Law no. 58/2021 on the approval of the Government Emergency Ordinance no. 211/2020 regarding the extension of the application of certain social protection measures adopted in the context of the spread of the SARS-CoV-2 coronavirus as well as on the amendment of Government Emergency Ordinance no. 132/2020 (“Law no. 58/2021”) was published in the Official Gazette no. 345 of 5 April 2021 and entered into force on 8 April 2021.
The main legislative amendments introduced are as follows:
Employers may reduce employee working time by up to 80% of the daily, weekly or monthly work schedule provided for in individual employment contracts, as opposed to the 50% that was previously the case.
The decision to reduce working time is taken by the employer with the consent of the trade union organisation entrusted to negotiate the collective agreement or, where no such union exists, with employee representatives. In order for the measure to be implemented, the consent of the trade union or employee representatives, where such bodies are established, is first required. The employer may change the work schedule of its employees in this way whenever it deems necessary, albeit with the obligation to justify any such changes and only within the limits agreed with the union or employee representatives.
The amount of allowance available for a reduction in working time will be 75% of the gross basic monthly salary corresponding to the reduced working hours. This may be supplemented by the employer with amounts representing the difference between the level of the basic salary for the position in question, with no possibility of reimbursement by the state.
During the period of applicability of the measure to reduce working time, it is prohibited either to hire staff to perform activities identical or similar to those normally performed by employees whose working time has been reduced, or to use a subcontractor to perform the activities of employees whose working time has been reduced. This rule applies at the level of the subsidiary, branch or other offices where the measure to reduce the work schedule has been implemented.
By way of exception, it is permitted to hire employees to replace those whose work schedule has been reduced, provided their individual employment contracts are legally terminated as a result of dismissal for reasons relating to the employee or resignation.
The employer may decide to reduce working time and may request reimbursement of the amount of allowance paid if the following conditions are cumulatively met:
- the measure affects at least 10% of the number of employees per unit;
- the reduction in activity is justified by a decrease in turnover for the month prior to application of the measure, or, at most, the month prior to the month prior to application of the measure, by at least 10% compared with the same month or monthly average during the year prior to the declaration of the state of emergency/alert/siege, i.e. 2019.
As an exception, in the case of a company established between 1 January and 15 March 2020 with at least one employee, the decrease in turnover refers to the month prior to application of the measure.
For more information, please don’t hesitate to contact us. At TPA, we have a team of 7 attorneys-at-law who are able to assist with you the implementation procedure for the so-called “kurzarbeit measure” described above, as well as any other support measures available during the current state of alert.