European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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-2020-33/1538 – measures in Romania

Subsidies for hiring employees on fixed-term contracts

Subvenții la angajarea de salariați cu contract pe durată determinată

Country Romania , applies nationwide
Time period Temporary, 10 August 2020 – 30 June 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Raluca Dimitriu (European Institute of Romania)
Measure added 01 December 2020 (updated 29 April 2021)

Background information

In the context of the general increase of the unemployment rate, the Government has adopted measures to limit it through temporary rules to stimulate the employment of seasonal employees. The focus is on companies that hire employees for a period of three months, but without preventing the extension of the contract. The measure is intended to stimulate employment in the general context of the unpredictability accompanying the COVID-19 crisis.

By Emergency Ordinance no. 132/2020, certain support measures were also adopted in the case of companies that hire people with a fixed-term contract. The necessary documentation for this settlement is provided in Order no. 1392/2020. By Emergency Ordinance no. 220/2020, published in the Official Gazette, no. 1326 of 31 December 2020, this measure was extended until 30 June 2021.

Content of measure

Until 30 June 2021, but not more than a period of three months, at the choice of the employer, for the employees who conclude individual employment contracts for a fixed period of up to three months, the settlement of 41.5% of the salary for the days worked in these jobs is ensured, for a working time of eight hours/day, but not more than RON 2,250, corresponding to the period worked.

The employer has the obligation to pay in full the value of the work performed based on the fixed term individual employment contract, the amount representing the percentage of 41.5% being subsequently settled by the National Employment Agency.

The amount is settled at the request of the employers based on the self-declaration stating the fulfilment of the legal conditions, accompanied by the list of persons for whom the settlement is requested, certified by the employer's legal representative, after completing the declaratory and payment obligations relating to the income from salaries and assimilated to salaries, provided by the Fiscal Code, for the period for which the request is made.

Use of measure

No information is available.

Target groups

Workers Businesses Citizens
Workers in non-standard forms of employment
Seasonal workers
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Public employment service
National funds

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

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

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The Minister of Labor stated that the measure was conceived together with the social partners. ”It was a measure that takes into account all the developments that take place on the labor market and all the signals that came from employers”. The draft law for the approval of GEO 2/2020 was approved favorably by most of the representatives of the social partners represented in the Economic and Social Council.

Views and reactions

The social partners agreed with this support measure. It was originally intended to support seasonal employees, but was later extended to all fixed-term employees. The employers' organisations consider that the measure leads to encouraging employers to use alternative forms of work.

Sources

  • 07 August 2020: EMERGENCY ORDINANCE no. 132 of 7 August 2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as for stimulating employment growth (legislatie.just.ro)
  • 19 September 2020: Order 1392/2020 regarding the approval of the application form and of the documents provided in art. 4 (2) of the Government Decision no. 719/2020 for the approval of the settlement and payment procedure of the amounts granted based on the GEO no. 132/2020 (lege5.ro)
  • 31 December 2020: Emergency Ordinance no. 220/2020 on the application of social protection measures after 1 January 2021 in the context of the spread of SARS-CoV-2 coronavirus, as well as for the amendment of some normative acts (lege5.ro)

Citation

Eurofound (2020), Subsidies for hiring employees on fixed-term contracts, measure RO-2020-33/1538 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-2020-33_1538.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

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