Hire in Romania

In Romania, fixed-term employment contracts are allowed under specific conditions, which include:

• Filling in for an employee on temporary leave, except during a strike
• Addressing a temporary surge or change in business operations
• Undertaking seasonal tasks
• Hiring individuals nearing retirement (within five years)
• Employing retirees who are earning a salary alongside their pension
• Completing a distinct project
• Facilitating job creation schemes for the unemployed

Such contracts must be formalized in writing and clearly specify the term of employment. The total duration for a fixed-term contract cannot exceed 36 months. Parties may sign up to three consecutive fixed-term contracts, with a cumulative duration of no more than five years, provided the interval between contracts does not exceed three months.

Should a fixed-term contract be initiated to substitute an employee on leave, its validity concludes once the original employee’s leave ends, such as a return from maternity leave.

Before starting their job, an employee is obligated to present a medical certificate proving their fitness for the role. Failure to provide this certificate renders the employment contract invalid.

Employers must guarantee that both potential and current employees can access medical services for the duration of their employment contract. According to Article 186 of the Labor Code, employees must undergo a medical assessment to determine their fitness for work. The employer is responsible for covering all expenses related to this medical examination.

Employees can undergo a trial period of up to 90 days for regular positions and up to 120 days for executive or managerial roles.

For fixed-term contracts, the probationary period is determined as follows:

• For contracts shorter than 3 months: up to 5 working days
• For contracts between 3 to 6 months: up to 15 working days
• For contracts longer than 6 months: up to 30 working days, and up to 45 working days for managerial positions

During this trial phase, employees have the same responsibilities and entitlements as their colleagues, and this period contributes to their overall length of service. Within this timeframe, either the employer or the employee can end the contract in writing, without the necessity for notice or providing a reason.

In Romania, the standard work schedule consists of eight hours per day and 40 hours across a five-day workweek. Workers are guaranteed a minimum rest period of 12 consecutive hours between two workdays, which is reduced to at least eight hours for shift workers. Employees are entitled to a weekend break of two consecutive days, typically Saturday and Sunday. Should work be required during these rest days, employees should receive compensatory time off during the week or additional pay.

The total working hours, including overtime, must not surpass 48 hours per week. Should the workweek extend beyond 48 hours due to overtime, the average working hours over a four-month period must not exceed 48 hours per week. It is permissible to negotiate an averaging period longer than four months for specific activities, but this period cannot exceed 12 months.

Hours that exceed eight hours daily or 40 hours weekly qualify as overtime. Typically, this overtime should be compensated through equivalent time off. There is a cap on overtime, restricting it to no more than eight hours weekly.

Compensation for overtime can take the form of paid leave within 60 days following the overtime work, or it can be paid out at a rate of at least 75% above the regular wage.

The employment contract may undergo a temporary suspension under the following conditions, during which employment rights and obligations remain intact despite the employer not being obligated to provide remuneration:

• Maternity leave or sick leave
• Quarantine
• Elected to a public office or a full-time paid trade union position
• Taken into custody due to criminal charges
• Requirement for an authorization or license to perform the occupation, which has expired
• Vocational training leave

The notice period can be mutually agreed upon by the parties within an individual employment contract or as stipulated in the relevant collective labor agreements.

For resignations, the notice period is capped at 20 working days for non-management employees and extends to 45 working days for those in managerial positions.

An employee has the option to resign without notice if the employer neglects its contractual duties.

Throughout the notice period, the employee is entitled to receive their salary along with all other statutory entitlements.

No notice period is mandatory for employees considered unsuitable for their roles during the probationary period.

Frequently, companies extend bonuses and benefits to their employees, contingent on the firm’s financial success and the individual’s performance. It is crucial to note that these offerings are considered gratuities and not obligatory by law. Occasionally, such benefits are outlined in collective labor agreements or employment contracts, and any alterations to them necessitate the employee’s explicit consent.

Terminations must be officially issued solely by the legal employer.

An individual employment contract can be terminated in the following circumstances:

Termination of an individual employment contract may occur under various circumstances, including but not limited to:

• The death of the employee or the employer.
• The employee reaching the age of retirement.
• Acknowledgment by the parties or a court ruling that the individual employment contract is null.
• Termination of an employee who replaced an illegally dismissed employee upon the reinstatement of the illegally dismissed employee.
• The employee being convicted and serving a custodial sentence.
• Withdrawal of consent, authorizations, or permits required for the profession.
• Expiration of the individual employment contract at the end of a determined period.
• Employee’s voluntary resignation.
• Employer’s initiative under conditions specified by the law, such as employee misconduct, professional incapacity, or due to economic difficulties, technological transformations, or activity reorganization.

Terminations based on incapacity, whether professional, mental, or physical, must be formally communicated in writing within 20 working days of identifying the grounds for dismissal. The notification should articulate the dismissal reasons, present relevant facts, cite applicable laws, and specify the timeframe for contesting the decision in court.

In such cases, a thorough evaluation of the employee’s performance and capabilities is imperative. The employer is obligated to offer available positions within the organization that align with the employee’s professional, mental, and physical capacity, or provide vocational training. Should a suitable position be offered, the employee has three working days to accept; otherwise, the employer may proceed with dismissal. The dismissal notice must include a list of offered positions and the deadline for acceptance.

An employee dismissed due to medical incapacity is entitled to compensation, the amount of which is stipulated in the employment contract.

In instances of dismissal linked to employee misconduct, an investigation must be conducted within six months from the date of the misconduct. Failure to adhere to these requirements may render the termination invalid.

Regarding terminations resulting from redundancies (due to economic challenges, technological advancements, or organizational restructuring), the employer must provide statutory notice and notify the employee 20 working days in advance. For the dismissal to be valid, the position itself must genuinely be eliminated and not filled by another employee or maintained under a different designation.

Payment in lieu of notice is prohibited, as it contravenes an employee’s legal entitlement to receive notice.

• Employers may not terminate the employment contract in the following situations:
• Employees who are temporarily unfit for work, supported by a medical certificate, fall into this category.
• Additionally, employees on quarantine leave, and
• situations where the employer is aware of a female employee’s pregnancy, are included.
• The prohibition extends to periods of maternity leave, paternity, parental, adoption, or care leave.
• Similarly, dismissals during maternal risk leave or annual leave are not permissible.

Severance payments are not mandated by statutory provisions, apart from the minimum notice period. However, employers may establish compensation through internal regulations or collective bargaining agreements.

Non-Competition Clause

The inclusion of a non-competition clause in the employment contract is permissible, either at the commencement of employment or during the course of employment. The employer is obligated to provide the former employee with a monthly allowance throughout the entire period of restrictions. To be considered valid, the non-competition clause must explicitly outline:

• The prohibited activities that the employee must refrain from
• The third parties with whom the employee is barred from working
• The geographical area within which the restrictions are applicable
• The monthly allowance, amounting to at least 50% of the former gross monthly wages
• The duration of the restrictions, typically not exceeding two years after termination

Confidentiality Clause

Both the employer and the employee mutually agree not to disclose certain information — acquired during or after the employment relationship — as outlined in the employment contract, internal regulations of the employer, or relevant collective agreement. Breach of this clause by either party renders them liable for damages incurred by the other party.

While there is no legal obligation for employers to furnish itemized payslips to employees, it is a customary practice. Upon payment of wages, employees will typically receive a payslip via email, serving as documentation of the transaction, in accordance with the terms stipulated in the employment contract.

• Employers are obligated to maintain accurate records of the daily working hours of each employee, inclusive of calculations for both employer and employee contributions, along with income tax details.
• These records must be accessible for inspection by labor authorities at each worksite. In cases where employers submit income information related to withholding tax and social contributions, payroll information should be retained for a period of 5 years.

• Romanian employees are granted a minimum of 20 days of paid annual leave, which is mandatory to be utilized as a continuous period of at least 15 working days.
• The remaining days can be scheduled based on the employee’s preferences. Normally, annual leave should be consumed within the year it is earned. However, as stipulated by a collective bargaining agreement, any unused leave can be carried over to the end of the subsequent year.
• It is crucial to note that employees cannot waive their entitlement to paid annual leave.
• Additionally, specific categories of employees, such as the disabled and blind, those under 18, and individuals working in demanding, hazardous, or harmful conditions, are entitled to an extra three days of annual leave each year.

• Employees can receive compensation for a maximum of five days of sick leave, amounting to 75% of their salary. In instances of prolonged illness, the maximum sick leave duration is 183 days, extending up to 18 months for severe cases. For sick leave periods exceeding five days, the state offers compensation.
• Generally, employees on leave due to illness or injury are eligible for sickness benefits, set at 75% of their average pay, for up to 183 days annually. Initially, the employer covers the benefit for the initial five days of absence, after which the state social insurance fund assumes responsibility.

Employees have the right to five business days of paid carer’s leave annually. This provision allows employees to take time off to provide care or personal assistance to a family member or someone residing in the same household dealing with a severe health condition.

In the case of a family emergency arising from accidents or illness, and where the presence of the employee is essential, they are entitled to take up to 10 working days off per calendar year. The following guidelines apply to this leave:

• Advance notification to the employer regarding the absence period is required.
• The employee has the option to make up for the missed workdays.
• The agreement on compensatory workdays should be mutually determined by the employer and the employee.
• Termination of employment by the employer during this leave period is prohibited.

• Marriage: five days
• Marriage of an employee’s child: two days
• Death of a spouse, child, or parent: three days
• Death of a sibling or grandparent: one day
• Moving house: five days
• Female employees undergoing IVF: three days per year
• COVID-19 vaccination: one day
• Employees with children less than 18 years (or less than 26 years in the case of children with disabilities) receiving COVID-19 vaccination: one day

Maternity Leave

Expectant mothers have the right to avail themselves of 126 calendar days (18 weeks) of maternity leave, including a mandatory 42 calendar days (six weeks) immediately following childbirth. Adequate notice of impending maternity leave should be provided to the employer. While it is generally recommended to split the leave equally before and after childbirth, flexibility is allowed as long as a minimum of six weeks is taken immediately postpartum. During maternity leave, employers are not obliged to pay statutory entitlements. However, if the employee has been enrolled in the state social health insurance scheme for at least six of the previous 12 months, they qualify for a benefit amounting to 85% of their average pay, capped at 12 times the National Minimum Wage. Following maternity leave, a reintegration program spanning at least five working days is granted to the returning employee. In the unfortunate event of a stillborn or deceased child during the postnatal leave period, the employee retains the full maternity leave and benefit entitlement. In case of the mother’s demise during childbirth or the postnatal period, the remaining leave and benefit entitlement may be transferred to the child’s father.

Paternity Leave

Fathers covered by the social insurance system are entitled to paid paternity leave within the first 8 weeks after the child’s birth, with a standard allowance of 10 working days. Completing a recognized parenting class extends this leave by an additional 5 working days for each newborn child, making a total of 15 working days of paid paternity leave.

Parental Leave

Parents can take parental leave until their child’s 2nd birthday (or 3rd birthday for a child with a disability). Eligibility requires taxable income for at least 12 months in the two years before the child’s birth. Both parents can take parental leave, but only one parent can take leave at a time. If both parents are eligible, each must take at least one month’s leave during the first year, or risk losing one month’s leave entitlement. During parental leave, employers are not obligated to pay statutory entitlements, but employees receive a social insurance benefit at 85% of their average pay. Parents may receive a supplement if they return to work partially for a specified period before the parental leave concludes. Adoptive parents enjoy the same parental leave entitlement as biological parents, in addition to Adoption Leave. Parents of children with disabilities can take extended parental leave known as leave to care for a disabled child after the child’s third birthday until the age of seven, with a flat-rate social insurance benefit provided during this unpaid leave.

Adoption Leave

Employees adopting a child are entitled to adoption leave for up to one year, starting from the court-approved adoption date. During this leave, employers are not required to pay statutory entitlements, but the employee receives a social insurance benefit at 85% of their average pay. Individuals seeking to adopt are entitled to a maximum of 40 hours of paid time off per year to attend adoption-related meetings and evaluations.

Other Pregnancy/Breastfeeding Provisions

Pregnant employees, certified as unable to perform full working hours for health reasons, are entitled to a 25% reduction in hours without loss of pay.
Up to 16 hours of paid time off per month are granted to pregnant employees for antenatal medical consultations and examinations.
Breastfeeding employees have the right to two paid one-hour breaks per day for breastfeeding purposes until the child’s first birthday. Alternatively, the employee may opt to reduce normal daily working hours by two hours without loss of pay.

Romania observes 15 official public holidays annually.

Employees mandated to work on a public holiday are eligible for a compensatory day off within 30 days. In cases where the employer cannot provide the day off, the employee is entitled to receive double pay for the services rendered on the public holiday.