The regulations governing the reimbursement and payment procedure (Government Decision No. 719/2020) and the model of the application and required documents (Order No. 1393/2020) have been published for obtaining the allowances available to employers who adopt the flexible work schedule method known as the Kurzarbeit model. The Kurzarbeit Law is part of the support measures program intended for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2, as well as to stimulate employment growth.
Under Article 1, paragraph 1, combined with paragraph 4 of Emergency Ordinance 132/2020, during the period when working hours are reduced by up to 50% from the duration provided in the individual employment contract, affected employees are entitled to an allowance of 75% of the difference between the gross base salary provided in the individual employment contract and the gross base salary corresponding to the hours actually worked due to the reduction in working hours, in addition to their entitled salary rights, calculated for the hours actually worked.
These allowances are reimbursed from the unemployment insurance budget at the request of employers. The model of this request is presented in Annex 1 of this Smart Update, which can be downloaded below.
The necessary documents are:
a) A declaration on own responsibility indicating compliance with the conditions stipulated in Article 1, paragraphs (2), (3), and (11) of Emergency Ordinance 132/2020. The model of this declaration is presented in Annex 2 of this Smart Update (including the conditions mentioned in Article 1, paragraphs (2), (3), and (11) of Emergency Ordinance 132/2020);
b) The list of individuals for whom reimbursement is requested, signed by the legal representative of the employer. The model of the list is presented in Annex 3 of this Smart Update.
The above documents must be submitted either electronically or in physical form to the county employment agencies or the Bucharest municipality, where the employer’s registered office is located.
The allowances are reimbursed for the month preceding the one in which the application is submitted.
Reimbursement from the unemployment insurance budget of the allowances is made within a maximum of 10 days from the date of submission of the documentation mentioned above and after the payment of the corresponding taxes and contributions.
Stay informed about all the latest legislative updates in the labor field! To access the application models that must be submitted by employers to obtain the financial incentive, download Smart Update September No. 3, 2020, and share it with your colleagues!