Employer of Record Guide in 

Romania

Vacation Leave

• Minimum entitlement: 20 working days per year (4 weeks)
• Additional days: May be granted based on:
  • Education level (1-5 additional days)
  • Seniority (up to 5 additional days)
  • Working conditions (hazardous work may grant additional days)
• Vacation pay: Paid at 100% of average monthly salary
• Scheduling: Must be taken within 18 months of earning; at least 10 days must be consecutive

Sick Leave

• Medical leave: Unlimited duration with medical certification
• Compensation:
  • Days 1-3: Paid by employer at 75% of average daily wage
  • Days 4-90: Paid by social security at 75% of average daily wage
  • Days 91+: Paid by social security at 100% of average daily wage
• Medical certificate: Required from the first day of absence

Maternity Leave

• Duration: 126 calendar days (18 weeks)
• Compensation: 85% of average monthly income from social security
• Job protection: Guaranteed return to same or equivalent position
• Additional leave: Up to 2 years of unpaid childcare leave available

Parental Leave

• Paternity leave: 15 working days for fathers (first 10 days paid at 100%)
• Parental leave: Up to 2 years, with monthly allowance from social security
• Flexibility: Can be taken by either parent or shared between parents

Bereavement Leave

• Immediate family: 3 paid days for spouse, children, parents
• Extended family: 1 paid day for grandparents, siblings, in-laws
• Additional unpaid leave: May be granted at employer's discretion

Personal & Family Leave

• Marriage leave: 5 paid days
• Moving leave: 1 paid day
• Blood donation: 1 paid day per donation
• Family emergencies: Unpaid leave as needed with employer approval

Summary

Termination Types

Termination With Cause (Disciplinary Dismissal):

• Requires serious misconduct or repeated violations
• No notice period or severance required
• Must follow disciplinary procedure with written warnings

Termination Without Cause:

• Requires objective reasons (economic, technological, organisational)
• Must provide notice and severance pay
• Cannot be discriminatory or retaliatory

Notice Period Requirements

Notice periods vary based on employment duration and position level:

Note: Management positions may require longer notice periods as specified in employment contracts.

Severance Pay

Individual dismissal severance:

• Minimum 1 month's salary for employees with 1+ years of service
• Additional compensation may be required based on collective agreements

Collective redundancy severance:

• Minimum 1 month's salary per year of service
• Maximum 12 months' salary

Probationary Periods

• Standard period: Up to 90 calendar days for most positions
• Management positions: Up to 120 calendar days
• Termination during probation: 5 working days' notice required

Final Pay Requirements

Employers must provide final payment within 10 working days of termination, including:

• Outstanding salary
• Unused vacation pay
• Any owed bonuses or allowances
• Severance pay (if applicable)

Anti-Discrimination & Retaliation Laws

Employees cannot be terminated for reasons related to:

• Pregnancy or maternity leave
• Trade union membership or activities
• Filing complaints about working conditions
• Protected characteristics (age, gender, religion, ethnicity, disability)

Violations can result in reinstatement orders and significant compensation awards.

National Statutory Holidays (2025)

Regional Variations

• Minority communities: May observe additional religious holidays based on local demographics
• Local patron saints: Some municipalities may declare additional local holidays

Holiday Pay Eligibility

All employees are entitled to holiday pay regardless of tenure, provided they:

• Are employed on the holiday date
• Have not been absent without authorisation immediately before or after the holiday

Working on a Statutory Holiday

If an employee works on a public holiday:

• Compensation: 100% additional pay (double time) plus a compensatory day off
• Alternative: Employee may choose 200% pay without compensatory time
• Voluntary basis: Holiday work must be voluntary except for essential services

Required Documents for Employment

Employment Contract Requirements:

• Job title and detailed job description
• Workplace location and working hours
• Salary and benefits package
• Probationary period terms
• Termination clauses and notice periods

Employee Documentation:

• Identity documents: Romanian ID card or passport
• Tax registration: Fiscal code (CNP - Cod Numeric Personal)
• Social security registration: Proof of social insurance registration
• Bank account details: For salary payments (must be Romanian bank account)
• Educational certificates: Diplomas and professional qualifications
• Medical certificate: Occupational health clearance

Work Authorization

EU/EEA Citizens:

• No work permit required
• Must register residence if staying longer than 3 months

Non-EU Citizens:

• Work permit required before employment begins
• Temporary residence permit for stays longer than 90 days
• Employer must demonstrate no suitable EU candidate available

Background Checks & References

Permitted checks:

• Criminal record: Required for certain positions (education, healthcare, finance)
• Employment verification: Previous employer references
• Educational verification: Diploma and certificate authentication
• Credit checks: Only for financial positions with written consent

GDPR Compliance: All background checks must comply with EU data protection regulations.

Data Protection & Privacy

Romanian employers must comply with:

• GDPR: EU General Data Protection Regulation
• Romanian Data Protection Law: Local implementation of GDPR
• Employee consent: Required for data collection and processing
• Data retention: Specific limits on how long employee data can be stored

IP Assignment & Confidentiality

Intellectual Property:

• Work-related inventions belong to employer by default
• Employment contracts should specify IP ownership clearly
• Confidentiality clauses are enforceable and commonly used

Non-compete agreements:

• Maximum 2 years duration
• Must be geographically reasonable
• Requires compensation during non-compete period

Probation Period Setup

• Duration: Up to 90 days (120 for management)
• Performance evaluation: Regular feedback and documentation required
• Termination: 5 working days' notice during probation
• Benefits: Full benefits apply during probationary period

Onboarding Timeline (Sample)

What the EOR Handles

Borderless AI will manage:

• Employment contract drafting and compliance
• Tax and social security registration
• Payroll processing and contributions
• Legal compliance monitoring
• Local labour law updates
• Employee relations support

Worker Classification: Employee vs Contractor

Romanian law strictly distinguishes between employees and independent contractors:

Employees:

• Work under employer supervision and control
• Use employer-provided tools and equipment
• Receive regular monthly salary with benefits
• Protected by labour law and collective agreements

Independent Contractors:

• Operate autonomously with minimal supervision
• Use own tools and bear business risks
• Invoice for services with no employment benefits
• Governed by commercial law, not labour law

Misclassification risks: Significant penalties, back-payment of social contributions, and potential criminal liability for tax evasion.

Unionisation & Collective Agreements

Union membership: Approximately 20% of Romanian workforce is unionised Collective bargaining: Covers wages, working conditions, and benefits Sector agreements: Common in public sector, manufacturing, and transportation Strike rights: Legal with proper notice and procedures

EOR considerations: Some collective agreements may apply to all employees in certain sectors, regardless of union membership.

Cultural Norms & Workplace Expectations

Communication style:

• Formal business relationships initially
• Hierarchy respected but not rigid
• Direct communication appreciated

Work-life balance:

• Standard business hours: 9:00 AM - 6:00 PM
• Lunch breaks: 1-2 hours common
• Vacation time highly valued and typically taken in full

Professional development:

• Continuous learning expected
• Professional certifications valued
• Language skills (English) increasingly important

Remote Work Considerations

Legal framework:

• Remote work (telemuncă) legally recognised since 2018
• Enhanced regulations introduced post-COVID-19
• Written agreement required specifying remote work terms

Employer obligations:

• Provide necessary equipment or reimburse costs
• Ensure occupational health and safety standards
• Maintain same employment protections as office workers
• Cover additional utilities and internet costs

Tax implications:

• No special tax treatment for remote work
• Equipment provided by employer not considered taxable benefit
• Home office expenses may be tax-deductible for employer

Cross-border considerations:

• Romanian employees working remotely from other EU countries may create tax and social security complications
• Proper documentation and compliance required for international remote work arrangements