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)