Factsheet for case RO-2021-38/2041 – measures in Romania
|Country||Romania , applies nationwide|
|Time period||Open ended, started on 16 September 2021|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
|Author||Victoria Stoiciu (European Institute of Romania) and Eurofound|
|Case created||11 October 2021 (updated 14 October 2021)|
This ordinance acts in order to ensure a greater participation on the labor market of certain categories of persons (persons receiving social assistance, young people in NEETs category). Its provisions may increase the income of single persons / families receiving social assistance / youth NEETs, and provide the necessary workforce for employers - for the benefit of both employees and employers. It was adopted, on the one hand, following the recommendations of the European Council on ensuring the chances for young NEETs to benefit from quality employment, and, on the other hand, because - by suspending economic activities - the COVID-19 pandemic caused damage with long-term effects on the labor market, but also on the population income. The lack of such measures could affect about 10,000 people able to work, which could provide the labor force needed to resume and develop economic activities.
The purpose of the new regulations is to support people who want to get out of vulnerability, providing them with access to education and qualifications, as well as financial support, by settling transport for those who go to school and extending social assistance for those who are employed. The main changes aim at stimulating the participation of social assistance beneficiaries on the labor market, preventing dependence on this benefit, as well as measures to reduce unemployment among young NEETs. Specifically, the main provisions are:
It is estimated that this year about 10,000 people will benefit from the measure of extending the social assistance aid, and about 5,000 people will benefit from being included in the "Second Chance" program.
Approximately 2,000 young NEETs will benefit this year from measures financed from the unemployment insurance budget, the financial impact being estimated to RON 5,625,000.
Other groups of workers
|Does not apply to businesses||
Other groups of citizens
Local / regional government
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
This normative act has not been discussed with non-governmental organizations, research institutes and other similar bodies, as it deals with an exceptional situation. At the same time, it was subject to consultation and approved by the Legislative Council (specialized advisory body of the Romanian Parliament) and the Economic and Social Council, although with some amendments.
The Economic and Social Council agreed with the draft ordinance, but with some observations concerning the following aspects: computer systems for transmitting supporting documents; the involvement of certified private providers of professional counseling and training services within the "Second Chance" program; reduction of the minimum employment period of the social assistance beneficiaries, from 24 months to 12 months, as most such fixed-term labour contracts are concluded for periods of less than 2 years and this would lead to a reduction in the number of beneficiaries; increasing the amount provided for the settlement of the transport services of the beneficiaries participating in professional training courses, as the amount initially proposed is not enough for medium and long distances; introduction of a transport tariff system depending on the travel distance.
The Legislative Council approved the draft emergency ordinance, but also issued a series of observations and proposals regarding: provision of deadlines, inclusion of some legislative references, signaling of contradictions between the conditions imposed on beneficiaries’ employment and the provisions of the Constitution regarding the right to work, elimination of the discriminatory character of some provisions in the ordinance.
Eurofound (2021), Training and employment for youth and people with a guaranteed minimum income, case RO-2021-38/2041 (measures in Romania), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.