Article
8, 10, 13 and 14 (Law no. 200/2006); 209–215 (Law no. 227/2015)
Description
The Guarantee Fund for unpaid salaries is designed to ensure payment of outstanding claims arising from individual employment contracts and collective agreements concluded by employers who were given final judicial decision to open insolvency procedures and to which total or partial removal of the right of management was prepared (employers in the state of insolvency).
Employers are required to pay a monthly contribution to the Guarantee Fund, in the quota of 0.25% of the total monthly wages. They are also obliged to notify the fiscal administration, by day 25 of every month, about the amount of contribution to the Guarantee Fund. The fund is administrated by the National Agency for Employment (Agentia Nationala pentru Ocuparea Fortei de Munca, ANOFM), through its local agencies.
From the Guarantee Fund's resources outstanding wages or compensatory payments and indemnities for temporary interruption of activity may be paid. The fund cannot pay the outstanding social contributions of companies in insolvency.
From the Guarantee Fund, employees may claim the outstanding wages for a period of up to three calendar months in case their employer is in insolvency. Employees or organisations representing them may apply for payment from the territorial employment agency themselves, or the payment application may be filed by the legal administrator of the insolvent employer. Claims for the payment of overdue salaries are assessed by the local employment agencies, which also make the actual payments. Outstanding salaries are paid out of the Guarantee Fund regardless of whether the insolvent employer had paid the contribution to the Guarantee Fund in time. The total amount of the outstanding claims incurred by the Guarantee Fund may not exceed the amount of three monthly salaries at national level per employee.
Citation
Eurofound (2015), Romania: Wage guarantee in case of insolvency, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/wage-guarantee-in-case-of-insolvency/romania