PM Orban: We are trying to implement Kurzarbeit model; implementation period, clear criteria must be established

Prime Minister Ludovic Orban announced on Monday that the Kurzarbeit model is to be implemented in Romania, which provides for a flexible working schedule, but the setting out of an implementation period is necessary, as well as clear award criteria.

"This method to support employees and companies [the Kurzarbeit model] has a somewhat novelty nature in Romania and it was implemented in European countries, especially in Germany and it paid off. We, too, are trying to implement this flexible working schedule. We must establish the framework. At the European Union level, the Sure programme has been approved, designed to reimburse expenditures made by states for certain categories of active measures, but, especially, for Kurzarbeit-type measures. The idea itself is not very complicated. If a company's sales have reduced by a certain percentage, so as not to fire employees - with the appropriate percentage - it basically establishes a flexible working schedule for employees and the state pays the period of time not worked by the employees, corresponding to the reduction," the PM mentioned within the debate called "Romania is working! Flexibility and digitisation in the context of new trends on Romania's labour market!."

On the other hand, the PM underscored that clear criteria must be established to implement such a programme, so that companies which don't really need support measures don't resort to them.

"Certainly, the measure is enforced on a limited period, when a major disruption occurs on the market, such as the economic crisis generated by the COVID epidemic. Thus, we will have to establish an implementation period and we will have to think very carefully how to make this mechanism operational, so that, on the one hand, it can be as easy as possible, without complicated bureaucratic procedures. On the other hand, to provide very clear, very precise criteria for granting the aid to companies and employees, so there are no major issues in interpreting the manner in which it is implemented and to reduce, as much as possible, the possibility for some employers using this protection form without needing it or as an additional revenue resource, considering that they, theoretically, wouldn't need this measure," Orban mentioned.

The public debate is organsied by the Labour and Social Protection Ministry. The event is also attended by Deputy Prime Minister Raluca Turcan, Labour Minister Violeta Alexandru and presidential adviser Cosmin Marinescu.