Ooops! No-No to Day-Laborers
The last minute piece of legislation that our government passed last year marked a direct hit on quasi-all industries using day-labor as an important part of their operation model. We refer to the Urgency Ordinance 114/2018 (published and in force since 29 December 2018) which enacts certain legislation sweeping over a wide range of social and economic aspects including public investments, fiscal and budget matters, social/labor matters and extension of some terms/deadlines.
Its article 65 brings forth some modifications of the Law no. 52/2011 (as modified) which deals with the use of day-labor (Rom. Zilieri) for activities requiring occasional / seasonal work. The main such modifications place new limitations on the possibilities of employers to use such category of workers, i.e.: (a) day labor (whether qualified or unqualified) can extend over an aggregate period of maximum 120 days per year irrespective of the number of employers; (b) continuous day labor for one employer can be of maximum 25 calendar days; and (c) unqualified day labor can be used only for the following three categories of activities – (i) agriculture, hunting and related services; (ii) forestry, excepting forest exploitation; and (iii) fishing and aquaculture.
Needless to point out that many industries heavily relying on day laborers for low or no qualification and occasional-seasonal jobs and which don’t fall into the (i)-(iii) categories of above will take the hit of their lifetime, many of which are now grasping for survival.
Mind y’all – this is not something to be taken easily: inspectors of the Labor Inspectorates are already on the hunt. First in their target zone are actors in the HoReCa and publicity/advertising businesses.
Over the following months, we expect that many such small tax optimization windows which have been open for some time will gradually be shut, while the government strives to maintain an appearance of general fiscal relaxation.