The Latest Amendments to Technical Unemployment (Somaj Tehnic)
Emergency Government Ordinance No. 32, which came into effect on March 30, amended and supplemented the provisions regarding technical unemployment (somaj tehnic).
As we know, Emergency Government Ordinance No. 30 allowed companies that, as a result of the pandemic, were forced to completely or partially suspend or reduce their activities, to unilaterally suspend employees’ employment contracts based on Article 52, paragraph 1, point c of the Labor Code. In such cases, for the duration of the state of emergency declared to curb the pandemic, employees are entitled to an allowance amounting to 75% of their wages, which is paid by the state from the unemployment insurance budget. The actual amount of the allowance cannot exceed 75% of the gross average salary of 5,429 RON established by Law No. 6/2020, meaning a maximum of 4,071.75 RON.
Under the new regulations, employees are entitled to the specified allowance during the state of emergency if the employer reduces or temporarily suspends activity due to the coronavirus pandemic. It is sufficient for the employer to provide a self-declaration, with the new provision eliminating the 25% income reduction threshold and the upper limit of 75% of employees. Additionally, there is no longer a requirement to possess an emergency certificate!
The allowance remains subject to tax and social contributions, which the employer is responsible for withholding and paying by the 25th of the month following the disbursement.
If an employee has multiple individual employment contracts and all are suspended due to the state of emergency, they are entitled to the 75% state allowance, calculated based on the most favorable employment contract.
If one full-time employment contract remains active during the state of emergency, the employee is not entitled to the allowance.
There arises a question about employees with multiple employment contracts where a part-time contract remains active—can they still receive the allowance? The legislator’s intent is unclear, but in my opinion, the current wording allows for the possibility of requesting the allowance even if a part-time contract is active while the others are suspended.
The law permits employers to supplement the allowance up to 75% of the employee’s base salary if their budget allows. This is presented as an option, not an obligation, and it is possible that this clause could lead to future labor disputes, as it may be open to interpretation whether the employer’s budget allowed for the increase.
Procedure
For companies, to apply for the allowance, the request must be electronically submitted to the county or Bucharest employment agency (AJOFM) corresponding to the company’s headquarters. The employer must include:
- The request,
- A self-declaration, and
- A list of the affected employees, signed by the company’s manager or legal representative.
The procedure and necessary documents, as well as deadlines, are clearly stated on the employment agencies’ websites. Applications for the March period can be submitted from April 1, and for April, from May 1.
The deadline for processing the allowance has been shortened from 30 days to 15 days after submitting the documents. The employer must transfer the allowance to the employee within three days of receiving it.
Self-employed individuals (PFA), individual enterprises (II, IF), freelancers, persons working under other contracts, and those earning income from copyrights are also eligible for the state allowance equal to 75% of the gross average salary if they had to suspend their activity due to the state of emergency. Unfortunately, the wording of the law here is incomplete and needs further amendment and clarification, as the ordinance only mentions suspension of activity without specifying whether partial or total suspension or even reduced activity qualifies. Under the current wording, self-employed individuals are at a disadvantage compared to companies, as for the March period, they can only claim the allowance if they completely suspended their activity.
The request must be electronically submitted to the County Payment and Social Inspection Office (AJPIS), attaching the applicant’s ID and a self-declaration. The office will disburse the allowance within 10 days of submitting the documents.