Romanian Employers May Not Put Employees On Unpaid Leave During Periods Of Reduced Activity

The Romanian Government on Monday eliminated from the draft Labor Code a provision whereby companies which reduce or temporarily cease their activity may put their employees on unpaid leave, with the prior notice of the local union.

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The draft Labor Code approved by the Government Monday states that employers will be able to reduce working hours to 4 days per week, matched by an appropriate reduction in salaries, during periods of reduced activity longer than 30 days, caused by economic, technological, structural or similar factors, until the situation is resolved.

The draft Code sent to unionists last week stated that companies may put employees on unpaid leave if they reduce or halt their activity for 15 consecutive days due to economic factors.

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