The law regarding employee detachment in the delivery of transnational services was published in the Official Gazette of Romania no. 196/2017 on 21 March 2017.
Protection for detached workers
This Law aims to establish a common framework of measures in order to ensure an adequate level of protection for detached workers in the delivery of transnational services, as well as preventative measures and sanctions in respect of any abuse or circumvention thereof. The present law therefore transposes the Community legislation.
Under the new law, the concept of “detachment” is defined as the situation in which an enterprise established in a Member State or the Swiss Confederation sends employees with whom it has established labour relations to another Member State with a view to the delivery of translational services.
Sending Romanian employees abroad
It also defines a detached Romanian employee as an “employee of an employer established in Romania who normally works in Romania, but who has, for a limited time, been sent to work in another member state, other than Romania, or the Swiss Confederation“. According to the explanatory memorandum that accompanies the original draft law, the previous legislation in this area did not contain a specific provision governing the detachment of Romanian employees to other Member States, with the only similar arrangement being that established through the Labour Code, which gave rise to confusion in terms of its interpretation and application by employers.
Benefits for detached employees
Furthermore, the new law also contains provisions whereby if detached employees initiate court or administrative proceedings against their employers they will benefit from protection against any adverse treatment by their employer. In respect of the above, the employer is prohibited from unilaterally altering a detached employee’s labour relations or conditions, as well as from dismissing a detached employee in the event the latter lodges a complaint with the courts. Violation of this obligation will attract a penalty of up to RON 100,000.
The establishment of infringements and the application of penalties is the responsibility of the labour inspectorates in Romania.
The new Romanian law comes into force 60 days after the date of its publication in the Romanian Official Gazette, i.e. on 20 May 2017, and at the same time that Law no. 344/2006, which establishes the current legal framework in this area, is to be repealed.
Do you have questions about the detached employments & Expatriats ?
If you have questions about secondments do not hesitate to contact TPA expert Wolfgang Höfle
TPA tax advisor Wolfgang Höfle
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