Employer Record in Romania

Basic information

Capital:Bucharest

Time zone: GMT+2

Languages: Romania

Currency code:RON

Human Resources at a Glance 

Contract Terms

Contracts must be in Romanian and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Identity of parties
• Workplace and headquarters
• Position and job description
• Criteria for performance evaluation
• Working conditions (in accordance with local legislation)
• Contract date
• Type of employment contract (fixed-term, temporary)
• Annual leaves
• Notice period
• Salary
• Working hours
• Duration of probation period
• Termination details

Guidelines Regarding Probation Period/Trial Period

Probation periods are not mandatory. There is no minimum probation period. The maximum probation period depends on the type of employment.

  For indefinite period contracts:

• Executive position – 90 days
• Management and coordination position – 120 days
• Employees with disabilities – 30 days

  Definite period contracts:

• Contracts less than 3 months – 5 days
• Contracts between 3 and 6 months – 15 days
• Contracts longer than 6 months – 30 days
• Contracts longer than 6 months (employees in management positions) – 45 days

Regulations and Rules Regarding Working Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory. It can be compensated financially or in the form of paid time off. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 32 hours of overtime per month. For additional hours, employees are paid:

• 150% of average salary per hour, during weekdays
• 200% of average salary per hour, during weekends

Minimum Wage Requirements

The minimum wage is RON 3,300 per month.

Termination 

Grounds

Terminations in Romania can be complex. There is no at-will termination in Romania for employers and termination must be done for just cause.

Compliant terminations include:

• Employee-related reasons:
  • Disciplinary misconduct (in case of a severe breach, or more repeated breaches of work discipline rules or of those rules set forth in the individual employment agreement, collective bargaining agreement, or internal regulations)
  • Physical/mental incapacity (as ascertained by the relevant medical bodies)
  • Professional inadequacy
  • Placement in police custody or house arrest for over 30 days
• Reasons unrelated to employee
  • Redundancy following workforce restructuring, based on e.g. economic, financial or organizational grounds
• Mutual agreement
• Probation period
• Expiration of employment contract

Note: Employees cannot be terminated during leaves, during temporary disability, during quarantine, or during pregnancy, if the employer knew about the pregnancy.

Notice Period

The notice period can be agreed by the parties in an individual employment contract or as provided in the applicable collective labor agreements.

In the case of resignation, the notice period is a maximum of 20 working days for employees in non-management positions and 45 working days for management employees.

An employee can resign without notice if the employer has failed to fulfill its contractual obligations.

During the notice period, the employee is entitled to receive his or her salary and all other statutory rights.

Notice period is not required when an employee is under probation and deemed to be unfit for the role.

Payment & leave Compensation & Holidays 

SalaryPayment

The employer must pay the employee their wages at least monthly, with the date of payment set by the employment contract. Wages must be paid to employees by direct bank transfer.

Payslip

Employers are not required to provide itemized payslips to employees, though this is common practice.

When wages are paid, the employee will receive his or her payslip via email as proof of payment, as agreed upon in the employment contract.

Annual Leave

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) a year. PTO accrues at a rate of 1.66 days per month. Employees are eligible to take vacation as soon as leave has accrued.

Legally, employees must take a minimum of 10 consecutive business days of paid vacation per year.

Sick Leave

Employees are entitled to paid sick leave for up to 90 days per year. The first 5 calendar days of sick leave are paid by the employer, with additional days paid for by the employer and reimbursed by the National Health Insurance House. This leave is paid at different rates based on the disease. Payment rates are determined by the illness code and percentage code that is outlined in the medical certificate issued by a doctor or hospital. The minimum salary payment is 75%, and the maximum is 100% of the salary.

Sick leave can be extended for a maximum of 183 days within a calendar year, counted from the first day of illness, with the approval of a social insurance specialist doctor.

Maternity & Parental Leave

Pregnant employees who have worked for 6 months in the last 1 year are entitled to 126 days of paid leave. The employee must take a minimum of 42 days after the birth of the child. Maternity leave is paid for by the National Social Security Fund at 85% of the employee’s average income over the previous 12 months.

The employee cannot extend leave.

Employees are entitled to 2 years of unpaid parental leave, and employees that are parents of children with disabilities are entitled to 3 years of unpaid parental leave. The leave is granted to the father if the mother does not benefit from this parental leave, or if she has used a part of the leave.

The employee will receive a childcare allowance from the state during parental leave, which is set at 85% of the average net income earned by the parent in the last 12 consecutive months of the 2 years prior to the birth of the child.

Tax and Social Security Information

Personal Income Tax

The individual income tax rate is 10%. Income tax is calculated according to a flat rate.

Social Security

All employed and self-employed persons with a residence permit must pay social security contributions (pension and health insurance), as required by fiscal legislation, in order to become insured.

Public Holidays 2024