EXCLUSIVE DOCUMENT The Government is preparing again the settlement of technical unemployment for employees. The Cabinet talks about “banning” some economic activities

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The Government is preparing to support technical unemployment benefits again from the state budget until 31 December 2021, as the Cabinet is again talking about “banning” some economic activities due to the accelerated rate of increase in COVID-19 illnesses, a draft emergency ordinance obtained by Economedia shows.

“From the date of entry into force of this Emergency Ordinance until 31 December 2021, for the period of temporary suspension of the individual employment contract, at the initiative of the employer, […] as a result of the effects caused by the SARS-CoV-2 coronavirus, the allowances to which employees are entitled shall be set at 75% of the basic salary corresponding to the job held and shall be paid from the unemployment insurance budget, but not more than 75% of the average gross salary provided for in the State Social Insurance Budget Law for 2021 no. 16/2021, as amended and supplemented”, the draft emergency ordinance states.

Basically, the Government wants to reinstate the payment of technical unemployment from the state budget if employers are forced to close or reduce their activity as a result of restrictions imposed by the state to keep the virus under control.

“The provisions benefit employees of employers who interrupt all or part of their work for a fixed period of time, as a result of the application of measures for the prevention and control of SARS-CoV-2 Coronavirus infections, provided for in the normative acts issued by the central public administration and/or the decisions of the National Committee for Emergency Situations or the county/municipal committee for emergency situations, established according to the cumulative incidence per 14 days in the county/locality,” the document states.

Other categories of income-earners, such as other professionals, lawyers or individuals earning exclusively from copyright and related rights, will also benefit from the monthly allowance of 75% of average gross earnings.

The Government states that it is promoting this emergency ordinance “taking into account the decisions of the National Committee for Special Emergency Situations, in the context of the evolution of the unfavourable epidemiological situation, generated by the accelerated rate of increase of COVID-19 illnesses” and “taking note of the public health risk assessment for the immediate period ahead, which calls for the adoption of measures to limit physical contact between people, with the direct effect of prohibiting/suspending/restricting certain economic activities”.

The Government had previously decided, in the context of the improvement of the health situation, that from 1 July the technical unemployment benefits would no longer be paid from the state budget. Employers wishing to apply the technical unemployment measure had to pay for its application from their own budgets.

The facility has been successively extended since the beginning of the pandemic, and the last deadline for the possibility to benefit from this state support for areas restricted due to the pandemic has been 30.06.2021, according to EO 211/2020.

Edited for English

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