Employment Flash News No. 6/2017

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LEGISLATION

News on minimum salary

Government Decision no. 846/2017 on the establishment of the minimum gross base salary guaranteed for payment at national level was published within the Official Gazette no. 950 dated November 29th, 2017.

According to these legal provisions, starting January 1st 2018, the minimum monthly gross base salary guaranteed for payment for an average full-time schedule of 166,66 hours/month will be of RON 1.900 (approx. 420 EUR ).

Consequently, for the daily workers, the minimum hourly gross value will be of 11,40 RON/hour.

Non-compliance with these provisions represents an administrative offence, sanctioned with a fine ranging from 300 RON (approx. 66 EUR) to 2.000 RON (approx. 444 EUR). If the provisions regarding minimum gross salary are repeatedly breached, this deed shall represent a criminal offence.

Last but not least, it is important to be borne in mind that, together with the increase of the minimum gross base salary, other state benefits which are calculated and granted based on the value of the minimum salary will be correspondingly increased (for example: maternity indemnity etc.).

CASE-LAW

On the 23rd of November 2017, the Constitutional Court deemed as unconstitutional the provisions of Art. 56 par. (1) letter c) second thesis, first hypothesis of Law no. 53/2003 – Labor Code, having the following content: ”(1) The existing individual employment contract shall terminate by effect of the law: c) […] on the date of the communication of the retirement decision in case of 3rd degree invalidity[…]”. The Constitutional Court stated that these provisions do not observe the dispositions of Art. 41 from the Constitution, regarding the right to work, because,  by establishing a case of termination by effect of the law of the employment contract, irrespective of the parties’ intention, the parties are deprived of their right to decide whether to continue the employment relationship or not.

The decision of the Constitutional Court shall be published within the Official Gazette and shall be mandatory as of that moment.

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