New extension of the prohibition of dismissals and suspensions

On September 24, 2020 the Emergency Decree No 761/2020 was published in the Official Gazette (the “Decree”) which extends for 60 more days the prohibition to dismiss employees without due cause and for he reasons of lack or decrease of work or force majeure.

At the same time, the Decree also extends the prohibition to suspend employees for the reasons of force majeure or lack or decrease of work for the term of 60 days. Suspensions performed in the terms of section 223 of the Employment Contracts Act are exempted from the prohibition. This is, those agreed individually or collectively or approved by the enforcement authority. 

The Decree is not applicable in the public sector nor to those employment contracts signed after its entry into force

The Decree makes it clear that those dismissals or suspensions performed in breach of its rules will be void and the employment relationships will be maintained under its current conditions.

We invite you to join our monthly newsletter