More drastic sanctions for infringements of overtime regulations are expected
On 18th September, a draft amendment to the Romanian Labour Law was approved by the Chamber of Deputies. Its only purpose is to introduce much more drastic sanctions for any employer in Romania not observing the regulations on overtime. For the law to come into force, it has to be approved by the President and published in the Romanian Official Gazette.
Thoughts on the first data protection sanctions in Romania
Just before the summer holiday, the Romanian Data Protection Authority caused intense tumult by imposing the first three data protection sanctions against Romanian companies based on the GDPR. Subject to these fines were a bank (UniCredit, €130,000), a hotel (World Trade Center Bucharest, €15,000) and a consultancy company (Legal Company & Tax Hub SRL, €3,000), which was, ironically, offering advice on data protection issues.
Tax burden on wages – synthesised comparison
Romania has a minimum wage set by law. Each year, it is set by a separate legal norm. For 2019 there are two different minimum wage levels: 2,080 RON and 2,350 RON. For the higher wage, the key elements are the necessary level of education for the role, and the employment period.
Recent changes regarding salaries and taxation in the construction sector
As already reported, Emergency Ordinance no. 114/2018 (“EO 114”) caused quite a stir in the construction industry, as it came up with a drastic increase of the minimum salary and tax exemptions for affected employees. The changes were frequently look at as having a destabilizing effect; for many companies it was problematic to adapt to the new economic context. At the end of July, the government brought a new change with regard to salaries and taxes.
Contractual penalties in employment contracts ineffective for good
Within each and every legal relationship, the situation may arise in which the parties do not fulfill their obligations, this leading to them (for instance) being liable for compensation. When it comes to the liability of the employee to the employer, many employers want to impose contractual penalties in the case of certain breaches of duty. This practice had been controversial for a long time in legal opinions and case law, but since 12th July 2019 it has been excluded following a decision by the Supreme Court .
Building Permit no longer needed for on-roof photovoltaic installations
On 27th June 2019, a law came into force stating that inter alia the construction of on-roof photovoltaic systems no longer requires a building permit under Romanian law.. For potential electricity producers, providers and producers of system engineering, and assemblers, this is good news in general.
New regulations on the restructuring of companies with real estate property
About a year ago we reported on new regulations on mergers (fuziuni) and spin-offs (divizari) of companies with real estate property, where the transfer of ownership as a result of a merger or spin-off was supposed to be registered in the land register based on a ‘reorganisation certificate’. At the end of May, new regulations were introduced. Like the previous changes, the new provisions bring anything but clarity.
Legislative changes regarding the protection of business secrets
On 19th April 2019, Emergency Ordinance No. 25/2019 (“EO”) came into force, introducing a series of regulations to protect business secrets. In particular, it contains several practical measures that can be requested by holders of business secrets against the unlawful acquisition, use or disclosure of their business secrets.
Benefits and other changes in the tax field
In the last few months the Romanian Government has adopted changes in the tax field that are less astonishing than usual. But there are some changes that might be important in practice; we discuss them below.
Quarterly dividends – regulations and approach
The law Nr. 163/2018 has given companies the opportunity to distribute dividends quarterly. As this subject has been already tackled in an article from June 2018, we will clarify hereinafter important information disclosed by an ordinance , as well as practical details regarding the distribution of quarterly dividends.