Active Measures in support of both Employers and employees in Romania

published on 17 June 2020 | reading time approx. 2 minutes

The emergency state in Romania, which was imposed in March for 60 days, ended on May 15, 2020. At the same time, the government imposed the state of alert, which should continue until 15 June 2020. The number of infected people in Romania is decreasing every day, and more and more easing measures have been introduced. To reduce the economic impact of the lockdown and to continue to support companies, the Romanian government took a number of support measures in early June:

• Financial aid for a part of the salary »

• State support in hiring the unemployed »

• Extension of technical unemployment »

Financial aid for a part of the salary

On 1 June 2020, the Romanian government issued an Emergency Ordinance No. 92/20 and established new rules for the support of employees and employers. According to the regulation, employers who have sent their employees into so-called technical unemployment for at least 15 days during the emergency state or state of alert will receive support for a further 3 months.
 
Employers who take this form of support are obliged to maintain the employment contracts at least until 31 December 2020 (with the exception of seasonal workers). The support amounts to 41.5 percent of the gross basic salary depending on the position of the employee, but is limited to 41.5 percent of the average gross income, i.e. to 5,429 lei.
 
This support is provided by the unemployment fund. Employers should submit their applications electronically from 1 to 25 every next month, together with the list of employees and affidavit, to the relevant employment agency. First, this amount will be paid out by the employer to the employee and then the amounts will be reimbursed by the state treasury.

State support in hiring the unemployed

Employers receive state support if they in the period from 1 June 2020 to 31 December 2020 employ a person:

• is over 50 years of age, has lost employment during the state of emergency or state of alert and is registered as unemployed with the employment agency;
• are between 16 and 29 years old and employment agency are registered as unemployed.

These employers get for each employee from above Categories, 50 per cent of the salary, no more than 2,500 lei. The employment contracts are to be concluded for an indefinite period. The support is limited to 12 months. Employees are obliged to continue the employment relationship for at least 12 more months after the support measures expire.
 
This support measure also applies to Romanian citizens who have worked abroad and lost their job abroad.

The state authorities or institutions as well as companies that are in bankruptcy or liquidation are excluded from the support measures. 

Extension of technical unemployment

The Romanian state provided financial support to the companies and paid compensation for the companies concerned because of so-called technical unemployment.
 
This measure was valid until 31 May 2020. However, companies that are still not allowed to work after this date due to the restrictions imposed by the government can apply for and receive support after 31 May 2020 due to technical unemployment.