Employment laws in Romania

The Romanian labor market has seen significant growth, with several organizations planning to expand their business in the country. 

However, while engaging with the local talent, you need to follow the employment laws in Romania. The Labor Code (Law No 53/2003) governs employment relationships, including employment contracts in Romania,  working hours, wages, termination, and more. 

The labor laws in Romania are significantly influenced by European Union directives, given Romania’s EU membership since 2007. This typically maintains alignment with broader European standards on worker protection and non-discrimination. 

When it comes to employee rights in Romania, they benefit from a range of statutory protections. Internal company regulations and collective bargaining agreements further supplement these baseline protections. This creates a layered legal environment that employees and employers must navigate carefully. 

A temporary work agency like Payoneer Workforce Management can support you in navigating the employment laws in Romania seamlessly. It also offers assistance with employment contracts, payroll management, leave entitlements, termination, and more. 

Key employment laws in Romania

The Labor Code (Law No. 53/2003) is the primary source of employment laws in Romania. Along with the Labor Code, there are many other pieces of labor laws in Romania that shape the employment environment in the country. 

Some of them are as follows:

Law No. 62/2011 on Social Dialogue

• Law No. 62/2011, republished in 2012, on Social Dialogue in Romania, regulates employer organizations, trade unions, and collective bargaining in the country. 
• The law decentralized negotiations, emphasizing company-level agreements and establishing criteria for representative structures. 

Government Ordinance No. 137/2000

• In Romania, this ordinance is the primary legal framework for the prevention and sanctioning of all forms of discrimination. The ordinance transposes several European Union directives regarding equal treatment and non-discrimination into Romanian national law.  

Law No. 319/2006 on Health and Safety at Work 

• Law No. 319/2006 is the primary legislation in Romania, governing occupational safety and health (OSH) in the country. 
• The law clearly establishes duties for employees and employers to prevent all kinds of risks, diseases, and accidents. 

Law No. 263/2010

• Law No. 263/2010 is the main legislation in Romania governing the unitary public pension system, based on Pay-As-You-Go (PAYG) principles. 
• The law covers early retirement, old-age, partial early retirement, survivor pensions, and disability. 

Contract employment laws in Romania

Employment contracts in Romania are regulated by the Labor Code and registered in the national registry (REVISAL) before work begins. 

It is recommended that the contract be in writing, typically in English and Roman. 

Types of contract

Mentioned below are some of the most common types of employment contracts in the country:

• Individual employment contract (Contract Individual de Muncă, CIM)
  • This is the most common employment contract type in Romania.
  • The contract establishes a legal relationship between the employer and the employee.
  • The contract outlines terms such as working hours, job description, salary, benefits, and termination conditions. 

• Fixed-term employment contract (Contract de Muncă pe Durată Determinată)
  • It is evident from the name that such employment contracts are for fixed terms only. These are usually for a specific project, temporary replacement, or seasonal work. 
  • Such contracts have a pre-determined end date or condition. 

• Probationary employment contract (Contract de Muncă cu Perioadă de Probă)
  • This kind of employment contract in Romania allows an employer to assess an employee’s suitability for a specific role. 
  • The probationary period allowed by law is 90 days.
  • Both the employer and the employee can terminate the contract within the probation period without any advance notice or severance pay. 

• Project-based employment contract (Contract de Muncă pe Proiect)
  • An employee is specifically hired to work on a particular project, assignment, or task.
  • The contract is flexible with a targeted approach and is designed to meet the specific temporary needs of the employer. 

Essential contract terms

Employment contracts in Romania must contain the following essential contract terms. All employers must furnish these points to the employees:

• The complete identity of the employee and the employer
• Details of the workplace 
• The employer’s head office
• The position/occupation with the job description and specifications of job attributions
• Date of commencement of the contract
• Duration of the contract
• Leave entitlements
• Basic wages, along with other benefits
• Working hours and overtime hours
• Probation and notice period
• Termination

Minimum wage in Romania

From 1st January 2025, the minimum wage in Romania is 4,050 RON. 

Working hours in Romania

For full-time employees, working hours in Romania are 40 hours per week. However, for part-time employees, the working hours are different, which are as follows: 

• 2 hours per day x 5 days per week (10 hours/week)
• 4 hours per day x 5 days per week (20 hours/week)
• 6 hours per day x 5 days per week (30 hours/week)

As per overtime laws in Romania, employees are entitled to paid overtime in the country.

• The maximum legal working hours should not exceed 48 hours per week, including overtime work. 
• The employer has to compensate for the overtime hours:
  • Paid time off within the next 90 days
  • An additional payment that cannot be less than 75% of the base salary for the time worked. 

Mandatory benefits

When it comes to employee rights in Romania, employees are entitled to some mandatory benefits from their employers. Some of the important ones are as follows:

• Public health insurance 
  • This is a mandatory benefit in Romania and is included in the Employer contributions. 
  • The public health insurance in Romania oversees the mandatory national health insurance fund.
  • It provides comprehensive coverage, including specialist visits, emergency care, hospitalizations, etc. 
  • The services have to be accessed via the national health card.

• Social security contributions
  • Social security contributions are mandatory in Romania for pension and health insurance(10%). 

• Sick leave
  • Employees in Romania are entitled to 183 days of sick leave within one year, with a possible extension of 90 days. 

• Maternity leave
  • The minimum maternity leave for female employees in Romania is 126 days. 

• Paternity leave
  • Male employees in Romania are entitled to 5 working days of paternity leave in the country. 
  • If they attend childcare courses, they get an additional 10 days of leave. This makes a total of 15 days of leave. 

• Annual bonus
  • In Romania, the 13th-month pay is not mandatory. 
  • However, performance bonuses are common in organizations and given during Christmas. 

• Annual leave and public holidays
  • As per the labor laws in Romania, employees in the country are entitled to a minimum of 20 business days of annual leave. 
  • Employees can enjoy 17 public holidays in Romania. The holiday list is as follows:
    • New Year’s Day
    • New Year Holiday
    • Epiphany
    • Synaxis of St. John the Baptist
    • Union of the Romanian Principalities
    • Orthodox Good Friday
    • Orthodox Easter Sunday
    • Orthodox Easter Monday
    • Labor Day
    • Orthodox Whit Sunday
    • Orthodox Whit Monday
    • Children’s Day
    • Assumption Day
    • Feast of St. Andrew
    • Great Union Day
    • Christmas Day
    • 2nd day of Christmas

Termination

Termination laws in Romania are governed by the Labor Code, Law No. 53/2003. All kinds of employment dismissals in the country must have a legal and valid cause. Termination without valid grounds will be against labor law compliance in Romania and can lead to legal consequences for the employer. Termination involves complicated procedures and has to be handled delicately. 

Types of termination scenarios

According to the termination laws in Romania, termination is possible in the following scenarios:

• Employee resignation
• Mutual agreement between the employee and the employer
• Employers can unilaterally terminate the employment contract during the probationary period in case the employee is found unsuitable. Proper legal requirements have to be met for the same. 
• Termination of the employee by the employer due to performance issues, misconduct, absence without leave, professional unfitness, etc. 

Procedural requirements vary depending upon each termination scenario. 

Notice period in Romania

• During probation, the notice period in Romania is 20 working days.
• After probation, too, the notice period remains 20 working days. This is for standard positions. For management positions, the notice period can be 45 days or as agreed in the employment contract. 

Severance payable

• Severance pay in Romania is not mandatory. 
• There is no statutory legal requirement for employers to pay severance upon dismissal, unless it is mentioned in the employment contract or a collective bargaining agreement. 

Navigate employment laws in Romania with trusted support

To maintain labor law compliance in Romania, employees and employers must have a good understanding of the employment laws in the country. 

A temporary work agency, such as Payoneer Workforce Management, helps navigate the necessary regulations to reduce legal complications. Along with having a solid understanding of the labor laws in Romania, the temporary work agency also offers support in employment contracts, payroll management, onboarding, leave entitlements, termination, and more. 

Book a demo right now!

FAQs

1. Do the employment laws in Romania have a leave carry-forward policy?

Yes, in Romania, employees have the benefit of a leave carry-forward policy. Unused annual leaves can be carried forward for a period of 18 months. 

2. What is the payout currency and the minimum wage in Romania?

The payout currency of Romania is Romanian Leu (RON). The minimum wage in the country is 4050 RON. 

3. What is the annual leave entitlement for employees in Romania?

According to the Romanian Labor Code, employees in the country are entitled to a minimum of 20 working days of annual leave per year. This is the statutory minimum. Unused leave can be carried forward to the following year. 

4. How much is the maternity and paternity leave entitlement in Romania?

Female employees in Romania are entitled to a minimum of 126 days of maternity leave in the country. Paternity leave is for 5 working days.