Employment Flash No. 3/2022 – Latest news in the labor law field

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12.04.2022 – Latest news in the labor law field regarding a new form of state support for technical unemployment, in the context of the effects of the armed conflict in Ukraine

The Government Emergency Ordinance no. 36/06.04.2022 on establishing social protection measures for employees in the context of the armed conflict in Ukraine and following international sanctions against the Russian Federation and Belarus was published in the Official Gazette no. 340 of April 7, 2022.

The new legal provisions set up a particular type of state support accessible in case of temporary suspension of activity (technical unemployment), in consideration of the effects of the armed conflict from Ukraine.

As such, until 31 December 2022, during temporary suspension of the individual employment contract at employer’s initiative in case of technical unemployment, the allowance to which the employees are entitled is set at 75% of the base salary corresponding to the position held and are borne from the unemployment insurance budget, but not more than 75% of the average gross salary at national level (i.e. leading to a maximum of approx. RON 4,570).

According to the new GEO, the categories of employees who may benefit from the new form of state support are, in general terms:

  • employees of entities directly or indirectly affected by the impossibility of doing business with economic operators in Ukraine, the Russian Federation and Belarus, as a result of the armed conflict in Ukraine – one condition applicable for these categories being that the respective entities register a decrease in earnings of at least 20% compared to the earnings in January 2022 or to the earnings in the same month of 2021, compared to the month for which the support is claimed;
  • employees of entities subject to international sanctions, towards which restrictive measures have been imposed in the current context, having their funds or economic resources blocked by an order issued by the President of the National Agency for Fiscal Administration (ANAF).

Out of the other particular conditions/situations in relation to the new form of state support addressed within the GEO, we mention the following:

  • the specific allowance shall not be granted for employees having concluded more employment contracts, out of which at least one is in force during the period when the present GEO applies and based on which the employee obtains income at the level of the allowance mentioned above;
  • for employees having more employment contracts, all of them suspended while the present GEO is in force, the specific allowance is calculated by reference to contract with the most advantageous salary rights;
  • the specific allowance is calculated and granted proportionally with the number of days on which the activity was interrupted or temporarily reduced and is subject to taxes and social contributions in accordance with the Fiscal Code;
  • employers may apply, for the same period of a calendar month, for the specific allowance granted according to this new GEO and for the settlement of the amounts corresponding to the state support in case of temporary reduction of working schedule (Kurzarbeit), under the conditions of the law, for different employees;
  • employers may access, for the same employee, but for different periods of the same calendar month, the allowance provided for in the present GEO and the settlement of the amounts corresponding to the state support in case of temporary reduction of working schedule (Kurzarbeit);
  • certain categories of employer entities may not access the support as per the new GEO, including the employers who, at the date of application for the support, are bankrupt, dissolved or liquidated, or suspended or have restrictions imposed, from other reasons than those mentioned by this GEO.

In order to access this form of support, employers shall submit the following documents by electronic mail to the county employment agencies from the area where they have their headquarters – specific models for these documents being expected to be published in the upcoming period:

  • an application form/request signed and dated by the legal representative;
  • an affidavit stating:
    • either that they are directly or indirectly affected by the impossibility of carrying out commercial transactions in the above-mentioned context – in this case, employers shall also attach the income and expenditure statements proving compliance with the conditions regarding reduction of earnings, as laid down in the present GEO;
    • or that they are subject to international sanctions imposed in the current context – in this case, a copy of the ANAF order freezing funds or economic resources in the field of international sanctions shall be provided.
  • the list of persons who are to benefit from the specific allowance, ascertained by the legal representative of the employer.

Employers will submit the specific documentation in the current month for the payment of the previous month’s allowance, and the payment of the support sums granted by the state will be operated within 15 days from the date of submission of the documents, in accordance with the law.

The Romanian version of this newsletter is available here.

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