Tax and Legal Alert PwC Moldova

Amendments to the Labour Code 21 August 2017 In brief The Parliament of the Republic of Moldova recently approved amendments and supplements to the Labour Code, covering rules on temporary labour interruption, technical unemployment (labour interruption due to technical reasons), guarantees and compensation granted to employees who combine work with studies, termination allowance, etc.

In detail entitled to receive full The restriction against remuneration for this period. summoning women on Unemployment due to If the employee causes the postnatal leave to work on rest technical reasons interruption, no remuneration days, non-working holidays is due. and on-going shifts, or The period of technical assigning them to unemployment (labour The rules described above are secondments has been interruption due to technical not applicable to technical eliminated. reasons) has been reduced unemployment. from six to four months. The Employees are now guaranteed Termination allowance related allowance has been the average salary during the reduced from 75% to 50% of New rules have been period that they undertake new the basic salary. implemented on granting production processes. allowance for termination due Temporary labour The requirement to include in to redundancy or in connection interruption the employment contract the with winding-up. provisions of the collective The concept of temporary As such, the termination bargaining agreement and of labour interruption is defined allowance is granted for each the internal regulations related as temporary impossibility to full year that the employee has to the working conditions for continue the production worked in the unit, but may the employees has been activity by a unit, by an eliminated. not be higher than six monthly internal subdivision thereof, by average salaries or lower than The employer is now exempt an employee or a group of an average monthly salary. from notifying the employee of employees, and which may be employment termination on for reasons not depending on Other amendments the last working day at the the employer or employees, The penalty to be paid by the latest, if the employee does not due to employer’s fault or the employer for each day of delay work until the termination day fault of the employee. to pay salary, leave and (absence from work, The employer must pay termination allowances or incarceration, etc.). remuneration in the amount of other payments due to the As of now, only employees at least 2/3 of the basic salary employee, has been increased enrolled in education at the per unit of time fixed for the from 0.1% to 0.3% of the due employer’s initiative can employee concerned, but not amount. benefit from reduced working less than the amount of the time, additional leave, with the The grounds for conclusion of minimum salary per unit of full or partial maintenance of fixed-term employment time, as set by the legislation in the average salary, and other contracts have been force, for each hour of incentives established by the supplemented with the period interruption. Government. of absence of an employee “for If the employer causes labour other reasons” (without being Under the collective bargaining agreement or the employment interruption, the employee is expressly indicated).

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contract, employees who have [Source: Law no. 157 dated 20 The takeaway signed up on their own July 2017 amending and initiative for higher education supplementing the Moldovan The new previsions are or enrolled in lower specialist Labour Code no. 154 dated 28 applicable as of 18 August institutions may have certain March 2003, Monitorul Oficial 2017. rights and guarantees granted. no. 301-315 (6224-6238) dated 18 August 2017]

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For a deeper discussion of how this new legislation might affect your business, please contact:

Mihaela Mitroi Ionut Sas Tatiana Stavinschi Partner Partner Senior Manager [email protected] [email protected] [email protected]

PricewaterhouseCoopers Moldova 37, Maria Cibotari Street Chisinau, Republic of Moldova Tel:+ (373 22) 25 17 00 Fax:+ (373 22) 23 81 20

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