Payback clause

PDF Version
Name of the instrument - Local language
Recuperarea cheltuielilor de formare
Name of the instrument - English translation
Payback clause
Scheme ID
189
Country
Romania
Reporting year
2020
Type of instrument
Payback clause
Sub-type of instrument
Payback clauses are possible with no explicit limitations
Type of entry
Single instrument
Short description

Employers and employees can agree on a payback clause. The Labour Code gives a broad framework (e.g. stating a minimum length of 60 days for education and training activities to be regulated under a clause). When employees do not comply with the contractual retention period stipulated in an individual addendum to the individual employment contract, benefits received during participation in the training/educational programme subject to the addendum are to be reimbursed, together with all related costs encountered by the employer, according to a formula stipulated in the addendum and respecting limits introduced by collective agreements at company or sector level. The maximum amount for training costs under this regulation is RON 1 000 (approx. EUR 209).

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Further instrument
Government Ordinance 129/2000, art. 38; Law 53/2003 Labour Code, art. 198
Objective(s) and target(s)
Main objectives: a) adapting the employee to the requirements of the job or the workplace; b) obtaining a professional qualification; c) updating the knowledge and skills specific to the job and the job and improving the professional training for the basic occupation; d) professional reconversion determined by socio-economic restructuring; e) the acquisition of advanced knowledge, of some modern methods and procedures, necessary for the accomplishment of the professional activities; f) prevention of unemployment risk; g) promotion in work and professional career development.
Year of implementation
2000
Operation/management
Payback clause applies to employees receiving benefits from the employer when participating in a training/educational programme, according to individual negotiations finalised in signing an addendum to the individual employment contract. The obligations in the addendum are also applied in case the employee is dismissed within the agreed period, due to disciplinary reasons, or due to preventive custody for more than 60 days, after the final judicial conviction for a criminal offence related to their work, or when the exercise of the profession is temporarily or permanently prohibited by decision of the a criminal court. Collective agreements at company or sectoral level may put limits to the negotiation. Trade unions or employees' representatives are to be consulted in the process.
Eligible group(s)
All employers
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Any types
Source of financing and collection mechanism
Employer funds training, employee provides (partial) repayment eligible training costs in case of premature depature from the company
Financing formula and allocation mechanisms
When employees do not comply with the contractual retention period stipulated in an individual addendum to the individual employment contract, benefits received during participation in the training/educational programme subject to the addendum are to be reimbursed, together with all related costs encountered by the employer, according to a formula stipulated in the addendum and respecting limits introduced by collective agreements at company or sector level. The maximum amount for training costs under this regulation is RON 1 000 (approx. EUR 209).
Eligible costs
Tuition fees/fees for participation (external providers), costs for training materials (e.g. books), travel costs, accommodation costs, meal costs or daily allowance for subsistence, opportunity costs (i.e. lost productivity / foregone income/wages)
Volumes of funding
The most recent available study was produced in 2015, by the National Institute for Statistics. In 2015, the share of companies who provided continuing vocational training (CVT) to employees was 26.7%, registering an increase compared to 2010, when 24.1% of enterprises had implemented such programs for their employees.
Beneficiaries/take up
Not applicable
Organisation responsible for monitoring/evaluation
Not applicable
Monitoring/evaluation reports available
Not available
Most relevant webpage - in English
Not available
Most relevant webpage - local language
Not available
Recent changes

No recent amendment

Recent changes in response to COVID-19

No changes

Sources
National Qualificaton Authority: Ordonanta Guvernului nr. 129/2000 privind formarea profesionala a adultilor, republicat? in 2002 (Government Ordinance no. 129/2000 on adult vocational training, republished in 2002) - http://www.cnfpa.ro/Files/Legislatie/OG129%20republicata.pdf
Inspectia muncii:Legea nr. 53/2003 - Codul Muncii (Law no. 53/2003 Labour Code) http://www.inspectiamuncii.ro/ghid/legislatie/2003.l.53.pdf
Ministry of Labour: Legea nr. 53/2003 - Codul Muncii, republicat in 2020 (Law no. 53/2003 Labour Code, republished in 2020) - https://www.codulmuncii.ro/titlul_6_1.html
Labour Inspection: Raport de activitate 2019 (Activity report 2013) - https://www.inspectiamuncii.ro/raport-anual-al-activitatii-inspectiei-m…
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