New Rules For Employers On Technical Unemployment

6 April 2020 – The Romanian government is taking active measures to reduce the implementation of redundancies and support employers by bearing employee-related costs during the state of emergency declared via presidential decree on 16 March 2020.

One of the main measures concerns the decision of the Romanian government to pay the technical unemployment indemnity for qualifying employees on behalf of employers.

As a rule, the Romanian Labour Code provides that in the event of a temporary reduction and/or interruption of activity for economic, technological, structural or similar reasons, the individual employment agreements of the employees involved in a temporarily reduced and/or interrupted activity may be temporarily suspended. During the suspension of the individual employment agreements, the employees involved in the temporarily reduced and/or interrupted activity will not carry out any work duties (as their work obligation has been suspended). In such