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Emergency Ordinance for citizens’ rights protection

In this issue:

Emergency Ordinance for citizens’ rights protection in case of BREXIT without an agreement with the European Union

To mitigate the adverse implications that might derive from the context of the exit of the United Kingdom of Great Britain and Northern Ireland from the European Union without agreement, the Romanian Government published on November 20, 2019, the Emergency Ordinance no. 70/13 November 2019 on some measures to protect the rights of citizens.

The measures aim to clarify important topics to ensure the continuity of rights acquired by British citizens in Romania. The document deals with the hottest topics in the context of a Brexit without agreement, such as right of residence, access to the labour market, ownership of land, social security and, last but not least, access to education.

The most significant provisions are as follows:

  • The introduction of new categories of citizens with special status, called "persons with BREXIT status" and "persons with post-BREXIT status";
  • The introduction of a transition period, until the end of 2020, during which time the right of residence obtained by British citizens and their family members in Romania is recognized. During this transition period, citizens with BREXIT and post-BREXIT status who desire to continue living in Romania after 31 December 2020 will have to regulate their status in Romania, by obtaining a new residence permit for non-EU citizens;
  • Citizens with BREXIT and post-BREXIT status will continue to have free and unconditioned access, according to the law, to the Romanian labour market;
  • The persons who exercised their right to free movement within the European Union before the exit date, will maintain their social security rights by continuing to apply Regulation (EC) no. 883/2004 on the coordination of social security systems. After the exit date, special provisions that are currently being finalized will be in force;
  • It is recommended to carefully analyse (and on a case-by-case basis) the rights to social security benefits in Romania after the exit date, given that different legislative norms will apply for the social security rights depending on the status (e.g. BREXIT/post-BREXIT) and type of the social benefit concerned (e.g. state allowances for children, child benefits, unemployment insurance, pensions, health insurance);
  • From the first day after the exit date, the A1 and S1 certificates issued on behalf of British citizens sent to Romania are no longer valid and they will be covered by the Romanian social security legislation;
  • Same changes apply to Romanian citizens that are currently on assignment in United Kingdom, meaning the A1 and S1 certificates issued by the Romanian authorities will no longer be valid, thus they will be covered by the social security legislation of the United Kingdom of Great Britain and Northern Ireland.

Feel free to reach out to us should you like to receive detailed information on the legal changes brought by this normative act as well as its applicability to your business.

Also, EY can assist you with tailoring advices on how to comply with the legal requirements provided by this Ordinance (either for you as a natural personal, for your employees, or for the Company you represent).

For more information or details on the above you may consult the Official Gazette no. 933/20 November 2019 or you could contact us directly in order to clarify any other questions.

Prepared by:
Claudia Sofianu, Partner – People Advisory Services
For additional information, please contact:
Alex Milcev – Partner, Head of Tax&Legal

Ernst & Young SRL

Bucharest Tower Center Building,

22nd Floor, 15-17 Ion Mihalache Blvd.,

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

Email: office@ro.ey.com

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