Hire in Romania

Employer of record in Romania

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Romania, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Romania ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Romaniaand how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Romania

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.

Since employment in Romania is highly regulated, it is essential that your employment practices and contracts are compliant. As your employer of record and PEO in Romania, we can ensure that every contract, for every worker, meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change.

Employment contracts in Romania

As you look to hire employees in Romania, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The regular workweek consists of five eight-hour days for a total of 40 hours per week. Employees who work more than six hours a day are entitled to a rest break and a meal per shift. The length and timing of both are determined by collective bargaining agreements.

Night shift work is defined as any shift where at least three hours are performed between 10 p.m. and 6 a.m., or when night work is done at least 30% of the month. A night shift cannot exceed eight hours when averaged over three months.

Employees working at least three night shift hours per day require the following:

• A medical exam is given at the employer’s expense at the beginning of the job and periodically thereafter
• Either a one-hour reduction in regular work time without reduction of salary for the days when the employee works at least three hours at night, or a bonus equal to at least 25% of their base salary.

Any hours worked above eight per day or 40 per week are considered overtime.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective July 1, 2024, the minimum wage has increased to 3,700 Romanian lei (US$803.71) from 3,300 lei (US$714.15) per month; and 22.02 lei (US$4.77) from 19.96 lei (US$4.32) per hour.
• Overtime must be compensated with paid time off within 30 days, or at an overtime premium of at least 75% of base salary.
• An employee is entitled to double pay for the work performed on the public holiday, in case the employer is unable to grant the day off.

As your employer of record in Romania, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Year-end bonuses are voluntary and governed by employment contracts or collective bargaining agreements.

Employees who are transferred to another location or a different employer are entitled to a transfer bonus.

Probationary period

A probation period of up to 120 days for executives or 90 days for non-executives is permitted.

Termination and severance

Employees who have been laid off for justifiable business reasons must be given at least 20 business days' notice before being let go. Payment in lieu of notice is not permitted.

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.

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 performance or 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.

During the probationary period, the contract can be terminated without notice.

As your employer of record in Romania, we can work with you to quickly handle the unforeseen event of an employee termination, providing legal guidance and a personalized process that ensures you stay out of labor court.

Employee benefits and paid leave in Romania

When negotiating terms of an employment contract with a candidate in Romania, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

A pregnant employee who has been employed for at least one month of the previous 12 is entitled to 126 days of maternity leave, starting 63 days before the due date. A minimum of 42 days must be taken after the child’s birth. While on maternity leave, employees earn 85% of their average income over the previous 12 months. Maternity pay is paid by the National Social Security Fund. Employees on maternity leave cannot be terminated.

Vacation

Employees are entitled to a minimum of 20 days of paid vacation each year. Collective bargaining agreements and employment contracts may provide additional leave. Employees cannot forfeit their right to paid vacation.

Annual vacation must be taken in at least one block of no fewer than 15 days. Unused vacation may be used within 18 months starting the following year.

At a minimum, vacation pay must equal the base salary and permanent benefits and bonuses as per the contract or labor agreement. Vacation pay must be given five days before leave begins.

Employees in the following circumstances are entitled to additional leave of no fewer than three extra days per year:

• Employees under 18
• Employees working under heavy, hazardous, or harmful conditions
• Disabled or blind employees

In the case of a family emergency, employees are entitled to additional paid leave. The number of days varies depending on the industry and is established by collective agreement or internal regulation.

Holidays

The Labor Code provides the following public holidays:

• New Year (two days)
• Unification Day
• Good Friday
• Easter Sunday
• Easter Monday
• Labor Day
• Children’s Day
• Orthodox Whit Sunday
• Orthodox Whit Monday
• The Assumption
• Saint Andrew’s Day
• National Day
• Christmas Day
• Boxing Day

Employees who practice a religion other than Christianity are entitled to two days off for each of three established religious holidays, provided that the religious body that determines those holidays is recognized by the Romanian government.

Employees required to work on a public holiday are entitled to one day off within the following 30 days.

Sick leave

Employees who have made the required contributions to Romania’s pension and social security system are entitled to sick leave of up to 183 days a year with a possible 90-day extension. Sick pay is 75% of the average monthly income they earned during the previous six months. The employer pays sick leave for the first five days and the social security fund pays for the remainder. An employee on sick leave cannot be terminated.

Health coverage

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 must withhold employee contributions from wages and remit them to the government.

Additional benefits

In addition to healthcare benefits, employees in Romania are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Romania, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: June 20, 2024

Employee onboarding with an employer of record in Romania

We write and validate all local employment contracts, streamlining the onboarding process for you and your Romanian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Romania, we will:

• Schedule a welcome call to discuss HR and employment information for Romania, as well as answer any questions
• Prepare a customized employment contract in English and Romanian (or other local language)
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Romania employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in over 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Romania. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.