Employment Law in Romania

Employment law in Romania provides a structured framework governing employment contracts, working time, pay, leave, employee protection, termination and collective labour relations.

For international companies, the central challenge is not simply understanding individual rules. It is making sure that recruitment, employment documentation, payroll and day-to-day workforce management are aligned with Romanian requirements from the employee’s first day through termination.

Romanian employment relationships are primarily governed by Law No. 53/2003 — the Labour Code, supplemented by legislation covering social dialogue, telework, occupational health and safety, immigration, taxation and other areas of employment.

Romanian labour law is generally protective of employees. Employers should therefore be particularly careful when drafting contracts, managing working time, changing employment terms or terminating an employee.

Brain Source International supports international companies with recruitment, Employer of Record, payroll and HR services in Romania, helping employers establish and manage local teams without overlooking the employment-law requirements attached to hiring.

Table of Contents

Employment Law in Romania: Key Employer Requirements

For most employers, the main compliance areas include:

written employment contracts;
employee registration;
pre-employment medical certification;
statutory minimum salary;
working-time limits;
overtime compensation;
annual leave;
public holidays;
probation;
equality and non-discrimination;
remote and telework arrangements;
disciplinary procedures;
dismissal and redundancy;
employee representation and collective bargaining;
payroll and statutory reporting;
immigration requirements for foreign employees.

Romanian employers need processes for managing these obligations throughout the employment relationship rather than only at the hiring stage.

The Romanian Labour Code

The principal source of employment law in Romania is the Romanian Labour Code.

It establishes fundamental rules governing the relationship between employers and employees, including:

formation of employment contracts;
employee and employer rights;
working and rest time;
salary;
leave;
disciplinary responsibility;
contract suspension;
contract termination;
occupational protection;
collective labour matters.

The Labour Code also establishes the principle of equal treatment and prohibits direct and indirect discrimination, harassment and victimisation on a wide range of protected grounds.

For international employers, this means that company policies developed in another jurisdiction cannot simply be applied in Romania without local review.

Employment Contracts in Romania

Employment must normally be based on an individual employment contract, commonly referred to as a contract individual de muncă or CIM.

The contract must be:

concluded in writing;
concluded in Romanian;
completed no later than the day before the employee begins work;
provided to the employee;
registered in the General Register of Employees before work begins.

The Romanian Labour Inspectorate confirms that responsibility for concluding and registering the contract rests with the employer.

This is an important practical requirement.

A candidate should not begin performing duties while the employer is still finalising employment documentation.

What Should an Employment Contract Include?

Romanian employment documentation generally needs to address matters such as:

employer and employee identity;
commencement date;
place of work;
position or occupation;
job responsibilities;
contract duration;
working hours;
base salary and other remuneration;
salary payment arrangements;
probation period;
annual leave;
notice period;
performance evaluation criteria;
rights and obligations of the parties.

Additional clauses can be included where relevant, such as confidentiality, mobility, professional training or non-compete provisions.

For international companies, the Romanian employment contract should therefore be treated as a locally compliant legal document rather than a translation of a US, UK or other foreign template.

Employee Registration in Romania

Employment contracts must be registered before the employee starts work.

Romania operates the REGES-ONLINE General Register of Employees, through which employment information is recorded and administered.

The Labour Inspectorate states that an individual employment contract must be registered no later than the day before activity begins.

Changes during employment may also trigger registration or documentation requirements.

Employers should therefore coordinate:

employment contract → registration → payroll → start date

as one onboarding process.

Medical Certificate Before Employment

Romanian labour rules also require employees to have a medical certificate confirming that they are fit to perform the relevant work.

The Labour Inspectorate states that a person can only be employed on the basis of such medical certification and that failure to meet this requirement can affect the validity of the employment contract.

This means occupational health checks should be incorporated into the pre-employment process rather than arranged after onboarding.

Indefinite and Fixed-Term Employment Contracts

The general rule in Romania is employment for an indefinite period.

Fixed-term employment contracts are permitted as an exception where one of the legally recognised circumstances applies. Examples include replacing an employee whose contract is suspended, temporary increases in activity, seasonal work and certain project-based requirements.

A fixed-term contract must expressly state its duration in writing.

The Romanian Labour Inspectorate also notes that a maximum of three successive fixed-term employment contracts may be concluded between the same parties under the applicable rules.

Employers should therefore avoid using repeated fixed-term contracts simply as an alternative to indefinite employment where the statutory conditions are not satisfied.

Probation Period in Romania

Romanian employment law permits probation periods after the employment contract has been concluded.

The maximum probation period is generally:

90 calendar days for non-management positions;
120 calendar days for management positions.

During the probation period, the employee has employment rights in the same way as other employees.

However, during or at the end of the probation period, either party may terminate the employment contract through written notification without notice and without needing to provide justification.

This makes probation a valuable assessment mechanism, but it should not be confused with informal work before employment begins.

Minimum Wage in Romania

Salary cannot be set below the applicable statutory minimum.

From 1 July 2026, Romania’s national gross minimum base salary is:

RON 4,325 per month

for a standard working schedule, equivalent to RON 25.949 per hour based on the statutory average of 166.667 working hours per month.

The amount excludes bonuses and other salary additions.

For most professional and managerial roles, however, market salary levels will be substantially more relevant than the statutory minimum.

Companies should distinguish between:

statutory minimum salary

market salary

total employer cost

A legally compliant salary may still be insufficient to recruit competitive talent.

Working Hours in Romania

For a standard full-time employee, normal working time is:

8 hours per day

and:

40 hours per week.

The general maximum working time is 48 hours per week including overtime.

Working time can exceed 48 hours in certain circumstances provided that the average over the applicable reference period does not exceed the statutory limit.

For employers operating multinational teams, this matters particularly where employees in Romania collaborate with colleagues across several time zones.

A global expectation that someone should remain available outside Romanian working hours can create working-time and overtime issues if not managed properly.

Overtime in Romania

Work exceeding the standard 40-hour week may constitute overtime.

As a general rule, overtime requires employee agreement except in limited circumstances such as force majeure.

The preferred form of compensation is paid time off within 90 calendar days after the overtime was performed.

Where paid time off cannot be provided within the statutory framework, overtime should be compensated with an additional payment of at least 75% of the base salary corresponding to the overtime hours.

Employers should therefore maintain accurate working-time records.

This is especially important for remote employees and managers working across borders where overtime may occur without being formally approved.

Night Work

Romanian law also contains specific rules for night work.

Night work generally covers work performed between:

22:00 and 06:00.

Qualifying night employees may receive either reduced working hours under the applicable conditions or a 25% night-work allowance.

Pregnant employees, recent mothers and breastfeeding employees cannot be required to perform night work.

Weekly Rest

Employees are generally entitled to:

48 consecutive hours of weekly rest

normally on Saturday and Sunday.

Where weekly rest is provided on other days because of the organisation’s activity, salary compensation may apply.

Employers operating continuous services, customer support centres, production facilities or shift-based operations should therefore structure schedules carefully.

Annual Leave in Romania

Employees are entitled to a statutory minimum of:

20 working days of paid annual leave per year.

Public holidays and certain other paid days off are separate and do not reduce this entitlement.

Where annual leave cannot be taken, the employer generally needs to make the outstanding leave available within the statutory carry-over period. Cash compensation for unused leave is normally permitted only when the employment contract terminates.

Employers can provide more than 20 days through:

individual employment contracts;
company policies;
collective agreements.

For professional recruitment, additional leave can also form part of a competitive employee benefits package in Romania.

Public Holidays

Romanian employment law provides employees with statutory public holidays, including New Year, Easter, Labour Day, Christmas and a number of national and religious holidays.

If employees have to work on a statutory holiday because the nature of the activity prevents time off, compensatory rules apply.

Where the required time off cannot be granted under the statutory framework, the Labour Code provides for a salary supplement of at least 100% of the base salary corresponding to the work performed.

Multinational companies should therefore use a Romanian holiday calendar for locally employed staff rather than applying only the public holidays observed at headquarters.

Romanian employees may qualify for statutory medical leave and family-related leave under separate legislation and eligibility requirements.

The wider statutory framework includes areas such as:

sickness leave;
maternity leave;
paternity leave;
parental leave;
caregiver leave;
leave for certain family circumstances.

These rights can affect payroll, workforce planning and employee protection during termination.

Employers should therefore review leave status before implementing any employment action involving an employee who is absent for statutory reasons.

Remote Work and Telework in Romania

Remote work is specifically regulated in Romania.

Under Law No. 81/2018, telework must be based on agreement between the employee and employer and expressly reflected in the individual employment contract or an addendum.

Romanian telework documentation may need to address matters such as:

confirmation that the employee works under a telework arrangement;
working arrangements;
how working hours are recorded;
how the employer may monitor activity;
occupational health and safety responsibilities;
data-protection requirements;
equipment;
expenses connected with telework.

Employees working remotely remain entitled to the employment rights available to comparable office-based employees.

For international businesses hiring remote employees in Romania, telework should therefore be formalised rather than agreed only through an email or internal message.

Equality and Non-Discrimination

Romanian employment law establishes equal-treatment requirements and prohibits discrimination in the employment relationship.

The Labour Code addresses direct and indirect discrimination as well as harassment, discrimination by association and victimisation. Protected criteria include, among others, sex, age, nationality, race, ethnicity, religion, disability, family responsibilities and trade-union activity.

Equal-treatment obligations can affect:

recruitment advertising;
candidate screening;
hiring decisions;
compensation;
promotion;
access to training;
disciplinary action;
dismissal.

International employers should review both recruitment practices and internal HR policies to ensure decisions are based on legitimate professional criteria.

Employee Performance Management

Romania does not operate under an unrestricted “employment at will” model.

This has important implications for performance management.

If an employee is not meeting expectations, the employer should not wait until dismissal is being considered before documenting the problem.

Employment contracts and internal policies should establish clear:

responsibilities;
performance standards;
evaluation criteria;
review processes.

Where dismissal is contemplated for professional inadequacy, the Romanian Labour Inspectorate states that a prior employee evaluation is required according to the procedure established by the applicable collective agreement or internal regulations.

This makes structured performance management particularly important.

Disciplinary Procedures

Employers can sanction serious or repeated breaches of workplace discipline, but disciplinary dismissal generally requires a formal process.

The Labour Inspectorate states that dismissal for serious or repeated misconduct can only occur after a prior disciplinary investigation.

Employers should therefore avoid immediate dismissal based only on a manager’s verbal assessment of misconduct.

The organisation should have:

clear internal rules;
documented evidence;
a compliant investigation process;
a properly drafted decision.

Procedural mistakes can create significant risk even where the employer believes the underlying reason for dismissal is valid.

Termination of Employment in Romania

Employment can end through several mechanisms, including:

termination by law;
mutual agreement;
resignation;
dismissal by the employer;
expiry of a valid fixed-term contract.

Employer-initiated dismissal is one of the areas where Romanian employment law requires particular care.

Dismissal may be based on reasons related to the employee or reasons unrelated to the employee.

Examples of employee-related grounds include certain serious disciplinary violations, professional inadequacy and specific incapacity situations.

Dismissal unrelated to the employee can include the elimination of the employee’s position, but the job elimination must be effective and supported by a real and serious cause.

This means that employers cannot simply label a termination as a “redundancy” without an underlying organisational basis.

Notice Period for Employer Dismissal

Employees dismissed under certain statutory grounds, including redundancies, are generally entitled to at least:

20 working days’ notice.

Collective dismissal procedures also require at least 20 working days of notice for affected employees.

The exact process depends on the reason for termination.

Employers should review notice rights, dismissal grounds, documentation and any applicable collective agreement before issuing a termination decision.

Employee Resignation

Employees may terminate employment through written resignation.

The contractual notice period cannot generally exceed:

20 working days for non-management positions;
45 working days for management positions.

The employer cannot refuse to recognise a valid resignation.

The employer can, however, waive some or all of the employee’s notice period. An employee may also resign without notice where the employer fails to meet relevant employment obligations.

Collective Redundancies

Larger workforce reductions can trigger collective redundancy rules.

Whether a dismissal programme qualifies as collective depends on employer size and the number of employees affected within a 30-day period.

The Labour Inspectorate identifies thresholds including:

at least 10 employees where the organisation employs 21–99 people;
at least 10% of employees where the organisation employs 100–299 people;
at least 30 employees where the organisation employs at least 300 people.

Where the collective-dismissal rules apply, employers need to conduct consultations with the union or employee representatives and provide specified information about the proposed redundancies.

Notifications to the territorial labour inspectorate and employment agency may also be required.

A multinational restructuring affecting Romanian employees should therefore be reviewed locally rather than implemented automatically according to a global timetable.

Collective Bargaining in Romania

Romania’s Social Dialogue Law No. 367/2022 strengthened collective bargaining requirements.

Collective bargaining is mandatory at company level where the organisation has at least:

10 employees.

This does not necessarily mean that every employer must ultimately conclude a collective bargaining agreement, but qualifying organisations need to address the collective negotiation requirement.

This threshold can be particularly important for foreign companies whose Romanian operation grows from a small initial team into a larger workforce.

HR compliance requirements can therefore change as headcount increases.

Payroll and Employment Compliance

Payroll is closely connected to employment law.

Employers need processes that correctly reflect:

contractual salary;
working time;
overtime;
leave;
benefits;
salary changes;
statutory deductions;
employee status;
termination dates.

Errors in employment documentation can therefore become payroll errors, and payroll changes can require employment documentation updates.

For international companies operating across several jurisdictions, Romania should be treated as a separate payroll jurisdiction rather than incorporated into another country’s payroll rules.

Hiring Foreign Employees in Romania

Nationality can introduce additional requirements.

EU and EEA nationals benefit from European free-movement rules, although residence-registration requirements can still apply depending on the circumstances.

For many non-EU/EEA/Swiss nationals, the Romanian employer generally needs to obtain an employment authorisation through the General Inspectorate for Immigration before the individual can work under the relevant Romanian immigration framework.

Immigration planning should therefore begin before an employment start date is promised.

A qualified candidate is not automatically legally available to begin work immediately.

Can a Foreign Company Hire Employees in Romania?

Yes, but the company needs an appropriate employment structure.

An international company with an established Romanian entity can generally employ staff directly through that entity.

Where the company does not have its own local employing entity, it may consider using an Employer of Record in Romania.

Under an EOR structure, the EOR acts as the formal local employer while the client company directs the employee’s day-to-day business activities.

This can allow companies to hire employees in Romania without setting up their own entity first, while employment documentation, payroll and local HR administration are handled through the local employment structure.

Employer of Record and Romanian Employment Law

Using an EOR does not remove Romanian employment law.

The opposite is true: the EOR structure is designed to administer local employment within that legal framework.

Depending on the arrangement, EOR support can include:

Romanian employment contracts;
employee registration;
onboarding documentation;
payroll;
statutory contributions;
leave administration;
HR records;
employment changes;
termination support.

The client company continues to manage the employee’s operational responsibilities.

For a company testing the Romanian market or hiring a small initial team, this can reduce the need to establish full local employment infrastructure from day one.

Common Employment Law Mistakes in Romania

Using a Foreign Employment Contract Without Local Adaptation

Romanian employment relationships require locally compliant documentation. Simply translating a headquarters contract is not enough.

Allowing an Employee to Start Before Registration

Employment documentation and registration need to be completed before activity begins.

Treating Probation as Informal Employment

Probation begins after a valid employment contract has been concluded.

Ignoring Working Hours for Remote Employees

Remote work does not eliminate working-time and overtime obligations.

Assuming Employment Is “At Will”

Romanian dismissals require a valid legal basis and, depending on the ground, specific procedures.

Using Redundancy to Avoid Performance Procedures

A redundancy needs to reflect genuine job elimination with a real and serious basis.

Managing Performance Without Documentation

Where professional inadequacy becomes relevant, prior evaluation procedures may be critical.

Missing Collective Bargaining Obligations

Once the Romanian workforce reaches the applicable threshold, additional employee-representation and collective negotiation obligations need to be considered.

Treating Contractors Like Employees

Using an independent contractor agreement does not automatically prevent an employment relationship from being challenged based on the actual working arrangements.

Employment Law Checklist for Employers in Romania

Before hiring the first employee, international employers should confirm that they have addressed:

Before employment

employment structure;
local contract;
compensation;
medical fitness requirements;
employee registration;
immigration where applicable.

During employment

payroll;
working-time records;
overtime;
leave;
benefits;
performance evaluation;
internal policies;
occupational health and safety;
employee data protection.

As the workforce grows

employee representation;
collective bargaining;
local HR processes;
salary benchmarking;
internal regulations.

At termination

legal basis;
required process;
notice;
documentation;
outstanding salary and leave;
deregistration and payroll closure.

The earlier these processes are designed, the less likely employment compliance becomes an obstacle to scaling.

How Brain Source International Supports Employers in Romania

International hiring often involves several issues at the same time.

The company needs to find the candidate, understand local salary expectations, establish the correct employment structure and then manage payroll and HR administration.

Brain Source International supports employers through:

Recruitment in Romania
Finding specialist, professional and managerial talent.

Executive Search
Direct search for senior leadership and difficult-to-fill positions.

Employer of Record in Romania
Supporting companies that need to employ local workers without immediately establishing their own entity.

Payroll Services
Managing ongoing payroll and employment administration.

Contractor Management
Supporting compliant engagement of genuinely independent professionals.

HR Consulting
Helping international employers structure local HR processes and workforce policies.

The objective is not simply to identify what Romanian law requires.

It is to build an employment process in which recruitment, compliance, payroll and workforce management work together.

Frequently Asked Questions About Employment Law in Romania

What is the main employment law in Romania?

The principal legislation governing individual employment relationships is Law No. 53/2003 — the Romanian Labour Code, together with supplementary employment, social dialogue, occupational health and safety, telework, immigration and tax legislation.

Do employment contracts in Romania have to be in writing?

Yes. The individual employment contract must be concluded in writing and in Romanian before the employee starts work.

Does an employee have to be registered before starting work?

Yes. Employment information must be registered in the General Register of Employees no later than the day before the employee begins activity.

What is the standard working week in Romania?

The standard full-time schedule is 8 hours per day and 40 hours per week. The general maximum is 48 hours per week including overtime, subject to the applicable rules.

How much annual leave do employees receive?

Employees are entitled to at least 20 working days of paid annual leave per year.

What is the probation period in Romania?

Probation can generally last up to 90 calendar days for non-management positions and 120 calendar days for management positions.

What is the minimum wage in Romania?

From 1 July 2026, the national gross minimum base salary is RON 4,325 per month.

Can an employer dismiss an employee without cause in Romania?

Romania does not generally follow an unrestricted at-will dismissal model. Employer-initiated termination requires an applicable legal basis and the relevant procedure.

What is the notice period for resignation in Romania?

The contractual resignation notice cannot generally exceed 20 working days for non-management positions and 45 working days for management positions.

Can foreign companies hire employees in Romania without an entity?

A foreign company may consider an Employer of Record structure where it wants to employ Romanian workers without first establishing its own local employing company.

Is collective bargaining mandatory in Romania?

Collective bargaining is mandatory at company level for employers with at least 10 employees, although this does not necessarily require the parties to ultimately conclude a collective bargaining agreement.

Does Romanian employment law apply to remote employees?

Yes. Remote employees remain employees and continue to benefit from Romanian employment protections. Telework also has specific contractual and organisational requirements under Romanian law.

Manage Employment Compliance in Romania With Brain Source International

Understanding employment law in Romania is essential before building a local workforce.

Employment contracts, registration, working time, payroll, leave, performance management and termination all form part of the same employment relationship.

For international companies, managing each area through separate providers can create unnecessary complexity.

Brain Source International helps employers coordinate recruitment, Employer of Record, payroll and HR support in Romania, whether the business is hiring its first employee or expanding an established team.

Planning to hire employees in Romania?

Tell us the roles, expected headcount and preferred start date.

Contact Brain Source International to discuss recruitment, EOR and workforce support in Romania.