Romania HR Information

Updated on: 2025/03/11 04:48 (UTC)

Overview

Employment relations in Romania are governed by the Labor Code and other employment-specific legislation. Romanian employment legislation is generally favorable to employees, who cannot waive any rights provided by law. Employment relationships are established by individual labor agreements.

Hiring

Employment Contracts

Individual labor agreements must be in writing and in Romanian. The employer must register a copy with the general registry of evidence of employees and provide the employee with a copy at least one working day prior to the day on which the employee begins work.

The general registry of evidence of employees must be updated within 20 working days of any amendment to the ILA.

An individual labor agreement must include at least the following:

• the identity of employer and employee,
• the duration of the agreement (definite or indefinite),
• the work commencement date,
• the work place,
• the type of work,
• job responsibilities and job-associated risks,
• required length of termination notice,
• criteria applicable to the professional evaluation of the employee,
• employer and employee rights and obligations,
• working conditions, and
• salary and vacation rights.

The parties are free to negotiate other clauses, provided they observe the employee’s legal rights.

Effective Oct. 22, 2022, employers must provide more information to employees on the essential aspects of their work in writing. Employees also cannot be restricted from entering into a dual employment relationship with a different employer if the working schedules do not overlap.

Employers can implement telework arrangements provided they receive the employee’s consent. The employment contracts of employees who telework must contain the following provisions:

• the period of time and/or days in which the employee will telework;
• the place where telework will be performed;
• the procedure for recording telework time;
• the responsibilities of the parties regarding health and safety;
• the obligation of the employer to inform the employee on data protection issues; and
• the measures the employer will take to prevent the teleworker from being isolated from other workers.

Employers have the right to regularly check the activity of the teleworking employee. Representatives of trade unions and relevant authorities may access the employee’s telework space in order to check the working conditions of the teleworker. Employees cannot be subject to disciplinary measures for refusing to telework.

Employment contracts can be concluded for a fixed period only in special circumstances and only for a maximum period of 36 months. A copy of each employment contract must be kept at the workplace.

Probationary periods can be agreed in employment contracts, subject to a maximum period of 120 days for executives and 90 days for non-executives. During the probationary period, the contract can be terminated without any notice.

Employers are permitted to hire a limited number of interns. Employers with up to 20 employees can hire a maximum of 2 interns, while in larger firms the number of interns must be equal to or less than 5 percent of the company’s total number of employees.

Internships cannot exceed six months in duration, and interns cannot be require to work more than 40 hours per week. Interns are entitled to be paid at least 50 percent of the minimum wage.

Employers can receive a bonus if they hire interns within 60 days after the end of the internship and the employment relationship lasts for at least 24 months.

Restrictions on Hiring

The minimum age for employment in Romania is generally 16, although 15 year olds can be employed with the permission of their parents. Employment in dangerous conditions is forbidden to employees under the age of 18.

The Labor Code forbids night shift work for:

• employees who have medical problems caused by night work,
• employees under 18 years of age, and
• pregnant women, women who have recently given birth or nursing mothers (unless they specifically consent to working night-shift hours).

If a pregnant woman’s health is affected by night-shift work, the employer must at her request transfer her to day work at the same salary or, if this is not possible, allow her to take paid maternity leave.

An employer that frequently uses night shift workers must inform the territorial labor inspectorate.

In companies with 50 or more employees, disabled workers must comprise at least 4 percent of the workforce. Instead of hiring disabled employees, however, companies may choose to:

• pay a monthly allowance of 50 percent of the gross minimum wage multiplied by the number of jobs that should be available to disabled people but are not effectively occupied by such persons or
• buy products or services from companies employing disabled workers in an amount equal to the allowance.

Failure to comply with this obligation may trigger a fine.

Employers must notify the National Agency for Employment of Workers of all vacancies within the company. The notice must be provided within five days from the date in which the position is available. Employers that fail to provide such notice can be subject to fines.

Recordkeeping

Employers must keep a record of the daily hours worked by each employee and keep such records available for inspection by the labor authorities at each workplace.

Background Checks

Employers are permitted to conduct pre-employment background checks provided the inquiries are needed to assess applicants’ skills and abilities. Information can be obtained directly from the employee. If information from prior employers is desired, the employee must be notified in advance.

A medical certificate showing that the prospective employee can fulfill the responsibilities of a job is needed before the employee begins work.

Noncompetition Agreements

Employers and employees can enter into agreements under which an employee is temporarily forbidden following the termination of employment from engaging in activities competitive with the former employer. In exchange, the employer is required to pay the former employee a monthly allowance for the entire period of the noncompetition agreement equal to at least 50 percent of the average of the employee’s gross salary over the final six months of employment. Noncompetition agreements may not exceed two years from the termination of employment.

Reference Citations

Employment Contracts: Labor Code, 2003 (as amended), arts. 12, 17, 31 (Romanian); Ordinance Number 53/2017 amending the Labor Code, arts. 1-3; Law No. 176/2018 on Internships, 2018

Restrictions on Hiring: Labor Code, 2003 (as amended), art. 13 (Romanian); Law on the Protection and Promotion of the Rights of Disabled Persons, No. 448 of 2006, art. 78

Recordkeeping: Labor Code, 2003 (as amended), art. 119 (Romanian); Ordinance Number 53/2017 amending the Labor Code, arts. 1-3

Background Checks: Labor Code, 2003 (as amended), art. 27 (Romanian)

Noncompetition Agreements: Labor Code, 2003 (as amended), arts. 20-21 (Romanian)

Immigration and Work Permits

In General

Within three months of entering Romania, citizens of the European Union must apply for a residency permit and a personal identification number. Non-EU citizens must obtain a visa, a work permit and a residency permit to legally be employed in Romania. Residence is usually granted for one year, two years for highly skilled workers, and may be extended.

When hiring non-EU citizens, a Romanian employer must provide evidence that there are no suitable Romanian or EU candidates. There is an annual limit on the number of work permits that can be issued to foreign nationals other than EU citizens seeking employment in Romania.

Visas and Work Permits

There are major distinctions between hiring European Union (Switzerland included) and non-EU nationals in Romania. Generally, no restrictions apply to hiring EU citizens, although there are certain additional conditions that need to be met, such as obtaining a personal identification number from the Immigration Inspectorate and securing a registration certificate attesting to the foreigner’s residency in Romania. In the case of temporary employment, an A1 certificate should be obtained so that the foreigner continues to pay social contributions in his or her country of origin.

EU citizens may enter and stay in Romania for three months without any formalities. If they are seeking a job, the maximum period is six months from the entry date. To extend their stay, EU citizens must be employed in Romania or provide evidence that they can support both themselves and their families. Within three months of entering Romania, EU citizens must apply for a residency permit and a personal identification number.

Non-EU citizens must obtain a visa, a work permit and a residency permit to legally be employed in Romania. Residence is usually granted for one year, two years for highly skilled workers, and may be extended.

Standard locally-hired foreign workers or intra-company transferees must be paid at least the minimum wage. Highly skilled workers must be paid at least twice the minimum wage.

There is an annual limit on the number of work permits that can be issued to foreign nationals other than EU citizens seeking employment in Romania.

When hiring non-EU citizens, a Romanian employer must provide evidence that there are no suitable Romanian or EU candidates.

Digital Nomad Visa. The government enacted legislation, effective Jan. 17, 2022, to implement a temporary residence visa for digital nomads. The visa offers foreign nationals who own a company or work for or provide services to a company or person outside Romania the option to reside in and work remotely from the country.

Penalties

There are numerous penalties for violation of entry and work rules. Imprisonment for up to five years is also possible in certain cases. Both the foreign employee and his or her employer can be found liable for violations of the law.

Reference Citations

Visas and Work Permits: Work Permits (Romanian)

Nondiscrimination

In General

The Labor Code guarantees the equal treatment of men and women and prohibits discrimination in employment on the basis of gender, age, disability, race, nationality and religious belief. The National Anti-Discrimination Council enforces these employee rights.

Gender Discrimination

The Labor Code guarantees the equal treatment of men and women and prohibits discrimination in employment on the basis of gender.

Under Romanian law, sexual harassment is illegal and punishable by a fine. Law 202/2002 defines sexual harassment as “unwanted conduct related to the sex of a person, physically, verbally or non-verbally expressed, occurring with the purpose or effect of violating the dignity of a person and especially of creating an intimidating, hostile, degrading, humiliating or offensive environment at work or in other places where such person exercises his/her activity.”

Pay Discrimination

Government Ordinance 137/2000 guarantees equal treatment to people exercising such economic and social rights as the right to work, the right to equal pay for equivalent work and the right to equitable and sufficient remuneration.

Law 202/2002 expressly prohibits discrimination in compensation based on gender and requires equal pay for equivalent work. The determination of “equivalent work” can be based on the requirement for similar or equal professional knowledge and equal physical and/or intellectual effort.

EU Pay Transparency Directive: As a member state of the European Union, Romania has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings. The national law may go beyond the minimum requirements of the directive, but the law may not directly conflict with the directive requirements.

Reference Citations

Nondiscrimination: Labor Code, 2003 (as amended), art. 5 (Romanian)

Gender Discrimination: Law on Equality and Treatment Between Men and Women, No. 202 of 2002, art. 4

Pay Discrimination: Law on Equality and Treatment Between Men and Women, No. 202 of 2002, art. 7

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

Employee Monitoring and Surveillance

Under the GDPR, employers can monitor employees only if there is a lawful basis for doing so. Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures. Employees must be given prior notice, and any data that is collected must be used and kept only to fulfill its original purpose.

Reference Citations

Employee Data: General Data Protection Regulation, 2016

Employee Monitoring and Surveillance: General Data Protection Regulation, 2016

Compensation

Hours of Work

The Labor Code limits normal working hours to eight per day and 40 per week and the normal workweek to five days.

A daily length of the working time below or above eight hours can be negotiated for certain economic sectors, organizations or professions.

Employees working six hours or more in a day are entitled to meal and rest breaks, the length and timing of which are determined by collective bargaining agreements. Employees are entitled to a rest period no shorter than 12 consecutive hours between two working days. The required weekly rest period is 48 consecutive hours.

Night shift work refers to work performed between 10:00 p.m. and 6:00 a.m. An employee is considered to work the night shift if he or she:

• performs at least three hours of night work daily or
• works at night at least 30 percent of total monthly hours.

Employees working at least three night-shift hours daily must:

• be given a medical examination at the employer’s expense at the beginning of the assignment and periodically thereafter and
• receive either:

a one-hour reduction of normal working time without reduction of salary for the days when the employee works at least three hours of night work or

a bonus of at least 25 percent of basic salary if the working hours consist of at least three hours per night of the normal working time.

The normal duration of a night shift cannot exceed eight hours averaged over a three-month period.

Employers must keep a record of the daily hours worked by each employee and keep such records available for inspection by the labor authorities at each workplace.

Minimum Wage

Effective Jan. 1, 2025, the monthly minimum wage is 4,050 Romanian lei, up from 3,730 Romanian lei.

Overtime

Any hours worked above eight per day or 40 per week are considered overtime. Employees cannot work more than eight hours of overtime per week. Overtime must be compensated with paid time off within 30 days of its performance or at an overtime premium of at least 75 percent of base salary.

Overtime can only be performed with the consent of the employee. The Labor Code forbids people under 18 years old to work overtime hours.

Wage Payment

Most employees are paid at least once a month on a date specified in the individual employment contract. The payment of wages can be made by transfer to a bank account or in cash.

Mandatory Bonuses

The yearend bonus is voluntary and, if offered, should be specified in individual labor agreements or applicable collective agreements.

When an employee is temporarily transferred to a different location or to a different employer, the employee is entitled to a transfer bonus.

Reference Citations

Hours of Work: Labor Code, 2003 (as amended), arts. 112, 125, 135 (Romanian); Ordinance Number 53/2017 amending the Labor Code, art. 4

Overtime: Labor Code, 2003 (as amended), art. 105 (Romanian)

Wage Payment: Labor Code, 2003 (as amended), art. 166 (Romanian)

Benefits

Vacation

Romanian employees are entitled to a minimum 20 days of paid vacation annually. Vacation pay should be at least equal to the base salary and permanent benefits and bonuses to which the employee is normally entitled, as provided in the individual labor agreement. The vacation payment must be made five days before the vacation period begins.

Annual vacation can be taken in increments if the employee requests it, but part must be taken as one unbroken period of at least 15 working days. Unused vacation may be taken within the next 18 months starting the following year.

Employees in special circumstances receive additional leave:

• Employees under 18, those working under heavy, hazardous or harmful conditions and the disabled and the blind are entitled to at least three extra days of vacation each year.
• In the case of family emergencies, employees are entitled to additional paid leave days, the number of which varies within different sectors (public administration, agriculture, etc.) and is established by collective agreement or internal regulation.

A collective bargaining agreement or an employment contract may provide additional leave days.

Employees cannot forfeit their right to paid vacation.

Holidays

The Labor Code provides 15 public holidays observed countrywide:

• Jan. 1 and 2: New Year
• Jan. 24: Unification Day
• Good Friday
• Easter Sunday
• Easter Monday
• May 1: Labor Day
• June 1: Children’s Day
• Orthodox Whit Sunday
• Orthodox Whit Monday
• Aug. 15: The Assumption
• Nov. 30: Saint Andrew’s Day
• Dec. 1: National Day
• Dec. 25: Christmas
• Dec. 26: Boxing Day

Persons of religions other than Christianity are entitled to two days off for each of the three religious holidays established by their religious organizations, provided that such religious organizations are recognized by the Romanian State.

Employees required to work on a public holiday are entitled to a day off in lieu within 30 days. If the employer is unable to grant the day off, the employee is entitled to double pay for the work performed on the public holiday.

Public holidays that fall on a weekend are celebrated on that day.

Maternity Leave

A pregnant employee who has worked for at least one month during the preceding 12 months is entitled to 126 days of maternity leave, commencing 63 days prior to childbirth. A minimum of 42 days must be taken by the employee after the child’s birth.

While on maternity leave, women employees are entitled to 85 percent of their average income over the past 12 months. The compensation during maternity leave is fully paid by the National Social Security Fund.

Mothers are entitled to one hour’s leave twice per day during the first year of breast-feeding or a two-hour reduction in daily working time.

The employer cannot dismiss an employee during maternity leave.

Paternity Leave

Effective Aug. 29, 2022, working fathers are entitled to ten days’ paid leave within two months of the birth of their child. If the father successfully completes a child care course, he receives an additional five days’ paid leave.

Sick Leave

Employees covered by the pension and social insurance system who have made required contributions are entitled to sick leave of up to 183 days within one year with a possible 90-day extension. Sick pay is equivalent to 75 percent of the average monthly income during the previous six months. The employer pays medical leave for the first five days, the Social Security Fund for the remainder.

The employer cannot dismiss an employee on sick leave.

Oncological diseases. On Feb. 16, 2022, Law no. 24/2022, was published that provides that sick leave and pay may be used to care for a patient, over age 18, with oncological diseases. Such leave is limited to 45 calendar days within one year per patient and generally is granted based on the medical leave certificate from the specialist doctor. The law entered into force two months after publication, except for the benefits related to clinical psychological counseling that entered into force one year after the date of publication.

Other Leave

Parental leave. Parental leave is available to individuals who reside in Romania, have earned taxable income for at least 12 months within the past two years preceding the date of birth and contributed to the social insurance program. The benefit is at least 600 lei per month until the child reaches 2 years of age (3, if the child is disabled). The parental leave program is entirely funded by the government.

Employees returning from parental leave are protected from dismissal until the child turns 3 years of age (4, if the child is disabled).

Leave for exceptional circumstances. Employers must grant employees paid leave if schools are closed in exceptional circumstances, but only if the tasks associated with the employees’ roles cannot be performed in “working from home” or teleworking conditions. In certain sectors where activity must be provided on a continuous basis, consent of the employer for such leave may be required. The paid leave can be granted to only one of the parents, and only if the child in care is 12 years of age or younger. During such leave, employees are entitled to be paid up to 75 percent of their base salary, but not more than 75 percent of the average gross salary in the economy.

Carer’s Leave. Effective Oct. 22, 2022, employers must provide carer’s leave to employees, upon request, to enable them to provide care for relatives or other individuals living in the same household who are dealing with a medical issue.

Remote work. Effective July 24, 2023, Law no. 241/2023 grants employees with children under 11 years old in their care the right to request up to 4 days per month of work from home/teleworking. The employer must provide their justification for refusing such a request.

Pensions and Social Security

Employees may retire with a full pension at age 60 (women) or 65 (men) with at least 15 years of contributions. The qualifying age for women will gradually increase to 65 by 2030.

The employer is required to withhold employee contributions from wages and remit them to the government.

Workers’ Compensation

To qualify for workers’ compensation benefits, the employee must have at least a 50 percent loss in working capacity due to the work injury or occupational disease. Temporary disability benefits cover 80 percent of employees’ wages in the six calendar months before the disability began and are paid from the first day of disability for up to 180 days a year. The employer pays for the temporary disability coverage until the employee recovers or receives a certificate of permanent disability.

Reference Citations

Vacation: Labor Code, 2003 (as amended), arts. 144-153 (Romanian)

Holidays: Labor Code, 2003 (as amended), arts. 139-142 (Romanian)

Maternity Leave: Law Amending Emergency Ordinance on Maternity Protection at Workplaces, 2015, arts. 2-5 (Romanian); Emergency Ordinance on Maternity Protection at Work, 2003 (Romanian)

Paternity Leave: Emergency Ordinance on Maternity Protection at Work, 2003 (Romanian)

Labor Relations

In General

Trade unions may be set up by employees of any company with at least 15 members belonging to the same employer. No person may be required to join or to withdraw from a union. Only recognized trade unions are empowered to negotiate and conclude collective bargaining agreements at company level.

Employees have the right to strike if conciliation, mediation or arbitration fails to resolve a labor conflict. An employer must be provided with at least two working days’ notice of a planned strike.

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges and duties towards the employees under the collective agreement.

Right to Organize

Trade unions may be set up by employees of any company with at least 15 members belonging to the same employer. Trade unions are established with the purpose of defending and promoting the professional, economic, social, cultural and sports interests of their members, as well as their rights as provided under the law.

In Romania, there are three levels of trade union organization:

• trade unions,
• federations, and
• confederations.

Two or more trade unions active in the same industry or profession may cooperate to jointly set up a professional federation. Two or more professional federations active in different industries or professions may cooperate to jointly set up a confederation.

Only “representative” trade unions are empowered to negotiate and conclude collective bargaining agreements at company level. Trade union organizations are representative if:

• they have a legal status as a recognized trade union organization,
• they have organizational and patrimonial independence, and
• trade union members account for at least half plus one of the employees of the company.

No person may be required to join a union or to withdraw from a union.

A person may only be a member of one union.

Dispute Resolution

Labor conflicts, which are regulated by Law 62/2011 on social dialogue, can be either collective or individual.

Collective labor conflicts, which involve the negotiation of collective labor bargaining agreements, arise if:

• the company refuses to begin the negotiation of a collective labor contract or agreement, no contract or agreement is concluded or the previous contract lapses;
• the employer or the union does not accept employee claims; or
• the employer and the union cannot reach agreement on a collective labor contract or agreement before the date set for finalizing the negotiations.

Collective labor conflicts can be resolved by conciliation through the Ministry of Labor, Family and Social Protection or, if conciliation fails, through mediation if the parties agree both to the process and to the choice of mediator. At any time, employer and union may agree to submit their conflict to an arbitration commission, the decisions of which are binding on both parties.

Individual labor conflicts, which involve rights and obligations conferred by law or collective or individual employment agreements, can only be resolved by the courts.

Strikes and Lockouts

Employees have the right under law to strike to protect their professional, economic and social interests, although no employee may be forced to participate in a strike.

A strike may be initiated only after conciliation or, if resorted to, mediation and/or arbitration have failed. An employer must be provided with at least two working days’ notice of a planned strike.

The right to strike is limited for certain categories of employees, including doctors, public transportation workers and employees in the energy field.

Successorship Clauses

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges and duties towards the employees under the collective agreement.

Reference Citations

Right to Organize: Social Dialogue Act, No. 62 of 2011, Ch. 1 (Romanian)

Dispute Resolution: Social Dialogue Act, No. 62 of 2011, Chs. 2-6 (Romanian)

Strikes and Lockouts: Social Dialogue Act, No. 62 of 2011, Ch. 5 (Romanian); Labor Code, 2003 (as amended), arts. 233-236 (Romanian)

Successorship Clauses: Labor Code, 2003 (as amended), arts. 172-174 (Romanian)

Safety, Health and Security

In General

Employers are required to ensure the health and security of their employees, and employers with 50 or more employees must establish labor safety and health committees.

Workplace Safety and Health

Under the Labor Code and Law 319/2006, employers are required to ensure the health and security of their employees. Collective and individual labor agreements should include specific provisions in this regard.

The Labor Code and Order 187/1998 of the Ministry of Labor, Family and Social Protection require that every employer with 50 or more employees establish a labor safety and health committee, the main responsibilities of which are to:

• approve the annual labor health and security program,
• ensure the applicability of the program,
• perform inspections,
• analyze risk levels, and
• inform labor authorities about workplace safety.

The president of the committee must convene the group when necessary and at least once every three months.

Under Law 31/1991, employees working in unhealthy or dangerous conditions are entitled to reduced working time at no reduction in wages or seniority. The amount by which hours are reduced is negotiated between the employer and the union or other employee representative.

Drug and Alcohol Use

The labor code does not address drug or alcohol use.

Reference Citations

Workplace Safety and Health: Labor Code, 2003 (as amended), arts. 175-176 (Romanian)

Termination

Termination by Employer

An employer may dismiss an employee if the employee:

• repeatedly violates the employer’s work rules,
• is under preventive custody for more than 30 days,
• is no longer able to perform the duties of the position as determined by medical examination, or
• does not meet the professional requirements of the position.

Dismissal for violation of work rules must follow an investigation of the charges. In other cases, dismissal must be within 30 days of the employer’s discovery of circumstances warranting termination. If an employee is no longer able to perform necessary duties or does not meet the requirements of a position, the employer must suggest other positions for which the employee is qualified. If no other position is available, the employee must be given at least 20 business days’ notice of termination.

With at least 20 business days’ notice, an employee may be laid off if his or her position has been eliminated for justifiable business reasons. Payment in lieu of notice is not permitted.

Except in cases of the employer’s reorganization or bankruptcy, employees cannot be dismissed:

• during temporary incapacity,
• during quarantine leave,
• during pregnancy,
• during maternity leave,
• if raising a child up to 2 years old or a handicapped child up to 3 years old,
• if nursing a sick child up to 7 years old or a handicapped child up to 18 years old,
• while holding union office except in cases of serious or repeated misconduct, or
• during annual leave.

Termination by Employee

Generally, the employment agreement may only be terminated unilaterally by an employee with 20 calendar days’ written notice for ordinary positions and 45 calendar days’ written notice for management positions. An employee may terminate the employment agreement without notice if the employer violates its contractual obligations.

Plant Closings and Mass Layoffs

A mass layoff is considered to occur when within 30 days:

• at least 10 employees are laid off by an employer with between 21 and 99 employees,
• at least 10 percent of the workforce is laid off by an employer with between 100 and 299 employees, or
• at least 30 employees are laid off by an employer with 300 or more employees.

In the case of a mass layoff, an employer must:

• notify worker representatives and the local labor authority;
• consult with worker representatives;
• apply fair selection criteria to determine which employees to lay off;
• give appropriate notice;
• pay severance, if required;
• provide employees to be laid off with time to search for new employment; and
• offer reemployment to laid off employees if their jobs are to be refilled within 45 days of layoff.

Payment on Termination

A terminated employee is entitled to compensation for earned but unused vacation.

Severance pay is granted if the individual or collective labor agreement obligates the employer to make such payments upon termination of the employment relationship. In practice, severance is paid if the dismissal results from reasons not specifically related to the employee’s individual performance or to disciplinary misconduct. If dismissal results from individual performance, the worker is generally entitled to compensation only in cases of physical or psychological incapacity covered by a collective or individual employment agreement.

Unemployment Insurance

To qualify for unemployment insurance benefits, the employee must have at least 12 months of contributions in the last 24 months before unemployment, be younger than retirement age and have income below a specified maximum.

Reference Citations

Termination by Employer: Labor Code, 2003 (as amended), arts. 58-64, 75 (Romanian)

Termination by Employee: Labor Code, 2003 (as amended), art. 81 (Romanian)

Plant Closings and Mass Layoffs: Labor Code, 2003 (as amended), arts. 68-70 (Romanian)

Personal Taxes

Residency Requirements

Individuals are deemed to be residents of Romania for tax purposes if they satisfy at least one of the following conditions:

• they have their domicile in Romania,
• their center of vital interests is in Romania,
• they are present in Romania for a period or periods that exceed in the aggregate 183 days during any consecutive 12-month period, or
• they are Romanian citizens serving abroad as an official or employee of Romania in a foreign state.

Individuals who enter or leave Romania for more than 183 days are required to complete a Romanian tax questionnaire for the purpose of establishing their fiscal residency status.

Taxable Income

Resident individuals are taxed on their worldwide income (except for salary income received from abroad for work performed abroad, which is tax exempt), nonresidents only on Romania sourced income.

Employment income is defined as income in cash and/or in kind received by individuals based on employment agreements and includes (among other things) compensation, remuneration paid according to noncompetition clauses and taxable benefits such as meal tickets, gift tickets, nursery tickets, holiday tickets and private use of company cars and telephones.

Tax Rates

Romania taxes income at a flat 10 percent.

Employees are also required to make the following contributions:

• social security fund: 25 percent, and
• health fund: 10 percent.

Reference Citations

Residency Requirements: Law on the Fiscal Code, No. 227 of 2105, art. 28 (Romanian)

Web References

In language(s), as noted.

Law and Regulation

Labor Code (Romanian)

Law on Equality and Treatment Between Men and Women (Romanian/English)

Social Dialogue Act, No. 62 of 2011, Ch. 1 (Romanian)

Law Amending Emergency Ordinance on Maternity Protection at Workplaces (Romanian)

Emergency Ordinance on Maternity Protection at Work (Romanian/English)