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, 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 in Romania, although it is sometimes required by contract or collective agreement. Employers sometimes pay severance in the case of collective redundancies. There is no standard amount or formula.