Contract Types

In Romania contracts can be Fixed Term up to a maximum of 36 months, which can be renewed twice, and Indefinite (open ended). Contracts will usually be governed by a Collective Bargaining Agreement.

Probation

The length of probation is dictated by the role and can be between 90 days for non management positions and 120 days for executives. For Fixed Term contracts the maximum probation duration is 5 days for contracts up to 3 months, 15 working days for contracts between 3 and 6 months, and 30 working days for contracts over 6 months. For management with contracts over 6 months the maximum probation is 45 working days. For disabled employees probation is limited to 30 days.

Working Hours

Normal hours are 40 hours per week, 8 hours per day.

Overtime

Employees may work a maximum of 48 hours per week. Anything over 40 hours per week is considered overtime and employees should either receive time off in lieu or be paid 175% of salary.

Other

All employees must have a medical examination before signing the employment contract. These examinations are arranged and paid for by the employer. Employment contracts must be signed and registered with the Government agency before employment and new employees should complete appropriate health and safety training (which can be remotely) on their first day of work.

Corporation Tax 2024: 16%

 Consumption Tax: 19%

 Employers’ Social Security:

2.25% – 10.25%, depending on type of activ­ity

Employees’ Contributions: 35%

Income Tax Rates: Flat rate of 10%

Notice

The notice period for termination is 20 days. Employees must also give 20 days’ notice except for management positions where they can be required to give 45 days’ notice.

Dismissal Process

Most terminations in Romania are by mutual agreement though the law does allow for termination in cases with just cause and also for incompetency or redundancy. However, litigation is common and the courts normally award reinstatement with back pay. The employer must provide reasons in writing for the termination. There is no severance pay under Romanian law, though conditions are often set in the Collective Bargaining Agreement, and it is often paid when a mutual agreement is reached. Typically 2 months’ salary plus notice would be paid.

During Probation

No notice is required for termination during the probationary period

National Public Holidays: 14

New Year’s Day – 1st Jan

No day given in lieu

Epiphany – 6th Jan

No day given in lieu

Synaxis of St John the Baptist – 7th Jan

No day given in lieu

Unification Day – 24th Jan

No day given in lieu

International Workers’ Day Labour Day / May Day – 1st May

No day given in lieu

Orthodox Good Friday – 3rd May

Day given in lieu N/A

Orthodox Easter Monday – 6th May

Day given in lieu N/A

Children’s Day – 1st June

No day given in lieu

Orthodox Pentecost Monday – 24th June

Day given in lieu N/A

St Mary’s Day – 15th Aug

No day given in lieu

St Andrew’s Day – 30th Nov

No day given in lieu

National Day – 1st Dec

No day given in lieu

Christmas Day – 25th Dec

No day given in lieu

Boxing Day – 26th Dec

No day given in lieu

Holidays always falling at weekends are excluded. Days off in lieu are sometimes given when a public holiday falls at the weekend.

Paid legal entitlement (working days)

In Romania employees are entitled to a minimum of 20 days’ paid leave of which at least 10 days should be taken together. Most competitive employers would offer 24 days or more. Employees should be paid for the leave period at least 5 days prior to the start of the leave. Carry over of unused leave must be allowed until June 30th of the following year, and can be carried over for a further 18 months in special circumstances. Leave cannot be paid out except on termination.

Sick

Employees are entitled to 180 days’ sick leave in one year, which can be extended by 90 days under certain conditions. The employer pays 75% of the salary for the first 5 days, after which the employee will receive sick pay of 75 to 100% of salary from Social Security. A medical certificate is required.

Maternity

New Romanian mothers are entitled to 126 days of maternity leave. This starts 63 days before the due date. It is mandatory to take 42 days of maternity leave. Maternity pay is funded by the government at 85% of salary.

Paternity

New fathers are entitled to 5 to 10 days’ paternity leave after the birth and before the child is 8 weeks old. This is paid by the employer. Additional leave is granted for multiple births.

Parental

24 months’ leave is available paid by Social Security at 85% of salary. Leave is longer in special cases rising to 3 years’ entitlement. This leave has to be shared between the parents with a one month minimum period for each parent. There is no provision for same sex parents in Romania. Adoptive parents can avail of this leave.

Carer

45 days’ leave per year is available to care for a chronically sick child up to the age of 7, or 18 if the child is disabled. This is funded by Social Security. The leave may be prolonged on the recommendation of a medical professional.

In addition, all employees are entitled to 5 days of care leave per year which is unpaid.

Other

Depending on the collective bargaining agreement employees are entitled to 3 days’ compassionate and 5 days’ marriage leave. Female employees are entitled to 3 days’ leave for IVF treatment. Employees can also avail of emergency leave of up to 10 days per year which are conditional on the employer being informed in advance. These are unpaid or taken out of annual leave.

Designated disabled people are entitled to an additional 3 days of annual leave.

Medical

Romania’s health system is limited and supplementary medical insurance is increasingly given as a benefit (c. 85% of employers provide some form of medical cover). Top executives would expect plans to include the ability to go out of country for treatment (typical plans cover Europe and Israel). However the most common plans focus on preventive medical services and include only private GP visits and access to diagnostic tests. Dental, optical and private day surgery may be provided. Medical benefits are sometimes included as part of the group life policy (eg medical expenses following an accident) It is not the norm for cover to be extended to family members. Medical insurance premiums are taxable above Euro 400 per year.

Life Insurance

Some employers provide life benefits in addition to those provided by the Social Security system, typically through a group life or personal accident scheme. Sums insured can be a flat rate (typically RON 50,000 to 100,000) or typically twice annual salary (but can be up to 4 times). Additional benefits (eg Long Term Disability) are very rare and are provided under the state system.

Pension

Supplementary pensions are rarely offered in Romania.

Other

Many employers provide tax deductible meal vouchers though the number is decreasing.