Romania is going to continue to grow as a hub for industries including construction, automotive, manufacturing, and hospitality and companies will have to be able to recruit skilled talent. To comply with the law and to build up trust in employees, employers should know about the legal structure of employment contracts [contract de munca]. This guide will address employment contract types [tipuri de contracte de munca], conclusions [incheierea contractului de munca], termination [incetarea contractului de munca], and suspension of employment contracts [suspendare contract de munca].
An employment contract is a labor contract between an employer and an employee that outlines stipulated conditions stating that the employee is going to work for that employer. Employment relations in Romania are governed by the Employment Law which protects both employers and employees.
Before you hire, you must write an individual employment contract [contract individual de munca] for each employee. The writing of this document must be in detail including the job title, the duties, salary, working hours and probation period, and others.
When hiring in Romania, employers must:
Write the contract before the employee starts work and conclude it in writing.
If the employment contract is registered in the General Register of Employees (REVISAL) no later than one day before the employee starts.
Obey EU labor law and Romanian law.
The employer would face hefty fines and other legal wrangles if he/she does not meet these requirements.
Romanian labor law allows various types of employment contracts to cater to diverse workforce needs:
This is the most typical type of job contract, for an unlimited time.
For particular services or for a period not exceeding 36 months.
Great for jobs that require less than a standard workweek.
Used for seasonal or short-term projects.
With the rise of remote work in Romania, it has gained popularity.
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ContactThe termination of an employment contract in Romania can occur under the following conditions:
When employers, however, force employees to resign, they must provide clear justification, and comply with legal notice periods and severance payment requirements where applicable. If there is a termination agreement, you do not need to have an attorney.
Temporary termination of contractual obligations of the employee as well as the employer in an employment contract is called termination of an employment contract. Such reasons are common for maternity leave, medical leave, military service, and disciplinary sanctions. Employers need to document and notify the suspension to comply with labor laws.
In recent years, Romania’s labor market has undergone marked transformations. In 2023, the share of people with degrees in the labor force made up 9.2% of the labor force, according to the National Institute of Statistics, which indicates the necessity for qualified people in different industries. Moreover, the Romanian government has adopted new measures that encourage teleworking and flexible employment contracts, in keeping with the international trend of managing workforces.
Employers must learn to stay on top of these developments, for themselves to keep their competitive edge and workplace compliant.
Romania’s labor laws and particularly navigating them can be tricky, especially for companies that don’t know the local laws. A recruitment company that helps to provide skilled Indian manpower to European countries can make the process simple. These consultancies take care of every aspect of recruitment from sourcing talents to making sure that the employment contracts are handled in the best possible manner for industries in Romania.
Complying with the legal requirements of an employment contract in Romania is a must, but even more than that it’s an ethical and professional precept. Knowing the diverse kinds of contracts, the procedure of conclusion for contracts, and the policies of suspension or termination for contracts helps employers have a trustable and compliant workforce.
Partnering with a recruitment agency [agentie recrutare] helps businesses in Romania’s growing industries hire skilled professionals using a streamlined process, with legal compliance being guaranteed at every step.
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