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Natalia Plugaru announces a ‘revolutionary’ initiative

The draft law on the establishment of the Wage Claims Guarantee Fund in the event of an employer’s insolvency has been referred to parliamentary committees for consideration. The new mechanism will enable employees to recover outstanding wages even if the employer is unable to pay them, without having to wait for legal proceedings to be concluded.
Svetlana Rudenco Svetlana Rudenco Reading time: 2 minutes
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Natalia Plugaru

Natalia Plugaru

The Minister for Labour and Social Protection, Natalia Plugaru, described the initiative as revolutionary for employees. The statement was made at the annual conference on the enlargement of the European Union.

“Until now, in the Republic of Moldova we have not had such a fund to guarantee wage claims for all those who will be affected in such situations. It is a European directive which stipulates that, when companies become insolvent, the state or government must create the conditions for employees to receive their outstanding wages, without having to rely on legal proceedings against these companies. It is not exactly a straightforward directive. It has already been transposed, the draft has been referred to the committees, and the next step is its approval,” said Natalia Plugaru.

As previously reported by Logos Press, the fund is intended to cover wage arrears for a period of up to three months, including the relevant taxes, compensation for unused holiday leave and unpaid severance pay upon termination of employment.

The draft also sets limits on the payments to be made. The maximum amount could be equivalent to three times the average monthly wage across the economy for the year preceding the court ruling on the employer’s insolvency, or it could be set at 50,000 lei.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.


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