The Definitive Manual for Employee Recruitment in Romania

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Quick facts

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Strategically nestled in southeastern Europe, Romania blends historical richness with contemporary development. Its diverse landscape ranges from the soaring Carpathians to the idyllic Black Sea shores. As the EU’s sixth-most populous member, Romania boasts a thriving upper-middle-income economy anchored in agriculture, industry, and services. Tourism flourishes, with medieval towns like Brasov and the Danube Delta attracting millions.

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Employment Contracts

As per Romanian labor laws, every individual employment agreement must be documented in writing and established with mutual consent from both the employer and the employee. Prior to the commencement of employment, it is the responsibility of the employer to formalize the individual employment contract and ensure its registration within the employees’ electronic system (ReviSal).

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Fixed-term contracts are permissible only under specific circumstances outlined in the Labor Code, which mandates that the agreement must include essential details and specify the contract’s duration.

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Probation Period

To assess an employee’s skills, both parties can establish a probationary period as outlined in the employment contract. For standard roles, this period lasts up to 90 calendar days, while for managerial positions, it extends to a maximum of 120 calendar days. Disabled individuals are subject to a probation period of up to 30 calendar days. Either party may terminate the employment contract with written notification, without justification or advance notice, initiated by either the employer or the employee, during or before the probation period ends.

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Working Hours

For individuals over 18 years old employed full-time, a standard workweek entails 40 hours or eight hours per day. The arrangement of the work schedule may vary based on the employer’s operations, provided it adheres to the regulations outlined in the Labour code. Weekly working hours should not surpass 48 hours, with a maximum of eight hours designated for overtime. It’s important to note that individuals under 18 years old are prohibited from working overtime and are limited to a maximum of 40 hours per week.

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Vacation Days

Workers are obligated to utilize their yearly paid vacation time as per an agreed-upon holiday schedule, whether individual or collective, established with the employer. This schedule should be mapped out until the conclusion of each calendar year. As per the Labor Code, employees are entitled to 20 days of paid vacation annually, adjusted proportionally for partial employment duration. Should there be valid reasons, employees reserve the right to request the cancellation or suspension of their annual leave. While the Labor Code doesn’t explicitly define these reasons, they may include instances like the illness or demise of a family member.

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Similarly, the employer may seek such suspension in cases of force majeure or urgent situations necessitating the presence of the employee. In such scenarios, the employer is responsible for covering all associated expenses related to the suspension.

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Sick Leave

In situations where an employee is temporarily unable to fulfill their duties due to illness or injury, they are entitled to paid sick leave contingent upon obtaining a medical certificate specifying the duration of medical leave for a designated number of days.

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The maximum duration of temporary incapacity for work is 183 days within a year, starting from the onset of illness. Beyond the initial 90 days, any further medical leave within the 183-day period must be endorsed by a qualified medical professional. Should this period be surpassed, the employer is obligated to hold the employee’s position but is not obliged to extend sick leave benefits.

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Wages and Salary Payment

The governmental ruling regarding the minimum wage stipulates that it is determined based on an average of 168 working hours per month. As of 2024, the national minimum wage in Romania stands at RON 3,300.00 (approximately 663 Euros).

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In Romania, the maximum pay cycle is one month, and employers must disburse wages to their employees on a predetermined date as stipulated in the collective agreement, individual employment contract, or company regulations. Payment must be made in currency and can be facilitated through bank transfers.

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Public Holidays

In Romania there are 15 public holidays:

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• January 1st – New Year’s Day
• January 2nd – Day after New Year’s Day
• January 24 – Unification Day
• April 22nd – Orthodox Good Friday (movable)
• May 1st – Labor Day
• May 2nd – Orthodox Easter Monday (movable)
• June 1st – International Children’s Day
• June 12 – Orthodox Pentecost
• June 13 – Descent of the Holy Spirit
• August 15 – St. Mary’s Day
• November 30 – Feast of St. Andrew
• December 1st – National Day
• December 25th – Christmas Day
• December 26 – Second day of Christmas

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Employer Taxes

Pension insurance contributions are structured as follows:

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• 4% for specific working conditions

• 8% for unique working conditions; there is no employer contribution to pension insurance for standard working conditions

• Labor insurance contributions are set at 2.25%

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Employee Taxes

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• Pension insurance contribution: 25%‍
• Health insurance contribution: 10%

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Notice Period

Romanian labor laws stipulate distinct notice periods for both employers and employees, with the duration contingent upon the employee’s role within the organization. The notice period may be mutually agreed upon in the individual employment contract or specified within relevant collective labor agreements.

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For resignations, the notice period cannot surpass 20 working days for non-managerial staff or 45 working days for managerial staff. In cases of dismissal, employers are required to provide a minimum of 20 working days’ notice. Throughout this period, the employee retains entitlement to their salary and all other statutory benefits.

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Termination and Severance Pay

The individual employment contract can be ended by either the employer or the employee. If termination occurs at the employer’s discretion, except in cases of dismissal for disciplinary reasons or if the employee is detained for over 30 days, the employee is entitled to a notice period of at least 20 working days.

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If termination happens due to the employee’s resignation, the employee must adhere to a notice period of either 1) no more than 20 working days for regular positions or 2) no more than 45 working days for managerial positions. The employer reserves the right to waive the notice period and agree to end the contract at the employee’s request at any time before the notice period concludes.