Employment Overview
Navigating Romanian employment legislation can be complex without local legal specialists.
At N2S, we simplify compliance, making it clear and straightforward for our clients and customers to grow and excel in Romania.
Romania Country Guide
N2S provide expert solutions for businesses looking to expand or grow into Romania, including compliance, payroll management and employment support. Request our Services to find out more about how we can help you.
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Onboarding
Onboarding in Romania can be straightforward for providers, like N2S, that have standard templates and processes.
Engagement Types
There are two core engagement types in Romania:
1. Employment – which can permanent or fixed term
2. Independent contractor engagements – which should be project or time limited
Customers should consider carefully how they wish to engage their workforce and N2S can support customers in implementing compliant and scalable solutions.
IC Compliance
Customers should ensure that Independent Contractors (ICs) that they use are appropriately vetted and classified. This will help protect the business from misclassification claims.
Key considerations include the below, if you require further information or support, please contact us.
- Contractors should be distinct from employees and be in business on their own account
- The following elements should be considered when making a classification determination:
o Control
o Subcontracting
o Equipment
o Financial risk
o Management
o Contracts
o Opportunity for profit
Social Security/Taxes
Employer’s social security contribution in Romania varies but is usually circa 4%.
Employer’s Unemployment Insurance contribution is 2.25%.
Minimum Wages
Romania does have a minimum wage which varies each year.
Working Hours
Standard working hours in Romania are circa 40 hours per week, to a maximum of 48 hours a week.
The standard workweek is Monday to Friday, usually including five 8 hour days
Any working time in excess of normal daily working hours is considered overtime. Overtime is regulated, and usually requires providing the employee with additional time off, but it can be paid to the employee instead.
Statutory Leaves
In Romania, annual leave is 20 days – in addition to paid public holidays.
Sick leave is up to 180 days per year. The first five days are paid by the employer, from the 6th day, the state funds the support of sick leave. The sick leave pay rate varies depending on the illness.
Maternity leave in Romania is up to 126 days; and maternity pay is paid by the state.
Paternity leave in Romania is up to 10 days, but can increase to 15 days after participation in a course.
Parental leave in Romania (for one of the parents) is up to two months until the child reaches two years old, provided that the employee has contributed to tax. The state then pays for this.
Termination
The termination process in Romania is relatively straightforward – terminations must have a substantial reason for dismissal to be valid. This would usually include a hearing process.
Terminations are more straightforward during the probation period, which is 90 days for non management roles, and 120 days for management roles.
Mutual termination agreements are common.
Notice periods are stipulated in the employment contract (or any collective agreement) and is usually linked to the length of service.
The total employer notice period is 20 days of notice, but for employee resignation the maximum is 20 days notice for non-management positions and 45 days for management positions.
