Emergency Ordinance (OUG) No. 36/2022 on the establishment of social protection measures for employees in the context of the armed conflict in Ukraine, as well as following the international sanctions applied to the Russian Federation and Belarus was published in the Official Gazette (Part I) No. 340 of 7 April 2022.
The mentioned normative act was issued as a result of the situation generated 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.
Thus, in the above context, the interruption of the import and export of products from and to Ukraine, the Russian Federation and Belarus has led to the impairment of the activity of some Romanian employers, who, due to the impossibility of carrying out commercial or banking transactions with economic operators from Ukraine, the Russian Federation and Belarus, are facing difficulties in terms of supply of raw materials and materials, as well as the lack of sales markets.
Social protection measures:
- Starting from the date of entry into force of the EMERGENCY ORDINANCE 36/2022 and until 31 December 2022, for the period of temporary suspension of the individual employment contract at the initiative of the employer, according to Article 52 paragraph (1) letter c) of Law no. 53/2003 – Labour Code, republished, with subsequent amendments and additions, the allowances to which the employees are entitled 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 for by the State Social Insurance Budget Law for 2022 no. 318/2021.
We mention that the following categories of employees benefit from the above provisions:
- 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 of the armed conflict in Ukraine, who experience a decrease in revenue of at least 20% of the revenue achieved in January 2022 or the revenue achieved in the same month of 2021, compared to the month for which the allowance is claimed;
- 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 economic operators referred to in point a) are natural or legal persons, which carry out economic activities in compliance with the legislation of Ukraine, the Russian Federation or Belarus, which manufacture, import, export, store, transport or trade products or parts thereof or provide services.
Indirectly affected employers referred to in point a) 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.
Granting of the allowance:
The allowance is calculated and granted in proportion to the number of days that the activity has been interrupted or temporarily 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.
For the calculation of the income tax related to the allowance, the provisions of article 78 paragraph (2) letter b) of Law no. 227/2015, as amended and supplemented, shall apply.
The declaration of the income tax, the state social security contribution and the health social security contribution shall be made by the employer by submitting the 112 declaration.
The deadline for payment and declaration of the tax obligations provided for in paragraph 3 above is the 25th of the month following the month in which the payment is made from the unemployment insurance budget.
It is important to note that if an employee has more than one individual employment contract, at least one of which is in force during the period in which the provisions of the EMERGENCY ORDINANCE 36/2022 are applied, from which he receives income at the level of the allowance provided for in item I.1, he does not receive the allowance.
If an employee has more than one individual employment contract and all of them are suspended in accordance with Article 2(1), he shall receive the allowance provided for in Article 1 of the individual employment contract with the most advantageous salary rights.
The period for which the employees whose individual employment contracts are suspended and the employers of these employees do not owe the insurance contribution for work according to the provisions of Article 2205 of Law No. 227/2015, with subsequent amendments and additions, under the conditions of EMERGENCY ORDINANCE 36/2022, constitutes a contribution period without payment of the contribution to the social health insurance system for the social health insurance leave and allowances provided for by EMERGENCY ORDINANCE No. 158. /2005 on social health insurance leave and allowances, approved with amendments and additions by Law No 399/2006, with subsequent amendments and additions.
In order to establish and calculate the social health insurance allowances provided for by Government Emergency Ordinance no. 158/2005, approved with amendments and additions by Law no. 399/2006, with subsequent amendments and additions, the minimum gross basic salary per country guaranteed in payment, in force during the period provided for in Article 1 (07.04 – 31.12.2022) shall be used.
Documents required for payment of the allowance:
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 appears that they have been directly or indirectly affected by the impossibility of carrying out commercial transactions with economic operators from Ukraine, 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 mentioned documents shall be submitted in the current month for the previous month’s allowance payment.
The payment from the unemployment insurance budget of the indemnities is made within maximum 15 days from the submission of the documents by the county employment agencies, as well as by the Bucharest municipality, as follows:
- a) in the accounts opened with credit institutions by the employers referred to in point I.2(a);
- b) in a separate special-purpose cash account which cannot be subject to enforcement, opened with the State Treasury at the request of the employers referred to in item I.2 letter b, on the basis of the derogation granted by the competent authority according to the Government Emergency Ordinance no. 202/2008 on the implementation of international sanctions, approved with amendments by Law no. 217/2009, with subsequent amendments and additions. From the separate available account, employers make payments by transfer. If the employees do not have bank cards and the payment of the allowance is made in cash, employers shall use the form “Cheque for multiple cash withdrawal”, code 14.20.06/TS, provided for in item 70 of Annex no. 1a) to the Order of the Minister of State, Minister of Finance, no. 1.801/1995, as amended and supplemented, for the release of the amounts from the account by the territorial units of the State Treasury, filling in the fields in the form accordingly.
Payment of the allowance shall be made to the employee within a maximum of 3 working days from receipt of the amounts by the employer.
Please note that in one calendar month, employers may claim for the same period of the month for different employees, the allowance mentioned in the EMERGENCY ORDINANCE 36/2022 and the settlement of the allowance provided for in Article 1 paragraph (7) of the EMERGENCY ORDINANCE 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 the increase in employment, approved with amendments and additions by Law no. 282/2020, with subsequent amendments.
During the same calendar month, employers may benefit for the same employee, for different periods of the month, from the allowance provided for in the EMERGENCY ORDINANCE 36/2022 and from the settlement of the allowance provided for in Article 1 paragraph (7) of the EMERGENCY ORDINANCE no.132/2020, approved with amendments and additions by Law no. 282/2020, as amended.
Individuals who are beneficiaries of the above mentioned indemnity, supported by the unemployment insurance budget, cannot use an amount representing up to 3.5% of the income tax due for these indemnities to support non-profit entities/units of worship or to grant private scholarships.
By way of derogation from the provisions of Articles 60, 1381 and 154 paragraph (1) letter r) of Law no. 227/2015, as amended and supplemented, for the allowance provided for in item I.1, supported from the unemployment insurance budget, no tax relief is granted.
The employees of the following employers are not entitled to the allowance provided for in Article 1:
- a) public institutions and authorities, as defined in Article 2 paragraph (1) item 30 of Law no. 500/2002 on public finances, as amended and supplemented, and in Article 2 paragraph (1) item 5 of Law no. 273/2006 on local public finances, as amended and supplemented;
- b) employers who, at the date of the request for granting these amounts, are in bankruptcy, dissolution, liquidation or whose activities are suspended or on whom restrictions are imposed for reasons other than those provided for in Article 2 paragraph (1).
Legal basis:
– EMERGENCY ORDINANCE 36/2022 on the establishment of measures for the social protection of employees in the context of the armed conflict in Ukraine, as well as as a result of international sanctions applied to the Russian Federation and Belarus
– 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 Government Decision no. 1/2016).