Latest news regarding emergency state in Romania
Below 3 of the main important subjects
The leave granted to the parents who stay at home with their children during the suspension of the school courses
The normative framework for granting these free days is given by:
Who is entitled to this type of leave
Only one of the parents has the right to benefit from free days:
The law does not show who classifies if a job can be done from home, so it is up to the employer to make this classification.
The net allowance related to these days of leave is borne by the State Guarantee Fund for the payment of salary claims, meaning the employer will pay it first to its own money and then will have the right to request its reimbursement from this Fund.
Employees cannot receive this type of leave if:
Parents for which free days can be granted, benefit from these free days throughout the closing of the educational units period, in this case during the entire state of emergency (which was decreed for a month, starting with 16.03.2020, with possibility of extension).
In order to benefit from free days, the interested parent must make an application to the employer (this application is not a given form), to which he/she should add:
The allowance for each free day is 75% of the basic salary corresponding to a working day, without exceeding the percentage of 75% of the National gross average salary, corresponding to a working day, resulting in 4,071 RON gross, respectively 2,381 RON net.
The indemnity is subject to income tax from salaries and compulsory social contributions, according to the Fiscal Code.
Employers can only claim settlement of the amount representing the net allowance, actually paid to the parent. So, the employers pay income tax and social insurance.
The employer interested in reimbursing the amounts will send by email to the local agency for employment, the following documents:
a) written request, which will contain the following mandatory elements: identification data of the employer including the email address, bank account, the name of the legal representative, the total amount requested, the number of employees for whom the amount was requested.
b) copy of the payroll sheets;
c) declaration on the responsibility of the employer given by the employer in compliance with the Law no. 19/2020;
d) proof of payment of contributions and taxes for the month in which the allowance was paid.
The request for the reimbursement of the allowance can be sent within 30 days from the date of payment of the taxes and contributions related to the allowance.
The payment of the amounts paid as compensation by ANOFM shall be settled within 60 calendar days from the date of submission of all documents.
If the documents cannot be sent by email, they can be sent by any means of communication. ANOFM has the obligation that within 24 hours after receiving these documents, to communicate to the employer the Registration number of the communicated request.
Allowance for the technical unemployment to be reimbursed from the budget of the unemployment fund
The normative framework for granting and collecting the amounts received from the State Unemployment Fund is given by art. XI - XV of GEO no. 30/2020.
The employees who have the employment contracts suspended at the initiative of the employer, pursuant to art. 52 paragraph (1) lit. c) of the Labor Code, can receive an allowance for the technical unemployment paid from the Budget of the Unemployment Fund for the period of emergency status.
The gross allowance is 75% of the basic salary, but it cannot be more than 75% of the average gross salary used to substantiate the law of the state social insurance budget. In 2020, the average gross salary is 5,429 lRON, so the maximum gross allowance is 4,071 RON, respectively 2,381 RON net.
What categories of employees can benefit from the technical unemployment benefit?
There are two categories of employees who can benefit from this allowance:
a) the employees of the employers who have interrupted the activity totally or partially as a result of the measures taken by the public authorities for applying the state of emergency. These employers must hold an Emergency Certificate, which will be issued by the Ministry of Economy.
b) employees of the employers who reduce their activity as an effect of the epidemic and do not have the financial capacity to make the payment of wages. Unfortunately, for this category of employees, only 75% of employees with active labor contracts, existing on March 21, 2020, the date of entry into force of the ordinance, can benefit from compensation.
For this second category of employees, where the activity of the employer was reduced, the payment of the allowance will be made on the basis of a Declaration on the own responsibility of the person representing the employer, from which it will be shown that the incomes from the month before the filing of the declaration decreased by a percentage of at least 25% compared to the average of the incomes of January and February 2020 and the employer mentions that he cannot pay the salaries. So it's about cash collection and not about the level of revenue or turnover.
The model of the declaration will be adopted by order of the Minister of Labor.
In order to settle the amounts from the State Unemployment Fund, the employers must submit in the current month for the previous month, by email, to the local agency for employment, a written request accompanied by the list of persons who benefit from this allowance.
The payment of the indemnities from the unemployment fund is made within 30 days from the date of the submission of the documents.
The indemnity is subject to income tax from salaries and compulsory social insurance, which are withheld by the employer from the amounts received from the unemployment fund. So, the gross compensation is reimbursed.
In conclusion, the following documents will be sent by email to the agency for employment:
a) For employees whose activity ceased or was diminished as a result of the decision of the authorities as a result of establishing the state of emergency:
b) For the employees whose activity was reduced, generated by the overall economic situation:
Support measures for companies
The Ministry of Public Finance will implement a multiannual program to support SMEs in order to mitigate the effects of the spread of the COVID-19 virus, by guaranteeing credits, subsidizing interest for these financing, facilities for companies facing financial difficulties, extending the payment deadlines for local taxes due.
Guarantee by the state of the loans granted by the banks
According to GEO 29/2020 on some economic and fiscal-budgetary measures, the Ministry of Finance will guarantee up to 80% of the value of the financing granted to SMEs.
The maximum value of the credits for financing the working capital granted to a beneficiary cannot exceed the average of the expenses related to the working capital of the last two fiscal years, within the limit of 5 million lei.
For investment loans, the maximum value of the financing is 10 million RON.
At the same time, the maximum cumulative value of state guaranteed financing that can be granted to a beneficiary within this facility is 10 million RON.
For SMEs, the state will grant guarantees for loans for financing working capital, excluding interest, commissions and bank charges related to the credit guaranteed by the state at a maximum of 90%.
The maximum value of the financing will be 500,000 RON for micro-enterprises and 1 million RON for SMEs.
The maximum value of each financing granted to a beneficiary cannot exceed the average of the expenses related to the working capital of the last two fiscal years, within the limits provided for above.
The Ministry of Public Finance will subsidize 100% of the interest for the loans to be guaranteed, both for micro-enterprises and for SMEs. The interest will be subsidized from the moment of granting the loan until March 31, 2021.
The outstanding fiscal obligations and other budgetary debts will be paid out of the working capital loan granted under the program.
The loan guarantee period for working capital will be 36 months with the possibility of 36 months extension. For the investment loans the period of 120 months was maintained.
Postponement of payment of taxes
The normative act also stipulates that, during the period of the state of emergency, for the fiscal obligations due starting from the date of entry into force of the ordinance of emergency and unpaid until the cessation of the measures provided by the state of emergency, it is not calculated and the interest and penalties of delay are not computed according to Code of fiscal procedure.
This facility will be maintained for a further 30 days after the cessation of the emergency. In this way, the taxpayers are eligible to participate, for example, in the public procurement procedures carried out during this period or not to cancel their various authorizations.
The Government has also decided to extend the payment term for the building tax, the land tax, respectively the tax on the means of transport from March 31, 2020 to June 30, 2020, during which the bonuses established by the local councils will continue to be received.
Also, during the state of emergency, the SMEs that hold the emergency situation certificate issued by the Ministry of Economy, Energy and Business Environment, benefit from the postponement of the payment for the utilities services - electricity, natural gas, water, telephone services and Internet, as well as deferment of payment of the rent for the building with a registered office and secondary offices.
By derogation from other legal provisions, in the ongoing contracts, other than those provided previously concluded by SMEs, which hold the emergency situation certificate issued by the Ministry of Economy, Energy and Business Environment, the force majeure can be invoked only against them after the attempt, evidenced by documents communicated between the parties by any means, including by electronic means, for renegotiation of the contract, in order to adapt their clauses, taking into account the exceptional conditions generated by the state of emergency.