Emergency Government Ordinance no. 32/2020 amending Government Emergency Ordinance no. 30 / 2020 regarding certain measures in the field of fighting COVID-19 was published in the Official Gazette of Romania no. 260 of 30th March of 2020.

On 30th of March 2020, the Emergency Government Ordinance no. 30/2020 has seen significant changes regarding the application of certain incentives in the area of technical unemployment. In brief, specific conditions and the blue / yellow certificates were removed. We hereinafter present the procedure as set forth by the recent amendments:

Eligibility

• All individuals who have concluded labour agreements with employers who have temporarily reduced or partially / totally interrupted the activity as a result of the effects generated by COVID-19, during the state of emergency period, further to the suspension of the labour contracts according to the Labour Code.
• During the state of emergency period, the indemnities received by the respective employees whose labour agreements were suspended shall be 75% of the basic salary corresponding to the occupied position and shall be paid from the unemployment insurance budget, being capped at 75% of the national gross average salary (75 % x RON 5,429 = RON 4,071.75)
• If the employer’s budget allows, the employers may supplement the indemnities up to minimum 75% of the basic salary corresponding to the occupied position.

Specifically regulated cases

• Employees who have concluded more than one individual employment contracts, while at least one full-time contract is active during the state of emergency period are not eligible for the indemnities.
• Employees who have concluded several individual employment contracts which are all suspended further to the state of emergency will enjoy the indemnity related to the most favourable employment contract concluded.

Effective procedure

• In order to be granted the indemnities, employers shall submit, by electronic mail, to the local unemployment agencies where they belong to, a written request dated and signed by the legal representative, accompanied by a sworn statement (on a specific template) and by the list of employees for whom the indemnities are requested.
• Employers are fully responsible for the accuracy and truthfulness of the information included in the documentation.
• The documents shall be submitted in the current month for the previous month’s indemnities. Thus, starting with 1st of April 2020, the documentation for the indemnities related to March 2020 may be submitted - for employers who have suspended the individual employment contract according to the Labour Code in March during the state of emergency period.
• Payments of the indemnities will be performed in the bank accounts opened by the employers within 15 days after the documentation is submitted.
• Payments of the indemnities will be performed in the bank accounts opened by the employers within 15 days after the documentation is submitted.

Tax treatment related to the indemnities

• The indemnity is subject to personal income tax and mandatory social contributions, except for work insurance contribution.
• The computation, withholding and payment of the income tax and social contributions fall within the employer’s charge.

Rules for other professionals

• Other professionals, as regulated by the Civil Code, who totally or partially interrupted the activity during the state of emergency period are eligible for a monthly indemnity capped at 75% of the national gross average salary, based on a sworn statement.
• During the state of emergency period, for temporary suspension of sportive activity contracts, initiated by the relevant sports structure, an indemnity of 75% of the remuneration related to the sportive activity is granted, capped at 75% of the gross average salary.
• Individuals exclusively deriving revenues from intellectual property activities and who have suspended their activity during the state of emergency may enjoy a monthly indemnity set at 75% of the gross average salary, based on the documents requested by the National Agency for Payments and Social Inspection.
• The indemnity is subject to personal income tax and social contributions, as set forth by the Fiscal Code.