1. What types of employment contract are recognised in Romania?
According to the Romanian Labour Code, employment contracts are concluded for an indefinite period of time. By way of exception, employment contracts can also be concluded for a fixed-term.
2. What are the minimum and maximum terms for which a fixed-term employment contract can be concluded in Romania?
Fixed-term employment contracts must not exceed 36 months. The Labour Code does not provide a minimum term for fixed-term employment contracts.
3. How can a contract of employment be terminated in Romania?
An employment contract can be terminated in one of the following ways:
- rightful termination:
- maternity leave;
- leave for temporary work incapacity;
- quarantine, exercise of a position within an executive, legislative or court authority, for the entire period of the term, if the law does not stipulate otherwise;
- exercise of a paid management position within a union;
- force majeure;
- if the employee is in custody on remand, as per the terms of the Criminal Procedure Code;
- from the expiry of a permit, authorisation or certification required for the exercise of a profession;
- by agreement of the parties, upon a term established by the parties, but also unilaterally (e.g. resignation or dismissal).
4. What are the applicable notice periods, and what determines their length?
In case of dismissal, the notice period must be at least 20 working days.
In case of resignation, the notice period is agreed by the parties in the employment contract or, as the case may be, is established in the applicable collective bargaining agreement. The notice period must not however exceed 20 working days for executive positions, or 45 working days for management positions.
The Romanian Labour Code provides certain minimum notice periods, but the parties – in the collective bargaining agreement or the employment contract – can agree on longer notice periods.
5. Is it possible to employ employees as teleworkers in Romania, and are there any particular regulations that apply (differentiating from other regulations)?
Yes, it is possible to hire employees in the form of teleworking, based on a law approved in April 2018.
6. What are the rights for women who become pregnant during their employment contract, and are they protected from being dismissed?
A pregnant employee cannot be dismissed if she has informed the employer in this regard. The employee must to be allowed to be absent from work in order to have her pregnancy monitored regularly, and she is entitled to request a reduction of her work schedule.
7. What types of paid days-off are the employees entitled to in Romania?
Employees are entitled to the following types of days-off:
- annual leave;
- sick leave;
- professional training leave; and
- other paid days-off for certain important family events such as the birth of a child, marriage, death of a family member, etc.
8. Is it possible to include a non-competition clause in the employment contract, and what are the grounds for concluding a valid non-competition agreement?
Yes, it is possible to include a non-competition clause in the employment contract. According to this clause, an employee agrees not to perform, after the termination of their employment contract, for themselves or for a third party, an activity that is in competition with the one performed by their employer. This agreement is in exchange for a monthly non-competition fee that the employer must pay for the entire term of the non-competition clause.
The non-competition clause shall produce legal effects only if the employment contract specifically includes details of the activities that cannot be performed by the employee upon the termination of the employment contract, the value of the monthly non-competition fee, the terms of the non-competition clause, the third parties to whom the employee cannot provide such services, and the geographical area in which the employee would be in competition with the employer.
9. Is the employer obliged to pay compensation for the period of validity of a non-competition clause/agreement after the termination of employment?
Yes, the employer must pay a monthly non-competition fee to the employee. This fee is not a type of salary, and must be negotiated by the two parties separately – it must be at least 50% of the employee’s average gross monthly salary for the last six months prior to the termination of the employment contract or, if the contract was concluded for a period less than six months, at least 50% of the average gross monthly salary to which the employee was entitled for that period.
10. What happens to employees if their employer goes bankrupt in Romania, and are they entitled to severance pay?
If an employer goes bankrupt, employees are entitled to request from the government the payment of an unemployment benefit if they do not find work.
11. Are there any courts specially appointed for the purpose of dealing with labour law matters in Romania?
Yes, in every county in Romania, within every county court, there are special divisions of the court that deal with labour law disputes. Such trial panels include a judge, a union representative and a representative of the employers’ association.
12. In the event that an employee is a debtor in enforcement proceedings in Romania, to what extent is it possible for a bailiff to seize remuneration?
If there is one creditor, the bailiff can seize up to a third of an employee’s income. In the event of two or more creditors, the bailiff can seize up to half of their income.
For debts representing child support, the bailiff can seize up to half of the income, even if there is only one debt.