Regulations related to employees by day

On April 19 came into force the Government Emergency Ordinance (GEO) no. 26/2019 amending the Law no. 52/2011 regarding exercising of occasional activities performed by the employees by day.

Accordingly to this new normative act, nowadays the employees by day can also be hired in the following businesses: restaurants, bars and catering.

The employees by day can also be hired in goods handling, cleaning and maintenance activities, but only in the areas expressly provided by law (agriculture, hunting, forestry, fishing and aquaculture, exhibitions, fairs, advertising, artistic interpretation, breeding and reproduction of animals, catering, landscaping, restaurants, bars, zoo gradens). An employee by day denominator can work for the same beneficiary for up to 90 days cumulatively per year.

Other changes brought by this GEO relate to the following topics:

1. The Electronic Registry for Evidence Records of the employees by day and beneficiary firm obligations

On 20 December 2019, the Electronic Registry of Evidence Records the employees by day will be set up by the Labor Inspectorate.

A company, as a beneficiary, will have the following obligations related to the Electronic Registry for Evidence Records of the employees by day:

1. to set up, complete and transmit the Electronic Registry for Evidence Records of the employees by day accordingly to the methodology and the model established by order of the Minister of labor and social justice;

The company representatives will send monthly to the Territorial Labor Inspectorate, until the 5th of each month the latest, an extract of the Electronic Registry for Evidence Records of the employees by day containing the records from the previous month. You can also send this extract by mail.

1. to record in chronological order all the employees with whom they perform occasional activities;
2. to send daily the Electronic Registry for Evidence Records of the employees by day to the Territorial Labor Inspectorate before the start of the activity by each person who will have a work rapport with the company;
3. to submit to the competent control bodies the Electronic Registry for Evidence Records of the employees by day.

2. Incomes from the activity performed by the employee by day

Clarifications are provided on the provisions of the Law 227/2015 on the Fiscal Code, regarding the tax obligations applicable to the employees by day.

In this respect, the remuneration received by the employee by day for the performed activity is subject to income tax. The calculation, withholding, declaring and payment of tax liabilities for income from wages earned by the employees are the company’s responsibility, as the beneficiary.

For the employees by day, NO insurance contribution for work (2.25% of the gross) is due.

However, for the incomes earned by the employees by day, the social security contributions (public pension system) is due starting from May.

The employee by day does not have the quality of insured in the health system or in the system for accidents at work and occupational diseases.

However, in the event of an accident at work or an occupational disease, the company has to bear the costs of the necessary medical care.

The condition of granting the gross hourly remuneration set by the parties before being signed in the Electronic Registry for Evidence Records by the employee by day and by the beneficiary has been removed, which would be granted at the end of each working day or at the end of the week.

In addition, a new point has been introduced regarding the social health insurance contribution for individuals who have incomes under the legal threshold or do not have any income, as well as additional provisions regarding the data used in the calculation of tax obligations for the submission of the unique declaration.