The authorities have established certain active support measures for employees and employers.

3. June 2020 | Reading Time: 3 Min

Through Emergency Ordinance no. 92/2020, the Government of Romania has established certain active support measures for employees and employers. Although already in force as of 29 May 2020, the granting of these facilities will effectively take place in keeping with rules to be established by order of the president of the National Agency for Employment.

  1. Facilities available to employers whose employees have had their employment contracts suspended 

As of 1 June 2020, employers whose employees had their employment contracts suspended due to temporary interruption or reduction of activity (technical unemployment) during the state of emergency or the state of alert, regardless of whether or not they benefited from subsidised technical unemployment allowance during this period, may, for a period of three months, benefit from a facility whereby part of their salary costs are reimbursed from the unemployment insurance budget at a rate of 41.5% of the gross basic salary corresponding to the employment positions in question, but not more than 41.5% of the average gross earnings provided for under Law no. 6/2020 on the state social insurance budget for 2020 with its subsequent amendments.

Employers benefit from the reimbursement of the mentioned amounts only for those employees who had their employment contracts suspended for at least 15 days during the state of emergency or alert.

Employers are obliged to maintain employment relations with their employees until 31 December 2020, except in the case of seasonal workers or in cases where termination of the individual employment contract occurs for reasons not attributable to the employer.

Under the procedure for this facility, employers first pay their employees’ salaries in full before submitting monthly applications for reimbursement by the 25th day of the month following the end of the reporting period.

Templates of the necessary documents will be approved over the following days by order of the president of the National Agency for Employment. 

  1. Facilities available to employers who employ certain categories of unemployed persons 

Employers who, during the period 1 June 2020-31 December 2020, employ, on a full-time basis and for an indefinite period of time, persons over the age of 50 who became unemployed for reasons not attributable to them during either the state of emergency or the state of alert and who are registered as unemployed with the county employment agency or that of the Municipality of Bucharest, will receive, monthly, for a period of 12 months, 50% of the salary, but not more than RON 2,500, corresponding to each person employed from this category.

Similarly, employers who, during the same period, employ, on a full-time basis and for an indefinite period of time, persons aged between 16 and 29 who are registered as unemployed with the county employment agency or that of the Municipality of Bucharest, will receive monthly, for a period of 12 months, 50% of the salary, but not more than RON 2,500, corresponding to each person employed from this category.

The amounts received by the employers under the above conditions may not be cumulated with other subsidies granted by the county employment agencies, respectively by the Bucharest municipality.

The aforementioned 12-month period will be calculated with reference to the date of employment, with employers having the obligation to maintain employment relations for a period of at least 24 months starting with the date of employment. Where this condition is not respected, the amounts received are to be refunded to the employment agency in question, together with the related interest.

The procedure for granting the amounts described above will be approved over the following days by order of the president of the National Agency for Employment.

Source: GEO no. 92/2020 on the establishment of active support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as on the amendment of various normative acts, as published in the Official Gazette no. 459 on 29 May 2020.

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