The economic-financial sector is in free fall in the last period, the financial condition of many companies is directly affected by the internationally declared pandemic.

Besides work at home, telework or free days adopted by the government so that parents can stay at home with children up to 12 years during school closure, employers who are forced to temporarily reduce their activity, also have the option of technical unemployment.

Such as, in the case of temporary reduction/interruption of the activity, for economic, technological, structural or similar reasons, for periods exceeding 30 working days, the employers have the possibility to:

1. Reduce the work schedule of the employees from 5 to 4 days per week, with the corresponding reduction of the salary, until the situation that caused the reduction of the program has been remedied, after consulting the representative union at the unit level or the employees’ representatives, as the case.
2. Pay from the salary fund, an allowance that cannot be less than 75% of the basic salary corresponding to the job occupied, to the employees involved in the reduced or interrupted activity, which no longer performs an activity, called technical unemployment.

The amounts paid for technical unemployment are capped at a maximum of 75% of the gross average salary per economy, that is 75% of 5429 Ron

During the technical unemployment, the employees will be at the disposal of the employer, who at any time has the opportunity to have the activity resumed.

Is the technical unemployment reported in Revisal?

Yes, the technical unemployment represents a suspension of a contract for which the employer draws up a suspension decision and is reported in Revisal according to art. 52 paragraph 1) lit. c) of the Labor Code.

Does the period of technical unemployment decrease from seniority to work?

For the allowance that the employees receive during the period of technical unemployment, the employer pays all taxes as to income from wages, except for the contribution for unemployment which is exempted. So the period of technical unemployment represents seniority at work.

Who pays the technical unemployment?

During the state of emergency, the technical unemployment allowance is supported from the unemployment fund budget for:

• the employees with the individual contract of work suspended on the initiative of the employer, according to art. 52 paragraph 1) lit. c) from the Labor Code, in the areas directly affected by the emergency situation by suspending the activity of the employers,
• the employees of the employers who prove that due to the emergency situation their fiscal value decreased by at least 25%.

Employers whose employees receive a technical unemployment allowance supported from the unemployment budget fund, have the obligation to keep the employment relationships of the employees for a period of at least 6 months from the date of resumption of activities.

What is the difference between the unemployment benefit and the technical unemployment benefit?

The technical unemployment allowance is the option of the employers who for economic, technological, structural or similar reasons, have to reduce their activity for a period of at least 30 working days, and who does not want the termination of employment relationships of employees. Unemployment allowance is the option of employees who terminate their employment relationship for reasons not imputed to them.

In case of the questions, please, do not hesitate to contact us:

Carmen Cojocaru Partner [email protected] +40 727 333 336

Eduard Pavel Partner [email protected] +40 727 333 345