Bucharest, 29 May 2026
Mușat & Asociații, acting as the court-appointed judicial administrator of Hidroconstrucția S.A., which is undergoing judicial reorganization, has obtained a final judgment with significant social implications, thereby ensuring that 766 employees of the company receive payment of their wage claims totalling approximately EUR 1.2 million.
The dispute centred on the interpretation of Law No. 200/2006 on the Guarantee Fund for the Payment of Wage Claims, in a case with systemic implications for the administrative and judicial practice regarding the protection of employees in the context of employer insolvency.
In its decision issued on 22 May 2026, the Bucharest Court of Appeal upheld the appeal filed by Hidroconstrucția S.A. through its judicial administrator and ordered the partial annulment of the order issued by the Bucharest Municipal Employment Agency regarding the rejection of payment of wage claims pertaining to 766 employees.
The court compelled the authority to issue a new order determining the amount of the claims and to reconsider the application, finding that the legal requirement regarding the consecutive nature of the months had been met.
The dispute concerned the restrictive interpretation applied by the authorities in implementing Article 15 of Law No. 200/2006, specifically the requirement that access to the Guarantee Fund be contingent upon the existence of consecutive pay periods, including between separate claims filed in the insolvency proceedings. On appeal, the judicial administrator Mușat & Asociații argued that such an interpretation contravenes both the social purpose of the national legislation and the protection standards set forth in Directive 2008/94/EC on the protection of employees in the event of the insolvency of their employer.
The ruling has a major practical impact, both due to the significant number of employees affected and the amount of unpaid wages to be reviewed and paid, estimated at approximately EUR 1.2 million, given that it also contributes to the success of Hidroconstrucția’s Reorganization Plan, which was confirmed by the court on 20 May 2026.
Furthermore, the decision is significant from a systemic perspective, as it is likely to influence the future practices of employment agencies and insolvent debtors, as well as any future legislative measures regarding access to the Guarantee Fund.
The team handling the case consisted of Dragoș Lungu, Managing Associate, and Cristi Tudor, Partner, under the coordination of Mihai Popa, Deputy Managing Partner.
About Mușat & Asociații
For over 35 years, the name Mușat & Asociații has been synonymous with excellence in the practice of business law in Romania. With 18 partners and 100 associates and consultants, Mușat & Asociații is recognized as one of the pillars of the business law sector in Romania, and international legal publications (Chambers & Partners, Legal 500, IFLR 1000, CEE Legal Matters) regularly recommend the firm as one of the leaders on the legal market, with many of the firm’s lawyers also being named by these publications as part of the elite of the business law practice in Romania.
The Restructuring and Insolvency practice at Mușat & Asociații addresses complex and diverse issues related to judicial and voluntary reorganization, insolvency prevention procedures, bankruptcy and liquidation, debt collection and/or negotiations with debtors and creditors, as well as complex insolvency litigation, across multiple industries, including energy, construction, pharmaceuticals, retail, and finance. Our clients include various leading national and international companies, commercial banks, and public institutions.
The Labor and Employee Benefits team, one of the firm’s key practice areas, assists a great number of local and international clients in sectors such as energy and resources, transportation and logistics, the public sector, technology, media and telecommunications, consumer goods, and manufacturing in connection with a wide range of labour law matters, both of advisory and litigious nature.
