Law Firm Adela Diaconescu - PAYROLL ISSUES
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PAYROLL ISSUES
LABOUR
BOOK
Each
employee has a Labour Book, a fact specific to Romania (the Labour
Book will be replaced starting 01.01.2007 with the Employee Ledger
to be drawn, filled and kept by the Employer).
The
Labour Book contains basic information about the Employer (that
can be a company, a Representative Office, a branch of a foreign
company or a natural person) and a history of the career of the
employee. The Labour Book shows the salary history and the positions
occupied by that person, based on the labour contracts of each employee.
Labour Books can stay at the company head office or at the Labour
Chamber. The Labour Chamber (www.itmbucuresti.ro) is a State institution
responsible for the registration of labour contracts and the monitoring
of salary taxes payments.
Labour
Books are the basis of the calculation of the retirement payments
of the employees. This is why keeping in safety the Labour Books
is a must (if a Labour Book is lost, it must be reconstituted by
going to each former Employer of the employee and searching each
monthly payroll).
ROMANIAN
LABOUR CODE IN FORCE
The
Romanian Labour Code in force (Law no. 53/2003) stipulates that
whenever an employee is hired, a written labour contract between
both parties must be issued.
The
shape of the labour contract must respect the standard legal shape,
as required by the Law. The labour contract must be drawn and signed
in its Romanian version and registered at the Labour Chamber in
three original copies – a copy will remain at the Labour Chamber,
another copy will remain at the employee, and the last copy will
remain in the company’s file.
The
Labour Code also settles the main features of the labour relations,
by stipulating, among other issues, the following:
The
procedure of concluding, modifying and cancelling labour contracts;
Full time and part time labour contracts;
Obligations and duties of the Employer and of the Employee;
Companies specialized in offering the services of its employees
to another companies (“leasing of personnel”);
Labour hours (maximum 40 hours/week);
Supplementary labour hours (maximum 8 hours/week);
Holiday period (minimum 20 days/year);
Notice period: the Employer must give the Employee a minimum 15
working days notice when dismissing him/her; the Employee must give
the Employer a minimum 15 calendar days notice when resigning;
Fund of salary payment guarantee;
Protection of health and labour security;
Professional training;
Trade unions: obligations and duties;
Collective Labour Contract;
Work conflicts (strike);
Work Inspection (the State institution that verifies the respect
of labour Laws).
TAX
EXEMPTION ON SALARIES
Employees
working for software production companies are exempt from income
tax if the following conditions are met:
They work as an analyst, programmer, IT system designer, IT system
engineer, database administrator, software engineer or IT project
manager;
They belong to the computer department of the company;
They have a degree from a recognised university with one of the
following specialisations: Automatics and Industrial Informatics,
Computers, Electric Engineering and Computers, Electronics, Applied
electronics, Electronics and Telecommunications, Communications,
Math and Informatics-Math, Informatics, Economic Informatics and
Applied Informatics;
The employer obtains a yearly income of at least 10,000 USD from
software production for each employee who benefits from tax exemption.
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