SUBSIDIES FOR EMPLOYERS

Subsidizing jobs require access to the state’s aid in order to create new jobs and to encourage the employment of people considered to be vulnerable.

According to the Law 76/2002 there are 11 different categories of vulnerable persons for which the state offers a minimum subsidy of 470 euro/month, except for only 2 categories with different subsidies.

The state provides the employer with a relatively simple financing instrument, which works separately from the European funds, on large financing files, but is not sufficiently advertised or actually used.

The program for graduates had already been tested, both for young NEETS but also for the unemployed over 45, and it is true that the system is difficult but it is not unuseable.

The same paradigms can be found from two different times at ANOFM. Working with the Romanian administration gives the feeling that you live both in the past and in the future at the same time. While the monthly statement for the 470 euro is submitted electronically, with electronic signature, in order to reach the agreement with ANOFM stamps and signatures are needed for each and every page, document or copy submitted.

However, the system should be used and it can be a significant help for a true Romanian start-up.

Below are listed the categories of aid cited in Law 76/2002:

  1. Young people with a higher risk of being marginalized

Young people at risk of social marginalization is the person aged between 16-26 years which meets cumulatively the conditions laid down in point IV of the Law, shall register through the employment agency in whose territorial area he is domiciled or, where appropriate, is a resident and falls into one of the following categories:

a) is in or coming from the child protection system;

b) has disabilities;

c) has no family or is coming from a family unable to ensure their care;

d) has dependant children;

e) had carried out one or more liberty deprivation sentences;

f) is a victim of human trafficking;

Employers who hire young people at risk of social exclusion shall benefit monthly from the unemployment insurance budget for each person in this category, an amount equal to the basic fixed salary at the time of employment of young people, but not more than four times the amount of the social reference indicator, in effect at the time of employment, until the end of the duration of the solidarity contract.

  1. Young graduates

Employers who hire, for an indefinite period, graduates of some educational institutions receive, for a period of 12 months, for each graduate, an amount of 470 euro. (art. 80 paragraph (1) of Law no. 76/2002).

Employers who hire, for an indefinite period, graduates with disabilities receive, on a monthly basis, for each graduate, an amount of 470 euro over a period of 18 months.(Art. 80, paragraph 2 of Law No 76/2002).

Employers who hire graduates under the conditions of Article 80 shall be obliged to maintain their employment or service relationships for at least 18 months from the date of conclusion. (Article 83(1) of Law 76/2002).

  1. Young NEETS

The employers who hire young NEETs for an indefinite period, will receive a sum of 470 euro per month from the date of conclusion of the agreement for a period of 12 months for each person employed in these categories, with an obligation to maintain employment or service relationships for at least 18 months from the date of employment. (Article 85(1) of Law 76/2002, Article 60(1) of Government Decision No 2002/108, Article 2002(1) Government Decision No 377/2002 ).

Young NEETs – people aged between 16 and reaching the age of 25 years who are not in employment, education or training (Article 5(IV4) of Law 76/2002).

  1. Long-term unemployed

Long-term unemployed – person who is unemployed for more than 12 months, if the person’s age is 25 or above, or over a six months period, if the person is aged at least 16 until reaching the age of 25.(Art. 5, point IV^2 of Law 76/2002).

Employers who hire long-term unemployed for an indefinite period, will receive a monthly amount of 470 euro from the date of conclusion of the agreement for a period of 12 months for each person employed in these categories, with an obligation to maintain employment or service relationships for at least 18 months from the date of employment. (Article 85(1) of Law 76/2002, Article 108(1) Government Decision No 377/2002.

  1. People with disabilities

Employers who, in relation to the number of employees, have fulfilled their obligation, according to the law, to employ persons with disabilities, as well as employers who do not have this legal obligation, if they hire persons with disabilities for an indefinite period, will receive monthly, for a period of 12 months, for each person with disabilities, an amount of 470 euro, with the obligation to maintain employment or service relationships at least 18 months.

This amount shall also be granted during the period in which, the disabled subsidized persons no longer have the status of disabled person (Article 85 (3) of Law 76/2002).

  1. Unemployed – single parent supporters of single parent families

Employers who hire unemployed persons who are sole supporting parents of single parents families, for an indefinite period of time receive a sum of 470 euro per month from the date of signing the agreement for a period of 12 months for each person employed in these categories, with an obligation to maintain employment or service relationships for at least 18 months from the date of employment. (Article 85(1) of Law 76/2002, Article 108(1) of Government Decision No 377/2002).

This amount shall also be granted during the period in which, the disabled subsidized person no longer has the status of sole supporter of the single parent family (Article 85(3) of Law 76/2002).

  1. Unemployed over the age of 45

Employers who hire for an indefinite period, unemployed persons over 45 years, receive monthly, from the date of conclusion of the agreement, for a period of 12 months, for each person employed in these categories, an amount of 470 euro, with the obligation to maintain employment or service relationships at least 18 months from the date of employment. (art.85 paragraph (1) of Law no.76 / 2002, art.60 paragraph (1) of Government Decision no.174 / 2002, art.108 paragraph (1) Government Decision no.377 / 2002).

  1. Unemployed with a 5 year term until retirement

Employers who hire, according to the law, the unemployed who, within 5 years from the date of employment, fulfill, according to the law, the conditions to apply for the partial early retirement or to grant the retirement pension, if they do not fulfill the conditions to apply for the early retirement pension, it benefits, monthly, during the period of employment, until the date of the fulfillment of the respective conditions, of an amount of 470 euro. (art.85 para. (5) of Law no.76 / 2002, art.60 para. (1) of the Government Decision no.174 / 2002, art.107 paragraph (4) of the Government Decision no.377 / 2002 ).

  1. Apprentices

Apprenticeship is work-based training based on an apprenticeship contract.

The work-based apprenticeship training scheme shall form an integral part of the apprenticeship contract.

Vocational training carried out at work under an apprenticeship contract, as referred to in Article 1 of the Law, shall be organized on the initiative of employers by vocational training providers authorized under Government Ordinance No 129/2000 on the vocational training of adults, republished, as amended and supplemented, hereinafter referred to as training providers. Vocational training through apprenticeship shall comprise theoretical training and practical training, in accordance with the provisions of Government Ordinance No. 129/2000, republished, as amended and supplemented, and, where appropriate, with the special laws governing that occupation.

The employer who concludes an apprenticeship contract, under the terms of this law, shall, on request, benefit, throughout the duration of the apprenticeship contract, of an amount of 470 euro per month, granted from the unemployment insurance budget within the limit of the funds allocated to this destination.

  1. Graduate trainees / Trainees – graduates of higher studies

The beneficiaries of Law no. 335/2013 are graduates of higher education who have a degree or equivalent and, at the start of the profession, are hired with an individual employment contract on a post according to the specialized qualification. The performance of the traineeship shall be carried out on the basis of the traineeship contract in an annex to the individual contract of employment.

The employer who concludes a traineeship contract, under the terms of this law, shall benefit, on request, for the entire duration of the apprenticeship contract, of an amount of 470 euro per month, granted from the unemployment insurance budget within the limit of the funds allocated to this destination.

 

  1. Pupils and students employed during the holidays

Employers who hire pupils and students during the holidays benefit from a monthly financial incentive equal to 50% of the value of the reference social indicator of unemployment insurance and the stimulation of the employment force.

The financial incentive shall be granted at the request of the employer from the unemployment insurance budget. The maximum period for granting the financial incentive provided shall be 60 working days in a calendar year.

Benefit from the monthly financial incentive provided by employers who, during the holidays established in accordance with the law, hire pupils and students on the basis of:

a) a fixed-term individual contract of employment equal to or less than the duration of the holiday, concluded under the terms of the law, on a full-time or, where appropriate, part-time;

b) a temporary employment contract, only if the duration of temporary work is equal to or less than the duration of the holiday.

 

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