The Emergency Ordinance no. 32/2020 has modified and simplified the technical unemployment procedure initially provided in the Emergency Ordinance no. 30/2020.
Thus, all the employees (not just 75% of them) can benefit from the technical unemployment allowance to all the employers who temporarily reduce or interrupt the activity totally or partially as a result of the effects of the coronavirus epidemic, during the period of emergency.
This eliminates the condition that the employers provide emergency certificates (in case they have partially or totally closed the activity as a result of establishing the state of emergency) or declarations on their own responsibility that show that the employer registers a reduction of the collections from the month prior to submitting the declaration on its own responsibility, with a minimum percentage of 25% compared to the average of the collections from January-February 2020 and that it does not have the financial capacity to pay all the employees, as stipulated in the initial form of GEO no. 30/2020 (for the other employers who have reduced their activity as a result of the effects of the COVID-19 epidemic). Practically, all the employers affected by the coronavirus epidemic can benefit from the technical unemployment facilities, during the period of emergency. Also, the number of employees who can benefit from the technical unemployment allowance is no longer limited to 75% of the total number of employees, as provided in the initial form of the ordinance.
In order to benefit from the facilities of the technical unemployment the employer must submit the following documents to the employment agencies (ANOFM) within the radius of which the companies have their registered office, in electronic format:
- Application signed and dated by the employer;
- Statement on your own responsibility;
- List of employees in technical unemployment.
Employers are responsible for the accuracy and veracity of the data recorded in the documents submitted. Currently, the models of documents to be submitted are not available, they will be approved later by order of the Minister of Labor and Social Protection.
The documents are submitted in the current month for the payment of the allowance from the previous month (starting with 1st of April for the period 16th of March – 31st of March, starting with 1st of May for the period 1st of April -16th of April). Payment from the unemployment insurance budget for these allowances is made no later than 15 days (initially the term was 30 days) from the submission of documents. Payment of the allowance will be made to the accounts opened by the employers at the commercial banks. The payment of the unemployment allowance is made to the employee within a maximum of 3 working days from the collection by the employer of the amounts from the unemployment insurance budget.
During the state of emergency, for the period of temporary suspension of the individual labor contract, the allowances that the employees benefit from are set at 75% of the basic salary corresponding to the job occupied and is borne by the unemployment insurance budget, but not more than 75 % of the average gross salary. The average gross salary for the year 2020 is 5,429 lei. A maximum of 75% of the gross average salary represents 4,072 lei, the net equivalent of 2,382 lei (the amount which will be received by the employee). However, in addition to the facility provided by the state, if the budget of the employer allows, the technical unemployment allowance can be supplemented by the employer with amounts representing the difference of up to at least 75% of the basic salary corresponding to the job occupied, in accordance with the provisions of the Labor Code.
In the situation where an employee has several individual labor contracts of which at least one full-time contract is active during the establishment of the state of emergency, he does not benefit from the technical unemployment benefit.
In case an employee has several individual labor contracts and all are suspended as a result of establishing the state of emergency, he/she benefits from the technical unemployment allowance related to the individual employment contract with the most advantageous wage rights.
The technical unemployment allowance is subject to the taxation and payment of the compulsory social contributions according to the Fiscal Code (there is no insurance contribution for the work). The calculation, withholding and payment of income tax, the contribution of state social insurance and the contribution of social health insurance is made by the employer from the allowances collected from the unemployment insurance budget. The declaration of this allowance is made by the statement 112 “Declaration regarding the payment obligations of the social contributions, the income tax and the nominal evidence of the insured persons”. The term of payment and declaration of fiscal obligations is given 25, inclusive, of the month following the month in which the payment is made from the unemployment insurance budget. Basically, the employer will collect from the unemployment insurance budget a gross indemnity, from which he will pay the employees’ net indemnity, the rest, representing income tax, state social and health insurance contributions, will be paid to the state.
Employees in technical unemployment are automatically insured for medical leave. Even if the employers do not owe and do not pay the insurance contribution for the work, which also contains the contribution that goes to the medical leave fund, the period that the employees spend in technical unemployment represents a contribution period for this type of leave.
For the entry into technical unemployment the labor contracts must be suspended in Revisal (art. 52 paragraph 1 letter c)) at least one day before the date of the suspension operation (art. 3 of the GD 905/2017), based on a decision of employer.
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: