According to the Labor Code, republished, with subsequent amendments and completions, art.80, in case dismissal was made unfoundedly or illegally, the court will order its cancellation and will oblige the employer to pay compensation equal to the indexed salaries, increased and updated with the other rights that the employee would have benefited from. At the request of the employee, the court that ordered the cancellation of the dismissal will restore the parties to the situation prior to the issuance of the dismissal act.
If the employee does not request the reinstatement in the situation prior to the issuance of the dismissal act, the individual employment contract will terminate by right on the date of the final and irrevocable decision of the court.
Regarding the fiscal aspects, according to art.78 paragraph (4) of the Fiscal Code, with the subsequent amendments and completions, in case of incomes representing salaries/balances, differences of salaries/balances, interests granted in connection with them, as well as their updating with inflation index, established on the basis of remaining final and irrevocable court decisions / final and enforceable court decisions, including those granted according to first instance decisions, law enforcement, the tax is calculated and withheld on the date of payment, in accordance with legal regulations in effect on the date of payment for income earned outside the basic function, and is paid until the 25th of the month following that in which they were paid.
It is important to specify that, according to art.76 paragraph (2) letter p) of the Fiscal Code, these amounts are considered incomes assimilated to salaries and the taxation rules specific to the incomes from salaries are applied to them.
According to art.146 paragraph (9) of the Fiscal Code, in case amounts were granted representing salaries or salary differences, established on the basis of remaining final and irrevocable court decisions / final and enforceable court decisions, including those granted according to the decisions of the first instance, the executors of law, as well as in case by such decisions it was ordered the re-employment of some persons, in order to establish the benefits granted by the public pension system, the respective amounts are broken down by the months to which they refer and the social insurance contribution rates that were in force at that period are used.
The social insurance contributions due according to the law are calculated, retained on the date of payment, and are paid until the 25th of the month following the month in which these amounts were paid.
At art.147 paragraph (3) of the Fiscal Code, it is specified that in case amounts of the nature provided in art. 146 para. (10) and (11), amounts representing salaries or salary differences, established on the basis of remaining final and irrevocable court decisions / final and enforceable court decisions, including those granted according to the decisions of the first instance, law enforcement, as well as which by such decisions ordered the re-employment of some persons, in order to establish the benefits granted by the public pension system, the social insurance contributions due according to the law are declared until the 25th of the month following the month in which these amounts were paid, by submitting the rectifying declarations for the months to which the respective amounts are related.
According to art.168 paragraph (7) and art.169 paragraph (3) of the Fiscal Code, in case amounts representing salaries/balances or differences of salaries/balances were granted, except for the amounts representing their updating with the index of inflation, established by law or on the basis of final and irrevocable court decisions / final and enforceable court decisions, including those granted according to the decisions of the first instance, law enforcement, as well as if such decisions ordered the reinstatement of some persons, the respective amounts are broken down by the months to which they refer and the quotas of social health insurance contributions that were in force at that period are used and used.
The social health insurance contributions due according to the law are calculated, retained on the date of payment, and are paid until the 25th of the month following the month in which these amounts were paid. If amounts of the nature provided above have been granted, the social health insurance contributions due according to the law are declared until the 25th of the month following the month in which these amounts were paid, by submitting the rectifying declarations for the months for which the respective amounts are related to them.
Completion D112:
According to the Instructions for completing the form 112 “Declaration regarding the obligations to pay social contributions, income tax and nominal records of insured persons”, approved by Order no. 203/207/188/2021, at Annex 6, point II (2.4 ) letter b) the following are specified:
Box “Declaration submitted as a result of the granting of monetary rights established on the basis of final and irrevocable court decisions / final and enforceable court decisions, according to art. 47 paragraph (3) and paragraph (3 ^ 1), art.169 paragraph (3) and paragraph (3 ^ 2) of the Fiscal Code ”- is ticked with X in the situation where the declaration is rectified following the granting of certain amounts representing salaries or salary differences, established by law or on the basis of final and irrevocable court decisions / final and enforceable court decisions, including those granted according to the decisions of the first instance, law enforcement, as well as if by such decisions willing to re-employ some persons, in order to establish the benefits granted by the public pension system.
Corrective declarations corresponding to each month are drawn up, ticking with X the corresponding box in the form.
The rectifying declaration is drawn up on the same model form as the correcting declaration, ticking with X the box on the first page of the form. The rectifying declaration is completed in full, entering all the data and information provided by the form, including those that do not differ from the initial declaration.
Thus, if amounts representing salaries or salary differences have been granted, established on the basis of court decisions, the social insurance contributions due are calculated, withheld on the date of payment, and are paid until the 25th of the month following that. in which these amounts were paid. The social insurance contributions due are declared until the 25th of the month following the month in which these amounts were paid, by submitting the rectifying declarations for the months to which the respective amounts are related.
It is important to mention that the insurance contribution rates that were in force at that time are used. Regarding the income tax, it is calculated and withheld on the date of payment, in accordance with the legal regulations in force on the date of payment for income earned outside the basic function, and is paid until the 25th of the month following that. in which these amounts were paid.
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016);
– Labor Code of 2003 (Law no. 53 of January 24, 2003) – republication, with subsequent amendments and completions;
– Order MF 203/2021 for the approval of the model, content, manner of submission, and management of the “Declaration on the obligations to pay social contributions, income tax, and nominal records of insured persons”.