Economic Crisis Justifies Postponing Payment Of Court-Won Wage Rights – Romanian Constitutional Court

On May 25, the Constitutional Court ruled constitutional a provision of a Government emergency ordinance regarding the payment of salary rights won in court by public sector employees, whereby foreclosure procedures against the state are cancelled during the three stages set to pay salary rights.

The Constitutional Court rejected the challenges submitted against Government Emergency Ordinance no. 71/2009, which says foreclosure procedures are cancelled during the three stages set for the disbursement of salary rights.

The court also disallowed the challenge filed by the Ombudsman against two articles of Government Emergency Ordinance no.18/2010, which stipulate that salary rights won in court will be paid in three yearly installments, starting 2010 and ending 2014.

The Romanian Government had previously argued that the payments must be postponed because of the heavy toll they would take on the 2009 state budget. The Court’s ruling sanctioned the Executive’s decision and explained that „the emergency Ordinance was adopted in order to mitigate the effects of a generalized state of economic crisis.”

According to the magistrates, in order to preserve the stability of the state budget, the Government had no alternative but to issue an emergency ordinance. The Government acted in observance of article 115, section 4, of the Romanian Constitution. However, the Court’s argument highlights that this temporary measure is warranted by the current extraordinary circumstances, adding that the Cabinet should not abusively employ such methods in the future.