In this issue:
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Reinstatement of technical unemployment allowance
Government Emergency Ordinance no. 2/2022 on the establishment of social protection measures for employees and other professional categories in the context of the prohibition, suspension or limitation of economic activities caused by the epidemiological situation generated by the spread of the SARS-CoV-2 coronavirus, as well as amending and supplementing certain normative acts ("GEO 2/2022") was published in the Romanian Official Gazette no. 61 of 20 January 2022 and entered into force on the same date.
GEO 2/2022 reinstates the granting of technical unemployment allowance by the state from 20 January 2022 until 31 March 2022.
Before the entry into force of GEO 2/2022, the unemployment allowance was granted until 31 December 2021. Thus, for the period between 1 January and 19 January 2022, the technical unemployment allowances are not paid by the state.
The following is a summary of the main aspects provided by GEO 2/2022:
What is the amount of the technical unemployment allowance?
The amount of the technical unemployment allowance is of 75% of the base salary of the employee whose employment contract is suspended, capped to 75% of the average gross national salary for 2022.
Who benefits from this allowance?
- Employees of the employers that temporarily reduce or cease their activity, entirely or partially, because of the restrictions imposed during the state of alert; and
- Employees of employers that had their activity suspended because of the epidemiological investigation carried out by the public health institutions
Who is not eligible for technical unemployment allowance?
- Employees of public institutions and authorities; and
- Employees of employers under bankruptcy, dissolution or liquidation proceedings, those that have their activities suspended or upon which are imposed certain restrictions for other reasons than those generated by the spread of the SARS-CoV-2 coronavirus
Technical unemployment and Kurzarbeit
Employers can apply for both technical unemployment allowance and Kurzarbeit allowance during a calendar month, as follows:
- for the same period of the month but for different employees; or
- for the same employee but for different periods of the month
More details on Kurzarbeit can be found here.
Other categories of persons who are affected by the Covid-19 pandemic such as professionals, individuals who earn income exclusively from copyright and related rights, athletes, etc. are also supported by the state and are eligible to receive an indemnity which is also limited to 75% of the average gross national salary for 2022.
For more information, please contact Băncilă, Diaconu și Asociații SPRL team.
Prepared by:
Alexandra Păduraru - Senior Associate, Băncilă, Diaconu și Asociații SPRL
For additional information, please contact:
Radu Diaconu – Managing Partner, Băncilă, Diaconu și Asociații SPRL
Anca Atanasiu – Managing Associate, Băncilă, Diaconu și Asociații SPRL