Employment Flash News No. 5/2016

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Legislation

News on parental leave

Law no. 66/2016 regarding the amendment and completion of Government Emergency Ordinance no. 111/2010 regarding parental leave and compensation was published within the Official Gazette no. 304 dated April 20, 2016.

The new provisions are amending the rules regarding the access to parental leave and corresponding compensation.

Thus, the law amends the existent regime (establishing the possibility of choosing between parental leave until the child reaches the age of 1 year or 2 years, respectively 3 years in case of child with disability), the new provisions are setting forth that the persons meeting the legal requirements shall benefit from a parental leave until the child reaches the age of 2 years, respectively 3 years in case of child with disability.

Thus, the entitled person does not have the possibility to opt for parental leave until the child reaches the age of 1 year.
Consequently, the provisions regarding the possibility to benefit of unpaid parental leave until the child reaches the age of 2 years, if the person in question opted for parental leave until the child reaches the age of 1 year, will be repealed.

Moreover, the maximum threshold of the monthly parental compensation (granted from the state budget) will be eliminated, and the minimum amount of the compensation will be 85% of the minimum gross base salary guaranteed for payment at national level.

Moreover, the insertion incentive regime (granted from the state budget to parents who earn taxable income, as provided by the law, during the period they are entitled to parental leave) will be amended as follows:

– the monthly amount will be 50% of the parental compensation minimum amount (85% of the minimum gross base salary guaranteed for payment at national level) as opposed to the current amount of 1 Social Reference Indicator (500 RON, approx. 110 EUR)
– for parents earning taxable income, as provided by the law, with at least 60 days before the child reaches the age of 2 years, respectively 3 years, in case of child with disability, the granting of the insertion incentive will be extended as follows:

a) until the child reaches the age of 3 years (as opposed to the current regulation providing, in certain conditions, the possibility of awarding the insertion incentive until the child reaches the age of 2 years);
b) until the child reaches the age of 4 years, in case of child with disability, without benefiting from child care leave until the child reaches the age of 7 years during this period of time (as opposed to the current regulation providing the possibility of awarding the insertion incentive until the child reaches the age of 3 years).

Moreover, the provisions regarding the interdiction to terminate the employment relationship during the parental leave and the award of insertion incentive are clarified, the new provisions are expressly setting forth that this interdiction will be extended one single time, for 6 months after the employee definitively returns at the workplace, as opposed to the current provisions setting forth that this interdiction will be extended one single time, for up to 6 months after the employee definitively returns at the workplace.

The new provisions will become effective on July 1st, 2016, and will be also applicable to persons benefiting from parental leave and compensation, unpaid parental leave or insertion incentive on this date.

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