Table of Contents

Romania

Table of Contents

Currency

Romanian Leu (RON)

Payroll Frequency

Monthly

Employer Taxes

6.25% to 10.25%

About Romania

The largest of the Balkan countries, Romanian terrain has dramatic mountains and a coastline on the Black Sea. After World War II, the country fell under Communist rule, eventually leading to Communist leader and dictator Nicolae Ceausescu’s iron fist reigning over the country until his downfall on Christmas Day 1989.

The River Danube, Europe’s second-longest river, empties into Romania’s Danube Delta. The Carpathian Mountains, which cross Romania from the north to the southwest, include Moldoveanu Peak, at an altitude of 2,544 m (8,346 ft). Its climate is temperate and continental, with four distinct seasons.

With a population of over 20 million people, the largest ethnicity is Hungarians, followed by Hungarians at 6.1% and the Roma, at 3.0% of the population. Their official language is Romanian, and although formally a secular state, the majority of the population consider themselves Christians. Among famous Romanians is Romanian-born Holocaust survivor Elie Wiesel, who received the Nobel Peace Prize in 1986.

Employment Relationship

• Permanent Employment

Individual work contracts concluded for indefinite term are permanent contracts. Any contract that does not specifically mention an expiry term is considered indefinite. Contracts that are not concluded in writing are also considered indefinite.

• Fixed-Term or Specific-Purpose Contracts

Employment contracts can be concluded for a definite term in writing, expressly stating the term for which it is concluded. They can be formed to replace an absent employee or to do some urgent, exceptional work. Employees who are hired for definite term can be subjected to a trial period, the length of which depends on the length of contract. Contracts for a definite term cannot be concluded for a period exceeding 18 months. Those hired for fixed-term are also eligible for all the rights and benefits applicable to those hired for indefinite term. No more than 3 consecutive fixed-term employment contracts can be formed between the same parties. Fixed term contracts concluded within 3 months from the termination of a fixed-term contract are considered successive contracts and cannot have a duration exceeding 12 months each. 

• Temporary Employment Contratcs

Temporary employees are those employed by an employer (temporary labor agent), and placed at the disposal of a user for the duration necessary for carrying out certain precise and temporary duties. Temporary employees can only be hired to replace suspended employees, or carry out seasonal or occasional activities. Temporary work assignment cannot be for more than 24 months, can be extended only once for a maximum total of 36 months.  Temporary employees must have access to all the services and facilities provided by the user, under the same terms as the user's other employees. The user must provide necessary equipment and protective gear.  Between two assignments, a temporary employee is at the disposal of the temporary labor agent and benefits from wages paid by the agent, which cannot be lower than the minimum gross national wages. 

Probationary Period

In Romania, an employment contract contract can include a probationary (trial) period. A trial period of 90 calendar days at the most may be established for executive positions, and 120 calendar days at the most for management positions. Trial period must not exceed 30 days for disabled persons. For unskilled workers, the trial period cannot exceed five working days. For graduates of higher educational institutions, the first six months after their debut in profession are considered probation period. Employees can be subject to only one trial period. As an exception, an employee can be subjected to a new trial period if they start a new position or profession with the same employer, or is to perform their activity in a work place under difficult, harmful, or dangerous conditions. It is prohibited to successively employ more than three persons for trial periods for the same position.   Employees hired for fixed-term or temporary positions can also be subject to trial periods. During the trial period, employees enjoy all the rights and have all the obligations stipulated in the legislation, the applicable collective contract, the company's rules and regulations, as well as the individual contract.

Working Hours

The standard length of the working time is 8 hours per day and 40 hours per week. For employees who are not yet 18 years of age, the length of the working time is 6 hours per day and 30 hours per week. The maximum legal length of the working time must not exceed 48 hours per week, including overtime work. When work is done in shifts, the length of the working time can be extended to over 8 hours per day and over 48 hours per week, provided the average number of working hours, as calculated for a maximum period of 3 weeks, does not exceed 8 hours per day or 48 hours per week.

Holidays / PTO

• Statutory Holidays

• Paid Annual Leave

All employees have the right to paid annual leave. The minimum annual leave is 20 days. Employees working in dangerous or harmful conditions or those who are disabled or blind persons are entitled to 3 more days of annual leave. The actual length of annual leave is determined in the applicable collective agreement or individual employment contract. Annual leave is granted to in proportion to work performed in a year. Annual leave must be taken in the year for which it was granted. Collective agreements can stipulate certain conditions under which the leave can be transferred to the following year. Employees who are unable to use their leave in full due to work are entitled to transfer unused leave to next year.  During their annual leave, employees receive an annual holiday allowance that cannot be lower than the total value of wages for that period. It must be paid at least 5 days before the beginning of the annual leave.   

• Sick Leave

Employees are eligible to paid sick leave for a maximum of 183 days in a period of 12 months, starting from the first day of illness. Employer is responsible for paying benefits for the first 5 days. The Single National Health Insurance Fund pays sickness allowances after that. Benefits are paid at the rate of 75% of the normal wages of the employee.

• Maternity Leave

Female employees who have worked for at least 1 month in the last 12 months are entitled to paid maternity leave of 126 days – 63 days before and 63 days after delivery. The minimum mandatory duration of maternity leave is 42 calendar days after delivery. Employees must submit a medical certificate to their employer for availing this leave. Maternity allowance is paid by the Single National Health Insurance Fund of Romania at the rate of 85% of the employee's average wages, provided the employee has paid 6 months of contributions in the last 12 months. 

• Paternity Leave

Employees insured with the state social security system are entitled to paternity leave of up to 5 days. This leave must be taken within 8 weeks of child birth, justified by the child's birth certificate. Paternity leave allowance is equal to the salary corresponding to that period. Employees who are under mandatory military service have the right to 7 days' paternity leave. If the father has obtained the certificate of graduation of the childcare course, the duration of paternity leave is increased by 10 working day. In case of mother's death during childbirth or during maternity leave, remaining leave is transferred to the father.

Termination of Employment

• Notice Period

Employees who are dismissed for being medically or professionally unfit for the job or other business-related reasons have the right to a notice of at least 20 working days. In case of collective redundancies, a minimum notice of 30 days is required. No notice is required for terminating a contract during trial period.    The notice for termination must be given in writing and must contain the reasons for dismissal, term of notice, criteria for establishing the priority sequence in case of collective dismissal, list of available positions in the company for hiring. If during notice period, the contract is suspended, the term of notice shall be suspended accordingly.

• Severance Benefits

There are no mandatory provisions for severance pay. Employees dismissed for reasons which are not related to their persons can benefit from compensation under applicable collective agreements.