The Order of the Ministry of Employment (Labor Contract)

The law for amending and supplementing Law no. 16/2017 on posting the employees in the framework of the transnational provision of services, as well as the decree for its promulgation, was published in the Official Gazette. The most important amendments concern the following:

• The amendment of the definition of the employee posted from the Romanian territory, as the employee of an employer in Romania, who performs activities on the territory of another Member State/Swiss Confederation, for a period of maximum 24 months;
• Imposing employers the obligation to pay posted workers on/from the Romanian territory the remuneration (and not only the minimum wage), including the payment of overtime, regulated in the host Member State under both legal and administrative acts, as well as, if any, by collective agreements or arbitral awards which have been declared to be of general application.

Also, the changes include the following:

• The term remuneration applicable on the territory of a Member State other than Romania or the Swiss Confederation is the one established by the national law/national practices of the host Member State and includes all constituent elements of remuneration that are mandatory under laws and other normative acts, as well as, if any, in accordance with collective agreements or arbitral awards which have been declared of general application;
• The term remuneration applicable in Romania includes the minimum wage, the increment for overtime work, the increment for work on weekly rest days, the increment for work performed during the night, other increments and allowances that are mandatory according to the national legislation, as well as those provided in the collective labor agreements with general applicability;
• With respect to assignment-specific allowances, these will be considered part of the remuneration as long as they are not granted as reimbursement of expenses actually incurred for the assignment (i.e., transport, accommodation and meals);
• Also, the tax treatment applicable to the allowance specific to the transnational posting is clarified, being taxable the part that exceeds the threshold established by the Government Decision no. 582/2015, multiplied by 2.5.