulated as a contravention. The granting of a net salary higher than that shown in the payroll and in the monthly statement of obligations to pay social contributions, income tax and nominal accounts of insured persons, the tax authorities will be fined from 8.000 lei to 10.000 lei for each employee identified in this case, without exceeding the cumulative value of 100.000 lei.
Undeclared work has been redefined by the receipt of an employee who overruns the working time (rather than “out of working hours”) set in individual part-time contracts, and the penalty has been increased. Thus, the receipt at work of one or more employees exceeding the working time stipulated under individual part-time contracts will be penalized with a fine ranging from 10.000 lei to 15.000 lei for each person thus identified, without exceeding the cumulative value of lei 200.000.
The fact that the contract for the payment of the salary was exceeded by more than one month has been sanctioned: “The employer’s breach of the obligation (…) by more than one month after the salary payment deadline set in the individual employment contract will be penalized by a fine ranging from 5.000 lei to 10.000 lei for each person who has not been paid the salary, Except where the employer is subject to Act No 85/2014 on insolvency prevention and insolvency proceedings’. This provision of a penalty for non-payment of wages within one month of the period fixed in the individual contract of employment is new and supports the employee in this situation, ‘forcing’ the employer to fulfill his obligation to pay the salary within the time limit stipulated in this order.
The deadline for compensating the extra work through paid days was extended from 60 days to 90 days in order to avoid blocking the economic operators’ employment and ensuring that their activity is carried out in good conditions.
This ordinance for the completion and amendment of the Labor Code entered into force on 5 October 2021, except for the provisions on offenses and related penalties, which enter into force on 20 October 2021.