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Foreign investors calling on Parliament, Gov't to clarify transfer of social security contributions

The Foreign Investors Council (FIC) is calling on Romania's Parliament and Government to clarify the situation of the transfer of social security contributions, arguing that at this point, it is not known what form of Emergency Ordinance (OUG) 79/2017 will clear Parliament or when the passage happens, according to a letter from the FIC addressed to the chairs of the Senate and the Chamber of Deputies, as well as to the prime minister and the minister of finance.

"We are writing on behalf of the Foreign Investors Council (FIC), an organisation that brings together companies whose turnover exceeds 180 billion lei and which employ nearly 200,000 people. We are sending you this letter because the employers we represent do not understand why the process of adopting by law the emergency ordinance regulating the transfer of social security contributions from the employers to the employees is not completed yet," reads the FIC letter.

They point out that that on October 31, 2017, FIC sent a similar letter to the Prime Minister in office at the time, Mihai Tudose, stating that the members of the association did not understand the economic arguments of this decision.

According to them, messages from the business community have been ignored. In the three months since implementation, reality has shown that the issues raised by employers have been grounded and even new ones have emerged.

"Now we are finding ourselves again in a situation that does not provide enough predictability and stability. Emergency Ordinance 79/2017, which came into force on January 1, 2018, has been discussed by the Senate and remained with the Chamber of Deputies, being unclear when and if they adopt or modify it. We can all imagine new amendments that could disturb the entire system of employment relationships and generate problems and costs with which employers cannot cope. The lack of clarity over the aim of the social security contribution transfer measure, as well as the lack of understanding of the impact for the different categories of employees, have precluded the implementation from being carried out uniformly by all employers in the private sector. Even in the public sector the application of this measure has had countless unpredictable effects."

They say they continue to disagree with the way the transfer has been regulated, but they want clear and predictable legislation to ensure medium-term stability, a guarantee that would be provided by the actual adoption of a law approved by Parliament and published in the Official Journal. That will ensure that employers continue to apply the measures introduced by OUG 79/2017 and FIC members will comply with the legal provisions. In addition, they will be able to effectively update their IT systems to address the bureaucratic problems in the long run generated by the new provisions and related costs.  

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