Romania Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Code (Law no. 53/2003)
  • Social Security Law (Law no. 263/2010)
  • Health Insurance Law (Law no. 95/2006)
• Legal Characteristics:
  • Aims to protect employee rights and promote fair employment practices.
  • Regulates matters such as minimum wage, working hours, paid time off, and termination procedures.

Employment Contract Requirements

• Contract Types:
  • Indefinite-term contracts
  • Fixed-term contracts (maximum 36 months, renewable twice)
• Contract Provisions:
  • Details of employer and employee
  • Job function
  • Working hours
  • Base salary and benefits
  • Notice period for termination
• Language and Currency:
  • Contracts must be written in Romanian.
  • Wages and benefits must be paid in Romanian Leu (RON).

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: At least one rest day per week, and at least 12 hours of rest after each workday.

Leave Policies

• Annual Leave: Minimum of 20 days of paid annual leave per year.
• Public Holidays: 15 statutory public holidays.
• Special Leave:
  • Sick leave: Up to 183 days of paid sick leave per year.
  • Maternity leave: 126 days of paid maternity leave.
  • Paternity leave: 5 days of paid paternity leave.

Employee Severance and Termination

• Notice Periods:
  • Employer termination: Minimum of 20 working days.
  • Employee resignation:
    • Non-managerial positions: 20 working days.
    • Managerial positions: 45 working days.
• Severance Pay:
  • Not legally required.
  • May be provided in collective agreements or employment contracts.
• Unfair Dismissal Protection:
  • Employers can only dismiss employees for legitimate reasons.
  • Employees have the right to appeal unfair dismissals.

Tax Laws

• Personal Income Tax:

  • Salary Range (RON)	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Security Contributions:

  • Employer: 20.8%
  • Employee: 31.3% - 41.3%

Health Insurance

• Insurance Policy:
  • Employees are required to participate in the national health insurance scheme.
• Coverage:
  • Basic healthcare services.

Compensation and Benefits

• Minimum Wage: RON 3,000 per month.
• Compensation Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Non-EU/EEA citizens require a work permit.
• Application Process:
  • Employer applies for work permit with the Immigration Office.
  • Employee applies for a visa at the Romanian consulate.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Romania.
• Common Provisions:
  • Protect employer's trade secrets.
  • Restrict employee from engaging in competitive work after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide employees with safety training and skills development training.
• Government Support:
  • Government provides funding and incentives to support employee training.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, religion, gender, age, or disability.
• Enforcement Measures:
  • Employers must implement policies and procedures to promote workplace diversity and inclusion.

Remote Work Policies

• Legal Framework:
  • Remote work is legal in Romania.
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on specific circumstances.

Authority Website Addresses

• Romanian Labor Inspectorate: https://www.inspectiamuncii.ro/