Gov’t prepares draft law to compel private companies not to cut salaries

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Minister of Finances announced on Tuesday that the government is planning draft law to compel private companies to increase their employees’ gross salary so that they should also include the contributions that the rulers intend to transfer from the employer to the employee. Minister Ionut Misa made the statement in the Senate’s economy committee.

“A transitory norm will be introduced to clearly establish that the gross salary will include the employer’s fiscal burden and to set a threshold to limit the employer’s possibility to cut wages of his employees,” minister Misa stated.

He explained that a transitory action will be enforced “that will practically compel the employer, even the one operating in the private environment, to maintain a certain level of the gross salary”.

“The gross salary will be practically the sum of all the other fiscal burdens that an employer is paying for the employee. The employer will not pay extra money for the employee”, he explained.

“The state has the right to set some fiscal rules and principles”, the minister added.

However, economy experts argue that private companies cannot be compelled by law to transfer these sums of money in the employee’s gross salary, as it is against the Constitution to interfere in private labour contracts.

Tax adviser Emilian Duca said that the Government cannot interfere in a labour contract closed between the employer and the employee in order to compel the employer to rise wages.

Duca told Mediafax that the Government would thus want to guarantee that the net salary is kept at least at the same level as so far, after the social contributions are transferred from the employer to the employee. In his view, this is possible only by amending the labour contract so that the gross pay should not be the employer’s cost anymore and by amending the definition of the gross salary.

In his turn, economy professor Cristian Paun voiced a similar stance on this issue. “The problem is you cannot interfere in private contracts. You are breaking constitutional provisions. The contract is the law of the parties in a free market economy and there are a lot of restrictions as public entity,” he told Digi 24.

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