Integration of people with disabilities into Romania's labor market. What companies need to know.

Integration of people with disabilities into Romania's labor market. What companies need to know.

Integrating people with disabilities into the labour market is essential for developing their skills and qualifications, but also for ensuring equal opportunities, increasing social inclusion and providing a decent standard of living in the long run.

At European level, only in 2019 people with disabilities were 24.4% less likely to be employed than people without disabilities, and only 50.8% of them had a job. In Romania, according to data from the National Authority for the Rights of Persons with Disabilities, Children and Adoptions (ANDPDCA), on 30 June 2021 the total number of people with disabilities was 861,016, a figure that has been increasing every year. Of these, 52.87% are between 18 and 64 years old.

People with disabilities should be guaranteed the fundamental right to work under the same conditions as people without disabilities – a right laid down in Article 27 of the UN Convention on the Rights of Persons with Disabilities (CRPD).

To encourage companies to hire people with disabilities, the Romanian state grants employers 2,250 lei for each employee with disabilities for a period of 12 months, provided that the employment relationship is maintained for at least 18 months.

Nevertheless, according to a 2020 diagnosis of the situation of persons with disabilities in Romania prepared by ANDPDCA with the World Bank’s support, the employment rate of people with disabilities in Romania is much lower than that of people without disabilities and below the EU average.

In Romania, while 74% of people aged 20–64 without limitations are in employment, only 51% of those with some limitations work, and the proportion drops dramatically to just 12% for people with severe limitations, remaining almost constant between 2010 and 2018.

“According to Law no. 448/2006 on the protection and promotion of the rights of persons with disabilities, public authorities and institutions, as well as public or private legal entities with at least 50 employees, are required to employ persons with disabilities in a proportion of at least 4% of the total number of employees.”

explained Luminița Obaciu, Senior Payroll Partner, Soter & Partners

Even so, in 2018 some of the most important state institutions did not employ any people with disabilities – among them the Ministry of Finance, the Ministry of Environment, the Ministry of Energy, the Ministry of Culture or the Ministry of Communications.

“If state institutions or private companies do not employ people with disabilities, they must pay monthly to the state budget an amount equal to the gross minimum wage multiplied by the number of jobs not filled by persons with disabilities.”

explained Luminița Obaciu, Senior Payroll Partner, Soter & Partners

When a person with disabilities is hired, whether in a public or private institution, certain legal provisions from the Labour Code and Law 448/2006 must be observed and implemented – for example those concerning the probation period, annual leave, notice period or income tax treatment.

“When hiring a person with disabilities, it is important to consider both the specific provisions in the Labour Code and those regulated by Law 448/2006. One particular aspect refers to the probation period that can be set when concluding an individual employment contract with a person with disabilities. Analysing the legislation, we notice that the two acts contain contradictory provisions: the Labour Code sets a maximum probation period of 30 calendar days, while Law 448/2006 sets a minimum of 45 working days. In this situation, Law 448/2006 prevails, so the probation period for a person with disabilities hired on an open-ended contract is at least 45 working days, not a maximum of 30 calendar days. As far as annual leave is concerned, people with disabilities benefit from at least three additional working days. The notice period in case of dismissal is also different: employees with disabilities are entitled to a paid notice period of at least 30 working days if the contract is terminated for reasons not attributable to them, compared to the minimum 20 working days provided by the Labour Code for other employees. Another important provision in the Fiscal Code concerns the tax treatment of salary income earned by persons with disabilities: people with medium or severe disabilities are exempt from paying income tax.”

explained Luminița Obaciu, Senior Payroll Partner, Soter & Partners

At the moment, persons with disabilities remain an underused labour resource in Romania, as shown by official data, even though state institutions and private companies with at least 50 employees are legally required to hire them.

To make progress, both the private sector and the state need to comply with the legal requirements and thus facilitate the integration of people with disabilities into the labour market, helping them improve their professional skills and secure a decent living.