RO Govt extends and raises kurzarbeit allowances

Romanian companies will be eligible for subsidies from the Government under the kurzarbeit program if they reduce the working hours by up to 80% - compared to 50% previously, under a government ordinance aimed at extending the kurzarbeit subsidies by mid-2021, Agerpresreported.

Under the program, the employer can claim from the Government 75% of the gross wage paid to the employee for the period when the employee stays home due to subdued economic activity.

The ordinance comes after the European Commission disbursed EUR 3 billion out of the EUR 4.1 bln promised to Romania for labor market support under the SURE program.

Another amendment to the kurzarbeit emergency ordinance 132/2020 adopted by the Government on Friday stipulates that the five days in which the reduction of working time is mandatory (for the firm to qualify for kurzarbeit subsidies) must no longer be consecutive.

Also, the prohibition of employment or subcontracting for similar activities subject to those affected by the reduced working time will apply strictly to the jobs affected by this measure and not to the employer's whole activity, as now, the Labor Ministry announced.

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