Post alert state support measures for employees

  1. Measures subsequent to the reactivation of employment contracts

As already known, during the state of emergency, as decreed by the Presidential Decree no. 195/2020 and extended according to the Presidential Decree no. 240/2020, as well as subsequently, until 31 May 2020, employers whose activity was affected due to SARS-CoV-2 coronavirus pandemic effects, except for those whose activity is still restricted under the current legislative restrictions, benefited, until the aforementioned date, for employees who were technically unemployed, from an allowance granted by the state of maximum 75% of the average gross salary, as provided by the 2020 State Social Insurance Budget Law no. 6/2020 (article  XI paragraph (1) of the Government Emergency Ordinance no. 30/2020 for the amendment and completion of normative acts, as well as for the establishment of measures in the field of social protection in the context of the epidemiological situation determined by the spread of the SARS-CoV-2 coronavirus - ”GEO 30”).

According to the Government Emergency Ordinance no. 92/2020 regarding the establishment of active support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as for the amendment of normative acts (”GEO 92”), starting with 1 June 2020, the employers whose employees had the employment contracts suspended, at the employer’s initiative, as a result of  the SARS-CoV-2 coronavirus pandemic effects, will be reimbursed by the state with part of the salary (41.5% of the gross base salary, but not more than 41.5% of the average gross salary provided by 2020 State Social Insurance Budget Law no. 6/2020, respectively a maximum gross amount of RON 2,253,053), for a period of three months, to be paid from the unemployment insurance budget.

The above-mentioned reimbursement will benefit to all employers whose employees have had the employment contracts suspended at the employer’s initiative due to the pandemic effects, whether they received or not an allowance from the state, in accordance with GEO 30.

Conditions for granting:

  • The maintaining in force of the employment relations with the employees until 31 December 2020, except for seasonal workers and situations in which termination occurs for reasons that are not chargeable to the employer;

Nota bene: termination of the employment contracts which occurs prior to the above-mentioned date will entail the fully reimbursement of the received amounts.

  • the period of the suspension of the employment contract, during the state of emergency or state of alert, must have exceeded 15 working days;
  • granting, during the technical unemployment, either from the employer's salary fund or with the support of the state (bearing supplementations by the employer, if case) of the corresponding technical unemployment allowance.

Granting procedure:

  • after the full payment of the employees’ salaries whose employment contracts have been reactivated, the employers shall file a request, in electronic form, starting with 1st to the 25th of the month following the reporting period to which the salaries correspond, to the employment agencies, together with an affidavit and a list of beneficiaries;

Nota bene: the standard application form will be approved by Order of the President of the National Agency for Employment.

  • the reimbursement shall be made within maximum 10 days as of the date of fulfillment by the employers of the salary declarative and payment obligations corresponding to the reporting period for which the request is made, by bank transfer, after the performance of a verification of the granting conditions by the employment agencies.

Nota bene 1: the amounts granted according to the above will not be cumulated with other subventions granted according to Law no. 76/2002 regarding the unemployment insurance system and employment stimulation.

Nota bene 2: the above will not be applicable to public institutions and public authorities, employers in bankruptcy, dissolution, liquidation or to the ones having their activities suspended or are otherwise restricted due to other reasons then the ones determined by the spread of coronavirus SARS-CoV-2.

  1. Measures designed to reduce the unemployment rate

Also after 1 June, until 31 December 2020, according to GEO 92, the conclusion of full time employment agreements for an undetermined of time period, with:

  • persons over the age of 50 whose employment contracts have been terminated for reasons not imputable to them, during the state of emergency or alert, who are registered as unemployed in the records of the employment agencies;
  • Romanian citizens whose employment relationships with foreign employers have been terminated; and
  • persons between 16 and 29, registered as unemployed in the records of employment agencies,

will entail the granting from the state, for a 12-month period, of a monthly amount representing 50% of each employee’s salary, but no more that RON 2,500.

The condition regarding the maintaining of the employment relations until 31 December 2020 is preserved.

Nota bene 1: the amounts will be granted according to the above for the payment of the salary, proportional to the effective time worked by the employee and will not be cumulated with other subventions granted in accordance with Law no. 76/2002 regarding the unemployment insurance system and employment stimulation.

Nota bene 2: termination of the employment contracts which occurs prior to the above-mentioned date will entail the fully reimbursement of the received amounts.

Nota bene 3: the above will not be applicable to public institutions and authorities, employers in bankruptcy, dissolution, liquidation or to the ones having their activities suspended or otherwise restricted due to other reasons then the ones determined by the spread of coronavirus SARS-CoV-2.

In order to benefit from the above, the employers will submit, by electronic means, an application in this respect with the employment agencies.

The procedure of granting the amounts will be approved by Order of the President of the National Agency for Employment.