Partial settlement of salary costs – recovery from technical unemployment

Starting from June 1^st, 2020, employers affected by technical unemployment, both subsidized and unsubsidized according to the provisions of GEO 30/2020 will benefit, for a period of three months, from the settlement of part of the salary, supported from unemployment insurance budget.

This support represents 41.5% of the gross basic salary corresponding to the job, but not more than 41.5% of the average gross salary provided by the Law on the state social insurance budget for 2020 no. 6/2020, with subsequent amendments.

Cumulative conditions to be able to benefit from this financial support:

1. maintenance of employment until December 31st 2020, with the exception of seasonal workers (not applicable if the termination of the employment contract occurs for reasons not attributable to the employer);
2. the employees had a duration of suspension of the individual employment contract of at least 15 days during the state of emergency or alert and benefited from the technical unemployment indemnity (either the one subsidized by the state or the one granted according to the Labor Code)
3. employers at the date of requesting the granting of these amounts not to be in bankruptcy, dissolution, liquidation or not to have their activities suspended or restricted on them for reasons other than those generated by the spread of the SARS-CoV-2 coronavirus.

Employers acting in several fields of activity from which at least one is subject to restrictions established by acts of the competent authorities, can opt:

• either for these benefits, for the application of the provisions of GEO 92/2020 (respectively for the settlement of a part of the salary representing 41.5 % of the gross basic salary corresponding to the job occupied, but not more than 41.5% of the average gross salary) or

• for the application of the benefits provided by GEO 30/2020 until the termination of the restrictions.

Procedure:

• Employers fully bear the equivalent value of the salaries of employees who benefit from the provisions of this emergency ordinance;
• Within 1t-25th of the following month the employers submit the documentation by electronic means, to the employment agencies.

The documentation includes:

• application signed and dated by the legal representative
• own responsibility statement
• the list of persons benefiting of these support, signed by the legal representative of the employer, according to the model to be approved by order of the President of the National Agency for Employment, within 5 days from the entry into force of this emergency ordinance.

Settlement period:

Within 10 days from the date of fulfillment 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.

Payment is made by transfer to the accounts opened by employers at credit institutions, after the verification by the county employment agencies, as well as by the municipality of Bucharest of the fulfillment of the declarative and payment obligations.

Facilities for certain categories of employees

B.1. Facilities – people over 50 years

• For each employee in this category, 50% of the employee’s salary, but not more than 2,500 lei

Facilities grant period: 12 months

Cumulative conditions for companies that can benefit:

• employs staff between June 1, 2020 and December 31, 2020;
• for an indefinite period;
• full-time, persons over 50 years of age whose employment relationships have ceased for reasons not attributable to them, during the state of emergency or alert;
• the employees are registered as unemployed in the records of the county employment agencies, respectively of the Bucharest municipality.

B.2 Facilities – persons 16-29 years old

• For each employee in this category, 50% of the employee’s salary, but not more than 2,500 lei.

Facilities grant period: 12 months

Cumulative conditions for companies that can benefit:

• employs staff between June 1, 2020 and December 31, 2020;
• for an indefinite period;
• full-time, people aged between 16 and 29 years;
• the employees are registered as unemployed in the records of the county employment agencies, respectively of the Bucharest municipality;
• maintaining employment for a period of at least 12 months from the end of the 12-month period for which the subsidy of 50% of the employee’s salary is granted, but not more than 2,500 lei.

Subsidies:

• are granted for the payment of the salary proportional to the actual time worked by the employee;
• are not cumulated, for the same employee, with the subsidies granted to the employers who have concluded with the county employment agencies, respectively of the municipality of Bucharest contracts or conventions based on art. 80, 85 and 934 of Law no. 76/2002;
• apply also 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;
• do not apply to employers who are in bankruptcy, dissolution, liquidation or who have suspended activities or restrictions on them at the time of requesting these amounts for reasons other than those caused by the spread of SARS-CoV-2 coronavirus;
• are granted from the unemployment insurance budget, at the request of the employers, submitted, by electronic means, to the county employment agencies, as well as to the municipality of Bucharest, within the radius of which they have their registered office.