Technical unemployment benefits
The government approved Ordinance No. 30 of March 18, 2020 for the amendment and supplementation of some normative acts, as well as for the establishment of measures in the field of social protection in the context of the epidemiological situation brought about by the spread of the coronavirus SARS-CoV – 2.
The regulatory act regulates, among other things, the conditions for entering technical unemployment, the continuation of the payment of social benefits, the automatic extension of certain documents, as well as the possibility of online transmission of documents needed to obtain certain benefits.
Regarding the technical unemployment benefit, the Government has established that during the period of emergency established by Decree No. 195/2020 concerning the establishment of the state of emergency on the territory of Romania, for the period of temporary suspension of the individual employment contract, at the initiative of the employer, pursuant to Article 52 paragraph (1) acc. c) of Law No. 53/2003 – The Labor Code, republished, with subsequent amendments and additions, as a result of the effects produced by the SARS-CoV-2 coronavirus, the benefits received by employees are set at 75% of the basic salary corresponding to the employment position and will be supported by the state unemployment fund, but to the extent not exceeding 75% of the average gross salary provided for in Law No. 20/0620 concerning the state social insurance budget for 2020.
The average gross salary used as a measure to calculate the state social insurance budget for 2020 is 5,429 lei.Therefore, employees in technical unemployment will receive at least 75 percent of their base salary as technical unemployment benefits, but no more than 4,072 lei.
These provisions benefit employees of employers who meet one of the following conditions:
(a) Employer who has stopped activity in whole or in part based on the decisions issued by the competent public authorities according to the law (transportation, tourism, HORECA, event organizations, advertising, private education and adjacent activities , garment industry, footwear and leather goods, population services), during the decreed state of emergency and in possession of the Certificate of Emergency Situations issued by the Ministry of Economy, Energy and Environment, provided for in Article 12 of Presidential Decree No. 195/2020 of Romania. The Ministry of Economy, Energy and Environment shall issue the Certificate of Emergency Situations according to the methodology approved by order.
(b) Employer who has reduced activity due to the effects of the COVID-19 epidemic and does not have the financial ability to pay all salaries of its employees. Employers may be eligible for the payment of the allowance provided for up to 75% of the employees who have active individual employment contracts on the effective date of the Ordinance, respectively, March 21, 2020.
For employers mentioned in par. (b), the payment of the technical unemployment allowance will be made on the basis of a declaration under their own responsibility, stating that the employer has a decrease in income since the month prior to the submission of the declaration under their own responsibility, with a percentage of at least 25% compared to the average income from January to February 2020 and does not have the financial capacity to pay all employees.
The documents are submitted in the current month for the payment of the previous month’s allowance. The settlement of the amounts paid as allowances, from the unemployment insurance budget, shall be made no later than 30 days after the documents are submitted. The normative act adopted by the government also provides for the introduction of electronic mail as the main means of communication between the citizen and the central or local government authority in order to establish
entitlements to social assistance benefits.
According to AJOFM Harghita, employers mentioned in (a) can obtain the emergency certificate online from the Ministry of Economy, Energy. The method of obtaining the certificate is determined by Order of the Ministry mentioned above. These companies will submit an application, a table with the employees for whom they apply for technical unemployment payment, and the certificate of emergency situation.
The certificate will be applied for online from the website http://prevenire.gov.ro/, the platform which will contain a section dedicated for this purpose.
All documents deemed necessary, including certified accounting situations, will be uploaded.
– Turnover has decreased by 25% in the month in which the payment of technical unemployment benefit is required, compared to the average January-February 2020;
– Does not have the financial capacity to pay all employees;
Withheld fees and contributions are withheld from the unemployment benefit and transferred until the 25th of the month following the month in which AJOFM makes the payment (e.g.: for March AJOFM makes the payment in April, fees are paid until (May 25).
We recommend verifying the data and conditions required because any unfounded claims for use of technical allowance contributions may be considered violations of law.
