EMCC European Monitoring Centre on Change

Pre-redundancy counselling services - Law no. 76/2002 on unemployment benefit and employment stimulation

Romania
Phase: Management
Тип:
  • Advice
  • Matching/Networking
  • Training
Last modified: 17 July, 2020
Native name:

Servicii de preconcediere – Legea nr. 76/2002 privind sistemul asigurărilor pentru şomaj şi stimularea ocupării forţei de muncă

English name:

Pre-redundancy counselling services - Law no. 76/2002 on unemployment benefit and employment stimulation

Coverage/Eligibility

This instrument is available to employees who are to be made redundant, and to every person who is at risk of losing their job and requests this service (articles 51 and 52 of Law 76/2002). Although the law does not explicitly stipulate which category of employees is 'at risk of becoming unemployed', it is considered in principle that they are employees who received notice or are targeted for future restructuring.

These measures are effective prior dismissal. According to existing legislation, the employer has the obligation to inform the local employment service at least 30 days before notifying workers that they are to be made redundant.

Main characteristics

This pre-redundancy counselling service, which is regulated by law, involves the following:

  • information on legal provisions concerning the protection of the unemployed
  • information on the provision of employment and training services
  • placement on locally existing job vacancies
  • available training on job seeking
  • professional reorientation within the redundant company or through short-term training
  • canvass employees' opinion and advising them on measures to combat unemployment.

 

Funding

  • National funds

Involved actors

National government
The unemployment benefit budget provides financial support for the practical implementation of the measure.
Public employment services
Public employment agencies, as providers of pre-redundancy counselling services.

Effectiveness

According to the National Agency for Employment Activity Report for 2018, 4,372 people benefited from pre-redundancy services. Of these, 3,769 persons were trained on how to look for a job, 919 were directed to various measures to stimulate employment, and 2,853 were oriented to job vacancies.

The National Agency for Employment Activity Report for 2017, states that 2,811 people benefited from pre-redundancy services. Of these, 2,151 were trained on how to look for a job, 432 were directed to various measures to stimulate employment, and 996 were oriented to job vacancies.

Based on the data provided by the National Agency for Employment Activity Report for 2016, the budgetary execution for pre-redundancy assistance was RON 914,165 (about €197.000), although the total amount for this service increased by 103% towards 2015, reaching  RON 1,112,000 (€239,000). However, compared to the previous year, the report emphasises a decrease of the number of beneficiaries, as only 3,065 people were trained to search for employment and were orientated to job vacancies.

According to data from the 'Quarterly statistical bulletin on labour and social protection', no. 4/2015, during 2015, 4,217 people received pre-redundancy counselling services. Of these, 2,299 were trained on how to look for a job, 602 were directed to various measures to stimulate employment, 1,293 were oriented to job vacancies and the rest were distributed to other categories of services.

Overall, in 2015, the final budgetary provision for pre-redundancy counselling services reached RON 1,080,000 (approximately €239,250) from the expenditures financed from the unemployment insurance budget. Nonetheless, at the end of the year, the budgetary execution was about RON 888,019 (approximately €196,720).

The lack of employment opportunities at local level might reduce significantly the effectiveness of this instrument.

Strengths

The public employment agencies are notified 30 days before dismissal takes place; this provides an opportunity to avoid or minimise the effects of the dismissals at a local level. The employees have free access to public employment services before the dismissal takes place.

Weaknesses

The lack of employment opportunities at local level might reduce significantly the effectiveness of this instrument.

Examples

No information available.
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