Romania Employment Contracts

Romania Contracts

Foreign companies planning to hire employees in Romania must operate within a strict framework of legislation that gives significant safeguards and entitlements to the workforce. Companies must primarily comply with the Labor Code, the Fiscal Code and the Companies Law. Romanian employees and foreign workers are covered by the regulations.

Drawing up a contract with your new employee is an essential part of the recruitment process. Contracts must comply with regulations laid down by the Order of the Ministry of Employment. Once Bradford Jacobs’ Professional Employer Organization (PEO) recruitment networks have located the best talent for your company, we step in to handle this crucial element of recruitment.

General requirements from the Labor Code apply to all contracts. These include:

• Contracts must be completed in writing the day before work is due to start and presented to the employee
• Contracts must be electronically registered via the Revisal online system in the General Register of Employees
• Contracts must be concluded in Romanian. Bi-lingual contracts are permitted but must incorporate a Romanian version

Minimum contract terms must include Full names and addresses of employer and employee; the duration (if fixed term); any probation period or notice period; salary and paid vacation entitlements

Employment Contracts in Romania

Employers are legally required to provide the new employee with a written contract at least one day before they begin work. The contract must be in Romanian and a bi-lingual contract must include a Romanian version of the terms. Mandatory minimum information must be included in the contract – full names and addresses of the parties; duration of a fixed-term contract; any probation or notice periods; salary, paid vacation, and any other entitlements. A pre-employment medical check is mandatory, carried out by the company’s occupational health department, or else paid for by the employer.

Contracts must be electronically registered via the Revisal online system in the General Register of Employees.

Main contract types include:

• Permanent Employment Contracts: (Contract individual de muncă pe durată nedeterminată). Romania employment law assumes all contracts are open-ended and indefinite, which can be terminated by either party in accordance with statutory procedures.
• Fixed-term Employment Contracts: (Contract individual de muncă pe durată determinata). These are permitted only in specific situations as determined by the Labor Code. Contracts can be renewed twice but cannot exceed 36 months in total. Fixed-term contracts that exceed three years, or are renewed a third time, automatically become open-ended and indefinite.
• Part-time Employment Contracts: (Contract individual de muncă cu timp partial). These can be either open-ended or fixed term.
• Probation Periods:  These can be included in a contract, only once per employment. They are generally for 90 days, although can be shorter if applied to fixed-term contracts or temporary employees. Probation periods for executives and managers can be extended to 120 days.
• Collective Bargaining Agreements:  Collective agreements can be concluded through negotiations between employers, employees and their representatives or trade unions. All employees in Romania have the constitutional right to belong to a trade or labor union which, in turn, has equal rights to represent workers in any dispute with their employer or employers’ organizations. The Social Dialogue Act of 2011 removed the right to negotiate agreements at national level. Therefore, collective agreements are concluded at industry level or with individual companies or groups of companies. According to the Ministry of Labor between 20% and 25% of employees have union membership.