Coronavirus update no. 16/2020 – Extending support measures and employment incentives

In the Official Gazette no. 459 of May 29, 2020 was published the Government Emergency Ordinance no. 92/2020 on the extension of support measures for employees and employers.

 

As of June 1, 2020, employers whose employees:

- were granted the technical unemployment indemnity provided by art. XI para. (1) of GEO no. 30/2020

- had their employment contracts suspended pursuant to art. 52 para. 1, letter c) of the Labor Code and did not benefit from the technical unemployment indemnity during the state of emergency or alert

 

may request, for a period of three months, the reimbursement of a part of the salary, borne from the unemployment insurance budget, representing 41,5% of the gross basic salary, but no more than 41,5% of the average gross salary established for 2020.

 

Employers requesting this settlement are required to maintain the employment contracts until December 31, 2020, excluding the seasonal workers. This requirement shall not apply if the termination of the employment contract occurs for reasons not attributable to the employer.

The above mentioned allowance is granted only to persons who have had their employment contract suspended for at least 15 days during the state of emergency or alert.

 

Compared to the previous allowance granted by the state, the procedure changes: in this new proposal on support measures, the employer is the one who bears in advance the equivalent of the employee’s monthly and full salary, and will submit, on the 25^th of the following month an application (the form has not been published at this time) to the local employment agencies, together with a self-statement and the list of persons receiving this benefit. Within 10 days from the submission of the application, the employer will be reimbursed the share of 41,5% by bank transfer.

 

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Employers who recruit, between June 1, 2020 and December 31, 2020, for an indefinite period of time, full-time, persons over the age of 50 whose employment contracts have ceased for reason not attributable to them during the state of emergency or alert, registered as unemployed in the record of employment agencies, receive monthly, for a period of 12 months, for each employee, 50% of his salary, but no more than 2.500 lei.

 

Employers who recruit, no later than December 31, 2020, for an indefinite period of time, full-time, persons aged between 16 and 29, registered as unemployed in the record f employment agencies, receive monthly, for a period of 12 months, for each employee, 50% of his salary, but no more than 2.500 lei.

 

In such cases, employers are required to maintain the employment contracts for a period of at least 12 months.

 

Employers who terminate their employees’ contracts before the period provided in the ordinance are required to reimburse entirely the amounts collected for each person whose employment contract ended, plus the reference interest of BNR.

 

 

 

In order to have an efficient communication, we established a direct link with the reference department. For further information on the current Update or any requests for consultancy or analysis you may send us an e-mail to [email protected], with a brief description of the query. One of our consultants will answer or contact you shortly.

 

 

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