EMERGENCY ORDINANCE 73 supplementing EMERGENCY ORDINANCE no.132/2020 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 was published in the Official Gazette (Part I) no.536 of 31 May 2022.
The Kuzarbeit mechanism, whereby employers can reduce the working hours of employees due to reduced activity and receive 75% of the employee’s basic salary for the hours of reduced working hours, can be applied for until the end of the year.
Due to an important change in the reason for reduced activity, the scheme will be available to more companies.
Thus, EMERGENCY ORDINANCE 73/2022 extends the provisions of EMERGENCY ORDINANCE 132/2020 related to the Kurzarbeit mechanism and those related to the reduced activity allowance for authorised individuals after 8 June, but no later than 31 December 2022.
Another change brought by EMERGENCY ORDINANCE 73/2022 is that the reason for accessing the mechanism will also be a decrease in production of at least 10%, as opposed to just a decrease in turnover, as originally foreseen in EMERGENCY ORDINANCE 132. Specifically, employers for whom the production achieved in the month for which they request the application of the measure has decreased by at least 10%, compared to the same month in 2019 or compared to the average monthly production achieved in 2019, will also be able to request this aid from the state.
For those established between 1 January and 15 March 2020 and who have at least one employee, the decrease in production is based on the figures for the month prior to the application of the Kurzarbeit.
According to the background note, the extension of this measure is based on the fact that economic activity has slowed its growth rate due to the syncopations in international production chains, in addition to the uncertainties and risks caused by the war in Ukraine and the sanctions imposed on Russia.
It is important to mention that employers already accessing the mechanism will submit the same documents, but the affidavit is to be amended in less than two weeks from the publication of the EMERGENCY ORDINANCE 73/2022 by the Ministry of Labour by order, so that the situation of falling production will also be included.
Thus, companies that have not been able to access the mechanism so far must follow the next procedure to access the mechanism:
- a reduction in working time of no more than 80% of the employee’s daily, weekly or monthly working hours must be made, by decision, at least five days before the actual implementation;
- the measure must concern at least 10% of the number of employees of the establishment;
- the reduction in activity is justified by a reduction in production in the month for which the measure is requested or, at the latest, in the month preceding the month prior to that month, by at least 10% compared to the same month or compared to the average monthly production in 2019.
- Subsequently, employers must submit the following documents to the territorial employment agencies:
- A copy of the decision on the reduction of working hours and proof of its notification to the employees;
- the employer’s own declaration (the form will be updated soon);
- copy of the agreement concluded with the trade unions or, where applicable, proof of information to the employees where there is no trade union;
- the list of persons who are to receive the Kurzarbeit allowance;
- copy of the salary payment documents, showing the payment of the allowance.
Theoretically, the mechanism remains the same: the employer pays the 75% allowance for reduced working hours from the staff costs budget, together with the 100% salary for the hours actually worked by the employee at the date of the salary.
Subsequently, by the 25th of the month for the payment of the allowance for the previous month, the employer shall submit the above-mentioned documents to the territorial labour agencies.
Provided the documents are correct, the agencies issue a settlement decision within five days and the allowance is transferred to the bank accounts opened by the employer.
For wages and allowances paid to employees during the Kurzarbeit period, employers are liable to pay labour insurance contributions and must withhold income tax and compulsory social security contributions.
The mechanism cannot be accessed by public institutions, employers who are bankrupt, dissolved, liquidated or whose activities are suspended or employers who are registered in non-cooperative jurisdictions for tax purposes.
We remind you that the fines for those who call to work employees whose working hours have been reduced and for which they have claimed the Kurzarbeit allowance, including teleworking or home working in the interest of the employer, are similar to those applied for undeclared work and start from 20,000 lei and can reach up to 200,000 lei.
Legal basis:
– EMERGENCY ORDINANCE 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth;
– EMERGENCY ORDINANCE 73/2022 for completing the Government Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth;
– The substantiation note that accompanied the EMERGENCY ORDINANCE 73/2022 in the project phase.