Newsletter no. 6 – October 2022
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Summary
- Important amendments brought to labour law with impact on many aspects related to labour contracts, internal regulation, trial period, cumulation of contracts, rights of employees and new obligations for employers (Law 283/2022)
- Certain facilities related to labour law, previously introduced for micro-enterprises, are repealed (Law 275/2022)
- Instructions to apply obligations regarding the disability fund contribution have been updated (Order 1001/2022)
- Details on new amendments and complements brought to Ro e-Transport system (GEO 132/2022)
- Form 179, Statement on fuel compensation, was updated following the most recent amendments to the law (Order 1797/2022)
- Procedure to submit statement on own responsibility regarding payment modality for contribution to Energy Transition Fund, as well as settlement and execution of warranty, was published (Order 1843/2022)
- Complement to accounting provisions applied to economic operators, which are license holders, providers of electricity and natural gas transportation and distribution services (Order 3900/2022)
- Simplifications brought to regulations on employment of foreigners (GEO 143/2022)
- Intrastat thresholds were increased, new values being applied starting the 1st of February 2023 (Order 1493/2022)
- Other legislative news
- Closing exchange rates for October 2022.
Law 283/2022 to amend and complement Law 53/2003 – Labour Code, as well as GEO 57/2019 on Administrative Code (Official Gazette 1013/2022)
Summary
The Law brings important amendments to the Labour Code, with an impact on many aspects related to labour contracts, internal regulation, trial period, cumulation of contracts, rights of employees, new obligations for employers, etc.
Details
The Law incorporates two important European Directives into the Labour Code and brings major amendments to the Labour law, amendments that are briefly presented below:
Additional information that should be transmitted to candidates and employees
The minimum information that the Labour Code sets for reporting by employers is extended with a series of new information that we present below, and inclusion in the individual labour contract (“CIM”) is mandatory:
- the workplace or, in the absence of a fixed workplace, the possibility for the employee to carry out his or her activity in different workplaces, as well as if movement between workplaces is insured or financially settled by the employer, depending on the case;
- the base salary, other constituent elements of salary income, highlighted separately, the periodicity of salary payment and payment method;
- the standard work period, expressed in hours/day and/or hours/week, conditions to perform and compensate or pay overtime, as well as, if applicable, methods to organise work in shifts;
- duration and conditions related to trial period, if it exists;
- rights and conditions offered by the employer in relation to professional training;
- the employer bearing the cost of private medical insurance, additional contributions to employee optional pension or occupational pensions, as provided by the law, as well as the grant, at the employer’s initiative, of any other rights, when they constitute advantages in monetary terms, granted or paid by the employer to the employee as a result of his or her professional activity, as the case may be.
- Country/countries to carry out the activity if the employee works outside the country.
The CIM, which previously contained all elements of information, will NO longer have to contain the following elements:
- Indication of the applicable collective agreement;
- Procedures on using electronic/digital signature;
- Rights and conditions related to professional training.
In case of ongoing employment reports/relations:
- additional information regarding conditions applicable to the employment relation is communicated by the employer, upon request, within a maximum of 30 working days from the date of an employee’s written request;
- the minimum rights introduced by Law 283/2022 will be respected by the employer even in the absence of the above-mentioned request.
If the employer does not inform the employee about all the elements provided by the Labour Code, the latter will be able to notify the Labour Inspectorate, and, in the case of employers that have their own inspection bodies, the employee will be able to contact them. If the employer does not fulfil the information obligations stipulated by the Labour Code, the candidate/employee has the right to refer the matter to the competent court and request compensation.
A new template for the CIM will be approved by Order of the Minister of Labour and Social Solidarity, within 30 days from publication of Law 283/2022.
Trial period
In the case of rehiring an employee, within 12 months, for the same position with the same duties/tasks previously held, a trial period cannot be imposed.
The employee’s right to request a transfer to a vacant position that ensures more favourable working conditions is introduced if he or she has completed his/her trial period and has been with the same employer for at least six months. The employer has the obligation to provide a justified reply in writing, within 30 days from receipt of the employee’s request regarding a transfer to a vacant position with more favourable conditions.
Cumulation of labour contracts with different employers
The right to work for different employers or for the same employer, based on individual labour contracts, without overlapping the work schedule, benefiting from a salary corresponding to each of them, is regulated. The employer may not apply unfavourable treatment to any employee exercising this right.
Caregiver leave
A new type of leave is introduced to the Labour Code: caregiver leave.
It will be granted to the employee in order to provide personal care or support to a relative or a person who lives in the same household as the employee and who needs care or support as a result of a serious medical problem.
Relative means the son, daughter, mother, father or spouse of an employee.
Caregiver leave is granted for 5 working days during a calendar year or longer periods established by special laws or collective labour agreement. This period is not included in annual holiday leave based on work and specialization seniority.
Serious medical problems, as well as conditions for granting caregiver leave, are established by joint Order of the Minister of Labour and Social Solidarity and the Minister of Health, issued within 30 days from the publication date of Law 283/2022.
Absences due to family emergencies
The employee may be absent in case of family emergencies, caused by illness or accident, which make his or her immediate presence indispensable. The maximum duration of absence is 10 working days during a calendar year, provided that the employer is informed in advance.
Absences should be recovered in a manner agreed upon by both parties.
This period is considered the period of time worked when determining the duration of annual leave.
Paternity leave
The employer has the obligation to grant paternity leave upon written request of the employee. The grant of paternity leave is not conditioned by the period of activity performed or by seniority of the employee.
It is considered a period of time worked when determining the duration of annual leave.
Internal Regulation
The following information will be added to the internal regulation:
- rules regarding the notification;
- information regarding a general policy to train employees, if applicable.
The employer has the obligation to inform each employee of provisions of the internal regulation, on the first day of work, and to prove fulfilment of this obligation.
Making employees aware of provisions of the internal regulation may be in hard copy or in electronic format, provided that, in the latter case, the document is accessible to the employee and may be stored and printed by him/her.
The internal regulation produces its effects towards the employee from the moment it was acknowledged by him.
Individualized work schedules
Individualized work schedules involve a flexible way of organising work time and may be implemented with the agreement or upon employee request, temporarily or long-term.
Rejection of the request to establish an individualized work schedule should be in writing, by the employer, within 5 working days from receiving the request.
The right of the employee to return to the initial work schedule, at the end of the agreed period for application of the individualized work schedule or when circumstances that led to establishment of the individualized work schedule have changed, prior to the end of the agreed period.
Dismissal – new interdictions
New interdictions have been introduced regarding the dismissal of employees, which may not be ordered/carried out:
- during paternity leave, caregiver leave or absences for family emergencies;
- for exercising rights regarding information and content of the CIM, the trial period and professional training.
Law 275/2022 to reject GEO 37/2021 to amend and complement Law 53/2003 – Labour Code (Official Gazette 961/2022)
Summary
Several facilities introduced in the area of labour law in 2021, applicable to micro-enterprises, were repealed by Law 275/2022.
Details
The Law rejects GEO 37/2021 to amend and complement Law 53/2003 – Labour Code.
As a reminder, GEO 37/2021 introduced specific provisions for flexibility and de-bureaucratization of labour relations for micro-enterprises with up to nine employees, regulated by Law 346/2004 on stimulation to establish and develop small and medium enterprises. This category included companies with up to 9 employees and a net annual turnover or total assets of maximum EUR 2 million, equivalent in RON.
Thus, GEO 37/2021 introduced the following provisions:
- the obligation to include the job description in the individual labour contract was eliminated. The duties of the position could be communicated verbally to the employee. However, if he/she expressly requested one, then the job description should have been communicated in writing by the employer, specifying duties of the position;
- the obligation of the employer to prepare Internal Regulation was eliminated;
- the record of working hours could be kept by the employer under the conditions established with the employees by written agreement.
All above-mentioned provisions were repealed.
Order 1001/2022 to approve Instructions to apply art. 78 para. (2) and (3) of Law 448/2006 on protection and promotion of the rights of persons with disabilities (Official Gazette 1020/2022)
Summary
The Order updates instructions to apply provisions regarding calculation of the contribution for the Disability Fund and clarifies certain aspects related to its calculation.
Details
Public authorities and institutions, legal entities, public or private, that have at least 50 employees, have the obligation to employ persons with disabilities of a minimum of 4% total number of employees. Taxpayers that have this obligation but do not employ disabled persons, may opt for one of the following obligations:
- to pay to the state budget, on a monthly basis, an amount representing the gross minimum salary per country multiplied by the number of job positions in which they did not employ disabled persons;
- to pay to the state budget, on a monthly basis, an amount representing the equivalent of at least 50% of gross minimum salary per country multiplied by the number of job positions in which they did not employ disabled persons, and with the amount representing the difference provided according to the point above to purchase, on a partnership basis, products and/or services made through the activity carried out by disabled persons employed at authorized protected units.
Four percent of the total headcount is determined as the arithmetic mean resulting from the sum of daily employees during the respective month, including weekly rest days, public holidays and other days when, according to legal provisions, no work is performed, divided by the total number of calendar days.
Part-time employees are included in the total headcount proportional to effective worked time, according to provisions of the individual labour contract.
Daily headcount does not include employees on unpaid leave, on strike, detached to work abroad or whose individual labour contracts are suspended.
For each day of weekly rest or public holiday, headcount of the previous working day shall be considered, except for persons whose individual labour contract ceased on that day.
The purchase of products from protected units may be partial, with the possibility to pay only the difference of the amount required as per Law 448/2006.
If the economic operator purchases products or services from protected units authorized according to law, based on a partnership, for an amount less than the amount owed to the state budget, the economic operator will owe the difference to the state budget.
If the economic operator purchases products or services from protected units authorized according to law, on a partnership basis, for an amount higher than the amount owed to the state budget during that month, the economic operator does not owe any amount to the state budget, and the additional difference is carried forward to the next month, to decrease to next amount to be paid.
Emergency Ordinance 132/2022 to amend and complement certain normative acts (Official Gazette 957/2022)
Summary
The normative act amends the RO e-Transport National System for monitoring road transport of goods with high fiscal risk, the competence of the Development Bank of Romania and operation of EXIMBANK.
Contraventions and sanctions related to application of RO e-Transport provisions are still suspended and will be applicable starting the 1st of January 2023 (previously the suspension was by the 1st of October 2022).
Details
Given the fact that our issue contained only a summary of GEO 132/2022, the Ordinance being published at the close of our edition, we decided to return with more details about amendments brought to RO e-Transport system.
The main changes to the RO e-Transport system are:
- It was extended to the 1st of January 2023, a period during which no sanctions are applied for contraventions
- It clarifies the meaning of certain terms and concepts, such as: economic operator, consignment of goods, place of loading/unloading, transportation of goods with high fiscal risk on national territory, which, according to new provisions also clarifies:
- transportation of goods representing transfer between stock of an economic operator between the place of loading and place of unloading situated on the national territory;
- transportation on national territory of returned goods, which have not been processed as received between different economic operators or between an economic operator and an individual;
- transportation of goods on the national territory within a commercial operation representing a non-transfer and transportation of goods representing stock at the disposal of the customer according to art. 270 para. (12) letter f) and art. 2701 of the Fiscal Code.
- To cover all practical situations of transport of goods with high fiscal risk on the national territory, new categories of users having the obligation to declare data are introduced:
- economic operator, for goods with a high fiscal risk held and transported between the place of loading and the place of unloading, located on the national territory;
- Romanian service provider in the case of non-transfers, both for goods unloaded on the territory of Romania and for provision of service, and for resulting goods that are re-dispatched to the State of the commercial partner;
- beneficiary from Romania in the case of non-transfers, both for goods dispatched from Romania for service provision in a Member State of the European Union, and for the resulting goods re-dispatched to Romania;
- customer from Romania in the case of stock at the disposal of the customer when Romania is the Member State where the goods were dispatched or transported, both for goods unloaded on the territory of Romania and for goods delivered at a later stage after arrival, to another taxable entity from Romania or in the case when the goods are returned to the Member State from where they were initially dispatched or transported;
- supplier from Romania in the case of stock at the disposal of the customer in case Romania is the Member State where the goods were dispatched or transported, both for the goods shipped from Romania, as well as for goods returned to Romania.
- transport organizer or operator has the obligation to update information on the vehicle identification of the UIT (unique identification number of the transport) code during the validity period, whenever such information, prior to restarting movement;
- a mechanism to declare and update data is set in case the RO e-Transport System is not operational;
- a new term of validity for UIT codes is introduced for certain transactions (intra-Community acquisitions of goods, intra-Community transactions in transit on the territory of Romania, non-transfers and transport of goods representing stock at the disposal of the customer), namely 15 calendar days starting from the date declared as the start of transport;
- If the RO e-Transport system is not functional, when the transport loaded with goods with high fiscal risk starts or during transportation, the obligation to declare/update is suspended until the system is once again functional. In this case, the obligation to declare/update should be met by the end of the working day following the one when the system becomes functional again, even for transportation that already ended.
- Officers and agents within Romanian Police receive competences to find/discover contraventions and to apply sanctions.
Order 1797/2022 to amend ANAF Presidential Order 1363/2022 to approve template and content of form 179, Statement on fuel compensation (Official Gazette 1000/2022)
The Order amends instructions to prepare form 179, Statement on fuel compensation, as well as the editing features, distribution mode, use and storage of the form, as a result of amendments brought by GEO 131/2022.
As a reminder, form 179, Statement on fuel compensation, is used by economic operators selling fuel and diesel oil to final customers, individuals and legal entities, as well as other economic operators authorized to purchase fuel from warehouses and/or distribution stations for their own consumption or for resale – granting a discount from the selling price and benefitting from compensation paid from the State Budget, as provided by GEO 106/2022.
Order 1843/2022 to approve Procedure to submit statement on own responsibility regarding payment modality for contribution to Energy Transition Fund, as well as settlement and execution of warranty (Official Gazette 1037/2022)
The Order approves Procedure to submit statement on own responsibility regarding payment modality for contribution to Energy Transition Fund, as well as settlement and execution of warranty.
Also, the Order approves template for Statement on own responsibility regarding payment modality for contribution to Energy Transition Fund.
Order 3900/2022 to approve accounting specifications in order to apply provisions of art. III of GEO 119/2022 to amend and complement GEO 27/2022 on measures applied to final customers in the electricity and natural gas market during the period of the 1st of April 2022 and the 31st of March 2023, as well as to amend and complement certain normative acts in the field of energy (Official Gazette 1023/2022)
Summary
The Order introduces new provisions within Accounting regulations regarding annual individual financial statements and annual consolidated financial statements, applicable to economic operators that are licenced to provide electricity and natural gas transportation and distribution services.
Details
The capitalized sums for licensed economic operators, providers of electricity and natural gas transportation and distribution services, additional costs for the purchase of electricity and natural gas, made between the 1st January 2022 and the 31st of August 2023, in order to cover own technological consumption and, specifically, technological consumption, compared to costs included in the regulated fees, are capitalized and recorded in accounting records through account 208-Other intangible assets / sub-accounts = 721-Capitalised costs of intangible non-current assets on a quarterly basis, as follows:
a) on the 30th of September 2022, for amounts related to period 1 January 2022-30 September 2022;
b) on the 31st of December 2022, for amounts related to period 1 October 2022-31 December 2022;
c) on the 31st of March 2023, for amounts related to period 1 January 2023-31 March 2023;
d) on the 30th of June 2023, for amounts related to period 1 April 2023-30 June 2023;
e) on the 31st of August 2023, for amounts related to period 1 July 2023-31 August 2023.
Amounts are determined in compliance with the law specific to entities subject to GEO 119/2022 and its subsequent amendments.
Depreciation of amounts corresponding to recognized assets is recorded in accounting records starting the 1st of the month following each of the periods provided above, in compliance with applicable legislation
Emergency Ordinance 143/2022 to amend art. 17 of GO 25/2014 on employment and secondment of foreigners on the territory of Romania and to amend and complement certain normative acts regarding regime on foreigners in Romania (Official Gazette 1049/2022)
The Ordinance amends regulations on employment and secondment of foreigners on the territory of Romania by facilitating the change of jobs from one employer to another, so that the occupation of a new position may be achieved based on a written agreement expressed by the previous employer only. This allows the creation of a unified workflow at the national level.
The Ordinance provides that the foreigner employed based on the employment permit, except the permit for seasonal workers, may occupy a new job position, at the same employer or at another employer, at any time during the validity period of the unique permit or the EU Blue Card.
Order 1493/2022 on INTRASTAT thresholds to collect statistical information regarding intra-community trade of goods for 2023 (Official Gazette 1044/2022)
Summary
The Order approves new INTRASTAT thresholds to collect statistical information regarding intra-community trade of goods for 2023.
Details
The new thresholds for 2023 are:
- RON 1,000,000 for delivery of goods;
- RON 1,000,000 for acquisition of goods.
Economic operators which, during 2022, carried out trade of goods with EU Member States with a total value of each separate flow (supply and purchase) exceeding the thresholds listed above should prepare and submit an INTRASTAT return to the National Institute of Statistics starting January 2023.
In 2023, other economic operators may become providers of INTRASTAT data if they carry out the supply or purchase of goods having an accumulated value from the beginning of year which exceeds the applicable 2023 thresholds. These economic operators should prepare and submit statistical INTRASTAT returns starting the month when the cumulative value from the beginning of 2023 regarding supply to or purchase from the EU exceeds the INTRASTAT threshold for each separate flow.
The new provisions enter into force starting the 1st of February 2023.
Other legislative news
Order 3384/2022 to complement the annex of OMPF 1998/2019 to approve Methodological norms to prepare and submit quarterly financial statements and certain monthly financial reports by public institutions in 2019, as well as to amend and complement other methodological norms in the field of public accounting (Official Gazette 986/2022)
Summary
The Order complements provisions of OMPF 1998/2019 to approve Methodological norms to prepare and submit quarterly financial statements and certain monthly financial reports by public institutions in 2019, as well as to amend and complement other methodological norms in the field of public accounting.
Details
In order to verify the correctness of data reported in the trial balance on indicators and the trial balance generated through own technical means, starting with financial statements submitted for the 3rd quarter of 2022, the obligation to submit trial balances for own activity, is based on:
a) Trial balance generated by National Forexebug Reporting System following the transmission of form F1102 – Trial balance;
b) Trial balance generated through own technical means.
Public institutions have the obligation to present the above-mentioned trial balances to a superior/higher officer.
Order 3385/2022 to amend annex no. 1 of OMPF 1801/2020 to approve components, templates and methodological norms to prepare reports on financial statements, disclosure notes and other annual and quarterly reports/annexes generated by the National Forexebug Reporting System (Official Gazette 983/2022)
Order 3887/2022 to designate specialty bodies within the Ministry of Finance to find contraventions and apply sanctions, as well as to set State Budget receivables, in order to apply provisions of art. 5 of the Law 35/1994 regarding stamp and fee on literary, cinema, theatre, music, folklore, fine arts, architecture and entertainment (Official Gazette 1021/2022)
Instruction 31/2022 on the level of reference interest rate of the National Bank (Official Gazette 971/2022)
Starting the 6th of October 2022, the reference interest rate of the National Bank of Romania is 6.25% per year.
Order 1842/2022 to amend ANAF Presidential Order 1036/2021 to approve standard form, Minutes of finding and sanctioning of contraventions, used in the activity of verifying personal fiscal situations (Official Gazette 1037/2022)
INFO – Valuation of monetary items in foreign currency
The October closing NBR exchange rates to use for valuation of monetary items (cash on hand, receivables, payables) denominated in foreign currency, as well as receivables and payables denominated in RON but pegged to a foreign currency for collection/disbursement are:
1 EUR = 4.9141RON; 1 USD = 4.9487 RON; 1 CHF = 4.9460 RON; 1 GBP = 5.7084 RON
