On 4 August 2017, the Government issued the Emergency Ordinance no. 53/2017 (hereinafter “the Ordinance”) which is applicable from 7 August 2017. The Ordinance aggravates the conditions and the consequences of undeclared work.

According to the amended Labour Code, the following additional situations are considered to be undeclared work: allowing the employee to work during the period when the individual employment agreement is suspended (e.g. the employee is on medical leave) and allowing the part-time employee to work outside the established working hours.

Moreover, the employer has the obligation to keep at the workplace a copy of the individual employment agreement, as well as the records of the working-time provided by each employee on a daily basis, by highlighting the starting and ending hours of the working programme.

Another change stipulated by the Ordinance resides in the obligation to conclude the addendum to the employment agreement amending the essential conditions of work before the entry in effect of the modifications. Furthermore, the Government aggravated the sanctions provided by the law in case of undeclared work, but at the same time, it permits the contravener to pay half of the applied fine within 48 hours.

Maybe one of the most important new provisions adopted by the Government refers to the possibility of the labour inspector to apply, as a complementary sanction, the ceasing of the activity of the employer at the verified workplace, in case of deficiencies. The activity may be resumed only after the employer pays the fine and remedies the deficiencies that led to the ceasing of the activity (e.g. concluding the employment agreement, the registration of the employment agreement with the General Registry of the Employees etc.).

Conclusions: Due to the high fines we recommend adapting the internal procedures in order to meet the new legal requirements.