New interdiction for the suspension of employment contracts

Written by: Bridgewest

New-interdiction-for-the-suspension-of-employment-contracts.jpgA new judgment issued by the Romanian Constitutional Court established that it is unconstitutional for an employer in Romania to suspend the employment contract of the employee when formulating a criminal complaint against that said employee. Although the judges believe that the measure was intended to protect the interests of the company, the decision is final and will be published in the Official Gazette. Our accountants in Bucharest can give you detailed information about the legal termination of employment contracts in Romania.

The suspension of an employment contract

According to the new decision, the employer will no longer be able to suspend the individual employment contract belonging to an employee, when formulating a criminal complaint against the employee. The measure was declared excessive and, accordingly, unconstitutional. This change will enter into force after it is published in the Official Gazette.
According to the Romanian Employment Law, the suspension of an employment contract can take place by agreement between parties or unilaterally. One of the situations in which the employment relationship between the parties could have been terminated by the employer was when a criminal complaint was formulated against the employee.
The measures was deemed unconstitutional because it violated the provisions related to the presumption of innocence, the right to work, living standards and the freedom and equal rights of citizens.

The employer’s obligations during the suspension of the employment contract

During the suspension of the employment contract, the employee is entitled to all the rights and obligations included in the individual employment agreement. The only restrictions are those concerning the employee’s salary rights (in which case the employer does not need to pay social security contributions during the suspension).
Under the current employment law, the employer is entitled to suspend an employment contract in many other cases, not only the one that has been declared unconstitutional. Some of the situations include suspension during the preliminary disciplinary investigation for the employee, if the employer was convicted for crimes that are incompatible with his or her position, in case of temporary interruption or reduction of the business activity for other reasons than economic, technological or structural ones and in many other cases.
Our Romanian accountants can give you complete information about investing in Romania and the employer’s tax obligations. You can contact us if you have questions.