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EU PolicyWatch

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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure RO-2020-23/924 – measures in Romania

Income support for returning Romanian migrant workers, youth and elderly

Măsuri de sprijin pentru încadrarea în muncă a cetățenilor români cărora le-au încetat raporturile de muncă cu angajatorii străini aflate în derulare pe teritoriul altor state, persoanelor în vârstă și tinerilor

Country Romania , applies nationwide
Time period Temporary, 01 June 2020 – 01 June 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Victoria Stoiciu (European Institute of Romania) and Eurofound
Measure added 05 July 2020 (updated 22 July 2020)

Background information

628,478 workplaces disappeared in the first three months of the COVID-19 crisis (16 March - 17 June 2020). The most vulnerable categories on the labour market are the elderly and youth. In addition, 1.3 million Romanian citizens who previously worked abroad in EU members states such as Spain, Italy, Germany, have returned to Romania after the COVID-19 crisis emerged. Estimations indicate that 300,000 of them are currently looking for a job in Romania. In order to support the labour market integration of returned Romanian workers, especially youth and elderly, and to promote labour market and economic recovery, the Government proposed a set of support measures.

Content of measure

Starting with 1 June 2020, the Government will cover, for a period of 12 months, a 50% share (but not exceeding RON 2,500 - the equivalent of €510) of the wage of those employees who are aged 16-29 or over 50 years, and whose labour contract has ceased during the state of emergency and/or state of alert. The same provision applies to the Romanian workers who previously worked in other EU member countries and whose labour contracts have ceased due to objective reasons. To receive the state support the employees whose contracts ceased must be officially registered as unemployed. It is mandatory for the employers to maintain the labour contact valid 12 months after the support measure ceases.

Use of measure

1,3 million Romanian citizens who previously worked in EU member state have returned back to Romania since the emergence of the pandemic. About 300,000 of them are job-seekers. They are expected to be among the beneficiaries of the measure. The unemployment among youth (15-24) was 17,4% in March 2020, almost three times higher than among the overall population. Some of the unemployed youth will benefit of the measure as well.

Target groups

Workers Businesses Citizens
Other groups of workers
Older people in employment (aged 55+)
Youth (18-25) in employment
Applies to all businesses Migrants

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The social partners have been consulted in the design of the measure. Their involvement was requested by institutional setting. National (cross sector) trade union organisations and employers organisations have been consulted.

Views and reactions

There have been no public reaction (in media, on their web-sites, etc) from social partners on the measure. As a rule, the absence of public reaction and criticism from social partners shall be interpreted as a form of agreement with the content of the measure.

Sources

Citation

Eurofound (2020), Income support for returning Romanian migrant workers, youth and elderly, measure RO-2020-23/924 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-2020-23_924.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.