Kurzarbeit - Can the success story of Germany be repeated in Romania as well?

Kurzarbeit, in translation “short work” is the German solution for the labor market in times of major economic crisis. The institution appeared more than 100 years ago and was used during the two world wars, but its real international breakthrough came during the economic crisis of 2008-2009, when the Organisation for Economic Cooperation and Development estimated that almost 200,000 jobs were saved due to its implementation.

The German model was also approved by the European Commission which recently launched the SURE program, intended to reimburse expenses incurred by states for certain categories of active measures, especially for Kurzarbeit-type measures.

The operating mechanism of Kurzarbeit is a simple one, the state bears a percentage of the difference between the gross basic salary provided in the individual employment contract and the gross basic salary for the hours actually worked by the employees, for the companies that apply.

This is a win-win situation for all parties involved. On the one hand, the employer keeps its employees and has a better chance of coping with the economic crisis. At the same time, the employee manages to keep his job and has at his disposal a higher income than the one corresponding to the reduced working time and the state keeps a low level of expenses by collecting taxes and duties from the income that the employee register.

How the Kurzarbeit concept was implemented in Romania?

On August 10, 2020 was published the Government Emergency Ordinance no. 132/2020 on the establishment of support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth. Mainly, it describes a Romanian version of the Kurzarbeit model, a solution proposed in the context of the economic difficulties that companies are going through.

These provisions are addressed to employers whose activity has been temporarily reduced as a result of the establishment of the state of emergency / alert / siege, being offered the possibility to unilaterally reduce the working time of employees by no more than 50% of the duration provided in the individual contract.

The reduction of working time must be done with the information and consultation of the trade union, employees' representatives or employees. Regarding the communication of the employee's decision, this must be made at least 5 days before the effective application of the measure, and the change must be recorded in the general register of employees at least one day before its occurrence.

During the reduction of the working hours, employees affected by this measure receive an allowance of 75% of the difference between the gross basic salary provided for in the individual employment contract and the gross basic salary for the hours actually worked. This allowance complements the due salary rights, calculated at the actual time worked.