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In this issue:

Government Emergency Ordinance no. 92 of 28 May 2020 for the establishment of active support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as for the amendment of some normative acts (GEO 92/2020), published in the Official Gazette no. 459 of 29 May 2020, entered into force on 29 May 2020.

GEO 92/2020 provides new facilities for employees and employers in order to resume economic activity.

Partial settlement of salary amounts for certain categories of employees

The employees who benefited during the state of emergency or alert from the technical unemployment indemnity granted according to GEO 30/2020 or who had their employment contracts suspended pursuant to art. 52 para. (1) lit. c) of the Labor Code, without benefiting from the aid offered by the state, can benefit from the settlement of a part of the salary amounting to 41.5% of the gross base salary corresponding to the job occupied, but not more than 41.5% of the average gross salary provided by Law on state social insurance budget for the year 2020 no. 6/2020.

The 41.5% incentive can be granted only to persons who had their employment contracts suspended for a minimum of 15 days during the state of emergency or alert and who benefited or not from the technical unemployment allowance granted by the Romanian state as per OUG 30/2020.

The measure applies for a period of 3 months, starting with June 1, 2020. Employers will be required to maintain the employment relations with the employees who will benefit from this measure until December 31, 2020. Otherwise, employers will be obliged to return the amounts collected plus the NBR reference interest. The obligation to reimburse does not apply if the termination of employment contracts takes place for reasons not attributable to the employer.

Settlement mechanism

The employers will fully bear the equivalent value of the salaries of the employees who benefit from the provisions of GEO 92/2020. The amounts will be settled within a maximum of 10 days from the date of fulfillment by the employers of the declaratory and payment obligations related to the salary income and those assimilated to salaries from the reporting period for which the request is made.

Other categories of benefits

Companies which conclude for an indefinite period of time, full time employment contracts with certain categories of unemployed persons registered at the state employment agencies, will be reimbursed with 50% of each employee's salary, but not more than Lei 2,500 per month, for a period of 12 months. These categories are:

These employers have the obligation to maintain the employment relations for 12 months from the date the period for which they benefited from the facility ended.

Restrictions applicable to all facilities

The facilities regulated by GEO 92/2020 are not cumulated with the subsidies granted to employers who have concluded agreements with the employment agencies based on art. 80, art. 85 and 93 ind. 4 of Law no. 76/2006 on the unemployment insurance system and employment stimulation.

The facilities regulated by GEO 92/20202 will not be granted to employees of public institutions and authorities or to companies that are subject to bankruptcy, dissolution, liquidation or who have suspended activities or are subject to restrictions other than those generated by the spread of SARS-CoV-2 coronavirus.

The procedure for granting the facilities will be detailed in an order which should be issued by the president of the National Agency for Employment within 5 days from the entry into force of GEO 92/2020.

For more information, please contact Radu și Asociații SPRL team.

 

Prepared by:
Eduard Florea – Associate, Radu și Asociații SPRL

For additional information, please contact:
Anca Atanasiu – Senior Associate, Radu și Asociații SPRL

Radu Diaconu - Associate Partner