The Emergency Ordinance regarding the modification and completion of government emergency ordinance 30/2020 was published in the Official Monitor and the procedure for granting the technical unemployment allowance underwent important changes.
Thus, the most important change is the one regarding the elimination of the need to obtain the certificate for emergencies.
In the case of companies that were not directly affected by the restrictive measures of the state to limit the epidemic, but which suffered due to the decrease of the economic activity in the context of coronavirus COVID-19, certain conditions were eliminated, meaning that the provision on the decrease of the revenue by 25% in March compared to the average of January-February was eliminated. In addition, the restriction on the number of employees for which compensation can be requested, which was limited to 75% of the number of employees for these companies, has been eliminated.
According to the new procedure, a statement of responsibility for how they were affected by the emergency situation will be submitted directly to the County Authority for Employment, together with the list of employees sent in technical unemployment and their level of wages, as well as a request from the employer.
The allowance is 75% of the basic salary, not more than 75% of the average salary in the economy. If the employee has a salary higher than the average gross salary, as a novelty, the companies can bear the difference up to 75% of the basic salary, depending on the negotiations between employers and employees.
The compensation covered by the state cannot exceed 4,071 lei gross (75% of 5,429 lei), that is 2,381 lei net (in 2020) for the employees sent in technical unemployment.
The indemnity paid by the state is due:
- social insurance contributions: 25%
- social health insurance contributions: 10%
- income tax: 10%
- The employment insurance contribution is not due!
The employee who has several individual employment contracts of which at least one full-time is active during the emergency period, does not receive compensation and the employee who has several individual employment contracts and all suspended, benefits from the indemnity at the most advantageous of the contracts.
During the period of technical unemployment, the employee benefits from a contribution period without paying the contribution for the health system and medical leave.
The period for which the aid is granted is the period of the state of emergency: from the entry into force of the Decree on the state of emergency, March 16th , until the end of this period, with the possibility of extension, if the emergency situation is prolonged.
The documents, respectively the request for granting the technical unemployment, the list with the employees for which this is requested and the declaration on its own responsibility assuming the veracity of the economic losses as a result of the Covid-19 pandemic, will have to be submitted from April 1st until April 10th for granting the technical unemployment in the period 16 – 31st of March, respectively starting with May 1st until May 10th for the period 1 – 16th of April (the date on which the emergency situation decreed ends, with the possibility of extension).
These will be submitted by electronic mail to the County Agencies for Employment.
The subsidies for technical unemployment will be paid by the state and it will not be necessary for the employer to bear first the value of the subsidies. Within 15 days from the submission of the documents, the Ministry of Labor, through the National Agency for Employment, will make the payment to the employer. Employers have the obligation to make the payment to the employees within 3 days from receiving the money.
If you need any guidance regarding this procedure, you can contact us at the headquarters of our law firm in Sibiu, str. Spartacus, no. 13A, Sibiu County, by phone at: 0720291919 or by e-mail at: [email protected]