Romania Labor Management QA

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LRC – Romania Labor Regulations

LRC-CA-20.10

What must be included in the contents of a labor contract in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 12, 17, 31 (Romanian); Ordinance Number 53/2017 amending the Labor Code, arts. 1-3.
Individual labor agreements must be in writing and in Romanian.
The employer must register a copy with the general registry of evidence of employees and provide the employee with a copy at least 1 working day prior to the day on which the employee begins work.
An individual labor agreement must include at least the following:

• The identity of employer and employee
• The duration of the agreement (definite or indefinite)
• The work commencement date
• The work places
• The type of work
• Job responsibility and job-associated risks
• Required length of termination notice
• Criteria applicable to the professional evaluation of the employee
• Employer and employee rights and obligations
• Working conditions
• Salary and vacation rights

LRC-CA-20.11
Do Romania arrange labor contract in fixed term?
What should be the length of the labor contract in Romania?

Evershine RD:

Yes.
The length of the labor contract cannot exceed a period of 36 months.
After this period, it will consider as open-ended contract.
Labor contract cannot be signed more than 3 consecutive fixed-term contracts.

LRC-CA-20.20

What is the minimum age for hiring new employee in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), art. 13 (Romanian).
The minimum age for employment in Romania is generally 16, although 15 years old can be employed with the permission of their parents.
Employers must notify the National Agency for Employment of Workers of all vacancies within the company.
The notice must be provided within 5 days from the date in which the position is available.
Employers that fail to provide such notice can be subject to fines.

LRC-CA-20.40
Is it a requirement for employer in Romania to conduct a pre-employment background check?

Evershine RD:

According to Labor Code, 2003 (as amended), art. 27 (Romanian).
Employers are permitted to conduct pre-employment background checks provided the inquiries are needed to assess applicants’ skills and abilities.
Information can be obtained directly from the employee.
If information from prior employers is desired, the employee must be notified in advance.
A medical certificate showing that the prospective employee can fulfill the responsibilities of a job is needed before the employee begins work.

LRC-CA-20.50

Is the Non-Competition indemnity clause in labor contract in Romania has legal effect?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 20-21 (Romanian).
Employers and employees can enter into agreements under which an employee is temporarily forbidden following the termination of employment from engaging in activities competitive with the former employer.
In exchange, the employer is required to pay the former employee a monthly allowance for the entire period of noncompetition agreement equal to at least 50% of the average of the employee’s gross salary over the final 6 months of employment.
Noncompetition agreements may not exceed 2 years from the termination of employment.

LRC-CA-40.05

What are the regulations on Gender Discrimination in employment specifically for female workers in Romania?

Evershine RD:

According to Law on Equality and Treatment Between Men and Women, No. 202 of 2002, art.4.
The Labor Code guarantees the equal treatment of men and women and prohibits discrimination in employment on the basis of gender.

LRC-CA-50.10

Can the employer in Romania collect, or process data transmitted by employees over the internet?

Evershine RD:

Under the General Data Protection Regulation, 2016.
Employers can monitor employees only if there is a lawful basis for doing so.
Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures.
Employees must be given prior notice, and any data that is collected must be used and kept only to fulfill its original purpose.

LRC-CA-60.10

What are the regulations on working hours in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 112, 125, 135 (Romanian); Ordinance Number 53/2017 amending the Labor Code, art.4.
The Labor Code limits normal working hours to 8 per day and 40 per week and the normal workweek to 5 days.
The required weekly rest period is 48 consecutive hours.
Employers must keep a record of the daily hours worked by each employee and keep such records available for inspection by the labor authorities at each workplace.

LRC-CA-60.30

What are the regulations on overtime hours in Romania?
What is the overtime premium rate in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), art. 105 (Romanian).
Any hours worked above 8 per day or 40 per week are considered overtime.
Employees cannot work more than 8 hours of overtime per week.
Overtime must be compensated with paid time off within 30 days of its performance or at an overtime premium of at least 75% of base salary.
Overtime can only be performed with the consent of the employee.
The Labor Code forbit people under 18 years old to work overtime hours.

LRC-CA-60.50

Is it common to pay 13^th month’s salary in Romania?

Evershine RD:

The yearend bonus is voluntary and, if offered, should be specified in individual labor agreements or applicable collective agreements.
When an employee is temporarily transferred to a different location or to a different employer, the employee is entitled to a transfer bonus.

LRC-CA-70.10

What are the regulations on general leave policy for employee in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 144-153 (Romanian).
Romanian employees are entitled to a minimum 20 days of paid vacation annually.
Vacation pay should be at least equal to the base salary and permanent benefits and bonuses to which the employee is normally entitled, as provided in the individual labor agreement.
The vacation payment must be made 5 days before the vacation period begins.
A collective bargaining agreement or an employment contract may provide additional leave days.
Employees cannot forfeit their right to paid vacation.

LRC-CA-70.20

What are the public holidays in Romania?
What is the overtime premium rate during public holiday in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 139-142 (Romanian).
The labor Code provides14 public holidays:

• Jan.1 and 2: New Year

• Jan. 24: Unification Day

• Good Friday

• The first and second days of Easter

• May1: Labor Day

• June 1: Children’s Day

• The first and second days of Pentecost

• Aug. 15: The Assumption

• Nov.30: Saint Andrew’s Day

• Dec. 1: National Day

• Dec. 25 & 26: The first and second days of Christmas

Employees required to work on a public holiday are entitled to a day off in lieu within 30 days.
If the employer is unable to grant the day off, the employee is entitled to double pay for the work performed on the public holiday.
Public holidays that fall on a weekend are celebrated on that day.

LRC-CA-70.30

What is the maternity leave policy for female employee in Romania?

Evershine RD:

According to Law Amending Emergency Ordinance on Maternity Protection at Workplaces, 2015, arts. 2-5 (Romanian).
A pregnant employee who has worked for at least 1 month during the preceding 12 months is entitled to 126 days of maternity leave, commencing 63 days prior to childbirth.
A minimum of 42 days must be taken by the employee after the child’s birth.
While on maternity leave, women employees are entitled to 85% of their average income over the past 12 months.
The compensation during maternity leave is fully paid by the National Social Security Fund.

LRC-CA-70.40

What is the paternity leave policy for male employee in Romania?

Evershine RD:

According to Emergency Ordinance on Maternity Protection at Work, 2003 (Romanian).
A father is entitled to 5 working days’ compensated leave within 2 months following the birth of his child on days he requests.
If the father successfully completes a childcare course, he receives an additional 10 working days’ compensated leave.

LRC-CA-70.50

What are the provisions on sick leave, bereavement leave and personal leave for employees in Romania?

Evershine RD:

Sick Leave
Employees covered by the pension and social insurance system who have made required contributions are entitled to sick leave of up to 183 days within 1 year with a possible 90-day extension.
Sick pay is equivalent to 75% of the average monthly income during the previous 6 month.
The employer pays medical leave for the first 5 days, the Social Security Fund for the remainder.

Leave for exceptional circumstances
Employers must grant employees paid leave of schools are closed in exceptional circumstances but only if the tasks associated with the employees’ roles cannot be performed in “working from home” or teleworking conditions.
In certain sectors where activity must be provided on a continuous basis, consent of the employer for such leave may be required.
The paid leave can be granted to only one of the parents, and only if the child in care is 12 years of age or younger.
During such leave, employees are entitled to be paid up to 75% of their base salary, but not more than 75% of the average gross salary in the economy.

LRC-CA-70.60

What are the regulations on pension benefits and social security insurance benefits for employee in Romania?

Evershine RD:

Employees may retire with a full pension at age 60 (women) or 65 (men) with at least 15 years of contributions.
The qualifying age for women will gradually increase to 65 by 2030.
The employer is required to withhold employee contributions from wages and remit them to the government.

LRC-CA-70.70

What are the regulations on Workers’ Compensation for employee in Romania?

Evershine RD:

To qualify for workers’ compensation benefits, the employee must have at least a 50% loss in working capacity due to the work injury or occupational disease.
Temporary disability benefits cover 80% of employees’ wages in the 6 calendar months before the disability began and are paid from the first day of disability for up to 180 days a year.
The employer pays for the temporary disability coverage until the employee recovers or receives a certificate of permanent disability.

LRC-CA-80.05

Can the employee in Romania join labor union?

Evershine RD:

According to Social Dialogues Act, No. 62 of 2011, Ch. 1 (Romanian).
Trade unions may be set up by employees of any company with at least 15 members belonging to the same employer.
In Romania, there are 3 levels of trade union organization:

• Trade unions
• Federations and
• confederations

2 or more trade unions active in the same industry or profession may cooperate to jointly set up a professional federation.
2 or more professional federations active in different industries or professions may cooperate to jointly set up a confederation.
Only “representative” trade unions are empowered to negotiate and conclude collective bargaining agreements at company level.
Trade union organizations are representative if:

• they have a legal status as a recognized trade union organization
• they have organizational and patrimonial independence and
• trade union members account for at least half plus one of the employees of the company.

No person may be required to join a union or to withdraw from a union.
A person may only be a member of one union.

LRC-CA-80.06

How to handle labor dispute in Romania?

Evershine RD:

According to Social Dialogues Act, No. 62 of 2011, Chs. 2-6 (Romanian).
Labor conflicts, which are regulated by Law 62/2011 on social dialogues, can be either collective or individual.
Collective labor conflicts
Involve the negotiation of collective labor bargaining agreements, arise if:

• the company refuses to begin the negotiation of a collective labor contract or agreement, no contract or agreement is concluded or the previous contract lapses
• the employer or the union does not accept employee claims or
• the employer and the union cannot reach agreement on a collective labor contract or agreement before the date set for finalizing the negotiation.

This conflict can be resolve by conciliation through the Ministry of Labor, Family and Social Protection or, if conciliation fails, through mediation of the parties agree both to the process and to the choice of mediator.
At any time, employer and union may agree to submit their conflict to an arbitration commission, the decisions of which are binding on both parties.

Individual labor conflicts
Involve rights and obligations conferred by law or collective or individual employment agreements, can only be resolved by the courts.

LRC-CA-90.10

What are the regulations on workplace safety and health for employee in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 175-176 (Romanian).
Under the Labor Code and Law 187/1998 of the Ministry of Labor, Family and Social Protection require that every employer with 50 or more employees establish a labor safety and health committee, the main responsibilities of which are to:

• approve the annual labor health and security program
• ensure the applicability of the program
• perform inspections
• analyze risk levels and
• inform labor authorities about workplace safety

LRC-CA-100.10

What are the circumstances that an employer can terminate an employee in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 58-64, 75 (Romanian).
An employer may dismiss an employee if the employee:

• repeatedly violates the employer’s work rules
• is under preventive custody for more than 30 days
• is no longer able to perform the duties of the position as determined by medical examination or
• does not meet the professional requirements of the position.

LRC-CA-100.11

What is the notification period for terminating an employee in Romania?
How much is the severance pay?

Evershine RD:

The employee must be given at least 20 business days’ notice of termination.Payment in lieu of notice is not permitted.
There is no statutory severance payment.
In practice, severance is paid if the dismissal results from reasons not specifically related to the employee’s individual performance or to disciplinary misconduct.

LRC-CA-100.12

What is the reporting requirement for employer in Romania to notify the termination of employees to the competent authority?

Evershine RD:

Termination of employee should notify to National Employment Agency.

LRC-CA-100.20

What are the regulations on mass layoffs in Romania?

Evershine RD:

According to Labor Code, 2003 (as amended), arts. 68-70 (Romanian).
A mass layoff is considered to occur when within 30 days:

• at least 10 employees are laid off by an employer with between 21 and 99 employees
• at least 10% of the workforce is laid off by an employer with between 100 and 299 employees or
• at least 30 employees are laid off by an employer with 300 or more employees.

In the case of a mass layoff, an employer must:

• notify worker representatives and the local labor authority
• consult with worker representatives
• apply fair selection criteria to determine which employees to lay off
• give appropriate notice
• pay severance, if required
• provide employees to be laid off with time to search for new employment; and
• offer reemployment to laid off employees if their jobs are to be refilled within 45 days of layoff.

LRC-CA-100.30

What is the time limit for employer in Romania to pay employees upon termination?

Evershine RD:

A terminated employee is entitled to compensation for earned but unused vacation.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

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