In the context of the pandemic caused by the COVID-19 virus, the Romanian state took over the payment of the “technical unemployment” indemnity until 31.05.2020. Discover the background here: [https://stalfort.ro/wp-content/uploads/2020/03/20200331_-NEWSFLASH_Indemnity_contract_suspension_UPDATE.pdf.]

After the state of emergency was transformed into a “state of alert” new measures were necessary in order to help the Romanian economy become more and more active.

The Government adopted the emergency Ordinance no. 92/2020 (“the EO”) regarding financial support in the employment sector. The EO basically provides for measures, consisting in (i) financial support for recruitment and hiring of new personnel and (ii) the payment of a percentage of 41.5 of the basic salary by the state for certain employees for the next three months.

Both support systems are linked to different pre- and post-conditions to be met by the employers.

On the one hand, the Romanian State will cover 41.5% of the base salary (capped at 41.5% of the average salary) for three months if they have sent their employees in technical unemployment for at least 15 days during the state of emergency or the state of alert and bring them back to work.

Post-condition is to maintain the employment relationships of the respective employees until 31.12.2020. Otherwise, the employer is obliged to refund all payments received form the unemployment agencies, with interest.

Unfortunately, the wording of the EO is unclear in different aspects and may lead to different interpretations in practice.

On the other hand, the state awards 50% of the salary, capped at 2.500,- RON monthly, for a twelve month period to employers which hire certain categories of unemployed persons as full time employees for an undetermined term.

The categories of ”supported“ employees are

• Persons above 50, whose employment was terminated during the state of emergency or the state of alert for reasons nor imputable to them;
• Unemployed persons aged between 16 and 29.

Post-condition is to maintain the employment relationships of the respective employees for another twelve months.

Employers which are still unable to become active due to State restrictions will continue to receive the technical unemployment indemnity for the affected employees (capped at 75% of the average salary) even after 31.05.2020, upon application.

Further details on this topic please check on our website [https://stalfort.ro/wp-content/uploads/2020/06/20200603_-NEWSFLASH_Employment_support_after_state_of_emergency-fin.pdf]