We want to draw attention to the new amendments on Law no. 53/2003 – Labor Code regarding undeclared work, under-declared work, additional work, contravention responsibilities.

1. Undeclared work

Represents undeclared work “working time over the length of working time established in individual part-time employment contracts” except in cases of force majeure or other urgent work to prevent accidents or remove them consecutively.
Failure to comply with the duration of working time established in individual part-time employment contracts is sanctioned with a fine from 10,000 lei to 15,000 lei for each person so identified, without exceeding the cumulative value of 200,000 lei;

2. Under-declared work

Granting of a net salary higher than the one constituted and highlighted in the payroll statements and the monthly declaration regarding the payment obligations represents under-declared work and is sanctioned with a fine from 8,000 lei to 10,000 lei for each employee identified in this situation, without exceeding the cumulative value of 100,000 lei;

3. Compensation for overtime by paid time off

The term in which the overtime hours can be compensated through paid time off is extended from 60 calendar days to 90 calendar days.

4. Payment of salary

In the applicable collective labor contract, the individual employment contract or the internal regulation provides the date established for payment of salary.
Violation of the salary payment term by more than one month is sanctioned with a fine from 5,000 lei to 10,000 lei for each employee not paid. The exception is applicable when the employer is under the incidence of Law no. 85/2014 on insolvency prevention and insolvency procedures, with subsequent amendments and completions.

Our team of professional is available for any clarifications or additional details required in your analysis. The above information represents just a summary of aspects we consider relevant in the recently published legislation. This is not exhaustive disclosure of information and it is not intended to be used as advice on any particular matter. We invite all readers to contact us for further clarification of any specific issue. Argus Audit team and its associates disclaim liability in any action taken by a third party in reliance exclusively on summarized information presented in our publications.