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Published on Sep 30, 2013 by LPG

Overview of Romanian labor law

Employment

According to Romanian labor laws, the minimum age required to be hired for work is 16 years of age. A 15 year old can be hired for certain activities which will not affect their health or professional development only by consent their parents or legal representatives.

Employees holding several positions

The law requires that a person may hold several functions and has the right to receive a salary for each position held.

The employee is not required to inform their employer of other positions held. Moreover, an employment contract can not prevent an employee from holding another post (with the exception non-compete clause).

Holding several positions is not allowed where there are conflict of interests in terms of the ethical codes of various professions (eg. A judge may not hold any other position, except for a teacher).

Terminating an employment contract

The labor code requires that an employment contract must be terminated in written form and in Romanian.

The employment contract is registered in the General Registry of employees (REVISAL) before the start date of employ. This registration is sent to the Work Inspection department through internet.

Additionally, a personal can not be hired until they submit a medical certificate and this must be done before contract date.

The employment contract must include the following information: the job description of the employee, the occupational risks involved, the date the contract was signed and its duration, salary and the company headquarters.

The new labor code states that the employer must give a copy of the signed contract to the employee (always before the first day of work).

Job description

The job description is an integral part of the employment contract.

Employment cards

As of January 1, 2011, the employment cards are no longer in use. In their place, the employer issues to the former employee a certificate of service (which is no longer validated by the Labour Inspectorate).

Duration of the employment contract 

The employment contract is for either a short term or indefinite period (replacement of an employee, seasonal work).

A short term contract can be for a maximum period of 12 months and can be extended two times, so long as the total duration does not surpass 36 months.

Vacation

Employees are entitled to a minimum of 20 vacation days (work days) per year.

The work day and work week

The work day is in principle 8 hours and the work week is 5 days (40 hours per week).
 
The legal maximum for a work week cannot surpass 48 hours per week, including overtime.
 
The work week can surpass 48 hours per week only if the average working hours calculated over a period of 4 months does not surpass 48 hours per week.

Employment contracts can be made for just one hour per week or per month.

Trial period

A trial period can apply for an indefinite employment contract.

Trial periods cannot surpass:

  • 90 calendar days for administrative positions
  • 120 calendar days for executive positions.

Trial periods for short term contracts may be agreed upon so long as they do not surpass:

  • 5 work days for a contract less than 3 months;
  • 15 work days for a contract of 3-6 months;
  • 30 work days for a contract longer than 6 months;
  • 45 work days for a contract longer than 6 months for employees occupying a management position.

Non-compete clause

A non-compete clause can be included in an employment contract, prohibiting the employee from engaging in an activity with the competition of their former employer in exchange for an compensation for including such a clause.

The clause comes into effect at the end of the employment contract, for a maximum period of 2 years. 

Minimum salary

The minimum gross salary in Romania in 2013 was 800 RON (about 180 EUR) per month.

In 2014, the minimum gross salary in Romania is :

  • From January 2014 : 850 RON (about 190 EUR)
  • From July 2014 : 900 RON (about 200 EUR)

Furthermore, even if the collective employment contract is not extended, in practice it is advisable that employers still meet the former salary standards which apply to the minimum wage (these standards must be listed in the Internal Regulations).

Internal company rules of procedure

Each company must establish internal rules of procedure which include, in part, occupational health and safety rules, workers and employer's rights and requirements, applicable penalties, etc.

Terminating a work contract

A work contract is terminated when:

  • the contract ends;
  • there is an agreement between the two parties;
  • the employee chooses to terminate the contract;
  • when the employer chooses to terminate the contract (dismissal) in the following cases: reasons related to the worker's performance (disciplinary dismissal) and reasons unrelated to worker's performance (layoffs). 

Temporary work

Temp agencies must be approved by the Ministry of Labor. A temporary position must not surpass an initial duration of 24 months and can be renewed such that the total duration does not surpass 36 months.

Collective contracts

Companies employing more than 21 people are required to negotiate a collective work contract.

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