Law 58/2021, which amends Emergency Ordinance 132/2020, known as the Kurzarbeit Law, has been enacted.

The modifications include:

– Increase in the Reduction Percentage: The percentage by which the working hours of full-time employees can be reduced has been increased from 50% to 80%. This applies to the daily, weekly, or monthly duration during states of emergency/alert/siege and for up to 3 months following the end of the last such period.

– Approval Requirement: The reduction in working hours can only be implemented with the agreement of the trade union authorized to negotiate the collective contract. If there is no such union, it requires the agreement of employee representatives.

– Elimination of Specific Text: The ordinance has removed the text stipulating that the reduction in working hours can only be made in compliance with Article 41 paragraph 3) letter f) of the Labor Code. This provision refers to the requirement that an individual employment contract can only be modified by mutual agreement regarding changes to working and rest hours.

– Minimum Application Period: The minimum period for applying the measure is 5 working days. This period is now determined based on a 30-calendar-day period, starting from the first day of effective application of the measure, rather than 5 working days per month.

– Determination of Compensation Amount: The method for determining the compensation amount for employees affected by reduced working hours has changed. The compensation will now be 75% of the gross monthly base salary for the reduced working hours. This amount is considered salary income and is subject to taxation and social contributions according to the law. For income tax calculation, the rules provided in Article 78 paragraph (2) letter a) of the Fiscal Code apply (the tax treatment remains unchanged).