Understanding Romanian Labor Law

Romanian labor law is governed by the Labor Code, which sets out the rights and obligations of employees and employers alike. Whether you are a multinational corporation, a local business, or an individual employee, understanding and navigating this intricate legal landscape can be challenging.

Our firm’s deep expertise in Romanian employment law ensures that we can guide you through every step of the process with pragmatic and solution-oriented approaches tailored to your specific needs.

Employment Law Services

We provide comprehensive legal services across all areas of employment law:

Employment Contracts and Agreements

We provide expert assistance in drafting, reviewing, and negotiating employment contracts in compliance with Romanian labor law. We help ensure that your contracts are fair, balanced, and protect your interests.

Employment Contract Services

• Contract Drafting: Customized employment contracts meeting Romanian legal requirements
• Contract Review: Legal review and analysis of existing employment agreements
• Contract Negotiation: Negotiating terms favorable to your position
• Compliance Assessment: Ensuring contracts comply with Labor Code provisions
• Updates and Amendments: Modifying contracts for changed circumstances
• Termination Agreements: Professional handling of contract termination

Contract Terms and Conditions

• Job description and responsibilities clarity
• Compensation structure and payment terms
• Work schedule and working hours
• Leave and vacation entitlements
• Confidentiality and non-compete provisions
• Probation periods and trial terms
• Dispute resolution mechanisms
• Termination conditions and notice periods

Types of Employment Arrangements

• Permanent full-time employment contracts
• Part-time employment arrangements
• Fixed-term and temporary contracts
• Apprenticeship and training programs
• Remote and flexible work arrangements
• Independent contractor agreements

Workplace Disputes and Litigation

Our team is well-versed in handling a wide array of employment disputes. We strive to find the most effective resolution for your case, whether through negotiation, mediation, or litigation.

Types of Disputes Handled

• Wrongful Termination: Unlawful dismissal and severance disputes
• Discrimination: Gender, age, disability, race, or religious discrimination claims
• Harassment: Sexual harassment, bullying, and workplace abuse
• Wage and Hour Issues: Unpaid wages, overtime, and compensation disputes
• Breach of Contract: Violations of employment agreement terms
• Retaliation: Unlawful retaliation for protected activities
• Wrongful Non-Promotion: Disputes over advancement and promotions
• Working Conditions: Health, safety, and working environment disputes

Dispute Resolution Methods

• Negotiation: Direct resolution discussions between parties
• Mediation: Facilitated negotiation with neutral third party
• Arbitration: Private arbitration proceedings
• Labor Court Litigation: Representation before labor courts
• Appeals: Appeals of labor court decisions
• Administrative Remedies: Labor Inspectorate complaint procedures

Our Litigation Services

• Case evaluation and strategic planning
• Evidence gathering and document preparation
• Witness coordination and testimony
• Settlement negotiation and mediation
• Court representation and advocacy
• Appeal proceedings

Employment Compliance and Workplace Policies

We offer comprehensive services for drafting and implementing workplace policies in compliance with Romanian labor law. We can also help you navigate inspections from the Romanian Labor Inspectorate.

Workplace Policy Development

• Employee handbook and policies development
• Code of conduct and ethics guidelines
• Attendance and time-off policies
• Remote work and flexible work policies
• Anti-discrimination and harassment policies
• Confidentiality and data protection policies
• Health and safety policies
• Social media and technology policies

Labor Code Compliance

• Working hours and rest period compliance
• Leave entitlements (annual, sick, maternity)
• Minimum wage compliance
• Overtime regulations and compensation
• Health and safety requirements
• Collective bargaining agreement compliance
• Employee record-keeping requirements
• Contract documentation procedures

Labor Inspectorate Representation

• Inspection notification and planning
• On-site representation during inspections
• Documentation and evidence gathering
• Response to inspection findings
• Remediation and corrective action plans
• Appeals of inspection decisions
• Compliance verification and follow-up

Employee Benefits and Compensation

We offer expert advice on employee benefits and compensation as per Romanian labor law, including guidance on wage regulations, social security benefits, and pensions.

Wage and Compensation Matters

• Minimum wage compliance and regulations
• Salary structure and compensation design
• Overtime calculation and payment
• Bonuses and incentive arrangements
• Commission structures and calculations
• Severance and termination payments
• Final wage and settlement procedures

Social Security and Pension Benefits

• Social security contribution compliance
• Pension scheme enrollment and management
• Supplementary pension arrangements
• Health insurance and medical coverage
• Disability and invalidity benefits
• Unemployment benefits and procedures
• Family allowances and dependent benefits

Benefits Administration

• Employee benefits package design
• Health insurance plan administration
• Leave administration and tracking
• Payroll compliance and processing
• Employee communication and education
• Benefits compliance auditing

Restructuring and Redundancies

We provide guidance on restructuring and redundancies, ensuring that any changes to your business structure comply with Romanian employment law and protect your interests and those of your employees.

Restructuring Services

• Restructuring Planning: Strategic planning for business restructuring
• Legal Compliance: Ensuring restructuring complies with labor law
• Redundancy Process: Proper procedures for redundancy implementation
• Consultation Procedures: Employee consultation and notification requirements
• Collective Redundancy: Handling collective layoffs and mass dismissals
• Transfer of Undertakings: Business transfer and employee rights

Redundancy and Severance

• Redundancy selection criteria and fairness
• Statutory severance entitlements
• Enhanced severance negotiations
• Reference and recommendation letters
• Outplacement and transition support
• Retention of key employees during restructuring

Risk Management

• Legal compliance verification
• Redundancy dispute prevention
• Documentation and record-keeping
• Employee relations management
• Litigation risk assessment
• Settlement negotiation assistance

Specific Employment Law Issues

Expatriate Employment

For multinational employers, we provide specialized guidance on hiring expatriates and foreign workers, including visa requirements, work permits, residence permits, and employment compliance for international employees.

Disciplinary Procedures and Dismissal

We assist with implementing proper disciplinary procedures, including warnings, suspensions, and dismissals that comply with Romanian labor law and minimize litigation risk.

Leave and Time-Off

Comprehensive guidance on annual leave, sick leave, maternity leave, parental leave, educational leave, and other types of leave under Romanian employment law.

Working Hours and Rest Periods

Compliance with regulations regarding maximum working hours, rest periods, weekend work, on-call arrangements, and flexible work schedules.

Collective Labor Relations

Guidance on collective bargaining agreements, trade unions, strikes, labor negotiations, and labor-management relations in accordance with Romanian law.

Data Protection and Privacy

Employment-related data protection compliance, including employee personal data handling, monitoring and surveillance, and privacy rights at work.

Why Choose Atrium for Employment Law?

Frequently Asked Questions

What is the probation period in Romanian employment law?

Under Romanian law, the probation period can be up to 90 days for most positions, though it may be up to 120 days for management roles. During probation, both employer and employee have broader rights to terminate the contract with notice.

What is the notice period for termination?

The notice period depends on the contract and circumstances. For dismissal without cause, the employer must typically provide 20 days notice. For employee resignation, notice periods vary from 5-20 days depending on salary level. For serious misconduct, immediate termination may apply.

What is the minimum wage in Romania?

The minimum wage is set by government and updated regularly. As of 2025, the gross minimum wage applies to all employees. We advise on current rates and compliance requirements.

How much annual leave are employees entitled to?

Employees are entitled to at least 20 working days of annual leave per year. Additional leave may apply based on seniority, difficult working conditions, or collective agreements. Leave calculation and use must comply with legal requirements.

What constitutes unlawful discrimination?

Discrimination based on gender, age, race, religion, disability, sexual orientation, or other protected characteristics is prohibited in hiring, compensation, promotion, and termination. Discrimination claims require strict legal handling.

Can an employer require a non-compete clause?

Yes, non-compete clauses are permitted if they are reasonable in scope, duration, and geographic area. Clauses must be balanced and necessary to protect legitimate business interests. We advise on enforceability.

What happens if an employer fails to pay wages?

Wage non-payment is a serious violation. Employees can file complaints with the Labor Inspectorate and pursue wage claims in labor court. Employers face penalties and potential criminal liability for continued non-payment.

How should redundancies be handled?

Collective redundancies require consultation with employees or unions, notification to labor authorities, and selection based on transparent criteria. Proper procedures minimize legal risk and disputes.

What employee records must employers maintain?

Employers must maintain records of contracts, payroll, working hours, leave, and attendance. Records must be preserved for specified periods and made available for inspection by labor authorities.

What should I do if faced with workplace harassment?

Document incidents, report to management or HR, and keep records. If internal procedures fail, file complaints with the Labor Inspectorate or pursue claims in labor court. We can guide you through the process.