In this issue:
- Clarifications regarding the conditions under which employers may receive up to lei 2,500 per month for hiring people over the age of 50 who have lost their jobs during the state of alert / emergency or the unemployed between 16 and 29 years old
The National Agency for Employment issued the Order no. 2/2021 for the approval of the Procedure for granting the amounts provided by art. I (1) of the Government Emergency Ordinance no. 220/2020 (GEO 220/2020) on the application of social protection measures after the 1st of January 2021 in the context of the spread of the coronavirus SARS-CoV-2, as well as for the amendment of some normative acts (Order 2/2021).
Order 2/2021 was published in the Official Gazette of Romania no. 17 of 7 January 2021 and entered into force on the same date.
Order 2/2021 provides the procedure by which employers will be granted up to 50% of the employee's salary, but not more than lei 2,500 if, between 1 January and 1 September 2021, they employ, for an indefinite period, full time employees, as the following:
- individuals over the age of 50 whose employment were terminated during the state of emergency or alert, for reasons not attributable to them,
- individuals between 16 and 29 years old registered as unemployed in the records of the county employment agencies, respectively of the Bucharest employment agency, as well as
- Romanian citizens, included in the same age categories, whose employment relationships concluded with foreign employers on the territory of other states were terminated in 2020, for reasons not attributable to them.
Necessary documents
In order to benefit from these facilities, the employers shall conclude with the competent employment agencies, no later than 1 September 2021, an agreement as per the model provided by Order 2/2021. Failure to comply with this deadline will result in the loss of the right to benefit from the offered facility.
In order to conclude this agreement, employers must file, by electronic means of communication, an application accompanied by a series of documents, including: the documents supporting the employment of targeted categories, the documents supporting the termination of the employment relationships concluded between the Romanian citizens subject to Order 2/2020 and their foreign employers from other states.
Granting the facilities
The facilities provided by GEO 220/2020 are granted to employers on a monthly basis, starting with the date of conclusion of the above indicated agreement, pro rata with the effective worked time by the employed individuals in the respective month, including for the period when the employee is on leave but not for the period when the employment or service relationship of the employees covered by the agreement is suspended.
For the assessment and settlement of the monthly amounts provided by GEO 220/2020, the employers shall submit to the competent employment agencies, by electronic means of communication, until the 25th of the month following the month for which they request these amounts, a nominal table drafted as per the model provided by the annex to Order 2/2021, together with the timekeeping and the payroll for the respective month, as well as by the proof of salary payment.
For more information, please contact Radu și Asociații SPRL team.
Prepared by:
Anca Atanasiu – Managing Associate, Radu și Asociații SPRL
For additional information, please contact:
Radu Diaconu – Partner, Radu și Asociații SPRL
Anca Atanasiu – Managing Associate, Radu și Asociații SPRL