Intro to our firm

Almost twenty years after Romania's accession to the EU, the law firm Hirsch Marinescu & Partners is still facing the clients’ major legal and economic challenges with the Team’s joint efforts.

After the economic crisis was felt in end of 2012, our focus went on to corporate restructuring and optimization, whilst the energy field went silent until recently.

First and foremost, the most recent legal norms in civil and insolvency laws represent a significant advancement in the Romanian legal system, but also in the energy and Renewables advancement was done by legislators which finally and fully opened the energy market in 2021.

Our constant challenge is to protect our clients' economic and financial interests to the greatest extent possible. Romania is still a country where investors can have a lot of success, in all business, but especially based on its energy sources which can generate profits for investors.

To achieve this success, a responsible and dependable consultant must oversee the situation. We will gladly serve as your consultant on all legal matters so that your investment becomes a success for all of us.

Time passed since we stepped into the lawyers’ market in 2006. The beginning of a success story to which we are grateful:

Romania was not yet a member of the EU when Monika moved here, and opened her first law firm. The first years had been very interesting for her, but also a challenge for the Team created. As a foreign lawyer, working with the courts and the authorities it was exciting every day and made it possible for the creation of a strong united Team. Even though the cases advanced were related to common general legal practice, everyday situations were treated differently. The legal system was changing dramatically, which altogether made the Team’s joint efforts to succeed at the end of each year.

Initially, we continuously incorporated companies or assisted our clients in taking over other companies, but also gave consultancy for properly developing the clients’ businesses with all Expertise we have. Later, during the heyday of renewable energy, we assisted clients in selling, buying, or establishing SPVs. The way things were developing in 2012, the practice opened by Monika needed a change. Change that created the Partnership between Hirsch & Marinescu, stepping forward with Raluca whom taken the Management and Monika overseeing the clients’ needs in Austria.

First and foremost, the most recent legal norms in civil and insolvency laws represent a significant advancement in the Romanian legal system. Also, we seen in the energy and Renewables fields an advancement done by legislators, whom finally opened the gas market in June 2020. After, given the electricity market was “said” to be completely opened in 2008, but only starting to eliminate the regulated prices in 2012. Thus, the electricity market was fully opened also for end consumers in January 2021.

Likewise, investors became curious (once more to Romania) and our services increased the portfolio with other projects of re-authorization and due diligence of old projects, previously not implemented due to lack of prevision. The lack of prevision we got to find was felt in two directions: financial - caused by impossibility of calculating the return of investments; but also, legal - caused by the incoherence of the lawmakers in maintaining the promises made for several years and constantly changing the law in respect of financial aid/taxes.

Monika and Raluca,
Partners of SCPA Hirsch Marinescu and Associates


Dear All,

With the occasion of this start of Business Year, our team from the Law Office SCPA Hirsch Marinescu & Partners wishes you a prosperous New Year and continue your Business in a smart way, by obtaining the needed consultancy.

Given the pandemics’ stop, we will continue our activity mainly, from home, as the new infrastructure created with the Military Ordinance 1/2020 permits our most efficient way of acting for our clients. With this, we are maintaining the commitment of continuing the assistance of our clients in the most dedicated way and are still open for new business for our potential clients.

Therefore, we are strong for the clients by keeping the dead times down, but openly meet whenever needed.

For urgent matters, please do not hesitate to contact Raluca Marinescu.

Recent articles:

Shift of taxes from employers to employees

Beginning with 01.01.2018 will enter into force the provisions of the Emergency Ordinance no.79/2017 for amendments and completion of Law No.227/2015 regarding the Fiscal Code, which changes the payment methods of the contributions.

The intention of the legislative body is to shift the payments of the social contributions, which were in the employees’ burden, but paid by the employer, to the employee.

Therefore, starting with 2018 year, the pension insurance and the health insurance contributions will be paid only by the employee, the employment insurance contribution will be paid only by the employer. The contribution for the solidarity fund will be paid solely by the employer, only if it has at least 50 employees and if it does not employ at least 4% disabled persons within its total number of employees.

In all cases, the employer will still be responsible for calculating, withholding and transferring contributions to the state.

This change will have a huge impact on the employee’s net salary because it can decrease up to 16 %, according to some calculations made by experts. On the other hand, given the shift of the contributions, the employer will see a positive impact.

Though, herewith the changes, the benefit of the employer is not really existing, as all the employers were already approached by the employees for future increases of the gross salary, in order to reach the same level of the net salary, as initially negotiated.

Below, you can find a comparison between 2017 and 2018 of the gross minimum salary at national level, in terms of the changes made by OUG 79/2017:

  Contributions in total in RON
  2017 2018
EMPLOYEE OBLIGATIONS Gross 1,450 Gross 1,900
Salary tax -16% 146 Salary tax  -10% 73
Pension contributions – (CAS) – 10.5% 152 Pension contributions – (CAS) – 25% 475
Health contributions fund – (CASS) – 5.5% 80 Health contributions fund – (CASS) – 10% 190
Unemployment fund – (CFS) – 0.5% 7   0
Total employee contributions 385   738
Net 1,065 Net 1,163
EMPLOYER OBLIGATIONS Pension contributions – (CAS) – 15.8% 229   0
Health contributions fund – (CASS) – 5.2% 75   0
Unemployment fund – (CFS) – 0.5% 7   0
CCI Vacation funds 12   0
Accidents fund 2 Contributions for insuring the work – 2,25% 43
Guarantee fund 4   0
Total employer’s contributions 329 Total employer’s contributions  43
Total contributions 714 Total contributions 780

 

In order to avoid a decrease in the current net salary, the Government imposed by another ordinance, namely GEO 82/2017, that each company should start the negotiations procedure net salary with its employees, until 20.12.2017. If there are any changes to the employment contracts following the negotiation, Considering the possible changes of the labor contracts, by following the negotiations, please bear in mind that there is a requirement for their registration in REVISAL, one day before the entry into force, and no later than 31 December 2017.

Please note the REVISAL registration is mandatory and in case not operated in due time (1 day before entering into force), fines between 5,000 and 8,000 RON can be applied by the controlling competent institution.

Therefore, although this procedure does not impose an obligation to raise the gross salary, so that the employee to earn the same net salary in 2018 as currently earning, we believe that employers should pay a higher salary, directly proportional to the loss which the employee will suffer by moving the contributions in his obligation, since for the employer the total cost of salary paid in 2018 will remain as it is today. Note that this change with the previous recommendation applies to wages higher than the minimum prescribed by law. Unfortunately, for employers who are currently offering the minimum wage, the changes brought by GEO 79/2017, according to experts, bring an increase of up to 6.6% in taxes due to the increase of the minimum wage on 01.01.2018 gross to 1.900 RON.

We recommend a good calculator of taxes, for comparison purposes whilst negotiations shall be finalized at this link.

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Author: Georgiana Lazăr, georgiana.lazar@nhp.ro
For further information on this aspect and any other questions related to this topic please feel free to contact: Mag. Georgiana Lazăr. (georgiana.lazar@nhp.ro)

Big producers of energy regain the electricity market in Romania

Producers of energy with an installed capacity of 125 MW are regaining the market

According to a recently issued Law 122 on 3rd of July 20151, regarding the new measures in the electricity field (hereinafter “Law 122/2015”) is again changing the possibility to enter on the market for big producers of energy, which develop an electricity power producing capacities of 125 MW or more, up to 250 MW (hereinafter “Big Producers”), do not need a separate individual approval of the European Commission, if attested by the Regulatory Authority in the field of energy.

In 2012, an Emergency Ordinance of the Government2 was issued according to the European Commission Decision 3, obliging the Big Producers to obtain separately from the European Commission an individual approval, after being licensed in Romania, for benefiting of the support scheme for the time-frame given in Law no. 220/2008 on the support scheme(maximum 15 years).

Therefore, starting with the application of Law no. 122/2015, respectively 6th of July 2015, for the Big Producers of energy is establishing that no separate approval is necessary any longer, and for the future accredited (licensed) producers of energy and for previously accredited (licensed) producers. Read more »

August 2015 Newsletter

  • Individuals Insolvency Law will come into force in December 2015
  • New deadline for the financial statements
  • Amendments to the Companies Law No. 31/1990 and Trade Register Law
  • The government wants to eliminate the stamp for companies and PFA
  • New tax breaks for SMEs
  • Support to micro and small enterprises in rural areas for the establishment and development of non-agricultural economic activities

Individuals Insolvency Law will come into force in December 2015

On 26th of June, 2015 Law no. 151/2015 on insolvency of individuals, an absolute novelty in the Romanian legal system, was published in the Official Gazette no. 464 of 26th of June 2015 and will come into force on December 26th.

The main purpose of the law is to grant a chance to those in good faith debtors to redress their financial situation through a debt repayment plan; the liquidation of assets or through the simplified procedure.

The procedure applies to those individuals who have their domicile, residence or usual residence for at least 6 months prior to the application in Romania; have total debts more than 15 minimum wages with a due date expired for more than 90 days; have no possibility to redress financial on their own in the next 12 month after their debts became due.

Read more »