29 April 2024

Revised Obligations for Employers Terminating Employment Due to Medical Force Majeure from 1 April 2024

Starting 1 April 2024, employers terminating an employee’s contract due to medical force majeure will not be required to provide outplacement assistance. Instead, they must notify the National Institute for Sickness and Disability Insurance (NISDI) and contribute to the Back to Work Fund.

  1.  Elimination of Mandatory Outplacement AssistanceEmployers are no longer obligated to offer outplacement assistance when terminating an employment contract unilaterally due to medical force majeure, effective from 1 April 2024.
  2. Mandatory Notification to NISDIUpon such termination, employers must notify the NISDI, providing essential details including:
    • Employer Information: Name, Crossroads Bank for Enterprises (CBE) identification number, NSSO registration number, bank account details, and contact information.
    • Employee Information: Name, first name, national register number, and termination date of the employment contra
  3. Contribution to the Back to Work FundEmployers are required to make a one-time contribution of EUR 1,800 to the Back to Work Fund.
  4. Compliance DeadlineBoth the notification to NISDI and the contribution to the Back to Work Fund must be completed within 45 calendar days following the employment contract’s termination date. Notifications can be made via electronic or paper forms, followed by a payment invitation for the contribution.
  5. Penalties for Non-complianceFailure to meet these obligations will result in a Level 2 sanction under the Social Penal Code, which includes an administrative fine ranging from EUR 200 to EUR 2,000 or a criminal fine ranging from EUR 400 to EUR 4,000 for:
      • Failing to notify the NISDI with required data;
      • Missing the deadline or not following the specified procedures for notification;
      • Non-payment or late payment of the EUR 1,800 contribution to the Back to Work Fund;
      • Payment non-compliance as per the detailed rules of the Act and its implementing decrees.

    The fine amount will be multiplied by the number of employees terminated due to medical force majeure without fulfilling these requirements.

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