COUNTRY

Employment contracts in Romania are either indefinite or for a fixed term. Indefinite contracts are favored; fixed contracts are normally only allowed for project-based work or other work that is for a limited duration. A fixed-term contract may not exceed 36 months and may be renewed up to two times, but the employment agreement is automatically converted into an indefinite contract after a third renewal or after 36 months.

Employment contracts must be in writing and in the Romanian language. They must be signed before the employment relationship begins, and the employer must register the agreement with the General Register of the government labor inspectorate using its electronic system (known as REVISAL) before employment starts. The contract must state:

• the identification details of the employer and the employee, and the employer's headquarters location,

• the employee's work location or their ability to work in different places if there is no fixed workplace,

• how travel and insurance costs will be handled if the employee will travel or work in more than one location,

• the employee’s job function under the official Classification of Occupations in Romania (Clasificarea Ocupatiilor din Romania) and a job description,

• how the employer will evaluate the employee’s performance,

• any risks of the job,

• the date work will begin and the length of employment if the contract is a fixed-term or temporary contract,

• the amount of annual leave,

• the employee’s base salary, the pay period and the form of payment,

• any other compensation separate from the base salary,

• working hours, expressed either in hours per day or hours per week,

• the conditions for overtime and its compensation,

• the notice periods and other rules for terminating the contract,

• rules regarding the use of electronic signatures,

• information about any collective bargaining agreements that apply to the employment,

• the employee’s rights employer-provided training, and

• the employer's contributions to the employee’s medical insurance, pension, and any other benefits.

The standard workweek in Romania is 40 hours over five days, and employees younger than 18 years old may work 30 hours, which may be spread over six days. The normal workday is eight hours, but some flexible arrangements are permitted.

Overtime requires the employee’s consent and may not exceed eight hours per week except in extraordinary circumstances. Employees who work overtime are entitled to paid time off within 60 days to compensate for the extra hours, or, if this is not possible, to be paid for the extra time at 175% of the employee’s standard hourly rate. The employee receives additional pay at 200% of their standard hourly rate if the employee works on a weekend or public holiday, or compensatory time off.

Employees who work a minimum of three hours per day between 10 p.m. and 6 a.m. or work 30% of their monthly hours at night receive either one hour of paid time off or compensation at 125% of the employee’s standard hourly rate. An employee’s night hours may not average more than eight hours on average over a three-month period.

Employees receive 183 days of paid sick leave per year in Romania. The employer pays the first five days at 75% of the average monthly income during the past six months. After the first five days, the employee can receive a social security payment. The sick leave can be extended to 18 months for serious illness. The sick employee should provide a medical certificate to the employer as soon as possible and request compensation by the 90th day.

Employees receive 126 days of paid maternity leave in Romania, with 63 days before the estimated date of birth and 63 after. The mother must take a minimum of 42 days following the birth. While on maternity leave, the mother receives 85% of her average income over the last 12 months, which is paid by the employer but funded with social security funds. Fathers receive five days of paid paternity leave, which may be taken anytime within the first eight weeks after the birth. The father may take an additional 10 days in order to take a childcare course. Paternity leave is paid at 100% of the father’s usual salary.

Employees are entitled to a monthly minimum wage in Romania. Cash bonuses are common. Gift vouchers, which are not taxed, are sometimes given as an alternative.

Employees receive a minimum of 20 days of paid annual leave in Romania. Employees who are under 18, employees who do particularly dangerous work, and disabled or blind workers are entitled to at least three additional days per year. The employer schedules employees’ leaves for the calendar year in consultation with the employees. Leave not used in the calendar year in which it is accrued must be used within 18 months of the end of the year. The employee is entitled to compensation for unused leave when the employment relationship ends. In addition to their annual leave, employees are also entitled to take additional paid leave for family events such as births, weddings and deaths.

In Romania, the public holidays are:

• New Year’s

• Unification Day

• Orthodox Good Friday

• Orthodox Easter Monday

• Labor Day

• Children’s Day

• Orthodox Pentecost Monday

• Feast of the Dormition (St. Mary’s Day)

• St. Andrew’s Day

• National Day

• Christmas Day

• Second Day of Christmas

Romania has universal healthcare. There are also private clinics and providers. Some employers provide private health insurance as an employee benefit.

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.