Social protection measures for employees in the context of the armed conflict in Ukraine

As a result of the situation caused by the armed conflict in Ukraine, which led to the interruption of economic activity in Ukraine, as well as to the imposition by the international community against the Russian Federation and Belarus of economic sanctions, financial restrictions and restrictions on economic relations, the Official Gazette (Part I) No 340 of 7 April 2022 published the EMERGENCY ORDINANCE 36/2022 on the establishment of measures for the social protection of employees.

Thus, until 31 December 2022, for the period of temporary suspension of the individual employment contract at the initiative of the employer, according to Art. 52 para. (1) letter c) of Law no. 53/2003 – Labour Code, republished, with subsequent amendments and additions, the allowances that employees receive are set at 75% of the basic salary corresponding to the job occupied and are paid from the unemployment insurance budget, but not more than 75% of the average gross salary provided by the Law on the State Social Insurance Budget for 2022 no. 318/2021.

The categories of employees who can benefit from the measure are:

a) employees of employers directly or indirectly affected by the impossibility of conducting business transactions with economic operators in Ukraine, the Russian Federation and Belarus, as a result of the effects caused by the armed conflict in Ukraine, who record a decrease in revenues of at least 20% compared to the revenues achieved in January 2022 or to the revenues achieved in the similar month of 2021, compared to the month for which the allowance is claimed;

         Economic operators are natural or legal persons, carrying out economic activities in compliance with the legislation of Ukraine, the Russian Federation or Belarus, who manufacture, import, export, store, transport or market products or parts thereof or provide services.

Indirectly affected employers are employers in Romania who have contractual relations with other employers in Romania who are directly affected by the impossibility of doing business with economic operators in Ukraine, the Russian Federation and Belarus as a result of the effects of the armed conflict in Ukraine.

b)employees of employers subject to international sanctions who have instituted restrictive measures in relation to actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine and whose funds or economic resources are blocked by order issued by the President of the National Tax Administration Agency.

The allowance is calculated and granted in proportion to the number of days that the activity has been temporarily interrupted or reduced.

The allowance is subject to taxation and payment of mandatory social security contributions, according to the provisions of Law no. 227/2015 on the Fiscal Code.

The calculation, withholding and payment of income tax, state social insurance contribution and health social insurance contribution, related to the indemnity, is made by the employer from the indemnity received from the unemployment insurance budget.

For the indemnity received, no labour insurance contribution is due according to the provisions of Article 2205 of Law no. 227/2015, as amended and supplemented.

If an employee has more than one individual employment contract, at least one of which is in execution during the period in which the provisions of the EMERGENCY ORDINANCE 36/2022 apply, from which he receives income at the level of the above-mentioned allowance, he shall not be entitled to this allowance.

If an employee has more than one individual employment contract and all of them are suspended under the above conditions, he shall receive the allowance related to the individual employment contract with the most advantageous salary rights.

In order to be granted the amounts necessary for the payment of the indemnity, the employers shall submit, by electronic mail, to the county employment agencies, as well as to the employment agencies of the municipality of Bucharest, within the radius of which they have their registered office, an application signed and dated by the legal representative, accompanied by a declaration on their own responsibility from which it is clear that they have been directly or indirectly affected by the impossibility of carrying out commercial transactions with economic operators from Ukraine, the Russian Federation and Belarus, as a result of the effects caused by the armed conflict in Ukraine, to which is attached the income and expenditure balance for the month for which the allowance is requested, as well as the income and expenditure balance to which the decrease is reported or, as the case may be, a copy of the order of blocking funds or economic resources in the field of international sanctions, issued by the President of the National Tax Administration Agency, and the list of persons who are to benefit from this allowance, assumed by the legal representative of the employer.

The payment from the unemployment insurance budget of the allowances to the employers is made within 15 days from the submission of the documents by the county employment agencies, as well as the Bucharest municipality.

The payment of the indemnity is made to the employee within a maximum of 3 working days from the receipt of the amounts by the employer.