New draft of the individual labour agreement (ILA) - Your strategic HR partner - Smartree

New draft of the individual labour agreement (ILA)

Starting with July 19, the new draft of the individual labour agreement have entered into force. The new regulations are found in the Order no. 585/2021 on amending and supplementing the framework model of the individual employment contract, provided in the annex to the Order of the Minister of Labor and Social Solidarity no. 64/2003, in force since July 19 2021. 

We further present the changes to the ILA:

1. Letter F is amended and will read as follows:

“F. Duties of the post
The duties of the job are provided in the job description, annex to the individual employment contract, except for micro-enterprises with up to 9 employees, defined in art. 4 para. (1) lit. a) of Law no. 346/2004 on stimulating the establishment and development of small and medium enterprises, with subsequent amendments and completions, which will complete a short characterization / description of the activity:
. . . . . . . . . . “

2. In point 4 (M), after point (c), a new point (c1) is inserted, with the following wording:

“(c) inform the employee of the obligation to join a privately administered pension fund;”.

The new ILA model is attached as an Annex to this Smart Update, in Romanian language.

The normative act specifies that the obligation provided in let. M point 4 lit. c ^ 1) of the ILA, applies only to the persons provided in art. 30 of Law no. 411/2004 regarding the privately managed pension funds, respectively:

“(1) – Persons up to 35 years of age, who are insured according to the provisions of art. 5 para. (1) of Law no. 19/2000 on the public pension system and other social security rights, as subsequently amended and supplemented, and which contribute to the public pension system, must join a pension fund.
(2) Persons, other than those provided for in paragraph (1), up to the age of 45, who are already insured and contribute to the public pension system, may join a pension fund.
(3) The natural persons who realize incomes from salaries and assimilated to salaries based on individual employment contracts concluded with employers who carry out activities in the construction sector and which fall under the conditions provided in art. 60 point 5 of the Fiscal Code, are exempted from the provisions of par. (1), during the period 1 January 2019 – 31 December 2028 inclusive. ”

In order to have access to complete information regarding the clarifications brought to the above measure, download Smart Update July no.2 2021 and send it to your colleagues!

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