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Written Agreements

Employers are obliged to conclude individual employment contracts in writing. If the contract has not been concluded in written form, the presumption is that it has been concluded for an indefinite term, and the parties can give proof of contract provisions and work performed through any other elements of proof.

The contract must include information on working conditions, hours, wages, length of notice, trial period, etc.

Restrictive covenants, such as non-compete clauses, confidentiality clauses, mobility clauses, etc., are valid only if they are put in writing. Employers must provide the employee with a monthly compensation, which is negotiated but must be at least 25% of the employee's salary. The non-competition clause can extend up to 6 months post-termination for executive positions and management positions for up to 2 years if explicitly stated in the contract.

Oral Agreements

It is mandatory to conclude written employment contracts in Romania. There are no guidelines on oral contracts. If the contract has not been concluded in written form, the presumption is that it has been concluded for an indefinite term, and the parties can give proof of contract provisions and work performed through any other elements of proof.

Implied Agreements

It is mandatory to conclude written employment contracts in Romania. There are no guidelines on implied contracts.

The standard length of the working time is 8 hours per day and 40 hours per week. For employees who are not yet 18 years of age, the length of the working time is 6 hours per day and 30 hours per week. The maximum legal length of the working time must not exceed 48 hours per week, including overtime work. When work is done in shifts, the length of the working time can be extended to over 8 hours per day and over 48 hours per week, provided the average number of working hours, as calculated for a maximum period of 3 weeks, does not exceed 8 hours per day or 48 hours per week.

In Romania, an employment contract contract can include a probationary (trial) period. A trial period of 90 calendar days at the most may be established for executive positions and 120 calendar days at the most for management positions. The trial period must not exceed 30 days for disabled persons. For unskilled workers, the trial period cannot exceed 5 working days. For graduates of higher educational institutions, the first 6 months after their debut in the profession are considered a probation period.

Employees can be subject to only 1 trial period. As an exception, an employee can be subjected to a new trial period if they start a new position or profession with the same employer or is to perform their activity in a workplace under difficult, harmful, or dangerous conditions. It is prohibited to successively employ more than three persons for trial periods for the same position.

Employees hired for fixed-term or temporary positions can also be subject to trial periods. During the trial period, employees enjoy all the rights and have all the obligations stipulated in the legislation, the applicable collective contract, the company's rules and regulations, as well as the individual contract.

Notice Period

Employees who are dismissed for being medically or professionally unfit for the job or other business-related reasons have the right to a notice of at least 20 working days. In case of collective redundancies, a minimum notice of 30 days is required. No notice is required for terminating a contract during the trial period.

The notice for termination must be given in writing and must contain the reasons for dismissal, term of notice, criteria for establishing the priority sequence in case of collective dismissal, list of available positions in the company for hiring. If during notice period, the contract is suspended, the term of notice shall be suspended accordingly.

Severance Benefits

In Romania, severance pay is not mandatory in all cases but is required in situations of collective dismissals. The minimum amount and calculation method are not specified by law and depend on collective bargaining agreements or individual employment contracts.

Minimum Wage

The national minimum wage corresponds to the normal work schedule of 8 hours per day and 40 hours per week. It is applicable to full-time, part-time, and temporary employees.

Beginning July 1, 2024, the monthly minimum wage increased to RON 3,700 (Romanian lei) or RON 22.024 per hour for a full work schedule of 168 hours per month.

Salary must be paid at least once a month. Salaries are established through individual and/or collective negotiations between the employer and employees or their representatives.

Overtime, Holiday & Vacation Pay

The maximum work time for an employee is 48 hours per week, including overtime. Overtime work is compensated with time off paid in the next 60 days after the work has been performed. If time-off is not feasible, then a supplementary wage must be paid according to collective labor, and must not be lower than 75% of their basic wages.

Employees who are required to work during public holidays must be granted time off in lieu during the next 30 days or a wage increase of at least 100% of their regular wages.

During their annual leave, employees receive an annual holiday allowance that cannot be lower than the total value of wages for that period. It must be paid at least 5 days before the beginning of the annual leave.

Visas

Visas are granted based on the purpose of travel as follows:

• Airport transit visa (Visa A) - Allows the holder to pass through the international transit area of ​​Romanian airports, without entering the territory of the Romanian state, during a stopover or transfer between 2 sections of an international flight.
• Transit visa (Visa B) - Allows the holder to transit the territory of Romania. It can be issued for multiple transits, without the duration of each transit exceeding 5 days.
• Short stay visa (Visa C) - Allows entry and stay for up to 90 days in Romania during any period of 180 days. It is granted for tourism, business, religious, sports, cultural, research purposes.
• Long-stay visa (Visa D) - Granted to foreign nationals for a period of 90 days, with multiple entries. The long-stay visa is granted for economic activities, professional activities, commercial activities, employment, education, family reunification, religious activities, scientific research, and other purposes.

Work Permits

Foreign nationals who wish to be employed in Romania for full-time or seasonal work are required to apply for a long term visa for employment (Visa D/AM) and present a work permit issued by the General Inspectorate for Immigration within the Ministry of Internal Affairs.

The employer who hires a foreign national is required to apply for a work permit for the employee with the required documents. Upon fulfillment of all the requirements, a work permit is issued within 30 days. After this, an employee can apply for a long term stay visa and residence permit for employment within 60 days from the date of issuing the work permit.

Foreign nationals can be hired as permanent employees, fixed-term employees, seasonal workers, highly-qualified employees, trainees, cross-border employees, etc. The validity of permit depends on the type of employment relationship. It can be renewed for a period equal to the validity of the employment contract, but not more than 1 year. In case of highly qualified workers it can be extended for up to 2 years.