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How are employers of posted workers in Romania dealing with the new regime?

Romania
09.02.21
4
Written by
Nestor Nestor Diculescu Kingston Petersen (NNDKP) largest boutique firm focusing on HR law.
How do the new working rules affect posted workers in Romania? This article provides details.

Definitions

The law bill amends the existing definitions of terms such as ‘minimum salary’ applicable to workers posted on Romanian territory, ‘financial-administrative sanction’, ‘user company’ and ‘administrative cooperation’ and introduces clarifications for terms such as remuneration applicable on Romanian territory, remuneration applicable in an EU member state other than Romania and generally applicable collective employment agreements among others.



Long-term posting rules

After 12 months, posted workers are entitled to all mandatory Romanian remuneration and employment terms and not only those that are mandatory regardless of the law applicable to the working relationship. There are exceptions for the procedures, conditions, and formalities concerning the conclusion and termination of the employment contract, including non-compete clauses; andcontributions to supplementary pension schemes. 

The 12-month period can be extended by a maximum of six months, subject to sending a substantiated notification to the labour inspection where the posted workers perform their activity (for workers posted in Romania) or to the competent authority of the member state where the employees perform work (for Romanian workers posted in an EU member state or Switzerland). This notification must be sent one day prior to the expiration of the 12-month period, at the latest.

For workers posted in Romania, the template for the notification and the conditions for submission will be established according to separate methodological norms to be approved by Government Decision.

 

Employment agency rules

The bill contains specific conditions and clarifications regarding the posting of workers through workforce agents and outlines the temporary workforce agent’s obligation to provide information and communicate with the employee, as regards the change of workplace and other essential working conditions.



Calculating time periods

If another posted worker performs the same task at the same place, the cumulative duration of the two postings periods will be considered for calculating the 12-month period. ‘The same task at the same place’ will be considered taking into account, inter alia, the nature of the service provided, the activity performed, and the address of the workplace.



Allowances and expenses

Allowances specific to the posting are considered, as before, to be part of remuneration provided that they are not paid to reimburse expenses actually incurred (transport, accommodation, and meals). If the employer does not specifically set out the destination and the quantum of the sums that cover expenses actually incurred and which elements constitute remuneration, then the entire amount of the allowance will be considered as reimbursement of expenses (and will therefore not be taken into consideration for determining whether the required remuneration is paid).

Allowances or reimbursement of expenditures covering transport, accommodation, and meals are granted to workers who have to travel for professional reasons to and from their usual workplace on the territory of the member state where they are posted or where they are temporarily sent by their employer from their usual workplace to another workplace, according to the legislation and the collective agreements declared generally binding.

 

Information requirements

Undertakings posting workers from Romania have an obligation to inform the workers in question prior to the posting regarding a series of essential elements including 

the elements that constitute the remuneration to which the posted worker is entitled according to the legislation of the host state;the total remuneration to which the worker is entitled during posting with the distinct specification of the posting allowance when this is granted;the expenses generated by the posting such as transport, accommodation and meals; andthe method of reimbursement and the link to the special website created by the host state in this context.

 

For workers posted through temporary workforce agencies, the Romanian user company must inform the temporary work agency in writing as regards remuneration, work, and employment conditions applicable at the unit level. 

Penalties

New penalties are introduced, for example, non-compliance with the new information obligations described above may trigger administrative sanctions of RON 10,000 to 20,000 (approx. EUR 2,100 to 4,200).

Other

With certain exceptions and limitations, the changes will also apply to the road.

Authors
Teodora Gogu
Associate - Romania
Nestor Nestor Diculescu Kingston Petersen (NNDKP)