An employer who delays the payment of the salary to the employee by more than one month from the date of payment of the salary risks a contravention fine from 5,000 lei to 10,000 lei for each person to whom the salary was not paid. The regulation, introduced by the Emergency Ordinance no. 117/2021 for the amendment and completion of Law no. 53/2003 – Labor Code, will enter into force from October 20, 2021. 

We inform you of the main changes contained by the Emergency Ordinance no. 117/2021 for the amendment and completion of Law no. 53/2003 – Labor Code, published in the Official Gazette, Part I no. 951 of October 5, 2021:

Thus, starting with the date of entry into force of this normative act, the additional work is compensated by paid free hours in the next 90 calendar days after its performance, unlike the previous regulation which provided a term of 60 days.

The normative act introduces the underreported work which “represents the granting of a net salary higher than the one constituted and highlighted in the payroll statements and in the monthly declaration on the obligations to pay social contributions, income tax and nominal records of insured persons, sent to the tax authorities.”

Also, the act modifies certain contraventional sanctions and introduces new ones (these provisions will enter into force within 15 days from the publication in the Official Gazette, ie from October 20, 2021):

– An employer who delays the payment of the salary to the employee by more than one month from the date of payment of the salary risks a contravention fine from 5,000 lei to 10,000 lei for each person to whom the salary was not paid. The exception will be the companies that are under the incidence of Law no. 85/2014 on insolvency prevention and insolvency proceedings.
– Underreported work will be sanctioned with a fine from 8,000 to 10,000 lei for each employee, without exceeding the cumulative value of 100,000 lei.
– Companies that employ one or more employees in excess of the length of working time established in individual part-time employment contracts risk a fine from 10,000 lei to 15,000 lei for each person so identified, without exceeding the cumulative value of 200,000 lei.

In order to have access to complete information regarding the clarifications brought to the above measure, download Smart Update October no.1 2021 and send it to your colleagues!