Law no. 283/2024, published in the Official Gazette of Romania no. 1139 on November 14, 2024, and entering into force on November 17, 2024, introduces significant amendments to the Labor Code and other regulations, aiming to establish adequate minimum wages.

The main changes include:

• Definition of the employment relationship:
  This is defined as the relationship in which a person, referred to as a worker, undertakes to perform an activity for and under the authority of another entity or legal person, in exchange for remuneration.
• Setting the national gross minimum base salary:
  This will be determined annually by Government decision, applicable from January 1 of the following year, and periodically updated, once a year, after consulting representative national trade unions and employers’ organizations.
• Limiting the period for granting the minimum wage:
  The national gross minimum base salary guaranteed in payment may be granted to an employee for a maximum period of 24 months from the date of signing the individual employment contract. After this period, the employee must receive a base salary higher than the minimum base salary.
• Penalties for non-compliance with the minimum wage requirements:
  Non-compliance with the provisions regarding the guarantee of the gross minimum base salary established by law or the minimum wage level set by the applicable collective labor agreement is punishable by a fine ranging from RON 3,000 to RON 5,000 for each affected person, without exceeding a cumulative total of RON 200,000.
• Promotion of collective bargaining:
  A Government-approved action plan is provided to promote collective bargaining, with the aim of progressively increasing its coverage to improve employees’ working and living conditions.

Law no. 283/2024 introduces significant changes in the field of public procurement, particularly concerning the respect for workers’ rights and working conditions.

The main changes include:

• Updating standard documentation:
  Within 120 days of the law’s entry into force, the National Agency for Public Procurement (NAPA) is required to update standard documents, templates, model frameworks, guidelines, manuals, and other operational tools.
  The purpose of this update is to ensure the implementation of the provisions of Article 164^1 of the Labor Code, as amended by Law no. 283/2024.
• Introduction of new award criteria:
  The law stipulates that contracting authorities must include requirements in the procurement documentation related to respecting workers’ rights, including adequate minimum wages, working conditions and the existence of a collective bargaining at the level of the contractor/concessionaire for works and services. The existence of a collective bargaining adds an additional evaluation factor in the project award process.
  These requirements become decisive factors in evaluating bids and awarding public procurement contracts.
• Sanctions for non-compliance:
  Economic operators that fail to meet obligations concerning workers’ rights and working conditions risk sanctions, including the termination of public procurement contracts.
  This measure aims to ensure compliance with legal standards and protect the rights of employees involved in the execution of public contracts.

These changes reflect a paradigm shift in public procurement, placing greater emphasis on respecting social rights and working conditions within procurement and concession procedures.

The amendments were implemented to transpose into national legislation Directive (EU) 2022/2041 on adequate minimum wages in the European Union.

 

Author : Adriana Manolache