Employment Law

Romanian Employment Contract

Romanian law requires employers to provide employees with a formal employment contract, including all relevant employment details such as wages and benefits. It should also be written in Romanian and use the Romanian Leu currency. The employer should also register each employment contract in the general register of employees.

Working with our Romania PEO, Remoly's team of local experts can provide assistance in drafting strong employment contracts that comply with local regulations.

Fixed Term

Indefinite

Working Hours in Romania

Normal working hours for most employees in Romania are 40 hours per week and 8 hours per day. By law, employers who work more than 48 hours per week must pay overtime. This can be granted as leave or paid at a minimum of 175% of normal salary.

Holiday Policy

Vacation in Romania

Romanian law requires employers to provide their workers with at least 20 days of vacation per year. They can also take special leave for certain events, such as marriages.

Romania Sick Leave

Romanian workers are legally entitled to up to five days of paid sick leave (75% of salary), which is borne by the employer. In some cases, workers take up to 18 months, but the government will pay compensation after the first five days.

Parental Leave in Romania

Female employees are entitled to at least 126 days of paid parental leave (85% of the average salary in the first six months), which is borne by the government.

Male employees are entitled to five days of leave within the first eight weeks after the birth of their child. This leave can be increased to 15 days if they attend certain childcare training courses.

Employees must have contributed to the Romanian social insurance system for at least 6 of the past 12 months to be eligible for compensation.

Taxes in Romania

Both employees and employers in Romania are required to contribute a certain percentage of their wages to different social funds:

• Social Security Fund: Employers contribute 20.8%, and employees contribute 31.3% to 41.3%.
• Health insurance: The employer contributes 5.2% and the employee contributes 5.5%.
• Sick leave/compensation fund: employer contribution 0.85%, employee contribution 0.15% to 0.85%.
• Unemployment fund: employer contribution 0.5%, employee contribution 0.5%

Health Insurance in Romania

Romania does have universal healthcare, but the standard is probably much lower than in neighboring Western European countries. Therefore, many employers choose to offer private health insurance as part of their benefits package.

Termination and Severance in Romania

When dismissing an employee in Romania, the employer must give at least 20 working days' notice. This period does not apply to employees who are on probation or who have been dismissed for just cause.

Employers in Romania are not required to pay severance pay upon termination of a contract.

For companies expanding overseas for the first time, dealing with employee layoffs and dealing with severance packages can be complicated. Remoly's Romanian PEOs can reduce risks for foreign companies and provide guidance during the process.  

Salary and Benefits

Romanian Compensation Law

As of January 2020, the minimum wage in Romania is RON 2,230 per month, based on 167.33 hours worked per month.

Welfare Administration in Romania

Setting up a benefits system for Romanian employees can be confusing if you're not familiar with the country's complex labor laws, language and cultural differences, so delays are common.

Remoly can help you bypass this complex part of Romania expansion by offering benefits outsourcing services. Our expert team will provide you with best practice advice and handle all of your benefits set-up and administration, allowing you to focus on the rest of your expansion.