Measures to support employees and employers starting with June 1, 2020

Emergency Ordinance no. 92/2020 for the establishment of active support measures for employees and employers in the context of the epidemiological situation determined by the spread of the SARS-CoV-2 coronavirus, as well as for the modification of some normative acts (Official Gazette no. 459 / 29.05.2020)

– The main provisions provided by this normative act:

Settlement by the state of 41.5% of the gross basic salary
– Starting with June 1, 2020, the employers whose employees benefited from the technical unemployment indemnity provided by GEO no. 30/2020, as well as the employers whose employees had their individual employment contracts suspended in accordance with the provisions of art. 52 para. (1) lit. c) of the Labor Code and did not benefit from the technical unemployment indemnity provided by GEO no. 30/2020, during the state of emergency or alert, benefits, for a period of three months, from the settlement of a part of the salary, supported from the unemployment insurance budget, representing 41.5% of the gross basic salary corresponding to the job occupied, but not more than 41.5% of average gross earnings.
– Employers who access the measure have the obligation to maintain employment until December 31, 2020, except for seasonal workers. The obligation does not apply if the termination of the employment contract occurs for reasons not attributable to the employer.
– The cumulative conditions for granting the facility are:
  • a duration of suspension of the individual employment contract was at least 15 days during the state of emergency or alert;
  • benefited either from the technical unemployment allowance or from the specific one for other professionals, sportsmen, lawyers, persons who obtain income from copyrights, provided by GEO 30/2020, or from the allowance of at least 75% of the basic salary corresponding to the job occupied, provided that the employees remain at the disposal of the employer, the latter having at any time the possibility to order the resumption of the activity, provided by art. 53 of the Labor Code.
– Employers who have several objects of activity, at least one of whom is subject to the restrictions established by acts of the competent authorities, opt either for the settlement of 41.5% of the gross basic salary or for the application of the provisions regarding the continuation of the grant technical unemployment benefits and after 31 May 2020, until the restrictions are lifted.
– The settlement of 41.5% of the gross basic salary also benefits the persons who have individual labor agreements concluded based on Law no. 1/2005 on the organization and functioning of the cooperation.
– Employers fully bear the salary of employees who benefit from the settlement of 41.5% of the gross basic salary, subsequently, starting with the first date until the 25th of the month following the reporting period to which the income is related, they submit, by electronic means , at the county employment agencies, as well as of the Bucharest municipality, within whose radius they have their registered office, an application signed and dated by the legal representative accompanied by a declaration on their own responsibility and the list of persons benefiting from this amount, assumed by the employer’s legal representative, according to the model that will be approved by order of the ANOFM president.
– The settlement by the state of the amounts due is made within 10 days from the date of fulfilment by the employers, according to the law, of the declarative and payment obligations related to the incomes from salaries and assimilated to the salaries from the reporting period for which the request is made.
– Public institutions and authorities and employers who are in bankruptcy, dissolution, liquidation or have their activities suspended or restricted on them for reasons other than those caused by the spread of coronavirus do not benefit from subsidies.
– The facility does not cumulate with the subsidies granted in the case of employees for whom the employers have concluded with the employment agencies contracts or conventions based on law no. 76/2002.
Subsidies for stimulating new hires among people over 50 or young people
– Employers who, from 1 June 2020 to 31 December 2020, employ, for an indefinite period, full-time, persons who cumulatively meet the following conditions:
  • they are over 50 years old;
  • employment has ceased for reasons not attributable to them during the state of emergency or alert;
  • are registered as unemployed in the records of employment agencies, receive monthly, for a period of 12 months, for each person employed in it category, 50% of  the employee’s salary, but not more than 2,500 lei.
– Employers who are employed, but no later than 31 December 2020, for an indefinite period, full-time, persons who cumulatively meet the following conditions:
  • they are between 16 and 29 years old
  • are registered as unemployed in the records of employment agencies, receive monthly, for a period of 12 months, for each person employed in it category, 50% of the employee’s salary, but not more than 2,500 lei.
– Employers who receive subsidies are required to maintain employment for a period of at least 12 months from the end of the subsidized period. Employers who terminate the individual employment contracts of employees before this term are obliged to reimburse, in full, to the employment agencies the amounts received for each person for whom the employment relationship ended before the mentioned term, plus the reference interest of the National Bank of Romania in force at the date of termination of individual employment contracts, if their termination took place pursuant to art. 55 lit. b), art. 56 para. (1) lit. d) and e) and art. 65 of the Labor Code.
– Subsidies are granted for the payment of the salary proportional to the actual time worked by the employee and are not cumulated, for the same employee, with the subsidies granted to employers who have concluded with the county employment agencies, respectively the municipality of Bucharest, contracts or agreements in based on Law no. 76/2002 on the unemployment insurance system and employment stimulation.
– Subsidies also apply in the case of employment of Romanian citizens whose employment relationships with foreign employers in the territory of other states have ceased, for reasons not attributable to them, by dismissal.
– Subsidies are granted from the unemployment insurance budget, at the request of employers, submitted, by electronic means, to the county employment agencies, as well as to the municipality of Bucharest, within which they have their registered office. The procedure for granting these amounts is established by order of the president of ANOFM.
– Public institutions and authorities and employers who are in bankruptcy, dissolution, liquidation or have their activities suspended or restricted on them for reasons other than those caused by the spread of coronavirus do not benefit from subsidies.
Extension of technical unemployment after June 1, 2020
– The granting of technical unemployment benefits, for the fields of activity for which the restrictions are maintained under the conditions of law 55/2020, is extended after May 31, 2020, until the lifting of these restrictions.

Contact an Advisor

If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or:

Ionut Zeche

  • Tax & Legal
  • Bucharest
  • + 40 (31) 228 20 77