Planning to hire employees in Romania? Here’s a quick guide

Expanding a team in Romania can be a practical step for companies looking to access skilled professionals and grow their operations in Europe. The country has a well-developed workforce across several sectors and continues to attract international businesses.

However, before starting the hiring process in Romania, employers need to understand the country’s labor framework, payroll requirements, and statutory employee benefits. Local employment rules govern working hours, leave policies, taxation, and termination procedures, all of which must be followed carefully.

Understanding these employment regulations in Romania helps companies recruit employees compliantly and manage their teams with legal confidence. 

This guide outlines what’s typically involved when employers hire in Romania and what they should know before engaging with local talent.

How to hire employees in Romania?

Most companies planning to recruit employees in Romania generally follow one of the approaches below, depending on their operational structure and long-term business goals: 

1. Set up a legal entity in Romania

If you plan to make a long-term team in Romania, you may have to set up a local legal entity. 

This would allow you to hire employees directly and manage employment relationships under Romanian labor regulations.

With a local entity, you handle employment contracts, payroll administration, statutory contributions, and other compliance requirements related to employment in Romania.

However, this process is time- and budget-consuming and requires significant administrative effort.

2. Hire independent contractors

You can also work with independent contractors when the work is project-based or requires specialised skills. 

Contractors usually operate under a service agreement that defines the scope of work, timeline, and payment terms.

Because contractors are not employees, they generally manage their own taxes and social contributions.

But, employers need to be cautious when it comes to worker classification, as misclassifying a contractor as an employee can lead to heavy fines and penalties.

3. Partner with a temporary work agency

You may also choose to use a temporary work agency when engaging talent in Romania. This approach can streamline administrative tasks such as payroll coordination, documentation, and compliance processes while managing an international team.

In most cases, companies work with platforms like Payoneer Workforce Management. This gives them the freedom to engage employees in Romania while receiving support with employment contracts, payroll administration, statutory contributions, and other local employment requirements.

Where to find employees in Romania?

Once a hiring strategy is decided, the next step is finding suitable recruitment channels to recruit Romanian talent. Common places are:

1. Job boards

Online job boards are one of the most common ways to advertise open roles and attract eligible and interested candidates. 

The advantage is that you can post vacancies across multiple platforms to reach a wider talent pool. 

Some commonly used Romanian platforms include:

• eJobs
• BestJobs
• Indeed Romania
• Hipo

With these, you can publish job listings and receive applications from professionals across different industries to kickstart your hiring journey!

2. Professional networking

Professional networking platforms such as LinkedIn Romania are widely used for recruitment. 

It is because these platforms allow you to connect directly with professionals, review candidate profiles, and approach potential hires for specialised or senior roles.

3. Recruitment agencies

Recruitment agencies can assist you in expertly identifying candidates who match specific job requirements because: 

• They maintain databases of pre-screened professionals, which makes the search process more efficient.
• Many agencies have strong connections within the local labor market, giving you access to a wider talent pool.
• Working with them can reduce the time required to shortlist and interview candidates.
• This approach can improve the chances of finding suitable employees more quickly.

4. Temporary work agency support

Typically, recruiting with an EOR’s support can be a practical option if you want to hire employees in Romania without establishing a local legal entity.

However, the EOR model may not be recognized in Romania. So, companies may also work with a Temporary Work Agency in Romania to engage employees in line with local labor regulations.

Temporary Work Agencies, such as Payoneer Workforce Management, can help with preparing compliant employment contracts, managing payroll, and handling required tax deductions.

They can also assist with administering benefits according to Romanian labor requirements.

Compared to setting up a local entity or engaging contractors, working with a Temporary Work Agency in Romania can offer a quicker and more flexible way to build and support a local team.

Onboarding employees in Romania

After you are done with the selection, you must follow several administrative steps to complete the hiring process in Romania.

The onboarding process generally takes around 2 weeks. During this time, employment documentation, payroll setup, and internal onboarding procedures are completed.

Here is a checklist of the main steps:

• Preparing and signing the employment agreement
• Collecting employee identification and payroll information
• Setting up payroll and employer contributions
• Facilitation of devices, office equipment, and space
• Arranging orientation sessions and internal training

Key employment laws in Romania

Employment in Romania is primarily governed by the Romanian labor Code (Law No. 53/2003) along with related employment regulations. 

These laws define the framework for employment contracts, working conditions, employee rights, and termination procedures.

If you are planning to engage employees in Romania, it is important to understand the key employment requirements that apply to employers operating in the country.

Below are some important employment conditions you should keep in mind when hiring in Romania:

Employment contracts

Employment contracts form the legal basis of employment in Romania. 

These agreements define the relationship between the employer and the employee and typically include key details such as the job role, compensation, working schedule, and termination terms.

Romanian labor law also permits the use of probation periods to assess an employee’s suitability for the role. Take a look at how: 

Employee benefits

Employees in Romania are entitled to several statutory and employer-provided benefits as part of the employment relationship.

Working hours in Romania

Working hours in Romania depend on whether an employee is hired on a full-time or part-time basis. Employers must clearly define the schedule in the employment contract. 

Some common working arrangements look like:

• Full-time employment: The standard working schedule is 40 hours per week, typically structured as 8 hours per day across five working days.
• Part-time employment: Employees may work reduced schedules such as 2, 4, or 6 hours per day across five days, depending on the role and agreement.
• Flexible weekly structures: Part-time roles may also be structured as 10 hours, 20 hours, or 30 hours per week, based on employer requirements and the employment contract.

Overtime in Romania

Romanian labor regulations set limits on total working hours and outline how overtime must be compensated. Things you must know if overtime work interests you –

• Maximum working hours: Total working time, including overtime, cannot exceed 48 hours per week under normal circumstances.
• Exceptional situations: Working hours may exceed 48 hours in a particular week, provided that the average working time over a four-month reference period does not exceed 48 hours per week.
• Overtime compensation: Employers must compensate overtime through paid time off within the next 90 days or provide additional payment of at least 75% above the employee’s base salary for the overtime hours worked.

Employers’ tax obligations 

Companies employing talents in Romania must meet several payroll and taxation obligations, such as: 

Termination and severance

Termination of employment in Romania must follow the procedures established by the labor law. Employers must ensure that any dismissal is based on valid grounds to avoid the risk of unfair dismissal claims.

Common termination scenarios that can occur:

• Employee resignation
• Mutual agreement between the employer and the employee
• Termination during the probation period
• Dismissal for reasons such as misconduct, performance issues, or absence without leave

Each situation may involve specific procedural requirements, and in some cases, notice periods or additional steps might be needed.

Notice period

Notice periods vary depending on the stage of employment in Romania. Here is the picture in short: 

Severance pay

Severance pay is not mandatory under Romanian labor regulations. However, individual employment agreements or company policies may include severance provisions in certain situations.

Explore Payoneer Workforce Management in Romania

Payoneer Workforce Management’s services in Romania help businesses with compliant support when engaging local talent.

When you work with Payoneer Workforce Management, we can assist with employment contracts, payroll administration, tax deductions, and benefits while helping you navigate Romania’s local labor requirements.

Book your demo today to learn more about how Payoneer Workforce Management can support team expansion in Romania.

FAQs

1. What is the standard working week in Romania?

The standard working schedule for full-time employees in Romania is 40 hours per week, usually structured as 8 hours per day over five days. This framework is established under the Romanian labor Code (Law No. 53/2003).

2. How is overtime compensated in Romania?

Overtime is generally compensated with paid time off within a defined period. If compensatory time off cannot be provided, employers must pay an overtime premium of at least 75% above the employee’s base salary for the additional hours worked.

3. How many public holidays are there in Romania?

Employees in Romania generally receive 17 public holidays each year. If employees are required to work on these days due to operational needs, employers typically provide compensatory time off or additional pay in accordance with labor regulations.

4. Is severance pay mandatory in Romania?

Severance pay is not legally mandatory in all cases under Romanian labor law. However, it may be provided if it is included in the employee’s contract, a company policy, or a collective labor agreement.

5. What is the typical notice period in Romania?

In Romania, the notice period for termination initiated by the employer is typically 20 working days for most employees. When an employee resigns, the notice period can vary depending on what is agreed in the employment contract, but it often ranges from 20 to 45 working days.