Background Checks

Background checks are legal in Romania but must comply with the General Data Protection Regulation (GDPR) and require the candidate’s written consent.

Common Checks:

• Employment history
• Education and qualifications
• Criminal records (especially in finance, healthcare, education, and public sectors)

Restrictions:

• Employers must avoid collecting excessive or irrelevant data.
• Unauthorized checks or discriminatory practices can lead to legal consequences.

Private Sector: Limited to what is necessary and legally justified. Employers often rely on self-declared information and references.

Public Sector: May request additional documentation, such as proof of non-affiliation with political parties or past collaboration with the former secret police.

Verification and New Hire Reporting

Register the employment contract with REVISAL (the General Register of Employees) at least one day before the employee starts work.

• Report new hires to the Territorial Labor Inspectorate (ITM) through REVISAL.
• Ensure compliance with GDPR when handling employee data.

Onboarding Process & Documentation

• Personal identification documents (e.g., ID card or passport).
• Tax identification number (CNP).
• Bank account details for salary payments.
• Educational and professional certificates, if relevant to the role.
• Medical certificate confirming the employee is fit for work (mandatory before employment begins).
• Criminal record certificate, if required by law for specific roles (e.g., finance, education, security).

Healthcare

Mandatory Public Health Insurance (CASS)

• Romania operates a mandatory state health insurance system known as CASS (Contribuția de Asigurări Sociale de Sănătate).

Funded by:

• Employees: 10% of gross income
• Employers: Included in a general 2.25% labor insurance contribution
• Contributions go to the Single National Health Insurance Fund, which provides access to public healthcare services

Challenges in the Public System:

• Long waiting times
• Limited access to specialized care
• Underfunding in some areas

Private Health Insurance:

• Increasingly offered by employers as a supplementary benefit
• Covers services in private clinics and hospitals

Benefits include:

• Faster access to care
• More comfortable facilities
• Broader range of services (e.g., diagnostics, specialist consultations)
• Employers typically contract with private insurers to offer group health plans

Retirement

State Pension (Mandatory):

• Funded through social insurance contributions (CAS):
• Employees: 25% of gross income.
• Employers: No separate pension contribution; included in the 2.25% labor insurance.
• Operates on a pay-as-you-go basis: current workers fund current retirees.

Mandatory Private Pension:

• A portion of the employee’s CAS contribution is redirected to a privately managed pension fund.
• Employees choose their fund administrator.
• Designed to supplement the state pension.

Voluntary Private Pension:

• Optional, privately managed pension savings.
• Employers may contribute on behalf of employees as a benefit.
• Contributions are tax-deductible up to a certain limit, making it attractive for both employers and employees.
• Seen as a valuable tool for long-term financial planning and talent retention.

Social Security

For social security information, please see Retirement section above.

Employment Contract Details

Indefinite-Term Contract:

• Most common and standard form of employment.
• Concluded for an unlimited duration.
• Default contract type unless legal conditions justify a fixed-term arrangement.

Fixed-Term Contract:

• Used only under specific legal circumstances (e.g., temporary projects, seasonal work, replacing an absent employee).
• Maximum duration: 36 months.
• Generally limited to three consecutive contracts for the same position.

Essential Clauses:

• Identification of the Parties: Full legal details of both the employer and the employee.
• Place of Work: Specific location or, if applicable, a description of multiple or mobile work locations.
• Job Title and Description: The role held by the employee and a summary of responsibilities. Typically includes the job classification code (COR).
• Risks Specific to the Position: Disclosure of any occupational hazards or job-specific risks.
• Date of Conclusion: The date the contract is signed by both parties.
• Start Date: The date the employee officially begins work.
• Duration of the Contract: Indication of whether the contract is indefinite or fixed-term. For fixed-term contracts, the end date must be specified.
• Legal Basis for Fixed-Term Contracts: Justification for using a fixed-term arrangement, as required by law.
• Probationary Period: If applicable, the length and terms of the probation period. Base Salary: Gross monthly salary agreed upon.
• Salary Components: Any additional compensation (e.g., bonuses, allowances).
• Payment Frequency: Typically, monthly but must be clearly stated.
• Working Hours: Normal daily and weekly working hours.
• Annual Leave: Number of paid vacation days per year.
• Employer’s Obligations: Reference to general duties under the Labor Code.
• Employee’s Obligations: Reference to general responsibilities under the Labor Code.
• Collective Bargaining Agreement: Mention of any applicable collective labor agreements that govern the employment relationship.

Probation Period

• The probationary period in Romania is determined by the nature of the role and must be clearly stated in the employment contract.
• For non-managerial roles, the probation period typically ranges from 5 to 30 working days, depending on the contract duration and job complexity.
• For managerial or supervisory positions, the probation period can extend up to 180 calendar days.
• These periods allow employers to assess the employee’s suitability for the role before confirming permanent employment.

Visas

Visa Categories and Requirements

• Short-Stay Visa (Type C): Up to 90 days for business, cultural, scientific, or academic purposes
• Long-Stay Visa (Type D): Exceeding 90 days for establishing business operations or extended projects
• Visa Exemptions: Verify if your country is on the exemption list

Application Process

• Pre-Application Preparation: Check specific document requirements
• Submitting the Application: Attend appointment with documents
• Post-Submission Steps: Track application status online

Independent Contractors

Independent contractors (freelancers or self-employed individuals) are not covered by the Romanian Labor Code in the same way as employees. However, there are specific legal considerations:

Contractual Basis:

• Independent contractors operate under civil or commercial contracts, not employment contracts.
• These contracts must clearly define the scope of work, payment terms, and responsibilities.

No Employment Protections:

• Contractors are not entitled to benefits such as paid leave, minimum wage, or protection against dismissal.
• They are responsible for their own taxes and social contributions.

Misclassification Risk:

• If a contractor is treated like an employee (e.g., fixed working hours, subordination, integration into the company), authorities may reclassify the relationship as employment.
• This can lead to penalties, back payments of taxes and contributions, and legal liability for the employer.

Paid Time Off

• Employees are entitled to a minimum of 20 working days of paid annual leave per year, calculated proportionally to the period worked.
• Employers must pay the vacation allowance at least five working days before the leave begins.
• If the employee cannot use their full leave entitlement within the calendar year, the unused days must be:
• Carried over and used within the first six months of the following year.
• If still unused due to valid reasons (e.g., long-term illness), the leave must be granted within 18 months from the end of the year in which it was accrued, with the employee’s consent.

Public Holidays

If a public holiday falls on a weekend, it is not typically compensated.

• New Year’s Day
• New Year Holiday
• Epiphany
• Synaxis of St. John the Baptist
• Union of the Romanian rincipalities
• Labor Day
• Orthodox Good Friday
• Orthodox Easter Monday
• Children’s Day
• Orthodox Whit Monday
• Assumption Day
• Feast of Saint Andres
• Great Union Day
• Christmas Day
• 2nd Day of Christmas

Bereavement

Employees are entitled to up to three days of paid leave in the event of the death of a direct family member.

To request this leave, the employee must:

• Submit a formal request to the employer.
• Provide a copy of the death certificate as supporting documentation.

These types of leave must be mutually agreed upon by the employer and the employee.

Maternity Leave

Pregnant employees are entitled to 126 calendar days of maternity leave, split into:

• 63 days prenatal (before birth)
• 63 days postnatal (after birth)

The actual distribution is determined by the attending physician and documented in a maternity certificate.

Maternity leave is paid at 85% of the average gross monthly income over the previous six months, funded by FUNASS.

Paternity Leave

Fathers or partners involved in childcare are entitled to:

• 10 days of paid paternity leave
• 15 days if they complete an infant care course
• Leave must be taken within 8 weeks of the child’s birth
• Requires a written request and the child’s birth certificate
• Paid by the employer and included in taxable income

In case of maternal death, the father may receive:

• The maternity allowance due to the deceased mother
• A maternity-related allowance based on his own income, if eligible
• Paid from the employer’s salary fund

Parental Leave

After maternity leave, one parent may take childcare leave until the child turns 2 years old (or 3 years for children with disabilities).

• • A written request
  • The child’s birth certificate
  • A declaration that the other parent is not on parental leave
  • For twins, triplets, or multiple births, the allowance increases by 50% for each additional child starting with the second

Eligibility requires 12 months of prior contributions to the social insurance system. The parent receives a monthly allowance equal to 85% of the average income over the last 12 months before childbirth.

Termination Requirements

For termination requirements, see Notice Period below.

Notice Period

In the event of employer-initiated dismissal, Romanian labor law requires a minimum notice period of 20 working days, regardless of the employee’s role or contract type.

Employees may resign by providing prior written notice:

• Up to 20 working days for non-management positions
• Up to 45 working days for management or executive roles

These notice periods may be adjusted by mutual agreement or as specified in the employment contract or collective bargaining agreement.

Severance Pay

There is no statutory requirement for severance pay under Romanian law.

However, severance may be granted if:

• It is stipulated in a collective labor agreement
• It is included in the individual employment contract or agreed upon at the time of termination

Unemployment Insurance

To qualify for unemployment benefits in Romania, individuals must meet the following conditions:

• Be registered as a jobseeker with the County Employment Agency (Agenția Județeană pentru Ocuparea Forței de Muncă).
• Have contributed to the unemployment insurance system for at least 12 months in the last 24 months prior to becoming unemployed.
• Be actively seeking employment and available to work.
• Not have voluntarily resigned without just cause (exceptions apply in specific cases).

Benefit Amount and Duration

• The amount of unemployment benefit is calculated based on a fixed percentage of the national reference social indicator (ISR) and the individual’s previous average income.

The duration of benefits depends on the length of contribution:

• 6 months for 1–5 years of contributions
• 9 months for 5–10 years
• 12 months for over 10 years

Additional Notes

• EU/EEA citizens receiving unemployment benefits in another EU/EEA country may transfer their benefits to Romania for up to 3–6 months, provided they register with the local employment agency.
• Beneficiaries must participate in active labor market measures, such as training or job placement programs, as required by the employment agency.

Anti-Discrimination Practices

Romanian law strictly prohibits discrimination in employment, ensuring equal treatment and opportunities for all individuals throughout the employment relationship—from recruitment and hiring to working conditions, promotion, training, and termination.

Discrimination is prohibited on a wide range of grounds, including but not limited to:

• Race, nationality, or ethnic origin
• Religion or belief
• Gender or sexual orientation
• Age
• Disability or chronic non-contagious illness
• Social origin or status
• Political opinion
• Language
• Trade union membership
• Family situation or responsibilities
• HIV status or belonging to a disadvantaged group

Workplace Safety Standards

Ensuring a safe and healthy working environment is a core legal duty for employers in Romania. The national framework, aligned with EU directives and governed by Law No. 319/2006 on Occupational Health and Safety, places significant responsibilities on employers to prevent workplace risks and protect employee well-being.

Key Employer Responsibilities

• Conduct Risk Assessments: Employers must regularly assess all workplace activities to identify and evaluate potential hazards.
• Implement Preventive Measures: Identified risks must be eliminated or minimized through appropriate technical, organizational, or procedural measures.
• Provide Health and Safety Training: Employees must receive adequate and ongoing training on workplace risks and the measures in place to prevent them.
• Supply Personal Protective Equipment (PPE): Employers are required to provide suitable PPE free of charge and ensure its proper use.
• Ensure Medical Surveillance: Regular health checks must be arranged for employees, especially those in high-risk roles.
• Establish Emergency Procedures: Employers must develop and communicate clear procedures for first aid, fire safety, evacuation, and other emergencies.
• Designate Safety Personnel: A competent person or internal/external service must be appointed to manage health and safety activities.
• Employee Responsibilities
• Use equipment and PPE correctly.
• Follow safety instructions and procedures.
• Report any hazards or unsafe conditions to the employer.

Workers’ Compensation

Eligibility:

• All employees, including temporary and part-time workers, are covered.

Compensation applies to:

• Accidents occurring during work or on the way to/from work.
• Occupational diseases confirmed by medical authorities.

Employer Obligations:

• Ensure a safe working environment and conduct regular risk assessments.
• Provide mandatory safety training and protective equipment.
• Report all workplace accidents to the Territorial Labor Inspectorate (ITM) and the National House of Public Pensions (CNPP).
• Maintain a workplace accident register and submit accident reports.

Employee Rights After a Workplace Accident:

• Medical care and rehabilitation costs are covered.
• Temporary incapacity benefits: Paid by the employer and social insurance for the duration of recovery.
• Permanent disability compensation: Based on the degree of disability and average earnings.
• Death benefits: Provided to the family of a deceased worker, including funeral expenses and survivor pensions.

Compensation Process:

The injured employee must:

• Notify the employer immediately.
• Undergo a medical evaluation.
• Submit documentation to the CNPP for benefits.
• Legal action can be taken if the employer fails to comply or if compensation is disputed.

Penalties for Non-Compliance:

• Employers who fail to report accidents or provide a safe workplace may face:
• Fines ranging from RON 5,000 ($1,133.27 USD to RON 50,000 ($11,332.72 USD).
• Civil liability for damages.
• Criminal liability in cases of gross negligence

Labor Law Sanctions

Unauthorized Employment of Foreign Workers: Companies hiring non-EU workers without proper permits or while in insolvency or debt to the state may face fines up to 10,000 RON and be barred from future work permits.

Failure to Pay Wages or Benefits: Employers who fail to pay agreed wages or benefits, especially to foreign seasonal workers, must compensate with two gross minimum wages and cover all outstanding entitlements.

Non-Compliance with Harassment Prevention Rules: Employers who fail to implement procedures to prevent and address moral or sexual harassment can be fined between 3,500 and 7,000 RON.

Ignoring Anonymous Harassment Complaint: New rules require employers to investigate anonymous complaints of workplace harassment. Failure to do so may result in administrative penalties.

Lack of Internal Procedures for Harassment Cases: Employers must have clear internal mechanisms for handling both named and anonymous harassment complaints. Non-compliance can lead to sanctions.

Failure to Provide Support to Harassment Victims: Employers are now obligated to offer counseling and procedural guidance to victims of workplace harassment. Ignoring this duty may result in fines.