Article written by Florin Gherghel, Tax Manager Ensight Finance
Emergency Ordinance no. 92 / 2020 was published in Official Gazette no. 459 as of 29 May 2020 regarding support for employees and employers
a) Support for employees with suspended agreements
We informed you end of March that indemnities are granted during the temporary suspension of individual employment agreements through the initiative of the employer (due to pandemic effects), in amount of 75% of the salary, but not more of 75% of the average gross salary, if certain conditions were fulfilled. The government has decided to continue this support.
Thus, starting with June 1, 2020, the employers with employees in the above category receive, for a period of three months, the cash equivalent of a part of the salary, representing 41.5% of the gross salary, but not more than 41.5% of the average gross salary. The amount received is supported by the unemployment insurance budget.
The employers having employees with suspended individual employment agreements, according to the Labor Code in cases of temporary interruption / reduction of activity, without termination of employment, are also eligible for the above amounts, if their employees have not benefited from the above 75% indemnity during the state of emergency or state of alert.
The eligible employers are obliged to maintain the employment agreements until December 31, 2020, except for seasonal workers. This obligation does not apply if the termination of the employment agreements occurs for reasons not attributable to the employer.
The following employers are not eligible: employers in bankruptcy, dissolution, liquidation or with activities suspended or restricted for reasons other than those generated by coronavirus pandemic.
The above amounts are not cumulated with the subsidies received from employment agencies for employment of specific graduates, specific young persons or specific unemployed persons.
The above support is applicable only for individuals who had their individual employment suspended for at least 15 days during the state of emergency or state of alert and received either the 75% technical unemployment indemnities mentioned in the first paragraph above or the indemnity of 75% of the salary paid by the employer during the reduction and / or temporary interruption of activity.
The employers with several objects of activity, at least one being subject to legal restrictions, may opt either to receive the above indemnity of 41.5% or to receive the technical unemployment indemnities of 75% of the medium gross salary for the fields of activity in which the restrictions are legally maintained.
In order to receive the above amounts, the employers support the whole value of the salaries of eligible employees and subsequently, starting with the first day until the 25th of day the following month, they submit, electronically, to the relevant employment agencies, a request signed and dated by the legal representative of the company, together with a statement on his / her own responsibility and with the list of persons benefiting from these amounts, documents assumed by the legal representative of the employer. Application norms regarding the template of these documents will be issued.
The payment of the above amounts is made within maximum 10 days from the date when the employers fulfilled their declaratory and payment tax obligations related to respective salaries. The employment agencies check the fulfillment of the conditions and pay the above amounts.
b) Hiring support
The employers who, between June 1, 2020 and December 31, 2020, hire full-time, for an indefinite period, persons over 50 years of age whose employment relationships have ceased for reasons not attributable to them during the state of emergency or state of alert (registered as unemployed persons in the records of employment agencies), receive monthly, for a period of 12 months, 50% of the employee’s salary, but not more than 2,500 RON for each employed person.
The employers who hire full-time not later than December 31, 2020, for an indefinite period, persons aged between 16 and 29 years, registered as unemployed persons in the records of employment agencies, receive monthly, for a period of 12 months, 50% of the employee’s salary, but not more than 2,500 RON for each employed person.
The above employers are obliged to maintain the employment agreements for a period of at least 12 months from the 12-month term in which they receive the above amounts.
The following employers are not eligible: the employers in bankruptcy, dissolution, liquidation, or the employers with suspended activities / restricted activities for reasons other than those generated by coronavirus pandemic.
The above amounts are not cumulated, for the same employee, with the subsidies received from employment agencies for employment of specific graduates, specific young persons or specific unemployed persons.
The employers receive the amounts by submitting electronically the request to the relevant employment agencies. Application norms will be issued regarding the procedure.
c) Extension of the technical unemployment indemnity
The period of receiving the indemnity of 75% of the average gross salary is extended after May 31, 2020 for the fields of activity in which the restrictions are legally maintained until these restrictions are lifted.