Increased Penalties for Undeclared Overtime Hours - Your strategic HR partner - Smartree

Increased Penalties for Undeclared Overtime Hours

Although the conditions and context in which overtime can be performed are outlined in the Labor Code, including the contraventional liability for non-compliance with the legal provisions regarding overtime, this remains a current topic. There are many companies where employers do not adhere to the specific legislation, either in terms of the maximum number of overtime hours that an employee can work or in how the remuneration for those hours is calculated and paid.

This subject was recently debated in Parliament, and President Klaus Iohannis has promulgated a law that makes an important modification to Article 260, paragraph (1), letter i) of the Labor Code, specifically tightening the fines imposed for non-compliance with the regulations regarding overtime work. Until now, the contraventional sanction was not specified as one that applies to each individual identified in such a situation; from the date of the law’s entry into force, this fine will be applied for each employee rather than at the company level.

Thus, the penalties for each employee range from 1,500 to 3,000 lei.

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