Romania: Reintroduction of technical unemployment allowance

The Romanian 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 Official Gazette no. 61 on 20 January 2022.

According to the provisions of GEO 2/2022, the possibility of granting of the “technical unemployment allowance” is reinstated, starting on 20 January 2022 and until 31 March 2022, for periods during which employment contracts are temporarily suspended at the employer’s initiative according to Article 52(1)(c) of the Romanian Labour Code as a result of the effects of the coronavirus.

I. Value of the technical unemployment allowance

The allowances to which employees are entitled are to be set at 75% of their base salary corresponding to the position held by them and are funded by the unemployment insurance budget, but may not to exceed 75% of the average gross salary provided by the Law no. 318/2021 on the social insurance budget for the year 2022 (approximately RON 4,571).

The allowance is granted and calculated according to the number of days on which the company’s activities were suspended, but no later than 31 March 2022.

II. Beneficiaries of the technical unemployment allowance

The following categories of employees benefit from this state support: 

1. employees of employers who had their activities temporarily reduced or interrupted due to the implementation of measures specific for risk impact during the current state of alert, and 
2. employees of employers who had their activities suspended due to an epidemiological investigation carried out by the county public health directorates, except for employees who are on medical leave and receive the relevant allowance.

Employees of the following employers will not receive the technical unemployment allowance: 

1. public institutions and authorities, and 
2. employers who are in bankruptcy, dissolution, liquidation proceedings on the date when a request for granting of these amounts is made, or who have their activities suspended or upon whom restrictions are imposed for reasons other than those generated by the spread of SARS-CoV-2.

III. Conclusion

GEO 2/2022 establishes the possibility for employers to pay both the technical unemployment allowance and the allowance for Kurzarbeit. These measures can be granted either for different employees at the same time of the month or for the same employees but for different periods of the month.