Employment 2025 Comparisons

Romanian labour law does not apply the concepts of blue-collar workers and white-collar workers. A “seniority” distinction is made between managerial functions (with decision-making, co-ordinating and representative powers) and execution functions (where operational, technical or administrative tasks are performed). Such distinction is important as different functions are subject to different employment terms, such as varying probation periods and notice requirements upon resignation.

Permanent employment contracts are the rule under Romanian labour law, with permanent roles being highly preferred and prioritised by candidates seeking employment.

By exception, fixed-term term contracts may be used, but only in specific and limited circumstances/scenarios, which are regulated by the Labour Code. Fixed-term contracts are, by nature, limited in time (a definite term contract can have a maximum of 36 months) as well as frequency (a maximum of three successive contracts, each having a limitation of 12 months, can be concluded between the same parties).

Other than the duration of their employment, permanent and fixed-term employees benefit from equal treatment and similar employment-related rights.

The individual employment contract (either fixed-term or permanent) must be concluded in writing and registered in the General Registry of Employees prior to the beginning of the employment relationship.

Allowing employees to work without having a signed and registered employment contract, before the first day of work, qualifies as undeclared work and exposes both the employer and the employee to administrative fines – in certain cases, even separate fines can be applied for not having a signed contract and not having a registered contract, within the legal deadlines.

There is a set of clauses that an employment contract must have as a minimum. These are provided by the law, as follows:

• the identity of the parties;
• the place of work – if the employee will travel between different workplaces, the employment contract needs to specify whether travel costs are covered by the employer;
• the corresponding position/occupation and duties;
• the start date;
• the duration of the work and the duration of the contract;
• salary rights (including other constitutive elements of the salary), periodicity and means of payment;
• the duration of the leave;
• the duration of the probationary period;
• notice period and conditions;
• job-specific risks;
• the professional criteria for evaluating the activity; and
• provision of private insurance, supplementary contributions on pension or other rights granted by the employer (if granted).

Other specific clauses – such as non-competition, confidentiality, mobility, professional training provision, electronic signature procedures or an applicable collective bargaining agreement – can also be included in the employment contract.

Full-Time Work

A full-time working schedule is 40 hours per week. The distribution of working time throughout the week is generally uniform – namely eight hours per day for five days, followed by 48 consecutive hours of rest (usually Saturday and Sunday). Full-time contracts concluded for employees under 18 years of age are limited to six hours per day and 30 hours per week.

Unequal distribution of working time and flexible arrangements

An unequal distribution of working time may be applied, provided that the limit of 40 hours per week is still observed and this pattern is agreed with the employee. Usually, unequal distribution of work is implemented as a working schedule of ten hours per day, four days per week, but a different pattern can also be implemented (for example, daily shifts of different duration), provided that the 40 hours per week limit is observed and that the daily shifts are followed by the minimum mandatory daily rest periods.

Flexible working-time arrangements – including flexible starting hours – may be used; flexible working-time patterns are frequently used in tech companies and are promoted as a benefit that the company offers to attract highly skilled employees.

Part-Time Work

Part-time contracts are employment contracts concluded for any fraction of the normal working time of 40 hours per week. No minimum number of working hours is imposed by Romanian labour legislation.

Part-time employees enjoy the same level of benefits as full-time employees with respect to the minimum wage, notice periods, severance payments and protection against unfair dismissal.

Part-time contracts must expressly stipulate:

• the working hours and manner in which these are allocated (which in practical terms means the time interval within which the employee will work);
• the conditions under which the working programme can be amended; and
• a prohibition on performing overtime, except for the reasons of force majeure or urgent works needing to be performed to prevent accidents or to remove the consequences of such accidents.

Overtime

Overtime work means hours that are worked outside the normal working hours of 40 hours per week. Working time, including overtime, may not exceed an average of 48 hours per week, calculated over a reference period of four months, unless otherwise specifically regulated in relation to particular situations. Employees under 18 years of age cannot perform overtime.

Overtime must be compensated in all cases and irrespective of the type of work carried out or seniority of the employee (unlike in other jurisdictions, it is not implied that certain categories of senior employees may or can be requested to work beyond the contractual working hours). The standard practice is to compensate working time in kind, with equivalent paid time off within 90 calendar days after overtime was carried out. If granting time off is not feasible, financial compensation is permitted. The overtime indemnity is determined through either a collective bargaining agreement or an individual employment contract, and must be a minimum of 75% of the base salary.

As of 1 January 2025, the statutory gross minimum wage is RON4,050 (approximately EUR800) per month for a full-time position.

Recent legal changes require that an employee cannot be paid on the basis of the statutory gross minimum wage for more than 24 months – after this period, the employer has an obligation to increase the salary.

Currently, there are no mandatory automatic salary/compensation indexation mechanisms – adjusting the salary with inflation rate, market trends or by reference to other aspects. This is, however, a topic that is often agreed on or negotiated at the collective bargaining level between the employer and employees’ representative bodies/works councils/trade unions.

Annual Leave

The minimum annual leave entitlement is 20 working days, irrespective of the type of employment contract, seniority or role.

Employees under 18 years of age, employees with disabilities and employees working in special or exceptional conditions benefit – by law – from three days of additional annual leave.

Additional Paid Days Off

Employees also have the right to additional paid days off for special family events. The entitlement to such additional days off (such as events that trigger the benefit, number of days off, formalities or any other aspects) are usually detailed in the collective bargaining agreement in force at the level of the employer, or by the company’s internal regulations.

Public Holidays

Employees also benefit from paid time off during public holidays if these fall during working days. Employees who work during public holidays are entitled to corresponding paid time-off compensation for the activity carried out during the public holiday. If paid time off is not possible, they need to receive monetary compensation (a minimum of 100% of base salary for the time worked during the public holiday).

As of August 2025, there are 17 public holidays in Romania per year.

Family-Related Care Leave

Employees are entitled to family-related care leave to provide care or support to a relative or a person living in the same household with the employee. The maximum duration for this leave is five working days annually, and the employee needs to provide details regarding:

• the fact that the person to whom the care was granted is a relative; or
• that the person lives in the same household as the employee; and
• that the person from the preceding two points needs care for a severe medical condition – a list of medical conditions that make employees eligible for this leave is provided by the law.

Maternity Leave

Maternity leave is granted for a total duration of up to 126 calendar days, typically divided into two equal periods of 63 days before and after childbirth. However, these periods may be merged, subject to medical approval, provided that the portion of the leave taken after the birth of the child is at least 42 calendar days. Maternity leave is paid throughout the entire period, in the form of a maternity leave indemnity that is calculated as a percentage of the employee’s monthly salary.

Paternity Leave

Paternity leave is granted for up to ten working days and must be requested within eight weeks following the birth of the child. An extension of five additional working days is permitted if the father has completed an accredited child rearing course. The paternity leave is paid in the form of a paternity leave allowance, equivalent to the employee’s salary for the duration of the leave.

Parental Leave

Parental leave may be taken by either (eligible) parent for a period of up to the child’s second or third birthday. Typically, one parent takes the full duration of parental leave, while the other eligible parent must take at least two months of it. Employees are entitled to a parental leave indemnity, paid through the local state budget.

Maternity Risk Leave

Maternity risk leave is granted for pregnant or breastfeeding employees who, due to working conditions, cannot continue working. Employees may benefit from this type of leave either before birth of after they return to work, provided that the issues which pose a risk to the pregnancy and/or the employee cannot be otherwise cured by the employer. This type of leave is a paid leave, with the maternity leave indemnity being calculated as a percentage of the employee’s monthly salary.

Sick Leave

Sick leave is granted during periods of temporary incapacity for work, on the basis of a medical certificate issued by the employee’s doctor. The maximum duration of sick leave is 183 days in a period of 12 months, noting that there are certain illnesses for which the total duration of the sick leave may exceed this threshold. Employees continue to be paid throughout the sick leave, in the form of a sick leave indemnity, which is calculated as a percentage of the employee’s monthly revenues.

Other specific leaves are provided by the law, such as:

• leave for the care of a sick child;
• adoption leave;
• leave to accompany/care for a cancer patient;
• days off for an employee holding a local public office;
• days off for blood donation; and
• days off for employees undergoing fertility procedures.

The entitlement and conditions under which employees may apply for and benefit from these types of leave are specific to each leave.

Non-compete clauses may be validly concluded either at the time of entering into the individual employment agreement or subsequently during the course of employment. Such clauses are subject to specific validity and enforceability conditions imposed by the Romanian Labour Code.

Non-compete clauses are particularly common for employees in management or strategic positions, where the employer has a legitimate interest in protecting confidential information, business know-how and client relationships.

Post-termination non-compete clauses are subject to financial compensation. The compensation must be paid on a monthly basis for the entire duration of the restriction period and may not be lower than 50% of the employee’s average gross monthly salary during the last six months preceding the termination of the employment relationship.

To be valid, the non-compete clause must expressly address the following elements:

• the specific activities that the former employee is prohibited from performing;
• the identity or categories of third-party competitors for whose benefit the employee cannot work;
• the amount of the monthly non-compete indemnity;
• the geographical area in which the restriction applies; and
• the maximum duration of the restriction, which may not exceed two years from the termination of the employment agreement.

To the extent that the employee deems the restrictions contained in the non-compete clause to be excessive/disproportionate, it may refer the case to the competent court of law, which may limit the effects of the non-compete clause.

Unless this option is expressly reserved and documented in the employment contract, the employer cannot unilaterally waive the non-compete clause.

Non-solicitation clauses are commonly included in employment contracts, particularly for management or key employees who have direct access to clients, business-sensitive information or other employees. These clauses aim to restrict former employees from soliciting either their former colleagues or the company’s clients for a certain period following the termination of the employment relationship.

Non-solicitation clauses may target two distinct types of conduct. First, they may prohibit the former employee from actively seeking to recruit or induce other employees to leave the employer. Second, they may restrict the former employee from approaching or enticing clients or business partners of the former employer with whom they had direct contact during employment. Unlike non-compete clauses, non-solicitation clauses are not subject to mandatory financial compensation and can be validly agreed without any additional payment being made to the employee.

Data privacy in the context of employment relations is governed by the General Data Protection Regulation (GDPR) as well as by specific local legislation (Law 190/2018).

From a local employment law perspective, besides the GDPR’s provisions being applicable, there are local requirements that must be observed by employers.

For example – and by reference to one of the more commonly asked questions in this field – if the employer intends to implement means of monitoring the activity of employees, either through communication means or through video surveillance systems, this approach is subject to ensuring that:

• the processing is necessary and justified by the legitimate interest of the employer and this prevails over the rights and liberties of employees;
• no other less intrusive means can be used;
• employees are properly and expressly informed in advance;
• there is a privacy impact analysis (where necessary);
• the data cannot be kept longer than the actual purpose of the processing, but no more than a maximum of 30 days (with the exception of specifically provided cases); and
• the trade union/employees representatives are consulted prior to introducing the monitoring system.

Another topic on which Romanian law takes a more rigid approach than other jurisdictions refers to the scope of background checks. Criminal records cannot be discriminatingly requested for any and all employees, especially if this would not be proportionate to the type of role they will occupy.

As a rule, foreign workers – meaning non-EU, non-European Economic Area (EEA) or non-Swiss Confederation nationals – can be employed in Romania only on the basis of a work authorisation, issued following a comprehensive immigration process.

Immigration limitations are in force, with respect to:

• who may sponsor a work visa (in other words, there are employer-related conditions);
• who may benefit from a work authorisation (employee-related conditions); and
• general labour market-related limitations (for example, there is a maximum number of work authorisations that can be issued each year – currently, this limit is set at 100,000 new foreign workers for all of 2025).

Nationals from EU or EEA member states or from the Swiss Confederation do not require special work authorisation to be employed in Romania. They benefit from the same employment conditions as Romanian citizens. However, depending on the duration of their stay, additional administrative formalities (such as registration or residency notification) may apply for residence purposes.

Foreign individuals (non-EU/EEA or non-Swiss Confederation) require work authorisation to be obtained before commencing employment in Romania (limited exceptions or exemptions may apply). In such cases, the employer must initiate the process by submitting a request to the General Inspectorate for Immigration. This is a prerequisite for the issuance of the appropriate long-stay visa and, subsequently, the residence permits for employment purposes.

When employing foreign nationals, employers must be mindful that there will be additional information/transparency requirements. Certain events throughout the course of employment must be reported to the immigration authorities:

• for individuals hired based on exceptions to obtaining work authorisation – hiring of individuals, and change or termination of contract for these individuals, needs to be notified to the immigration authorities; and
• for individuals hired with the obligation to obtain work authorisation – termination and suspension of contract needs to be notified to the immigration authorities.

Remote Work (or Telework)

The implementation of remote working models has increased at an accelerated pace, especially during the COVID-19 pandemic. This stress-tested employers’ readiness to adjust their working models to accommodate flexibility in terms of management of their workforce. Remote work requires that this form of work be expressly agreed between the employer and the employee, either at the onset of employment or during the employment relationship, through a specific addendum. Aspects that refer to the place of work, working time, number of remote days versus on-site days, and reimbursement of telework costs are negotiated and documented through telework-specific documentation.

While remote work (fully or partially) is still a widespread practice and is often offered as a benefit, the authors have seen a trend of employers tweaking this entitlement or transitioning back to fully/mostly office/on-site hours.

Confidentiality and Data Privacy

Rules around confidentiality and the protection of data/data privacy are included in telework policies and documentation. Teleworkers are expected to adhere to the same or even stricter confidentiality and data protection standards compared to office-based employees.

Use of the teleworker’s personal data (for example, to monitor adherence to the working hours, track productivity, limit the risk of fraud, etc) is carried out with the strict observance of GDPR rules, factoring in the particularity that employees are carrying out work in their own private space. Employees’ data may be collected and processed in compliance with the principles fundamentally established by legislation – namely:

• legality;
• fairness;
• transparency;
• purpose limitation;
• data minimisation;
• accuracy;
• limitation of storage duration; and
• ensuring data confidentiality and security.

Occupational Health and Safety

Unlike office workers, teleworkers carry out their job primarily outside the supervision of the employer, using devices that are not audited or, in some cases, even provided by the employer. From this perspective, the allocation of health and safety-related obligations between the employer and the teleworker should be clearly established before this telework model is implemented.

Teleworkers have particular obligations in so far as health and safety is concerned, including to provide access to their place of work when there are concerns from this perspective, and when an accident or a health and safety-related incident is investigated by the labour authorities. Similarly, employers have the obligation to ensure that the fact that the employee works in an isolated manner is accounted for and addressed.

Romanian legislation does not yet include or regulate the concept of sabbatical leave.

However, employers may offer the possibility for employees to take unpaid time off. Usually, this is subject to operational requirements, the employee’s historical performance and the number of days off requested by the employee, among other factors.

In line with trends in other EU jurisdictions, efforts are being made and measures being taken to promote flexibility at work and higher emphasis on work-life balance.

While a shift can be seen from the widespread adoption and promotion of the benefits of remote working to the more traditional in-office model, recent changes in labour legislation still appear to favour the adoption of flexible work models – for example, parents may specifically request telework days, employees may request the adjustment of their working time pattern to accommodate their personal situation, etc.

Four-Day Working Week

The concept of a four-day working week has become more popular in Romania, though not as popular as in other EU jurisdictions. While there is no specific legislation addressing this type of work model (as the existing legal framework already allows it), a notable shift in this direction is yet to be seen.

Unions are voluntary employee organisations established to protect the employees’ interests. A union may be formed by at least ten employees from the same employer, or by at least 20 employees from different employers within the same collective bargaining sector.

In order to obtain legal personality, a union must be formally registered with the competent courthouse.

Once established, the union needs to be representative within the employer in order to be considered a valid social dialogue partner. Specific conditions must be fulfilled for representativity:

• having at least 35% of the employees formally affiliated to the union;
• having financial and organisational independence; and
• having the legal status of a union (ie, obtained legal personality).

The union may either act for collective purposes (representing all the employees affiliated to the union) or engage in individual cases. Collectively, a union can act on behalf of employees by running negotiations (for example, for concluding the collective bargaining agreement), mediation and arbitration procedures, petitions, protests, demonstrations and/or strikes.

With respect to individual cases, the union has the right to take any action on behalf of its members, if requested.

The union has the right to establish its own regulations, freely elect its representatives, organise its management and activities, initiate programmes, etc.

Romanian legislation provides specific information and consultation rights for representative unions.

Within entities that have at least ten employees and where the employees are not otherwise unionised, employees may elect representatives to promote and defend their rights and interests.

The employees’ representatives are elected at the level of the employer by at least half plus one of the number of employees (50% + 1). Their mandate may last for up to two years, with the possibility of re-election at the end of the term.

The number of employees’ representatives at the level of a company is established in agreement with the employer; where no agreement is reached, guidance is provided by Romanian legislation regarding the appropriate number of representatives by reference to the overall population.

Similarly to unions, employees’ representatives act in the interest of the employees, as a collective body. They can either represent employees’ rights collectively (such as in negotiation of the collective bargaining agreement) or in specific individual cases, upon request.

Romanian legislation provides specific information and consultation rights for employees’ representatives.

Collective bargaining agreements (CBAs) are frequently used as a tool to improve the employee’s rights and benefits, at a collective level, rather than by engaging in individual negotiations.

While concluding a CBA is not mandatory, consultations in view of potentially implementing a collective agreement are required for companies that employ more than ten individuals.

The CBA can govern aspects of the employment relationship, including remuneration and other wage-related entitlements such as:

• minimum salary levels for different functions/positions;
• night work entitlements;
• seniority;
• performance;
• holiday bonuses;
• method and frequency of payments; and
• matters related to working time and rest time (ie, working hours, flexible hours, shifts, additional days off, weekly rest, etc).

In negotiating the CBA, the employer is represented by its corporate body/bodies, whereas employees are represented by elected representatives, trade unions or trade union federations/confederations. Either party (employer or employees) can initiate the negotiation of a CBA. To keep the process concise and to promote a close dialogue, the overall period of negotiation of a CBA should not exceed 45 days (this period can be extended with both parties’ agreement).

Signed CBAs are subject to registration requirements – once the parties agree on the CBA’s final version, the contract will be registered with the territorial labour authority, though in principle a CBA agreed only at the level of a particular company will not be publicly available to anyone outside the employer’s organisation (other than the labour authorities).

Only one CBA can be concluded and registered at the level of the same employer. Once registered, the CBA will be applicable to all employees within the employer, regardless of whether or not they are affiliated with the trade union that was involved in the negotiation or whether they participated in the election of the employees’ representatives.

Aside from company-level registered CBAs, there is also the possibility for applicable sector-level CBAs and national-level CBAs. Romania does not currently have a national-level applicable CBA, but there is an ongoing trend towards having sector-level applicable CBAs (ie, banking sector-level CBAs).

Romania is not an employment-at-will country.

The immediate effect of this is that any termination of employment must be documented and must fall within one of the specific situations in which termination is allowed.

When the employer decides on the unilateral termination of the employment relationship, the dismissal decision must be issued in writing and motivated – both on legal and factual grounds. Depending on the reason for dismissal, the dismissal decision must include specific provisions – otherwise, it may be annulled by a Romanian court of law.

Depending on the legal grounds for the dismissal, different procedures and rules must be followed. The most common types of dismissals are outlined in the following.

Disciplinary Dismissal

Disciplinary dismissal is possible if the employee is found guilty of either gross misconduct or several repeated (less severe) misconducts. The dismissal on disciplinary grounds is the most severe disciplinary sanction an employer may apply and, although Romania law does not expressly impose a gradual/progressing disciplinary system, the authors note that employment courts tend to factor in this principle whenever they are asked to rule on the proportionality of a particular sanction.

A disciplinary termination decision can be issued only after a disciplinary investigation is carried out. The disciplinary investigation is an internal process, carried out by the employer, but with the participation of the employee. The employee must be allowed the right to:

• defend themselves against any allegation;
• provide evidence to support their position; and
• have legal representation throughout the process.

Employees who are terminated on disciplinary grounds are not entitled to notice or severance.

Termination for Professional Inadequacy

Professional inadequacy is also an available (but not very frequently used) basis for the unilateral termination of an employee’s contract. The employer must demonstrate, based on objective evidence, that an employee is not able to meet the professional requirements of the position – ie, that the employee lacks the skills needed for the job. Before proceeding with dismissal on these grounds, the employer is required to conduct a prior adequacy evaluation, which can involve testing the employee, reviewing their past performance, analysing failed Performance Improvement Plans (PIPs), etc. Employees terminated on inadequacy grounds are entitled to a notice period, but there is no statutory severance.

Elimination of the Job Position/Redundancy

Eliminating a job position following an internal restructuring is a lawful reason for dismissal, provided it is unrelated to individual employees who are ultimately impacted and is based on a genuine business need (Romanian law requires that any redundancy be based on a real and serious cause). This decision must be supported by internal documents, such as assessments that justify the elimination and detail how it will benefit the company. The process usually includes:

• preparing a business case;
• deciding which positions to cut;
• notifying affected employees; and
• finalising termination after the notice period.

Redundancies can be individual or collective; collective redundancies require additional steps, including notifying local authorities and consulting with unions or employee representatives. Employees terminated following redundancies are entitled to a notice period, but no statutory severance is due.

Collective Redundancies

In addition to the requirements mentioned above regarding the underlying causes and justifications of terminations due to redundancies or role eliminations, collective dismissals imply a comprehensive information and consultation process. Unions or employees’ representatives are required to be consulted before a collective dismissal decision is formally taken.

To allow meaningful consultation with the union or employees’ representatives, the employer must provide them with all the information and notify them in writing. Additionally, the employer is legally required to inform the territorial labour authority regarding the planned collective redundancies, as part of the formal notification procedure.

The trade unions/employees’ representatives are then allowed a reasonable period of time to analyse the information provided by the employer and to suggest potential remedial actions or measures that can be made to mitigate the impact.

Once a proposal from the employees’ representative bodies is received, the employer has an obligation to respond to each point, to properly consider it and to submit a formal response to the employees’ collective negotiation bodies. Only after the information and consultation process is finalised can the employer proceed with implementing the collective dismissal.

Notice periods in Romania can be seen from two perspectives:

• notice period upon resignation – this is a maximum of 20 working days for execution positions and 45 working days for management positions; and
• notice period upon dismissal by the employer (noting that not all dismissal cases require that a notice be given) – this is a minimum of 20 working days.

Payment in lieu of notice is not possible.

The employer can waive the notice period in the case of an employee’s resignation.

Dismissal for serious cause falls under the disciplinary dismissal process mentioned previously (see 7.1 Grounds for Termination).

An employee can be dismissed on disciplinary grounds either for serious breaches or for repeated breaches of contract or employment rules, as regulated in internal regulations or policies applicable at the employer’s level.

The list of situations that justify this type of dismissal is not prescribed by Romanian law, so it is left to the employer’s assessment whether a particular incident occurred in circumstances that are severe enough or produced consequences negative enough to justify a termination on disciplinary grounds. While the disciplinary investigation is an internal process, it is subject to appeal, directly before the court of law. The court of law has the authority to re-evaluate the case and to re-qualify the seriousness of the offence, and to ultimately decide on changing the disciplinary sanction.

This may have negative consequences for the employer, because if a disciplinary dismissal decision is overturned by the court the employer will have the obligation to pay to the employee all salaries that the employee would have been entitled to in the absence of the dismissal, as well as to compensate for moral damages and potentially to reinstate the employee.

Mutual separation remains the most frequent option used by employers to separate with employees. This route is preferred as it reduces potential legal risks that arise out of court proceedings, and usually allows the employer and employee to agree on the conditions under which separation will occur.

In the context of mutual separation, all the terms of the separation are subject to negotiation. There is no minimal notice period or statutory severance payable in the case of mutual separation – all of these terms are subject to discussion.

Labour law provides protection from dismissal for employees under the following circumstances:

• during sick leave, established by a medical certificate in accordance with the law;
• during the suspension of work following the institution of quarantine;
• during the period in which the employee is pregnant, to the extent that the employer is aware of this fact prior to the issuance of the dismissal decision;
• during maternity leave;
• during parental leave;
• during leave to care for a sick child up to the age of seven years or, in the case of a disabled child, for a recurring illness, up to the age of 18 years;
• during annual leave;
• during paternity leave;
• during family-related care leave; and
• while absent from work in unforeseeable circumstances caused by a family emergency resulting from sickness or accident, which makes the employee’s immediate presence indispensable, provided that the employer has been informed in advance.

However, these limitations do not apply in cases where the dismissal is triggered by judicial reorganisation, bankruptcy or dissolution of the employer.

Special protection against dismissal is also provided in specific legislation.

The employee can bring a wrongful dismissal claim before the competent court if they consider their dismissal to be unlawful or unjustified.

The main grounds for such a claim are:

• lack of legal grounds for dismissal – the employer failed to provide a valid, legal reason for the dismissal (disciplinary, inadequacy, redundancy, etc);
• failure to observe the procedural requirements – Romanian legislation provides for strict procedural steps to be taken with every dismissal;
• violation of employee’s rights – dismissal of an employee while being protected by law against dismissal;
• lack of evidence or arbitrary dismissal – if the employee is dismissed based on disciplinary grounds, lack of evidence to substantiate the employee’s misconduct can form the basis of a wrongful termination claim; and
• discriminatory or retaliation claims – Romanian legislation strictly prohibits dismissal on discriminatory grounds or as a form of retaliation (for example, the employee made a harassment claim against their manager, and shortly after was dismissed).

Consequences of a Wrongful Dismissal Claim

If the court finds that the employee was wrongfully dismissed, it may impose the following remedies and sanctions.

The dismissal decision may be declared null and void, and the employer may be obliged to pay the employee the salaries they would have been entitled to had they not been dismissed, from the moment of the dismissal up to the moment when the court’s decision is final. This includes bonuses and any other entitlements that the employee would have received in that period.

If the employee requests, the court can oblige the employer to reinstate the employee to the position they had prior to the dismissal.

Moreover, the employer may be obliged to pay compensation for moral damages if the employee proves that they suffered prejudice due to their dismissal, as well as any other legal fees and court costs (if awarded by the court).

Discrimination Grounds

Romanian legislation specifically defines certain protected characteristics – namely:

• race;
• nationality;
• ethnicity;
• colour;
• language;
• religion;
• social origin;
• genetic features;
• gender;
• sexual orientation;
• age;
• disability;
• chronic non-contagious disease;
• HIV infection;
• political opinion;
• family status or responsibility;
• trade union membership or activity; and
• membership of a disadvantaged group.

Two forms of discrimination are regulated under Romanian law:

• direct discrimination, which represents any act or fact of distinction, exclusion, restriction or preference based on one or more of the protected criteria mentioned above, which has the purpose or effect of denying, restricting or withdrawing the recognition, use or exercise of rights provided for in employment legislation; and
• indirect discrimination, which represents any apparently neutral provision, action, criterion or practice that has the effect of placing a person at a disadvantage compared with another person on the basis of any of the criteria mentioned above, unless that provision, action, criterion or practice is objectively justified by a legitimate aim and the means of achieving that aim are proportionate, appropriate and necessary.

Burden of Proof

In discrimination claims, the burden of proof is partly reversed. The complainant must present initial prima facie evidence suggesting possible discrimination. Subsequently, the burden shifts to the employer, who must show that there was no discrimination or that their actions were justified.

Applicable Sanctions

Discriminatory practices are qualified as administrative offences and are sanctionable with a fine of between RON1,000 and RON30,000 (approximately EUR200 and EUR6,000) per infringement.

In addition to the above, the discriminated employee may also claim that any discriminatory conduct stop as well as compensation for any damages caused by the discrimination. Action can be taken before either the court or the National Council for Combating Discrimination. Reputational damages are also possible, with the employee having the possibility to request the publication in mass media of the summary of the decision that states the discrimination.

There is one legislative project that proposes that the parties involved in civil proceedings (including employment-related cases) be notified by the court clerk about the possibility of participating in the hearing by video conference.

Currently, certain hearings can be carried out by video conference, depending on the availability and equipment of the court.

Other proceedings related to employment situations can carried out via video (namely disciplinary hearings, adequacy review evaluation meetings, and harassment claim interviews), subject to the internal regulations of each employer.

Employment disputes fall under the competence of a tribunal or Court of Appeal, depending on the phase of the litigation.

These types of disputes are heard by specialised judges functioning in specialised sections of the respective court.

Class Actions

Collective or joint actions are possible in Romanian labour law, mainly in the case of disputes that are initiated by trade unions. The remedies obtained will apply only to the members of the trade union who have been granted a valid mandate for representation in connection with the respective claim, and not to an entire “class”. In other words, this type of action does not constitute a class action in the typical sense.

A key condition for this representation is that trade unions must have legal standing and may only initiate legal actions on behalf of their members based on a valid mandate. Importantly, individual members retain the right to oppose or withdraw from the legal action at any time before the conclusion of the judicial proceedings.

Representation in Court

In employment-related trials, the parties may be represented legally, conventionally or judicially. They have the right to appoint a representative; however, there may be situations where the law requires the personal presence of the party in court. In all cases, it is necessary to provide proof of the representative’s authority for the action to be considered valid.

Arbitration is possible in the case of disputes relating to collective labour conflicts. However, in order to reach arbitration, conciliation organised by the ministry responsible for social dialogue or by the territorial labour inspectorate is first necessary. If the collective labour disputes have not been resolved through conciliation, the parties may decide by mutual agreement to start the arbitration or mediation procedure.

Pre-dispute arbitration agreements between the employee and the employer are not valid. Nevertheless, such an agreement could be valid in a collective labour dispute. The pre-dispute arbitration agreement should be in written form, under penalty of its nullity. This kind of agreement can be concluded by a clause stipulated in the initial contract or by a subsequent contract.

In Romanian law, the rule is that the losing party will be ordered to pay the court costs, at the request of the winning party. The court costs include:

• the fees of lawyers, experts and specialists;
• the amounts due to witnesses for travel and the losses caused by the need to be present at the trial; and
• transport expenses and any other expenses necessary for the proper conduct of the trial.

When the claims are admitted only in part, the judge shall determine the extent to which each of the parties may be ordered to pay the costs.

However, when the court assesses or is so requested, it may reduce the expenses for the fees of lawyers, judicial experts or specialists, when they are manifestly disproportionate in relation to the value or complexity of the case or to the activity carried out by the lawyer.