Government Emergency Ordinance no. 32/2020 for establishing social protection measures during the current state of emergency

In short

Emergency Ordinance no. 32/2020 (GEO 32/2020) clarifies the social protection measures adopted during the state of emergency regarding compensation payments from the unemployment insurance budget based on declarations of own responsibility, the indemnity amount and other details.

In detail

Technical unemployment compensation

It is foreseen that, during the state of emergency, for the period of temporary suspension of an individual employment contract, at the initiative of the employer, due to the technical unemployment produced by the effects caused by the SARS-CoV-2 coronavirus, employee allowances can be supported from the insurance budget for unemployment up to the limit of 75% of the base salary corresponding to the job occupied, but not more than 75% of the gross average wage stipulated by Law no. 6/2020 (i.e. 75% of 5,429 RON). This will benefit the employees of employers which temporarily reduce or completely or partially interrupt the activity, as a result of the effects of the SARS-CoV-2 coronavirus epidemic, during the state of emergency period, according to a declaration on the employer's own responsibility.

In order to grant the necessary amounts for the payment of the compensation, the employers will submit, by email, to the territorial employment agencies closest to their registered office, a request, signed and dated by the legal representative, accompanied by a declaration on their own responsibility and by the list of people who will benefit from this compensation, assumed by the legal representative of the employer, according to the model approved by Order no. 741/2020 of the Minister of Labour and Social Protection, subsequently published in the Official Gazette no. 269 of Romania, Part I dated 31 March 2020.

Employers can, if the budget for the payment of personnel expenses allows, supplement the compensation of 75% borne by the unemployment insurance budget with amounts representing the difference of up to 75% of the base salary corresponding to the occupied job, according to the provisions Labour Code. During the period of contract suspension, the employer does not owe insurance contributions for the work.

Compensation payment terms have been established / modified. Payments from the unemployment insurance budget will be made into employer bank accounts within 15 days from the submission of the documents by the employer. Employers then have three working days to pay the employee.

The method of granting technical unemployment compensation is regulated for employees who have several individual employment contracts. If, during the emergency period they will have at least one individual full-time active employment contract, they will not benefit from the compensation provided by Government Emergency Ordinance no. 30/2020 (”GEO 30/2020”). If all their individual work contracts are suspended, they will benefit from the compensation provided by GEO 30/2020 in relation to the most advantageous individual employment contract.

The regulation introduces entitlement to the granting of a monthly compensation of 75% of the gross average wage provided by the 2020 State Social Insurance Budget Law no. 6/2020, to be supported from the state budget allocated to the Ministry of Labour and Social Protection, through the National Agency for Payments and Social Inspection and its subordinate structures, to the following categories of people:

• other professionals as regulated by the Civil Code, as well those with individual Labour agreements based on Law no. 1/2005 regarding the organisation and functioning of the cooperation for which the activity is interrupted wholly or in part of the activity as a result of the effects of the SARS-CoV-2 coronavirus, during the state of emergency, based on a statement on its own responsibility;
• individuals who obtain income exclusively from copyright and related rights according to Law no. 8/1996 regarding the copyright and related rights and which interrupt the activity as a result of the effects of the SARS-CoV-2 coronavirus, during the state of emergency, based on the documents requested by the National Agency for Payments and Social Inspection.

The new regulation also establishes the entitlement to benefit from a monthly compensation of 75% of the gross average wage provided by the 2020 State Social Insurance Budget Law no. 6/2020, to be supported also from the state budget, for the following categories of people: athletes, coaches, doctors, nurses, masseurs, physiotherapists and researchers, for the period of temporary suspension of the sports activity contract, at the initiative of the sports structure , as a result of the effects produced by the SARS-CoV-2 coronavirus, during the period of emergency, based on a statement on own responsibility of the sports structure and the table with persons affected by this measure. In the case of these categories of people, it is possible to negotiate and conclude agreements for the payment of other compensatory allowances by the sports structure.

For all the categories of people mentioned above who can benefit from compensation according to the new regulation, the request and the documents are transmitted by those entitled to the appropriate county and municipality of Bucharest social payments and inspection agencies by the tenth day of the current month for the previous month’s payment of the indemnity. Compensation payments from the allocated state budget are paid into the bank accounts of the beneficiaries for the first two categories of people and of the sports structures for the third category, within 10 days as of submission of documents for the period related to the state of emergency.  

The compensation introduced by the new regulation is subject to income tax and payment of state social and health insurance contributions.

Payment of the insertion incentive provided by Government Emergency Ordinance no. 111/2010

It is specified that, for the payment of the insertion incentive provided by art.7 of the Government Emergency Ordinance no. 111/2010, according to art. II of GEO 30/2020, entitled people send by email the supporting documents. Also, according to the changes, people who are in payment of the rights will submit the documents attesting that they are in one of the situations provided by GEO 30/2020. People applying for the rights will submit the supporting documents provided by the applicable laws, as well as a copy of the document attesting that they are in one of the situations provided in the respective ordinance. This document may be, as appropriate, the medical certificate or certificate from the employer.

With regards to the payment of the minimum guaranteed income provided by Law no. 416/2001

Investigations have been suspended during the state of emergency for establishing rights to social assistance and family support allowances, and for verifying that the conditions for granting them are being maintained.

It is stipulated that if, after the termination of the state of emergency following the verification of the conditions for granting the mentioned rights, it results that they were granted improperly, the amounts granted during this period will no longer be recovered and, if the verification finds that the beneficiary does not fulfil the conditions of granting, the right is removed.

It is prohibited during the state of emergency to carry out actions and works of local interest for the amounts granted as social assistance according to Law no. 416/2001 regarding the minimum guaranteed income.

With regards to the professional training of adults according to Government Ordinance no.129 / 2000

During the period of emergency, vocational training programmes, with the exception of the qualification level 1 programmes, can be studied online, with due notification of the authorisation commission by email, including emailthe following documents, as the case may be: rental contracts for electronic means, concluded by the authorised training provider with third parties and the minutes of handing them over to each student; a statement on each student's own responsibility that they have access to the internet and the electronic means necessary to complete the theoretical training, signed and dated.

It is established that upon termination of the state of emergency authorised training providers are obliged to test students in order to verify the learning of the theory content covered in the online system.

During the state of emergency, the activity of monitoring authorised training providers and exams for participants on training programmes have been suspended.

Other legislative changes

Salary increases for employees of the national defence system, penitentiaries, public sanitary units and other categories have been established by order of the Minister of Internal Affairs, the Minister of Economy, Energy and Business Environment, and the Minister of Transport, Infrastructure and Communications, as the case. Such salaries increase by the amount provided by Law 19/2020 and supported by the budgets from which the base wage rights are supported.

It is established that persons receiving unemployment compensation will not be required to submit monthly, to the employment agency to which they are registered, to receive support for employment. In the case of non-employment, the renewal by the unemployed who do not benefit from the unemployment compensation of the application to be recorded for the purpose of mediation is done within 30 calendar days from the date of termination of the state of emergency.

It is expected that the applications and supporting documents required for applying for state social security and unemployment rights will be transmitted by email.

During the period of emergency, no investigations will be conducted regarding the verification of the provision of social assistance services or the use of the subsidy. At the end of the state of emergency, the authorities will carry out the on-site verification, including for this period. The subsidy will be granted on a monthly basis based on the documents provided by the law, to which is added a declaration on its own responsibility, which will result in the assumption of the provision of social assistance services.

During the period of emergency, the procedures for debt recovery and garnishment are suspended for all social assistance rights. These will be resumed 60 days as of the date of termination of the emergency situation. The methodology of resuming the recovery procedure is approved by Government decision.

During the state of emergency, the measures of garnishment by suspension of the budgetary and fiscal debts that apply to the monthly rights paid through the territorial pension houses are suspended or not initiated. The measures to suspend garnishment are enforced by law. The enforcement measures will be resumed within 60 days from the date of termination of the emergency status. The amounts withheld in April 2020 will be refunded with the payment of the rights related to May 2020, to be recovered after the resumption of the garnishment procedure.

If the preschool education is assimilated to the educational establishments, they may be suspended during the emergency.

During the state of emergency, Law no.215 / 1997 on the Builder's Social House is amended and supplemented, regarding the scope of activity: ensuring the protection of employees during the maintenance of the commercial activities in adverse weather conditions; ensuring the protection of the employees during interruptions to the activities during the emergency; continuous training of employees.

The Builder's Social House can use the statutory bases approved by the general meeting of the representatives and they are assigned the following: they establish and manage funds for the protection of the employees; stable conditions for granting wage rights; establish and manage funds for the professional training of employees.

It is expected that the period for granting social protection compensation will be extended by the measures in Decree 195 regarding the state of emergency.

Source: [ Government Emergency Ordinance no. 32, published in the Official Gazette no. 260 dated 30 March 2020, Part I]

The takeaway

Employees of employers which temporarily reduce or interrupt their activity in whole or in part benefit from compensation of 75% of the basic salary corresponding to the job occupied, paid from the unemployment insurance budget.

Employers can supplement the compensation from the budget for the payment of personnel expenses, with amounts representing the difference of up to 75% of the basic salary corresponding to the occupied job.

Deadlines for payment of compensation into employers’ commercial accounts have been established as no later than 15 days as of submission of the documents by the employer, Employers have three working days to pay the employees after receiving the amounts.

The model of the application and the declaration are established by Common Order of the Minister of Labour and Social Protection and of the line ministries.

The area is extended to those who will be able to receive compensation from the state budget: other professionals, as regulated by the Civil Code, people with individual Labour agreements based on Law no.1 / 2005 on the organisation and functioning of the cooperation, those who do not have the status of employers, individuals who obtain income exclusively from copyright and related rights under Law 8/1996, but also athletes, coaches, doctors, nurses, midwives, physiotherapists and researchers, for the period of temporary suspension of the contract of sports activity, at the initiative of the sports structure, as a result of the effects produced by the SARS-CoV-2 coronavirus, during the period of emergency. In the latter case, it is possible to negotiate and conclude agreements for the payment of other compensatory allowances by the sports structure. There are also special rules for granting and paying these categories of allowances.

During the period of emergency, investigations to establish rights to social assistance and family support allowances have been suspended; monitoring of authorised training providers and exams for participants on training programmes have been suspended; debt recovery and garnishment proceedings have been suspended or not initiated for all social assistance rights; the measures for garnishment by suspension of budgetary and fiscal claims applied to the monthly rights paid through territorial pension houses have been suspended.