Located at the intersection of central, eastern, and Southeastern Europe, Romania is the 12th largest country in Europe. The official language spoken is Romanian. Agriculture and industrial sectors have historically been the centerpiece of the Romanian economy, however, in recent years it has begun exploring ways to diversify its economic base.
Employment contracts in Romania are either indefinite or for a fixed term. Indefinite contracts are favored; fixed contracts are normally only allowed for project-based work or other work that is for a limited duration. A fixed-term contract may not exceed 36 months and may be renewed up to two times, but the employment agreement is automatically converted into an indefinite contract after a third renewal or after 36 months.
Employment contracts must be in writing, in the Romanian language, and must be signed before the employment relationship begins, and the employer must register the agreement with the General Register of the government labor inspectorate using its electronic system (known as REVISAL) before employment starts.
The contract must state:
The employment contract may also establish a probationary period. Under an indefinite contract, the maximum probation period is 90 days for most jobs, and 120 days for management positions. Under a fixed-term contract, the maximum probation period is five days if the contract is for less than three months, 15 days if the contract term is three to six months, and 30 days if the contract term is six months or more, or 45 days for a management position. Candidates for employment must receive a preliminary medical examination and be certified as fit for work before employment can begin. The candidate must also produce documentation of their identity, their diploma(s), and any other documentation proving they have the required qualifications for the job.
The standard workweek is 40 hours over five days, and employees younger than 18 years old may work 30 hours, which may be spread over six days. The normal workday is eight hours, but some flexible arrangements that distribute time across the week are permitted.
Overtime requires the employee’s consent and may not exceed eight hours per week except in extraordinary circumstances. Employees who work overtime are entitled to paid time off within 60 days to compensate for the extra hours, or, if this is not possible, to be paid for the extra time at 175% of the employee’s standard hourly rate. The employee receives additional pay at 200% of their standard hourly rate if the employee works on a weekend or public holiday, or compensatory time off.
Employees who work a minimum of three hours per day between 10 p.m. and 6 a.m. or work 30% of their monthly hours receive either one hour of paid time off or compensation at 125% of the employee’s standard hourly rate. An employee’s night hours may not average more than eight hours on average over a three-month period.
Employees in Romania receive 183 days of paid sick leave per year. The employer pays the first five days at 75% of the average monthly income during the past six months. After the first five days, the employee can receive a social security payment. The sick leave can be extended to 18 months for serious illness. The sick employee should provide a medical certificate to the employer as soon as possible and request compensation by the 90th day.
Employees receive 126 days of paid maternity leave, with 63 days before the estimated date of birth and 63 after. The mother must take a minimum of 42 days following the birth. While on maternity leave, the mother receives 85% of her average income over the last 12 months, which is paid by the employer but funded with social security funds. Fathers receive five days of paid paternity leave, which may be taken anytime within the first eight weeks after the birth. The father may take an additional 10 days in order to take a childcare course. Paternity leave is paid at 100% of the father’s usual salary. Parents are entitled to parental leave until their child is two years old, or three years old if the child has a disability. However, each parent must take at least one month of parental leave. Parental leave is funded by social security.
Employees in Romania are entitled to a monthly minimum wage. Performance bonuses are fairly common and are often paid at Christmas, and sometimes at other holidays. Cash bonuses are the most popular. Gift vouchers, which are not taxed, are sometimes given as an alternative. Employees also receive vacation pay, which must be paid a minimum of five days prior to the beginning of the vacation.
Employees receive a minimum of 20 days of paid leave per year. Employees less than 18, employees who do particularly dangerous work, and disabled or blind workers are entitled to at least three additional days per year. The employer schedules employees’ leaves for the calendar year in consultation with the employees. Leave not used in the calendar year in which it is accrued must be used within 18 months of the end of the year. The employee is entitled to compensation for unused leave when the employment relationship ends.In addition to their annual leave, employees are also entitled to take additional paid leave for family events such as births, weddings and deaths.
The following are observed holidays in Romania:
Romania has universal healthcare. There are also private clinics and providers. Some employers provide private health insurance as an employee benefit.
An employer in Romania may terminate an employee only for a legally valid reason. An acceptable reason may be a business reason unrelated to the employee, or a reason related to the employee’s performance or their competence or fitness to perform the job. To terminate an employee, the employer must give a minimum of 20 days’ notice. Notice periods are strictly enforced, and a payment may not be substituted for the required notice period. When an employee has engaged in severe misconduct, the employer may terminate the employee without notice, but only after following the prescribed disciplinary process.
An employee who wishes to quit may terminate the employment contract by providing 20 days of notice, or 45 days for a management position. The employee is not required to provide a reason for the termination. Several categories of employees are exempt from termination in Romania, most notably employees who are temporarily unable to work and employees who are pregnant or on maternity leave, parental leave, or leave to care for a sick child up to seven years old.
Severance is not required by law in Romania, although it is sometimes required by contract or collective agreement. Employers sometimes pay severance, particularly in the case of collective redundancies. There is no standard amount or formula, but one month of salary is widely viewed as an appropriate sum.
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
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