We present a series of measures that any employer can take to protect their business and their employees:

  1. Temporary limitation of activity for economic, technological, structural or similar reasons (emergency situation declared in Romania), as follows:
  • for periods exceeding 30 business days;
  • working time can be reduced from 5 days to 4 days a week, with the proportional decrease of the remuneration, until the situation becomes normal or adoption of flexible working time;
  • advantages: reduction of labour costs and flexibility of the employee;
  • disadvantages: loss of productivity;
  • legal obligation: addendum and other related measures are required.

 

  1. Home working and Teleworking – based on an internal policy clearly regulating the working procedures.
  • advantages: protection of the health of the employees and recording the working hours (automatic record software/activity report);
  • disadvantages: the labour costs do not change, investments in technology required;
  • legal obligation: addendum and other related measures are required.

 

  1. Law concerning the employees who are parents – Law no. 19/2020, applicable to the employees:
  • who have children aged less than 12 or children with disabilities aged less than 18, enrolled in an educational institution;
  • whose job does not allow for home work or teleworking.

They receive 75% of the salary for a working day, but not more than 75% of the gross average salary per economy (amounting at present to 5,429 ron). The other parent, where this is the case, shall declare on honour that he/she has not benefitted or does not benefit from the same days off work.

  • advantages: the amounts are initially paid from the budget of the employer, but can then be claimed from the Guarantee Fund. However, there is no procedure yet in this respect;
  • disadvantages: 100% loss of productivity for the salaries concerned;
  • legal obligation: at least leave request and declaration on honour.

 

  1. Quarantine leave:
  • granted to the employees who are forbidden to continue the activity on suspicion of a contagious disease;
  • the duration is established based on the certificate issued by the Public Health Directorate of each county or of the municipality of Bucharest (according to the procedure concerning the relation with the family doctor);
  • advantages: 75% recovery of costs from the National Health Insurance Unique Fund;
  • disadvantages: the condition is at least 6 months contribution as for this 75% reimbursement to apply;
  • legal obligation: submission of a file to the Health Insurance House and compliance with the procedure concerning the relation with the family doctor.

  

  1. Technical unemployment: 
  • is defined as the temporary interruption or reduction of the activity for economic, technological, structural reasons;
  • advantages: the employee is at the employer’s disposal for return back to work, reduction of labour costs (the company pays at least 75% and the related contribution calculated against the base salary *);
  • disadvantages: 100% loss of productivity for the salaries concerned;
  • legal obligation: internal decision and related documents in relation with the Territorial Labour Inspectorate.

* Note: For the moment, the position of the Ministry of Finance and concerns the amount that can be paid as technical unemployment support is expected. 

 

  1. Possibility to take the annual leave during this period:
  • a request of the employee, approved by the employee, is required.
  • advantages: keeping the job, protection of the employees' health, recovery of the outstanding annual leave (use within 18 months);
  • disadvantages: 100% loss of productivity for the salaries concerned, cannot be a unilateral act of the employer;
  • legal obligation: annual leave request.

 

  1.  Force majeure: 
  • the individual employment contract can be amended by unilateral decision of the employer, according to the Labour Code, in case of temporary modification of the type of work caused by force majeure situations. Thus, art. 4, letter d) in the Labour Code stipulates: “in case of force majeure, i.e. in case of war, natural disasters or imminent disasters, such as: fire, floods, violent epidemics or epizooties, invasions of animals or insects and, generally, in all the circumstances endangering the life or the normal living conditions of the entire population or of a part thereof.”.
  • advantages: reduction of labour costs with up to 100%;
  • disadvantages: if the activity resumes, the employees might no longer be available for the employer;
  • legal obligation: unilateral decision of the employer.

 

The economy goes further, and our recommendation is for employers to be balanced in their decisions.

 
Material created by: 
 
Laura Chirica CECCAR - Accounting & HR Manager, Proprietati Finconta

This email address is being protected from spambots. You need JavaScript enabled to view it.

+4 0756 095 628

Over 13 years of experience in accounting & payroll, consulting, restructuring & reorganization transactions and due-diligence.

 

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