Available Measures for Employees during COVID 19 Pandemic

Available Measures for Employees during COVID 19 Pandemic

Bucharest, 8 April 2020

Following the enactment by the President of Romania of the state of emergency through the Presidential Decree 195 / 2020, the following options may be considered by the employers in connection with their activity.

(a) Reduction of the number of working days from 5 to 4 per week, based on Art. 52 lin. 3 of the Labour Code

Thus, in accordance with the Labour Code, in the case of temporary reduction of the activity, for economic, technological, structural or similar reasons, for periods exceeding 30 working days, the employer may reduce the work program of its employee from 5 days to 4 days per week, may correspondingly reduce the salary of such employees, until the situation that caused the reduction of the program has been remedied. This measure can be implemented after consulting with the employees’ representatives.

(b) suspension of the activity (technical unemployment) with payment of 75% of the gross wage of the employees,

In accordance with Article 52 alin. 1 letter c) of the Labour Code and Art. 53 of the Labour Code, the labour agreements may be suspended by the employer in case of a temporary interruption or reduction of the company’s activity due to economic, technological, structural or similar reasons. During such period, the labour agreements will only be suspended, without termination of employment.

The employees affected by such reduction of interruption of activity are entitled to receive an allowance of at least 75% of their monthly basic salary. As a general rule, the 75% allowance should be paid by the employer, from its salary fund. 

However, based on Government Decision no. 303/2020, it was decided that the technical unemployment allowance will be paid from the State Budget for the employees of the companies that will have to close their activity totally or partially due to COVID-19 situation and cannot support the salary payments of their employees based upon documented decrease in sales, within a limit however of no more than 75% of the average gross salary at national level (which is of 5.429 RON (approx. 1,120 EUR) as of today) for each employee and no more than 75% of its employees.

During the reduction and/or temporary interruption of the company’s activity, the employees will be at the disposal of the employer, who has the possibility at any time to resume the activity and call back the employees at work. 

(c) the reorganization of activity 

This is a last resort option for the employers that intends to dismiss a certain number of their employees based upon a restructuring plan. The conditions of the restructuring provided by the Labour Code will apply. 

We note that by the Presidential Decree no. 195/2020 for establishment of a state of emergency in Romania, employers are required, where this is possible, to implement the work from home or the telework for its employee (i.e. work by using communication means). Therefore, you may implement work from home/telework for its employees, based on either an employer decision in this respect and communicated to its employees or based on additional acts executed to the individual labour agreement signed with its employees. Alternatively, where work from home/telework is not possible, individualised working programme may be agreed with such employees. Moreover, in the event of employees being under quarantine or self isolation due to COVID-19 the Romanian State Budget can pay 75% of the employee’s monthly remuneration under certain conditions. 


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