Business Continuity Planning: 2019 Novel Coronavirus

Business Continuity Planning
2019 novel coronavirus
March 2020
www.kpmg.ro
Foreword
This document is a guide on business continuity

planning for KPMG in Romania & Moldova, to help the
firm deal with the coronavirus (2019-nCoV) outbreak.
This guide should be read in conjunction with the latest

relevant advisories issued by the Ministry of Health and
other government agencies in Romania and Moldova.
The spread of COVID-19 and the significant escalation

through Europe justifies contingency planning within
our organization.
We need to focus on implementing measures to

minimize disruption to our operations and support the
wellbeing of our people. Even though there are many
organization which already have a business continuity
plan in place, in the context of COVID-19, business
continuance is the objective – making the safety of our
people the first priority.
Task Force Management Team Task Force Manager

Ramona Jurubita Gabriel Tanase Maria Pop
Country Managing Partner Partner & CIO HR Specialist
[email protected] [email protected] [email protected]
Cezar Furtuna Maria Stancu

Partner Director Marketing
[email protected] [email protected]
Rene Schob Antonela Ghinda

Partner CFO & COO
Richard Perrin Simona Podgoreanu

Partner Director HR
Please refer to the above contact details if you have any questions on the matters highlighted in this guide.
Introduction
The objective of this guide is to ensure the business continuity of KPMG in

Romania & Moldova in response to the novel corona virus (nCoV).
It covers the following key business operational KPMG in Romania& Moldova nominated a “task
risks: force management team” which will to focus on
a. Human resources and communication identifying critical business functions and critical
(internal and external) employee groups.
b. Processes and business functions The “task force management team” will address
certain key questions:
c. Client service
• Where are my employees? Are they safe?
d. Communications, both internal and external
• Can they operate effectively from their
This guide helps us with the following:
current location?
a. To minimise the health risk to employees
• Do we have the necessary remote working
b. To minimise the risk of premises becoming a infrastructure, policies and mechanisms to be
node of transmission compliant?
c. To ensure plans are in place should • What actions do we need to take to protect
employees be quarantined or infected business and cashflow
d. To ensure alternative arrangements so that
business operations can continue
On the other hand, the business continuity plan should focus on:
1. Human resources and communication (internal and external)
• Are the employees familiar with the business continuity plans and how can we, as an organization,
ensure they comply with it during this period?
• What’s the possible impact of employees’ absences?
• Encourage flexible work arrangements? – Teleworking, work-from home?
• Limit travelling abroad?
• Who communicates to disseminate the information within the organization and customers?
2. Processes and business function
• Do we need to quantify the financial management implications due to COVID-19?
• What are the critical functions and categories of employees for the organization?
• Do we have reliable systems which allow flexible work arrangements?
3. Client service
• Do we need to consider the circumstances under which we might need to suspend operations due to
COVID-19?
• To what extent are our customers dependent on our business?
• Do we need to limit in-person meetings?
4. Communications, both internal and external
• Engage with Partners and staff regularly on the subject and keep them closely informed.
• Provide very specific personal health and safety instructions for all staff; employees should have a
clear understanding of their roles and responsibilities before the virus outbreak occurs. For example,
employees are informed of the business continuity plans (BCP) measures that will impact them and be
kept updated on the policies and progress on the measures to be implemented by the company in the
event of a virus outbreak.
• We will identify the relevant stakeholders such as suppliers, service providers and customers, and key
messages will be sent for each stakeholder group
• Digital marketing capabilities and CRM need to be ready to allow staying in touch with clients. Expect
the majority of in-person events to be cancelled
Annex 1
Roles and responsibilities of the Task Force Manager
Actively monitor development of the virus outbreak and work with the Task Force Management Team to
disseminate messages to employees with clear instructions when measures need to be activated
Educate employees on the latest available information on the virus. Brief them on the need for infection control
measures and the preventive procedures that have been set in place. Educate employees on the different types
of thermometers, such as oral and ear thermometer, and the proper way of using them;
Collate updated contact information of all employees, i.e. home address/home telephone number/ mobile phone
number. Make sure all employees have contact numbers of the Task Force Manager. Employees are to contact
the Task Force Manager if they are admitted to hospital with suspected infections for contact tracing purposes
Ensure that employees who have travelled to affected areas are quarantined for 14 days. Check on employee’s
health by phone or email during his/her absence from work
Brief employees on personal hygiene measures:
- Do not spit on the floor/ in the garbage can
- Wash hands
- Regularly and thoroughly with soap and water
- Before and after preparing food
- After going to the toilet
- Before and after eating
- After coughing and sneezing
- After removing personal protective equipment like mask and disposable gloves
- Sneezing and coughing should be done onto tissue paper which should be carefully disposed of.
- Avoid sharing of cups, cutlery, etc.
- Avoid physical contact such as shaking hands
Put up notices in washrooms on proper hand washing techniques
Ensure common areas e.g. pantries, washrooms, meeting rooms are disinfected daily.
Liaise with cleaning employees/contractors on this
Designate a room/area in the office with nearby toilet facilities as the isolation room/area for the employee(s)
with fever to use. Identify the isolation route (a route that is not commonly used by employees/visitors) that leads
to an area where the employees with fever can be brought to the flu clinic/hospital
Identify hospital/clinics that employees with fever can be brought to

Annex 2
Personal hygiene awareness
1. Cover your mouth when coughing or sneezing 7. Follow these 8 simple steps to keep your hands
clean:
2. Maintain good indoor ventilation
a. Palm to palm
3. Avoid sharing food, crockery, utensils and other
personal hygiene items b. Between fingers
4. Avoid physical contact such as shaking hands and c. Back of hands

avoid touching your face or rubbing your eyes
d. Base of thumbs
5. Maintain good personal hygiene, including hand
washing with soap and water, or the use of e. Back of fingers
alcohol-based hand rubs
f. Fingernails
6. Proper hand washing requires soap and water.
The constant rubbing action helps soap break g. Wrists
down the grease and dirt that carry most germs.
Washing your hands for at least 15 to 30 seconds h. Rinse and wipe dry
with soap and water does not just make your
hands smell fresh but also reduces germ count by
up to 99%
Annex 3
Disinfection
Disinfection corner
corner
Coronavirus
Stay healthy while travelling!

Avoid shaking hands during the current
COVID-19 outbreak
When coughing and sneezing

cover mouth and nose with flexed elbow or tissue
throw tissue away immediately and wash hands
Avoid touching eyes, nose and mouth
If you choose to wear a face mask, be sure to

cover mouth and nose - avoid
touching the mask once it’s on
Immediately discard
single-use masks after each use and
wash hands after removing masks
Wash hands and disinfect equipment and

the working area
at least once a day
If you seek medical attention,

share travel history with your
health care provider
Annex 4
Example of Health Screening Form for Visitors

information you could use the following link: https://www.who.int/emergencies/diseases/novel-coronavirus-2019
** By “affected countries” we mean the countries listed by the World Health Organization where coronavirus cases where reported. To check this
* Please Data Privacy Note on the back.
Dear Sir / Madam,

Date
To prevent the spread of novel coronavirus (nCoV) in our community and reduce the risk of exposure
Signature (visitor)
to our staff and visitors, we are conducting a simple questionnaire. Your participation is important to
If yes, please indicate the affected country(s)
help us take precautionary measures to protect you and everyone in this building.
Thank you for your time.
NO YES NO YES
Visitor Name
countries** in the past 14 days? Personal contact number
coronavirus (nCoV) patient in the past 14 days?
3. Have you been to mainland China or affected 2. Have you been in contact with a conﬁrmed novel
Others similar symptoms
breath Tiredness Runny nose Sore throat

Visit purpose / department to visit
Shortness of
Headaches Body aches Dry cough Fever
1. If you have the following symptom(s), please tick the relevant box(es):
Self-declaration Statement by visitors*
Self-declaration Statement by visitors*
1. If you have the following symptom(s), please tick the relevant box(es):
Fever Dry cough Body aches Headaches

Visit purpose / department to visit
Shortness of
Sore throat Runny nose Tiredness breath
Others similar symptoms
2. Have you been in contact with a conﬁrmed novel 3. Have you been to mainland China or affected
coronavirus (nCoV) patient in the past 14 days?
Personal contact number countries** in the past 14 days?
Visitor Name
YES NO YES NO
Thank you for your time.
help us take precautionary measures to protect you and everyone in this building.
If yes, please indicate the affected country(s)
to our staff and visitors, we are conducting a simple questionnaire. Your participation is important to
Signature (visitor)
To prevent the spread of novel coronavirus (nCoV) in our community and reduce the risk of exposure
Date
Dear Sir / Madam,
* Please Data Privacy Note on the back.
** By “affected countries” we mean the countries listed by the World Health Organization where coronavirus cases where reported. To check this
information you could use the following link: https://www.who.int/emergencies/diseases/novel-coronavirus-2019
Annex 4
Example of Health Screening Form for Visitors
DATA PRIVACY NOTICE
DATA CONTROLLER
The personal data will be collected by KPMG entities and affiliates (hereinafter referred to as
mail address: [email protected].
“KPMG”) as described in the Privacy Policy published on the website
For any information regarding the protection of the Personal Data you may contact us using the e-
https://home.kpmg/ro/en/home.html.
Processing (www.dataprotection.ro).
PURPOSES AND LEGAL BASIS
You also have the right to file a complaint with the National Supervisory Authority for Personal Data
We collect the information requested in this form for the prevention and control against the out-
break of the new coronavirus (Covid-19) and for implementing the necessary measures in order to
restriction of processing or object to processing as well as the right to portability.
protect anyone who accesses our premises from exposure in the workplace.
formation notice, you have the right to request access to, rectification or erasure of personal data,
To the extent that these rights are compatible with the processing activities described in this in-
The legal basis for this processing activity consists of: (1) protection of the vital interests of the
RIGHTS OF DATA SUBJETCS
data subject or of another natural person, according to art. 9 par. 2 letter i) of Regulation (EU)
2016/679 corroborated with 9 par. 3. and (2) the Romanian Labour Code and the legislation on
safety and health at work.
fulfillment of the purpose all collected personal data collected for this purpose shall be destroyed.
set out above, in safety, in accordance with our internal retention and data security policies. Upon
Generally, personal data collected will be stored for the period necessary to fulfill the purposes
DISCLOSURE OF DATA
RETENTION PERIOD
Our policy is not to disclose personal data to third parties. However, depending on the evolution of
the coronavirus outbreak, we may need to share your data to public authorities or medical institu-
tions to the extent that such obligations will be imposed to us by official documents or by law.
nomic Area (EEA).
As a general rule, your data will not be transferred outside the European Union / European Eco-
DATA TRANSFER
DATA TRANSFER
nomic Area (EEA).
RETENTION PERIOD
DISCLOSURE OF DATA
DATA CONTROLLER
DATA PRIVACY NOTICE

Annex 5
Annex 3F
Notification Form
Notification Form
Name: Personal contact number:
Department Worksite:
Job Title:
Date and Time of recording:
Self-declaration Statement*
1 If you have the following symptom(s), please tick the relevant box(es)
Fever Dry cough Body aches Headaches
Sore throat Runny nose Tiredness Shortness of breath
Other similar symptoms
2. Date and Time of fever onset:
Travel History over the last 14 days:
Countries visited:
Other useful information concerning your potential exposure to coronavirus (COVID-19):
___________________________________________________________________.
I declare also that I am not aware of any other facts that could have potentially exposed me to a
coronavirus infection.
I give this Statement knowing that false are sanctioned in accordance with the law.
Signature: Date:
*Please see on the back the Data Privacy Notice.

Annex 5
Notification Form
DATA PRIVACY NOTICE
DATA CONTROLLER
DISCLOSURE OF DATA
RETENTION PERIOD
nomic Area (EEA).
DATA TRANSFER
DATA TRANSFER
nomic Area (EEA).
RETENTION PERIOD
DISCLOSURE OF DATA
DATA CONTROLLER
DATA PRIVACY NOTICE

Annex 6
Temperature Monitoring Log

Annex 3G
Temperature Monitoring Log
Name:
Department:
Date Temperature (oC)

Morning reading Initial by employee Afternoon reading Initial by employee
Please keep a record of your temperature reading twice daily
□ 37.5oC and above, but below 38 oC, please seek immediate medical attention
□ 38oC and above, please alert Task Force Manager immediately

□ Please keep temperature log for the Task Force Manager’s audit
Annex 7
Tips on Temperature Taking
When to take your temperature: Ear (tympanic) thermometer

Wait for 30 minutes before temperature taking if you have Place a new disposable cap
just exercised, eaten,drank, showered or been outdoors. over the probe
How to take your temperature: Switch on the thermometer
There are different ways of temperature taking for the Pull the ear backwards and upwards to straighten the ear
different types of thermometers available canal when the thermometer is ready to register a reading
Glass thermometer Insert the thermometer’s probe into the ear canal
• Wash the thermometer bulb with soap and water Press the activation button and hold until a reading appears
before use (some models may beep when it is ready for a reading)
• Shake the thermometer a few times to bring the level Remove the thermometer and read the temperature
of the mercury below 35oC Discard cap after use (use a new cap for every
• Temperatures can be taken from the armpit or mouth temperature taking)
Armpit reading Remember:
Place the thermometer bulb under your armpit. Fold your • It is important to read the manufacturer’s instructions
arm across your chest to hold the thermometer in place. on the proper use of the thermometer
Remove the thermometer and read the temperature after • When washing glass or digital thermometers, wash
5 minutes only the area in contact with the mouth/skin as the
Oral reading thermometer may not be waterproof
Place the thermometer bulb under your tongue. Close • Do not talk when taking an oral temperature or move
your mouth and do not talk or bite the thermometer. about when taking an armpit temperature
Remove the thermometer and read the temperature after Did you know...
3 minutes
• Temperatures taken at different parts of the body
Wash the bulb of the thermometer with soap and water present different readings – those taken from the
after use armpit are lower than readings from the mouth and
Digital thermometer ear
Wash the area of the thermometer bulb with soap and • For adults: if the armpit temperature is over 37oC
water before use • the oral temperature is over 37.3oC or the ear
Switch on the thermometer and wait until it is ready to temperature is over 37.7oC, you have a fever
register a reading • Children (below 12 years) have a fever if the armpit
Temperatures can be taken from the armpit or mouth temperature is over 37.2oC, the oral temperature is
Armpit reading over 37.5oC or the ear temperature is over 37.9oC
Place the thermometer bulb under your armpit. Fold your • The normal temperature for healthy adults and
arm across your chest to hold the thermometer in place. children ranges from 36.2oC to 37.2oC and the average
The thermometer will beep to signal that the temperature normal temperature is taken as 37.0oC
display is ready for reading. Remove the thermometer and • Children tend to have higher body temperatures due
read the temperature to higher metabolic rates
Oral reading • Women who are ovulating may have temperatures
Place the thermometer bulb under your tongue. Close that are 0.5oC higher due to hormonal changes in their
your mouth and do not talk or bite the thermometer. The bodies
thermometer will beep to signal that the temperature • Adults over 65 years of age may have temperatures
display is ready for reading. Remove the thermometer and that are 0.3oC lower because of lower metabolic rates
read the temperature • The times of the month and day also affect your
Wash the thermometer bulb with soap and water after use temperature. The body is at its lowest temperature at
3am when it is at rest, and at its highest at 6pm after
a busy day. To ensure accurate readings, it is advisable
to take your temperature at the same time every day.
Annex 8
Coronavirus:
Protect your staff
and your business
Tax, immigration and employment law considerations for
2019-nCoV business continuity plans
—
March 2020
Annex 8
Protect staff and prepare the business

Meeting the coronavirus challenge
With the spread of the novel corona virus (nCoV) across Europe and
Manage People even in Romania, businesses are reviewing, and implementing, their
Protect staff Relocating staff away from business continuity plans (BCP).
coronavirus outbreak
areas
Business continuance is the objective – making the safety of your
people the first priority. Once that is secured, thoughts need to turn to
managing costs to protect the business and preserve jobs through
Manage cashflow challenging economic timesahead.
Cost containment Protect the
measures to prepare the business These actions impact staff and potentially create a complex web of
business and preserve
jobs in challenging times compliance issues. Businesses will need the support of their human
resource (HR) and finance teams to:
— Identify where their people are, and where they need to be to ensure
Personal and
What will it cost? safety and enable business continuity.
Understand the tax
corporate tax exposures and obligations
created
— Implement measures to manage future costs for the long term
health of the business and job security.
— Address the implications for the business and the individuals
Is it legal?
involved across:
Act in a way that is Employment
law
consistent with
employees’ rights
- Personal tax, and employer reporting and withholding obligations
- Employment law
Immigration
- Corporate tax
Can you work there? - Immigration
Immigration Ensure your staff have the
right to work when they
relocate
Let’s start with some key questions that Boards and Senior
Management should be asking themselves and their teams.
Annex 8
Start the
discussion
Big picture questions
— Where are my employees? Are they safe?
— Who is critical to business continuance? Can they operate
effectively from their current location?
— Do we need an alternative work location? Do staff want torelocate?
— Do we have the necessary remote working infrastructure, policies
and mechanisms to be compliant?
— What actions do we need to take to protect business and cashflow?
Changes to employment or remuneration terms Managing cross-border workers
Employment law Immigration
— Are the changes proposed legally permitted? What are the — Does the person have the right to work in the new location?
employment law implications, and in which jurisdiction? — Do they have / need the necessary work permits?
— Do you need to consult, agree with employees?
Personal and employer taxes
— What should be documented?
— Will the individual be liable to personal tax in the new location?
Tax / Immigration — Does the employer have registration, reporting or withholding

obligations?
— How will any benefits provided or one-off payments be taxed, in
which location/s? — Could social security taxes apply?
— In the event of workforce capacity reduction, are termination Corporate tax

payments, or payments to incentivize part-time work, taxable /
deductible? — Could the individual be creating a sufficient presence (e.g.,
permanent establishment (PE)) for business registration, corporate
— Is any deferral of employment payment effective for tax? income tax or VAT?
— Do the changes impact on the right to work (e.g., minimum income
requirements for work permits, or notifyingchange of remuneration)
Annex 8
Protecting
the business
© 2020 KPMG Romania S.R.L., a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Annex 8
Changes to organization of work – Teleworking and work-from-

home
Issue or circumstance
Employees’ presence at working place represents an obligation that — Work-from-home
falls under the performance of their work. However, due to the changes
of the current economic environment, nowadays work became more As for the employees of whom work responsibilities do not imply the
flexible in terms of employees’ working place. Such change has as use of information and communication technology, work-from-home
important role in an epidemic or other crisis that world faces. may be taken into consideration, provided that employees’ activity
Employment law allows to be rendered in such a manner.
Work-from-home as a method of work organization implies certain
— Teleworking specific conditions, such as:
• similar to teleworking, implementation of work-from-home
As an alternative for employees to be physically present at the their requires the consent of both parties of the employment relation;
working place for carrying out their job responsibilities, for the purpose • the individual employment agreement, or addendum to the
of avoiding the Coronavirus current crisis and prevent any threat individual employment agreement, as the case may be, should
towards the employees’ health, teleworking, if not already expressly provide that employees’ activity is conducted from
implemented at level of companies, may be taken into consideration. their domicile/residence;
For the purpose of adopting such a method of work organization, • the addendum is subject to registration with the employees’
certain conditions should be met, as follows: electronic general register;
• teleworking requires the consent of both parties of the • work-from-home employees have the right to establish the daily
employment relationship. Employees may not be constrained to working program by themselves.
give their consent for implementation of teleworking;
• employees’ activity implies the use of information and
communication technology;
• teleworking activity is expressly provided under the individual
employment agreement (or addendum concluded to the Personal tax
individual employment agreement);
• the individual employment agreement (addendum, as the case Generally, no additional obligations (than the regular ones) will be
may be) shall provide for certain mandatory conditions (e.g. the triggered by teleworking / work-from-home activities.
express provision that the employee is working by teleworking,
Immigration
the period and/or the day in which the employee performs the
activity in other place than the work place organized by the In case of foreigners, any changes to employment terms may
employer, the place where teleworking is performed etc.); need to be notified to the immigration authorities.
• implementation of teleworking involves specific health and
safety at work obligations for the employer, as well as for the
employees.
Unpaid leave
Issue or circumstance Employment law
One possible way of reducing costs during turbulent times is to put staff — Unpaid leave for turbulent times such as the current one is not
on unpaid leave. If used appropriately, employers can reduce costs expressly regulated by the Romanian legislation, but only unpaid
while eliminating the need for termination and sourcing for talent once leave for resolving personal matters. However, unpaid leave for the
the business environment returns to normal. purpose of avoiding the current crisis, may only be taken if agreed
by both employer and employee.
Personal tax and social security
— Unpaid leave would trigger notification/registration requirements.
— Generally, unpaid leave should not have significant tax
implications other than reducing taxable income and social
contributions in line with the reduced remuneration.
— Unpaid leave may lead to non-insured periods for the individuals
from a social security perspective
Immigration
— In case of foreigners, changes to employment terms might also
need to be checked to ensure they do not need to be reported to
the immigration authority or breach the conditions of issue of an
exiting work permit.
Annex 8
Quarantine medical leave

Issue or circumstance Legislation in place
With the purpose to prevent the sickness or to recover after a sickness, — Medical leave certificate for quarantine is issued by the employee’s
the employee may benefit by medical leave and indemnities for Family Doctor based on the certificate provided by the Public
quarantine leave, under the special provisions of the Romanian Health Authority, as it is stipulated in the applicable legislation.
legislation in place.
— The minimum period of insurance of the employee in order to
benefit of the medical leave for quarantine is 6 months in the last 12
Personal tax and social contributions
months previous to the month for which the medical leave is
— Generally, medical leave for quarantine should be exempted from granted.
part of social contributions due by employee and employer.
— The medical leave certificate may be issued retroactively, for the
Employment law current and previous month for a total leave period up to 90 days.
— As the medical leave period is considered suspension period of — The medical leave indemnity for quarantine leave is 75%, applied
the employment contract, according to the Law 53/2003, is to the average incomes of the employee for the previous 6
important to mention that during this period the employee can not months, as stipulated in the applicable legislation.
perform any work activities.
Deferral of employment and/or payments

During turbulent times, employers generally stop expanding their — Most offer letters contain a commencement date, once signed by
workforce. However, in extreme cases, employers might take action to both parties, it will be extremely difficult for the employer to defer the
defer offers, or even payment of wages and otherremuneration. commencement of employment. Unilaterally imposing a deferral
may result in a claim by the employee.
Personal tax
— Late payment of wages is a violation of the labor laws.
— Generally deferral of employment or remuneration should also defer
— Employees may potentially agree to late payment of wages, but it
the tax obligations. However, if the parties do not agree to defer
does not absolve the liability of the employer.
the salary, any payment will trigger social contributions and
personal tax.
Immigration
In case of foreigners, any changes to employment terms may
need to be notified to the immigration authorities.
Downturn of business activities

The results of turbulent times may lead to a downturn of business and — The Romanian legislation provides that in case of downturn of
the companies may decide to stop expanding their activities. business generated by economical, technological, structural or other
similar reasons the employment contracts may be suspended.
Personal tax — In the case of temporary reduction of the activity, for periods
— Generally, the allowance paid during downturn of business activities exceeding 30 working days, companies have the possibility to
triggers social contributions and personal tax. reduce the work time from 5 days to 4 days per week, with the
corresponding reduction of the salary, however, consultations with
the employees representatives need to be made
Immigration
— This can be applied only until the reasons which caused the
In case of foreigners, any changes to employment terms may reduction of the program have been resolved.
need to be notified to the immigration authorities. — During the business downturn, employees benefit from an
allowance, paid from the salary fund, which cannot be less than
75% of their basic salary.
— Reduction of work time would trigger notification/registration
requirements.
Annex 8
Layoffs and termination of employment

As a last resort in difficult economic times, employers may consider — An epidemic or other factors leading to downturn of business is not
layoffs and termination of employees. In addition to the operational a legally recognized reason for layoffs and termination. Mass
challenges this may present, both at the time and in the future when layoffs require prior mandatory procedure to be followed.
circumstances improve, this can have employment law, tax and
— As a rule terminations in Romania must be with cause.
immigration implications.
Wrongly dismissing an employee may result in the employee being
reinstated and payment of damages (equal to the indexed,
Personal tax
increased and updated salary rights to which the employee would
— The tax treatment of termination payments will vary from jurisdiction have been entitled to from the moment of dismissal up to effective
to jurisdiction and depend on the nature of the payment. Generally, reinstatement or date of definitive court decision, if reinstatement is
regular termination payment will follow the regular tax and social not required).
security treatment.
— End of employment notifications and reporting needs to be
Immigration considered.
— In case of foreigners, employers may be required, or

recommended, to notify the local immigration authority of the
termination of employment.
— Termination of employment can also impact on the employee and
their family’s right to remain in the location.
Annex 8
Protecting
staff
Annex 8
Relocating staff to work

Issue or circumstance Watch points
Staff may wish to relocate from Romania or from other affected — Does a DTA apply and could the individuals benefit from DTA
countries to Romania, or the business may wish to move business exemptions?
critical employees to a business continuance centre in a different
— Recharging remuneration costs to an entity in the new location
jurisdiction. It is important to consider and document whether the
may lead to disqualifying the individual from the DTA exemptions.
“relocation” is a secondment to the local entity or working remotely, as
the implications are likely to be very different. — Special consideration will be needed for people who might be, or
become, dual tax resident.
Personal tax and social security considerations — Presence over 183 days is a common threshold for tax residence,
and a personal tax liability due to the loss of DTA relief.
An individual will likely have a tax liability in the location in which they
are working, even if their home or work base iselsewhere. ▪ Exceeding 183 days should be assumed to cause a tax
liability until reviewed and confirmed otherwise.
— Is there any domestic exemption for short visits?
▪ Being under the 183-day threshold does not offer comfort that
— Is there a double tax agreement (DTA) between the location and the there is no tax liability.
employee’s place of tax residence?
— Are there any registration, reporting or withholding obligations in the — Some jurisdictions apply an economic employer concept and this
location of work? can prevent exemptions applying, particularly where a local entity
benefits from theemployment.
— Does the individual and/or employer have any reporting or
withholding obligations from a social security perspective? — There is a natural trade off between reducing the personal tax risk
and causing a greater PE risk (see Corporate Tax considerations).
Relocating staff to work

Corporate tax considerations Watch points
An individual operating in another country may trigger tax obligations for — Presence over 183 days increases the likelihood of having a PE. In
the company. some circumstances there is an explicit threshold; in others, it may
just be a guideline as to the “degree of permanence” of the place of
— Does the individual/s presence or activities reach the level at which
business.
a corporate tax reporting obligation could arise (e.g., carrying on
business in the jurisdiction). What are the local rules to determine — Discipline should be put in place to keep track of high risk activities
this? such as habitually signing contracts, or rendering services for more
than 183 days.
— Does a DTA apply, and provide relief from tax in that location?
— Documentation of the role, responsibilities and the entity that enjoys
— A presence in a location, depending on the activities undertaken,
the benefit of the services being performed may help to mitigate the
might trigger business registration or registration for other taxes,
risk.
such as VAT/GST.
— If a work permit is required, there may be a period of several weeks
Immigration considerations before the individual can start to work. A contingency plan may be
required in the interim.
— Employees carrying on their employment in a location need to have
the right to work there. This may come from personal status, e.g., if
they are a national/citizen, otherwise a work permit may be required.
Employment law
— Some jurisdictions do not accept local employment laws from being
contracted out. As such, when working in certain jurisdictions,
certain aspects of the employment may be governed by the laws of
that location, regardless of the law governing the employment
agreement.
— Consideration needs to be given to any local law issues when
working in the overseas jurisdiction.
Annex 8
Changes to secondment arrangements

Secondment arrangements are often implemented to cater for — If companies have cross-border secondees, an epidemic or other
temporary assignments. In an epidemic or other crisis, employers or crisis, such as the present nCoV, may represent a ground for
secondees may wish to make changes to the secondment arrangement suspension or termination of the secondment arrangement. As
to ensure the health and safety of the secondee. regards the suspension or termination conditions (e.g. rental and
repatriation costs etc.), if such aspects are not regulated under the
Personal tax and social security secondment agreement, the parties should seek to negotiate and
resolve these issues in the form of a settlement agreement.
— End of secondment payments, and reimbursement of costs, may be
triggered. The tax implications and reporting requirements of these
should be determined if not already known.
— Repatriation may trigger implications from a social security
perspective – would the individuals continue to be insured?
Which legislation would apply – European Regulations or
bilateral social security agreements?
Immigration
— Leaving employment in a jurisdiction may trigger cancellation or de-
registration requirements. If a foreigner is leaving Romania
permanently, deregistration isrequired.
Annex 8
Appendices
Annex 8
Useful links and law references

Legislation regarding teleworking – Law 81/2018
Legislation regarding work-from-home – Law 53/2003 (article 108)
Legislation regarding unpaid leaves – Law 53/2003 (articles 49 – 53)
Legislation regarding medical leave during quarantine period - G.E.O. 158/2005 regarding the medical leaves and the Norms 15/1311/2018
Jurisdictions with DTAs with Romania - https://static.anaf.ro/static/10/Anaf/AsistentaContribuabili_r/Conventii/Conventii.htm
Jurisdictions with bilateral social security agreements with Romania - http://www.mmuncii.ro/j33/index.php/ro/2014-domenii/protectie-

sociala/securitate-sociala-pentru-lucratorii-migranti/2121-acorduri-bilaterale-in-domeniul-securitatii-sociale1
Where to find information on countries with high risk of 2019-nCoV – Ministry of Foreign Affairs website - https://www.mae.ro/taxonomy/term/3178
Contact us
KPMG in Romania KPMG in Moldova
Bucharest Office Chisinau Office
Victoria Business Park, 171/1 Stefan cel Mare blv.
Bucharest - Ploiești Road 8th floor, MD-2004, Chisinau
no. 69-71, Sector 1, Bucharest Republic of Moldova
013685, Romania T: + 373 (22) 580 580
P.O. Box 18-191 F: + 373 (22) 540 499
T: +40 (372) 377 800 E: [email protected]
F: +40 (372) 377 700 www.kpmg.md
E: [email protected]
www.kpmg.ro
Cluj Napoca Office

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no 16, 400592, Cluj, Romania
T: +40 (372) 377 900
F: +40 (753) 333 800
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Mamaia blv. no 208,
4th floor, Constanta,
900540, Romania
T: +40 (756) 070 044
F: +40 (752) 710 044
Iasi Office
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Păcurari Road no. 138,
Ground Floor
Iasi, 700521, Romania
T: +40 (756) 070 048
F: +40 (752) 710 048
Timisoara Office
ISHO Offices,
Take Ionescu blv. no. 50,
Building A, 7th floor, 300124
Timis, Romania kpmg.com/socialmedia
T: +40 372 377 999
F: +40 372 377 977
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
© 2019 KPMG Romania S.R.L., a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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Business Continuity Planning

2019 novel coronavirus

This document is a guide on business continuity

This guide should be read in conjunction with the latest

The spread of COVID-19 and the significant escalation

We need to focus on implementing measures to

Task Force Management Team Task Force Manager

Cezar Furtuna Maria Stancu

Rene Schob Antonela Ghinda

Richard Perrin Simona Podgoreanu

The objective of this guide is to ensure the business continuity of KPMG in

Roles and responsibilities of the Task Force Manager

Brief employees on personal hygiene measures:

- Do not spit on the floor/ in the garbage can

- Regularly and thoroughly with soap and water

- Before and after preparing food

- After going to the toilet

- Before and after eating

- After coughing and sneezing

- Avoid sharing of cups, cutlery, etc.

- Avoid physical contact such as shaking hands

Put up notices in washrooms on proper hand washing techniques

Liaise with cleaning employees/contractors on this

Identify hospital/clinics that employees with fever can be brought to

Personal hygiene awareness

4. Avoid physical contact such as shaking hands and c. Back of hands

Stay healthy while travelling!

When coughing and sneezing

Avoid touching eyes, nose and mouth

If you choose to wear a face mask, be sure to

Wash hands and disinfect equipment and

If you seek medical attention,

Example of Health Screening Form for Visitors

Dear Sir / Madam,

Others similar symptoms

breath Tiredness Runny nose Sore throat

Headaches Body aches Dry cough Fever

Fever Dry cough Body aches Headaches

Others similar symptoms

Example of Health Screening Form for Visitors

DATA PRIVACY NOTICE

DATA PRIVACY NOTICE

Date and Time of recording:

2. Date and Time of fever onset:

Travel History over the last 14 days:

Other useful information concerning your potential exposure to coronavirus (COVID-19):

*Please see on the back the Data Privacy Notice.

DATA PRIVACY NOTICE

DATA PRIVACY NOTICE

Temperature Monitoring Log

Temperature Monitoring Log

Date Temperature (oC)

Please keep a record of your temperature reading twice daily

□ 38oC and above, please alert Task Force Manager immediately

Tips on Temperature Taking

When to take your temperature: Ear (tympanic) thermometer

Protect staff and prepare the business

Changes to employment or remuneration terms Managing cross-border workers

Employment law Immigration