1. Changes to the Romanian Labor Code
Government Emergency Ordinance No. 117/2021 introduces several changes and additions to Law No. 53/2003 – the Romanian Labor Code:
- Undeclared work in connection with a part-time individual employment contract now refers to non-compliance with working hours provided for in such an agreement, except in exceptional cases in which part-time employees work overtime (e.g. in the event of force majeure).
This undeclared work is punishable by a fine of 10,000 – 15,000 RON (approx. 2,000 – 3,000 EUR) per employee, whereby the cumulative amount of 200,000 RON (approx. 40,000 EUR) is not exceeded.
- Under-declared employment is defined when a net salary is actually paid that is higher than the salary stated in the tax / payroll documents submitted to the competent authorities.
Granting a net salary that is higher than the salary stated in the tax / salary documents submitted to the competent authorities can result in a fine of between 8,000 RON – 10,000 RON (approx. 1,600 – 2,000 euros) per employee, without the cumulative amount of RON. to exceed 100,000 (approx. 20,000 euros). The statutory provisions on tax evasion must also be observed.
- The period in which an employer can compensate an employee for overtime has been increased from 60 calendar days to 90 calendar days.
- Exceeding the due date of a salary payment by more than a month can result in a fine between 5,000 RON – 10,000 RON (approx. 1,000 – 2,000 euros) per employee, unless the employer is subject to Act No. 85/2014 on the regulation bankruptcy prevention and bankruptcy proceedings.
2. Salary entitlements
From January 1, 2022, the monthly gross base wage in Romania will be increased from 2,300 RON (approx. 460 EUR) to 2,550 RON (approx. 510 EUR).
Romania’s legal framework does not provide any other pay scale for staff employed in higher education positions.
3. Covid-19-related measures
Given the increased number of Covid-19 cases, several measures that affect both employers and employees have been repeated / reintroduced, such as: (I) the employer’s obligation to grant employees paid days off under certain conditions and (ii) Aid for technical unemployment through Covid-19.
- Paid days off for parents
Government Emergency Ordinance No. 110/2021 introduced the obligation on employers to protect workers during the entire period in which the physical presence of children restricted / suspended in educational activities if certain conditions are met (e.g. the work of the employee cannot be carried out via telework; the other parent does not receive any paid days off). These regulations apply during the alarm state (currently in force), but no later than the end of the school year 2021â2022 (excluding holidays).
The allowance paid under the above conditions is 75% of the basic salary corresponding to a working day, but not more than 75% of the average gross income per day used for the state social security budget (RON 5,380; approx. EUR 1,076) and can be paid from the state budget be reimbursed.
- Technical unemployment benefit
Government Emergency Ordinance No. 111/2021 provides that during the suspension of an individual employment contract due to the effects of Covid-19 in accordance with Section 52 Paragraph (1) lit.c) of the Romanian Labor Code (ie., for technical unemployment), employees receive RON 5,380 up to 31st, approx. EUR 1,076).
This subsidy is not subject to tax or social security and is borne by the unemployment insurance budget.
4. Draft decree amending the Social Dialogue Act No. 62/2011 and the Romanian Labor Code
The purpose of this draft regulation is to set a single deadline for contesting unilateral decisions by an employer (ie 45 calendar days from the date on which the employee concerned became aware of the decision).
Currently, the Romanian Labor Code provides a period of 30 calendar days to contest a disciplinary dismissal decision, while Law No. 62/2011 provides a 45 calendar day period for contesting unilateral actions by an employer related to the implementation, amendment, Suspension or termination of individual employment contracts.
In view of the many interpretations that have emerged from the relevant case law in recent years, labor law practitioners urgently seek to harmonize the above provisions.
The draft law is to be promulgated by the President and published in the Romanian State Gazette.