Recruiting Top Talent in Romania

Romania Top Talent

Locating and recruiting top talent in any overseas territory puts many barriers in the way of companies building their international profile. This certainly applies to Romania, a developing economy with many attractions but one where the employment market poses questions.

A member of the European Union (EU) and European Economic Area (EEA) since 2007, as part of the EEA Enlargement Agreement, Romania was expected to be integrated into the Schengen Area by the end of 2022 and the European Travel Information and Authorization System (ETIAS).

As a member of the EU, Romania is part of the ‘freedom of movement for workers’ principle. Statistics from the EU in 2020 showed that Romania had the highest percentage of non-Romanian EU citizens in its workforce at just over 18%. Consequently, the recruitment route into Romania is smoother for EU and EEA citizens, who can also sidestep some of the red tape in terms of work permits. Romania’s natural beauty and rich heritage are primed for a developing tourist industry and services sector, while construction, architecture and design, software and hardware development are among the areas expected to generate the most employment opportunities.

The Recruitment Process in Romania

It is vital for foreign companies taking their first steps into Romania’s economy to have a clear plan when it comes to recruitment, as they will have operated within certain regulations.

Foreign companies looking to fill positions must first advertise them through the European Union’s EURES network, to ensure they are available to citizens from the EU and European Economic Area, as well as to Romanian nationals. Companies from other EU nations must take the first steps via their own EURES network.

Statistics from the EU in 2020 showed that Romania had the highest percentage of non-Romanian EU citizens in its workforce at just over 18%. In January 2022, the Ministries of Internal Affairs (General Inspectorate for Immigration) and Foreign Affairs announced proposals to make 100,000 visas available for foreign workers.

Recruitment is the first stage of making your company operational and competitive in Romania. But bureaucracy complicates moving staff into the country – in addition to the complexities of obtaining work permits and visas, which generally must be undertaken by the employer. To avoid these issues, it is vital to know where to locate the finest talent in Romania to be the perfect fit for your company’s global expansion plans.

Once recruited, companies must then consider the implications of handling payroll for their staff and dealing with the revenue and social insurance authorities. Foreign companies must establish a subsidiary to undertake these responsibilities, with strict registration procedures to be followed. These include:

• Obtaining personal tax identification number (TIN) for foreign nationals, if required, using Form 030 with the individual’s passport, copy of contract, lease agreement or deed of ownership. These must be submitted to the relevant local tax office
• Verifying the CNP (Codul Numeric Personal) of local employees, which is assigned at birth and doubles as their TIN
• Filing social insurance and tax reports and returns for Romanian staff on Form D112
• Filing social insurance reports and returns for non-resident foreign employees on Form D112 and their tax reports and returns on Form D224. Form D222 must be completed for non-resident foreign employees at the start and end of employment
• Computing and remitting all employee contributions by the 25^th of the following month to the National Agency of Fiscal Administration (ANAF) and submitting annual tax returns by May 25 of the following year
• Registering new employees with the Labor Inspectorate on the Revisal online software at the latest one day before they commence work
• Ensuring all new employees receive a written contract before starting work

Legal Checks on Employees in Romania

Scope: Most pre-hire checks need the applicant’s permission to proceed.

Medical checks: Employers must ask permission to have a medical check carried out by their occupational physician or pay for the examination. The appraisal should be confined to confirming the candidate is fit for the position in question.

Criminal record checks: No general legal requirement, however they can be mandatory for certain specified roles in which case the employer asks for the candidate to provide evidence of a clean criminal record. It is prohibited for employers to process any criminal record data.

Education and reference checks: Can be requested with the applicant’s permission.

Required:  That the applicant has the necessary work permit, visas, and residency qualification

Basic Facts on Hiring in Romania

The rights of employees and obligations of employers are largely governed by Romania’s Labor Code. Provisions include:

• Employment contracts must be completed in writing the day before work is due to start and handed to the employee
• The contract must be electronically registered in the General Register of Employees via the Revisal system
• Contracts must be drawn up in the Romanian language. Bi-lingual contracts are permitted but must incorporate a Romanian version
• Minimum contract terms must include Full names and addresses of employer and employee; duration (if fixed term); any probation period or notice period; salary and paid vacation entitlements
• Employers must publish company policies and regulations in an employee handbook after consultation with relevant representative committees
• Employers must have policies to deal with equality and harassment

After hiring and onboarding, employers must be aware of other considerations. Minimum standards apply to such as sick leave, working hours, maternity allowances, paid vacations, termination, and severance, notice periods and social insurance payments. Other rules regulate workplace discrimination. 

Employers’ responsibilities include:

• Verifying the CNP (Codul Numeric Personal) of local employees, which doubles as their personal tax identification number (TIN)
• Obtaining the TIN for foreign employees by using Form 03
• Filing social insurance and tax returns for Romanian nationals on Form D112
• Using Form D112 to file social insurance returns for foreign employees and Form D224 for tax reports and returns
• Submitting Form D222 at the start and end of employment for non-resident foreign employees
• Computing and remitting all employees’ contributions by the 25^th of the following month to the National Agency of Fiscal Administration (ANAF) and annual tax returns by May 25 of the following year
• Registering new employees with the Labor Inspectorate and General Register of Employees on the Revisal online software at the latest one day before they commence work
• Ensuring all new employees receive a contract before starting work