Force Majeure and hardship in times of pandemics
The social and economic effects of the COVID-19 pandemics are extending globally and have heavily affected the performance of both national and international contracts. Numerous companies have completely or partly suspended their activities, so that the possibility of fulfilling the contractual obligations is now rather uncertain. Please find hereinafter a summary of the rights of the parties in case of Force Majeure events, respectively in case of hardship according to the Romanian law.
NEWSFLASH Special paid leave for child care during temporary school closure
Dear Ladies and Gentlemen, In the context of the present pandemic caused by the COVID-19 virus, there are several aspects which should be borne in mind by employers in Romania. Please find the latest article on this topic by STALFORT Legal. Tax. Audit. here . Due to the recent closing of schools, the Romanian Parliament has adopted a law (draft law no. 337/ 2019) which ensures paid leave to parents whose children are temporarily forced to stop attending their classes. This measure is attributed to “bad weather conditions or other extreme circumstances”, as decreed by the competent authorities and will thus apply also in other situations than those created by the Coronavirus.
COVID-19. What should an employer take into account?
Given the current situation, please find hereinafter a summary of the most important aspects related to labour law in the context of the new Coronavirus (COVID-19). What official protection measures are there?
NEWSFLASH _ Deadline for submission of statements regarding the beneficial owner
Due to the latest developments, please find hereinafter a special edition of our newsletter, informing you about recent legal changes with impact on the statements regarding the beneficial owner (UBO). As already announced, companies, foundations and associations have to disclose their UBO due to Romania's new anti-money laundering legislation (Money Laundering Act No. 129/2019). The notification form for this purpose was published in October 2019. The Romanian Commercial Register recently published a practice-related circular which raises questions regarding the deadline for the first filing in 2020.
The increase of the minimum salary – but with no cure for confusion
As always at the turn of the year, the new Romanian government has decided to increase the legal minimum salary also for 2020. However, there are other legal acts from the previous government (2018 and 2019) that are still in force and that include special provisions for the minimum salary. So now, in 2020, the Romanian law provides several legal minimum salaries.
Is a Managing Director liable for third parties’ mistakes?
The appointment of a managing director, besides responsibility, provides attractive remuneration and a social rise. However, the legal position of the managing director is special and can generate a particular liability potential. Any managing director should enquire about this matter in advance.
The long-awaited amendments to construction law – the good and the bad
For years now a reform of the Romanian Construction Law has been demanded to achieve the simplification, speed-up and digitalization of the much too formal and bureaucratic building permit procedure. Changes have now come at last.
Practical issues related to permanent establishments
In a globalized world, cross-border activities carried out by companies are quite natural. From a fiscal point of view, the long-term presence of a non-resident person in a certain country generates a permanent establishment, whereby a limited taxation right of that particular country over the non-resident person appears.
Undercapitalization – Tougher sanctions to be expected
In mid-October the Romanian senate approved a draft law referring to undercapitalized companies. It includes clarifications, restrictions and new sanctions in cases of undercapitalization. Currently, it is being discussed in the Chamber of Deputies.
Romanian electronic system for linking the Commercial Register within the EU is now functional
The Romanian Commercial Register issued a press release on 5th September 2019, noting that the Romanian system linking the Romanian Commercial Register to “BRIS”, the system for the interconnection of EU Business Registers, has, become operational in September 2019 and can be accessed under https://e-justice.europa.eu.