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Factsheet for measure RO-2020-12/373 – Updated – measures in Romania
|Country||Romania , applies nationwide|
|Time period||Temporary, 15 March 2020 – 31 December 2022|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g., short-time work)
|Author||Victoria Stoiciu (European Institute of Romania) and Eurofound|
|Measure added||08 April 2020 (updated 30 May 2022)|
|Related ERM support instrument|
Under the Labor Code, during the suspension of employment upon the employer’s initiative, as a result of a temporary suspension or reduction of activity ('technical unemployment'), the affected employees are entitled to receive an indemnity of minimum 75% of their base salary, paid exclusive from the employer’s salary fund. By derogation from the above provisions, GEO 30/2020 provides that throughout the state of emergency instituted by the Decree on 15 March 2020, the indemnities due to the employees whose employment contracts were suspended as a result of the effects of COVID-19 will be borne, at least in part, from the unemployment insurance budget.
The indemnity borne from the unemployment insurance budget is of 75% of the base salary, without however exceeding 75% of the gross average salary established for 2020 (i.e. thus, the indemnity borne by the budget under these circumstances shall be maximum 75% of RON 5,429 (€1,100). Employers have an option, but not the obligation, to supplement the indemnity capped as mentioned above, so as to cover the difference – if any – to the minimum 75% of the base salary corresponding to the job position, insofar as the employers’ budget permits it. Employers shall benefit from state support in paying the indemnity within the limits described above.
if they interrupt their activity, entirely or in part, or if they reduce their activity as a result of the COVID-19 epidemic, throughout the declared state of emergency. In order to receive the indemnities for the employees suspended under the provisions of GEO 30/2020, employers shall submit by e-mail the payment request, to the local unemployment agency within the area of their registered office. The indemnity for technical unemployment is subject to tax and social contributions under the provisions of the Fiscal Code.
Official data indicate that since a nationwide state of emergency, instituted by Presidential Decree No. 195/2020, was imposed on 15 March 2020, 1 million labor contracts have been suspended or ceased. Potentially, most of them could be covered by the provisions of GEO 30/2020. On the 2 April 2020, the first day when employers could submit the request for receiving the indemnity for technical unemployment, 5,800 companies have requested the state to fund the indemnity for about 70,000 employees. The Ministry of Finances, Florin Cîțu, declared that approximately 1 million employees with suspended contracts could receive the indemnity for technical unemployment.
Employees in standard employment
||Does not apply to businesses||Does not apply to citizens|
Company / Companies
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
The social partners have been consulted in the design of the measure. All trade union and employers organisations which are representative at national level have been consulted. The social partners came up with proposals for changes and improvements of the provisions of the measure, some of which were included in the final version of the legal acts.
Representative trade union organisations and employers organisations have been consulted.
Eurofound (2020), Indemnity for technical unemployment, measure RO-2020-12/373 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-2020-12_373.html
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