Romania's Govt. to enforce Kurzarbeit for specific sectors hit by COVID-19

Romania's Government has drafted an emergency ordinance for Kurzarbeit arrangements in specific sectors, including agriculture, tourism, events, and HoReCa - some of the sectors hit the hardest by the coronavirus pandemic.

However, the regime will be activated only in exceptional situations as an instrument at the Government's discretion to help specific sectors at a given time.

Under the draft ordinance, the employer will have to cover at least 50% of the workforce costs as specified in the full-time employment contract, while the state will pay 75% of the difference between the gross wage for full employment and the portion paid by the employer, Profit.ro reported.

In its current form, the ordinance will amend the Labor Code to introduce Kurzarbeit exclusively in exceptional situations, meaning in a state of emergency or alert, not as a permanent measure.

The Government has taken into account an implementation period of at least three months until the end of this year.

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