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| Labor Market Regulations 27/04/2011 |
| (2011-04-27) |
| Last updated: 2011-04-28 13:27 EET |
A new labor code is coming into effect next week in Romania, touted by the government as being one of the pillars of their reform platform, even though it is hotly contested by the opposition and trade unions. The executive intends to have the bill accompanied by an ambitious plan to eradicate illegal employment. The plan, in fact, is to step up aggressively inspections at businesses, as announced by PM Emil Boc:
“Our aim is to increase the number of employment contracts by reducing black market work. Together with the interior and finance ministries we designed a complex program to combat illegal labor for the purpose of raising the number of work contracts. Offenders will be facing fines or criminal prosecution”.
The prime minister explained that the main aim is to protect employees, which may only benefit from their legal right if they have a contract signed with their employers. Here is Emil Boc once more:
“Our aim is first and foremost to protect employees, so that they can get their rightful pensions, unemployment benefits, health benefits, because that is what a work contract ultimately entails. I firmly warn all those who use or plan to use illegal employment forms to start using employment contracts, because the new labor code provides both pecuniary fines, three or four times higher than at present, as well as the possibility for criminal prosecution”.
In addition, also as a preamble to the new labor code, the government is going to issue the norms of application for the Day Worker Law. This regulates the situation of unskilled workers employed in farming and other areas. The law for day workers establishes that people who work occasionally can work no less than one day, the equivalent of eight hours of work.
The income tax for day laborers is set at 16%, the same rate that applies to all Romanian employees. This law also provides that a day laborer cannot work more than 12 hours a day, and no more than six hours a day for workers between 16 and 18 years of age. Employers have to pay day workers at the end of each day and to provide them with whatever they need to carry out their tasks at their own expense.
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