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  • Tax & Legal Flash nr. 30
Article:

Tax & Legal Flash nr. 30

12 August 2020

Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as for stimulating employment growth 

Entry into force August 10, 2020; Official Gazette no. 720 of August 10, 2020

 

  • Support for employees whose work schedule was reduced

During the period when the working time is reduced maximum 50% of the duration provided in the individual employment agreement, period determined by the establishment of the emergency/alert/siege state- for a period of at least 5 consecutive working days, the affected employees have the right to receive an allowance of 75% of the difference between the gross basic salary and the gross basic salary for the actual working hours. This allowance is borne and paid by the employer on the date of payment of salary, to be deducted from the unemployment insurance budget after the employer has fulfilled the declaratory obligations related to the month in which they were paid. The procedure and period of application of this provision will be published in a Government decision.

If the amounts cannot be recovered from the unemployment insurance budget, these will not be recovered from the employee.

From a fiscal point of view, the allowance will be subject to the taxation and payment of mandatory social contributions, including the work insurance contribution. At the same time, the allowance will be cumulated to the gross income for settling of the personal deduction.

During the period when the working time is reduced, the hiring of personnel for the same type of activities or similar to those provided by the employees whose working time was reduced, is forbidden; subcontracting activities performed by the employees whose working time was reduced is also forbidden.

 The employer may order the reduction of working time and the reimbursement of the allowance if the following conditions are met:

- the measure affects at least 10% of the number of employees;

- the reduction of the activity is justified by a decrease of at least 10% in turnover from the previous month, or at most the month before the previous month when these measures are applied, compared to the similar month of the previous year.

The allowance will be part of the calculation base for the minimum contribution period of 12 months in the last 24 months preceding to the registration date of the unemployment application form.

The allowance cannot be cumulated for the same employee with the allowances granted on the basis of Emmergency Ordinance no. 92/2000.

Finally, it should be noted that receiving or performing any other type of work, including teleworking or working from home in the interest of the employer, one or more employees, outside the established reduced work schedule, constitutes a contravention and the employer is sanctioned with a fine of 20.000 lei for each person thus identified, without exceeding the cumulative value of 200.000 lei. This legal provision shall enter into force in 30 days from the date of publication of this ordinance in the Official Gazette.

  • Support for professionals in case of reduced activity

Professionals, as well as persons who have concluded individual employment agreements on the basis of Law no. 1/2005 regarding the organizing and functioning of the cooperation and whose activity has been reduced as an effect of the state of emergency/alert/siege, will benefit - upon request, based on a declaration on their own responsibility of a monthly allowance of 41.5% of the medium gross salary, provided by the Law on the state social insurance budget for 2020 no. 6/2020 (i.e. 41.5% of 5.429 lei representing 2.251 lei). The payment of the allowance will be made from the state budget through the county payment and social inspection agencies, respectively of the Bucharest municipality.

The allowance will be subject to income tax and mandatory social contributions and will be declared by the unique declaration on income tax and mandatory social contributions due by individuals, except for persons who have concluded individual employment agreements, whose tax obligations are declared, are withheld and are paid by the cooperative society.

The actual duration of measures’ application and the categories of professionals, as well as the payment procedure of the allowance, will be established by Government decision.

  • Support for people who carry out occasional activities (daily workers)

The daily workers who carry out their activity in one of the fields provided in art. 13 of Law no. 52/2011 (for example: agriculture, forestry, HoReCa, etc.) and whose activity was interrupted or restricted as a result of the effects of the SARS-CoV-2 coronavirus for a period of three months, but no later than 31st  December 2020, may receive an amount representing 35% from the remuneration due for the working day. The amount is granted by the beneficiary of the work from his and from his own budget and is subsequently reimbursed at his request, for the workers for whom it was paid, from the state budget through the county payment and social inspection agencies, respectively the municipality of Bucharest.

The application form will be accompanied by the lists of daily workers who have benefited from the allowance and will be submitted monthly, for the previous month, until the 5th of each month, in electronic format.

From a fiscal point of view, the allowance will be assimilated to the salary income for which both income tax and mandatory social contributions are due.

  • Support for employees with an employment contract for determined period

 Employers may request until 31 December 2020, but no longer than 3 months, for employees who conclude individual employment contracts for a determined period of up to 3 months, the reimbursement of part of their salary, borne from the unemployment insurance budget, representing 41.5% of the salary for the days worked for an 8 hour/day work schedule, but not more than 41.5% of the medium gross salary provided by the Law on the state social insurance budget for 2020 no. 6/2020 (i.e. 41.5% of 5.429 lei representing 2.251 lei).

The employer has the obligation to pay the full salary, the amount representing 41.5% being subsequently reimbursed by ANOFM at the employer's request based on a declaration on his own responsibility  accompanied by the list of persons for whom the reimbursement is requested, after fulfilling the declaratory obligations and payment of salary income for which the request is made.

The reimbursement will be made within a maximum of 10 days from the date of submitting the application form, based on a procedure that will be approved by a Government decision.

  • Support for employees who worked remote

Support measures were approved for employees and employers by granting a one-time amount of 2.500 lei, for each employee who worked remote during the state of emergency for at least 15 working days, in order to purchase packages of technological goods and services necessary to carry out the activity remote.

The amounts are granted, in the order of submission of application forms, until December 31st, 2020 from the unemployment insurance budget, through ANOFM, within the limits of the funds allocated for this purpose. The manner of granting and the goods that can be purchased are established by order of the Minister of Labor and Social Protection, which will be published in the Official Gazette within 10 days from the publication of this Ordinance.

At the same time, within 30 days from the granting of the amount of 2.500 lei, the employer has the obligation to send ANOFM justifying documents regarding the acquisition of the established categories of goods, and in case of non-compliance with this obligation, the employer has the obligation to fully refund the amount granted in 30 days.

  • The provisions of this Ordinance do not apply to:
  • public institutions;
  • employers in bankruptcy, dissolution, liquidation or who have suspended activities, according to the law;
  • employers who are registered in non-cooperating jurisdictions for tax purposes.