When an employment contract may be suspended
Article 52(1)(c) of the Labour Code permits employer-initiated suspension where activity is temporarily interrupted or reduced for economic, technological, structural or similar reasons. The justification must be genuine and correspond to the measure taken.
Supporting documents may concern orders, projects, production capacity or temporary organisational changes. The affected activity should be identified and the selection of roles explained. Applying the same general wording to all employees without regard to their circumstances may create difficulties when lawfulness is reviewed.
Who pays the allowance and how it is calculated
Under the ordinary regime in Article 53, affected employees who cease working receive an allowance funded from the employer’s payroll. It cannot be lower than 75% of the basic salary for the position. The statutory reference is basic salary, not automatically total net income or previously awarded bonuses.
Contracts and other applicable documents should be reviewed for more favourable entitlements. The allowance is calculated for the period during which the measure applies and recorded appropriately in personnel and payroll records.
The ordinary rules do not, by themselves, entitle the company to reimbursement of the allowance by the state. Public support schemes require a separate legal basis and have their own conditions and periods of application.
Suspension means work stops for the employees concerned
Under Article 49, suspension stops work and salary payments, subject to specific statutory entitlements. Under Article 53(2), a temporarily laid-off employee remains available to resume work at the employer’s request. This availability does not justify requiring continued work while the contract is recorded as suspended.
The employer must formalise the measure, notify the affected employees and comply with record-keeping obligations. When activity resumes, the return date and updated contractual status should be clear to both parties.
Reducing the working week to four days
The Labour Code separately regulates temporary reductions in activity lasting more than 30 working days. Under Article 52(3), the employer may reduce the working week from five to four days, with a corresponding salary reduction, until the situation is resolved.
Prior consultation with the representative workplace trade union or employee representatives, as applicable, is required. This mechanism has a different regime from suspension with an allowance and is the exception expressly identified in Article 53(1).
Reviewing and challenging the measure
Employees may request their relevant documents and a review of the allowance calculation. For a challenge to suspension, the general deadline under Article 268(1)(a) is 45 calendar days from learning of the measure. Monetary claims require a separate assessment.
Murar și Asociații assists companies with assessing and documenting temporary staffing measures, and supports employees in reviewing entitlements and bringing employment claims.
Useful questions
Is there a general maximum duration for an ordinary temporary lay-off?
Articles 52(1)(c) and 53 do not set a universal maximum number of days. The measure must remain temporary and justified by the circumstances that prompted it; its lawfulness is assessed against the facts.
Can an employer replace temporary lay-off with compulsory unpaid leave?
Unpaid leave for personal reasons or study requires the parties’ agreement under Article 54. It cannot be imposed unilaterally to transfer the cost of a business interruption to the employee.
Legal sources
- Labour Code — Law No. 53/2003, consolidated version — Article 49, Article 52(1)(c) and (3), Articles 53–54, Article 268(1)(a)
This analysis provides general information by reference to the sources and date stated. Advice on a specific situation depends on the documents, applicable law and any transitional rules.