{"id":137286,"date":"2026-04-07T13:44:09","date_gmt":"2026-04-07T13:44:09","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=137286"},"modified":"2026-04-07T13:44:09","modified_gmt":"2026-04-07T13:44:09","slug":"romania-employment-and-labour-law","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/romania-employment-and-labour-law\/","title":{"rendered":"Romania: Employment and Labour Law"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-137286","comparative_guide","type-comparative_guide","status-publish","hentry","guides-employment-and-labour-law","jurisdictions-romania"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Corug\u0103 &amp; Prodescu<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/LOGO-GRI-SCA.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Corug\u0103 &amp; Prodescu<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/LOGO-GRI-SCA.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Employment and Labour Law laws and regulations applicable in Romania<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, an employer may terminate an employment relationship only for a valid reason expressly provided by law.<\/p>\n<p>Also, the parties may agree on a probation period, during which the employment relationship may be terminated by either party without the need to state specific grounds for dismissal, although the measure must still comply with the general principles of good faith and non-discrimination.<\/p>\n<p>After such probation period, termination by the employer must be based on lawful grounds, which are divided into two main categories. The first category covers reasons related to the employee, such as serious or repeated disciplinary misconduct, professional inadequacy established through an objective evaluation procedure, physical or mental unfitness preventing the proper performance of duties, or preventive arrest or house arrest for more than 30 days. The second category covers reasons not related to the employee, particularly the elimination of the position due to reorganisation, restructuring or other objective business needs, in which case the redundancy must be genuine and serious to be lawful.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if large numbers of dismissals (redundancies) are planned?  How many employees need to be affected for the additional considerations to apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where collective redundancies are planned, the employer must carry out prior consultations with the trade union or, where no union exists, with the employees\u2019 representatives and must provide them with all relevant information. This information must include the reasons for the proposed redundancies, the number and categories of employees affected and the criteria used to determine the order of dismissal in case of selection.<\/p>\n<p>The purpose of the consultation process is to allow the parties to discuss the proposed measures and to give the trade union or employees\u2019 representatives the opportunity to make proposals aimed at avoiding collective redundancies or reducing the number of employees affected.<\/p>\n<p>Before proceeding with the collective dismissal, the employer is required to notify in writing the territorial labour inspectorate and the territorial employment agency at least 30 calendar days prior to issuing the dismissal decisions. The employment agency has the role of examining the issues raised by the collective redundancies and communicating its position to the employer and to the trade union or employees\u2019 representatives within a reasonable time.<\/p>\n<p>The rules on collective redundancies apply where, within a period of 30 days, the number of employees dismissed for reasons not related to the employee reaches at least: (i) 10 employees, if the employer has between 20 and 99 employees; (ii) at least 10% of the workforce, if the employer has between 100 and 299 employees; or (iii) 30 employees, if the employer has at least 300 employees. These thresholds trigger additional procedural requirements, including consultation and notification obligations, which must be complied with before the redundancies can be implemented.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if a worker\u2019s employment is terminated in the context of a business sale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where the termination of employment takes place in the context of a business transfer falling within the scope of the legislation on transfer of undertakings, additional safeguards apply. Under Romanian law, the transfer of the business does not in itself constitute a valid ground for dismissal; thus, any termination carried out solely because of the transfer may be declared unlawful, unless the dismissal is based on reasons related to the employee or on economic, technical, or organisational grounds.<\/p>\n<p>In the event of a transfer of undertaking, all existing employment contracts are automatically transferred to the transferee, together with all rights and obligations arising from them. Employees must continue to benefit from the same terms and conditions of employment, which may not be less favourable as a result of the transfer and the continuity of employment is preserved &#8211; the contract being deemed to continue with the new employer.<\/p>\n<p>If only part of the workforce is transferred, the employer must be able to justify the selection of the affected employees, based on objective and non-discriminatory criteria. Both the transferor and the transferee must therefore exercise caution when implementing dismissals in connection with a business transfer, as employees may challenge the termination and seek reinstatement and compensation if such legal conditions are not met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees need to have a minimum period of service in order to benefit from termination rights?  If so, what is the length of the service requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian law does not require a minimum period of service for employees to benefit from statutory protection against dismissal, as the rules governing termination of employment apply regardless of the employee\u2019s length of service. However, the parties may agree on a probation period, during which the employment relationship may be terminated with simplified formalities and without the need to follow the full dismissal procedure.<\/p>\n<p>The probation period may not exceed 90 calendar days for non-managerial positions and 120 calendar days for managerial positions. In the case of employees with disabilities, the probation period may not exceed 30 calendar days. A probation period may also be agreed in the case of fixed-term employment contracts, but its duration is shorter and depends on the length of the contract. The probation period cannot exceed five working days for contracts shorter than three months, 15 working days for contracts between three and six months, 30 working days for contracts longer than six months and 45 working days for employees in management roles where the contract duration exceeds six months.<\/p>\n<p>While no minimum service is required for protection against dismissal, certain contractual or collectively agreed benefits related to termination, such as severance payments, may depend on the employee\u2019s length of service.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, is the minimum notice period to terminate employment?  Are there any categories of employee who typically have a contractual notice entitlement in excess of the minimum period?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, the minimum notice period depends on the type of termination. In the case of dismissal initiated by the employer, the employee is entitled to a minimum notice period of 20 working days, except in cases of dismissal during the probation period or for disciplinary reasons. A longer notice period may be agreed either in the individual employment contract or in an applicable collective bargaining agreement, provided that the statutory minimum is respected.<\/p>\n<p>In practice, extended notice periods are more commonly provided for senior employees, managerial staff or employees holding key positions, particularly where collective bargaining agreements apply.<\/p>\n<p>In the case of resignation, the notice period may not exceed 20 working days for non-managerial positions and 45 working days for managerial positions, unless the parties agree on a shorter period.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to make a payment to a worker to end the employment relationship instead of giving notice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian law does not regulate the payment in lieu of notice. Thus, the statutory notice period must be observed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to be on garden leave, that is, continue to employ and pay a worker during their notice period but require them to stay at home and not participate in any work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian law does not expressly regulate garden leave and there is no legal provision allowing an employer to require an employee to remain away from work, while continuing to receive salary during the notice period. In the absence of express regulation, such arrangements may give rise to different interpretations in practice, as the employee\u2019s right to perform work during the employment relationship may be invoked, although similar clauses have become more common, in particular for senior employees or employees holding positions involving access to sensitive business information. In practice, these arrangements should be clearly formalised in writing, the employee must continue to receive all salary and benefits, the measure should be justified and proportionate and the employer must ensure that it remains able to comply with its obligations relating to health and safety at work throughout the notice period.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer have to follow a prescribed procedure to achieve an effective termination of the employment relationship? If yes, describe the requirements of that procedure or procedures. Is an employee entitled to appeal against their termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, the employer must follow a prescribed procedure for the termination of the employment relationship to be valid. The applicable requirements depend on the grounds for dismissal.<\/p>\n<p>In case of disciplinary dismissal, termination may be ordered only after a prior disciplinary investigation, which must comply with the statutory rules concerning prior written notice of the alleged misconduct, the employee\u2019s right to defence and the written record of the disciplinary investigation, as well as the statutory time limits for imposing disciplinary sanctions.<\/p>\n<p>In cases of dismissal for professional inadequacy, the employer must carry out a prior proper evaluation of the employee and, where possible, offer vacant positions compatible with the employee\u2019s qualifications, or request the support of the territorial employment agency if no such positions are available. Similar obligations apply where dismissal is based on medical unfitness, the employer being required to consider reassignment to suitable positions before proceeding with termination. In these situations, the employer must issue the dismissal decision within 30 calendar days from the date on which the grounds for dismissal were ascertained.<\/p>\n<p>Where termination is based on reasons not related to the employee, the employer must demonstrate that the position has been effectively eliminated for real and serious reasons. If several employees hold identical or similar positions, objective selection criteria must be applied to determine which employees are affected. In the case of collective redundancies, the employer must additionally carry out prior consultations with the trade union or employees\u2019 representatives and must notify the territorial labour inspectorate and the territorial employment agency before issuing the dismissal decisions.<\/p>\n<p>A dismissal decision may be challenged before the competent court within 45 calendar days from the date of notification, while in the case of disciplinary sanctions the time limit for challenge is 30 days. The court will review both the legality and the merits of the termination, including compliance with the applicable procedural requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the employer does not follow any prescribed procedure as described in response to question 8, what are the consequences for the employer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Failure to comply with the legal dismissal procedure may result in the termination being declared unlawful by the court. In such cases, the dismissal decision may be annulled if the court finds that the employer did not observe the applicable legal requirements or that the termination was not justified.<\/p>\n<p>Where the dismissal is declared unlawful, the employer may be ordered to pay compensation equal to the salaries and other benefits the employee would have received from the date of dismissal until reinstatement or until the final court decision, such amounts being updated and indexed in accordance with the law.<\/p>\n<p>The court may also order, in addition to the financial compensation, the reinstatement of the employee in the position previously held, if the employee expressly requests this remedy. If reinstatement is not requested, the employment relationship is deemed terminated on the date the court decision becomes final.<\/p>\n<p>Additional damages, including moral damages, may be awarded in exceptional cases where the dismissal has caused non-pecuniary harm, such as prejudice to the employee\u2019s dignity, reputation or psychological integrity, including in situations involving discrimination or retaliation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How, if at all, are collective agreements relevant to the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Collective agreements may play a role in the termination of employment, as they often establish additional requirements beyond those provided by law.<\/p>\n<p>For example, collective agreements may provide for additional benefits in case of termination, such as severance payments calculated according to length of service, position or other agreed criteria. In some cases, they may also include specific protection measures for certain categories of employees, for example employees close to retirement.<\/p>\n<p>Where applicable, the employer must comply with the provisions of the relevant collective agreement, as failure to observe these requirements may lead to the dismissal being declared unlawful.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the employer have to obtain the permission of or inform a third party (e.g local labour authorities or court) before being able to validly terminate the employment relationship? If yes, what are the sanctions for breach of this requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, there is no requirement to obtain the permission of or to inform a third party before being able to validly terminate the employment relationship. However, additional obligations may arise in certain situations, depending on the grounds for termination or on the existence of an applicable collective bargaining agreement.<\/p>\n<p>For example, the employer may be required to inform and\/or consult the trade union or the employees\u2019 representatives, in particular in the context of collective redundancies or transfers of undertakings, as well as, in certain cases provided by law, to notify the competent authorities.<\/p>\n<p>In certain cases of individual dismissal, the employer is also required to comply with specific procedural requirements involving the competent public authorities &#8211; e.g. in cases of dismissal for professional inadequacy or medical unfitness, if no suitable vacant positions are available, the employer must request the support of the territorial employment agency to identify alternative employment opportunities for the employee.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protection from discrimination or harassment are workers entitled to in respect of the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian law provides strong protection against discrimination and harassment, including in connection with the termination of employment. The main legal framework is set out in Government Ordinance no 137\/2000 on the prevention and sanctioning of all forms of discrimination and Law no 202\/2002 on equal opportunities and equal treatment between women and men.<\/p>\n<p>Any dismissal based on discriminatory grounds is prohibited and may be declared unlawful by the court. Protection applies in respect of all protected characteristics recognised by law, including race, sex, age, disability, maternity, family status, ethnic origin or nationality, religion, language, social category, beliefs, sexual orientation, chronic non-contagious disease, HIV infection, membership of a disadvantaged category, as well as any other criterion having the purpose or effect of restricting, removing the recognition, use or exercise, on equal terms, of human rights and fundamental freedoms or of the rights recognised by law, in the political, economic, social and cultural fields or in any other areas of public life. Employees are protected against harassment and retaliatory measures, including termination of employment, where these are linked to the exercise of statutory rights or to complaints of discrimination.<\/p>\n<p>If a dismissal is found to be discriminatory or related to harassment, the court may order annulment of the termination, reinstatement of the employee and payment of compensation for lost salary and benefits. The court may also award moral damages where the employee\u2019s dignity, reputation or psychological integrity has been affected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the possible consequences for the employer if a worker has suffered discrimination or harassment in the context of termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If a worker is found to have suffered discrimination and\/or harassment in connection with the termination of employment, the employer may face both administrative and judicial consequences under Romanian law.<\/p>\n<p>The employee may file a complaint with the National Council for Combating Discrimination, which may investigate the case and, if a breach is established, impose administrative sanctions such as warnings or contravention fines and order corrective measures, including the publication of the decision, which may also have reputational consequences for the employer.<\/p>\n<p>In parallel, the employee may bring a claim before the competent court. If the court finds that the termination was discriminatory or related to harassment, it may order annulment of the dismissal, reinstatement of the employee and payment of compensation for lost salary and benefits. In serious cases, the court may also award moral damages where the employee\u2019s dignity, reputation or psychological integrity has been affected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any categories of worker (for example, fixed-term workers or workers on family leave) entitled to specific protection, other than protection from discrimination or harassment, on the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, certain categories of employees benefit from additional protection against dismissal, beyond the general protection against discrimination or harassment.<\/p>\n<p>Fixed-term employees are subject to specific rules \u2013 i.e. such may be concluded only in the exceptional situations provided by the Labour Code, for a maximum duration of 36 months and no more than three successive fixed-term contracts may be concluded between the same parties. The employer must inform fixed-term employees about vacant or upcoming positions corresponding to their professional qualifications and must grant them access to such positions under the same conditions as employees hired for an indefinite term.<\/p>\n<p>Employees whose contracts are suspended in situations protected by law also benefit from specific protection. Dismissal is prohibited during periods such as medical leave, maternity leave, parental leave or leave for raising a child up to the age of two years (or three years in the case of a child with disability). The same protection applies to employees who benefit from the insertion incentive after returning to work following parental leave, as the employer may not terminate the employment relationship for the entire period during which the incentive is granted, namely until the child reaches the age of three years (or four years in the case of a child with disability), in accordance with the special legislation governing parental leave. During these periods, termination is generally prohibited regardless of the grounds for dismissal, except in limited situations expressly provided by law, such as the employer\u2019s judicial reorganisation, bankruptcy or dissolution.<\/p>\n<p>Additional obligations may also arise in certain individual dismissal cases. For example, where dismissal is based on professional inadequacy or medical unfitness, the employer must first consider the possibility of assigning the employee to another suitable vacant position and, if no such position is available, must request the support of the competent employment authority in order to identify alternative employment opportunities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are workers who have made disclosures in the public interest (whistleblowers) entitled to any special protection from termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Whistleblowers are protected against dismissal and any form of retaliation resulting from a report, in accordance with Law no. 361\/2022, which transposes Directive (EU) 2019\/1937.<\/p>\n<p>Protection is granted where the report is made in accordance with the law, relates to breaches within its scope and the person had reasonable grounds to believe that the information was true at the time of reporting.<\/p>\n<p>Persons who have obtained information in a professional context are protected, including employees, former employees, job applicants and other individuals performing activities within a public or private entity. Breaches of the law include acts or omissions contrary to legal provisions, including disciplinary offences, administrative contraventions or criminal offences, as well as acts contrary to the purpose of the relevant regulation in the areas covered by whistleblower protection legislation. Both actual and potential breaches, as well as reasonable suspicions or attempts to conceal them, are considered if the information was obtained in a professional context.<\/p>\n<p>Any form of retaliation against whistleblowers is prohibited, including dismissal or the application of other unfavourable measures. A person who considers that they have been subjected to retaliation may challenge the measure in court and the employer must demonstrate that the measure was taken for objective reasons unrelated to the report.<\/p>\n<p>The court may order the provisional suspension of the contested measures and, if it finds on the merits that they constitute retaliation, may order their annulment, reinstatement to the previous position, the payment of compensation including moral damages and other measures necessary to stop the retaliatory conduct and prevent future retaliation. A whistleblower may also benefit from free legal assistance, as these mechanisms are intended to ensure effective protection against dismissal following a report made in the public interest.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In the event of financial difficulties, can an employer lawfully terminate an employee\u2019s contract of employment and offer re-engagement on new less favourable terms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the event of financial difficulties, the employer may terminate employment for reasons not related to the employee, such as redundancy, provided that the position is genuinely eliminated for a real and serious reason. Financial or organisational difficulties may justify such measures, but the employer must comply with the statutory requirements applicable to redundancy dismissals. In practice, the courts apply a strict review in such cases and the termination may be declared unlawful if the redundancy is not justified or if the measure is used solely to impose less favourable working conditions.<\/p>\n<p>Romanian law does not expressly prohibit so-called \u201cfire and rehire\u201d practices, but the employer cannot unilaterally impose less favourable employment terms. Any modification of the essential terms of the employment contract requires the employee\u2019s consent and re-engagement under new conditions may take place only if the employee agrees to the proposed changes.<\/p>\n<p>If the employee refuses to accept less favourable terms, the employer may proceed with termination only if the legal conditions for redundancy are met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, risks are associated with the use of artificial intelligence in an employer\u2019s recruitment or termination decisions? Have any court or tribunal claims been brought regarding an employer\u2019s use of AI or automated decision-making in the termination process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of artificial intelligence in recruitment processes or in decisions regarding the termination of employment relationships remains limited in practice. To date, CORUGA &amp; PRODESCU has no knowledge of documented risks or case law in Romania on this subject, as it is a relatively recent development.<\/p>\n<p>Nevertheless, legal risks may arise, in particular regarding discrimination and breaches of data protection rules, especially where decisions are based solely on automated systems.<\/p>\n<p>In this context, it should be noted that Regulation (EU) 2024\/1689 (AI Act), applicable in Romania, classifies artificial intelligence applications used in employment relations, including recruitment, evaluation or dismissal, as high-risk systems and prohibits certain uses, such as systems that analyse the emotions of employees or candidates for the purpose of making employment decisions.<\/p>\n<p>To date, CORUGA &amp; PRODESCU has no knowledge of any litigation or court decisions in Romania regarding the use of artificial intelligence or automated decision-making in recruitment or dismissal processes and no such cases have been identified in published judicial practice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What financial compensation is required under law or custom to terminate the employment relationship? How is such compensation calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian law does not provide for a statutory right to financial compensation upon termination of employment, regardless of the grounds for dismissal. Severance payments are not required by law, except where such entitlement is expressly provided for in an applicable collective bargaining agreement, individual employment contract or internal employer policy.<\/p>\n<p>In practice, compensation is more frequently granted in cases of termination for reasons not related to the employee, such as redundancy, particularly where collective bargaining agreements apply or where the employer implements voluntary severance arrangements.<\/p>\n<p>The amount of compensation is not determined by statute and, where payable, is usually established by agreement or by the applicable collective bargaining agreement. Severance payments are commonly calculated as a number of monthly salaries, depending mainly on factors such as length of service or position held within the company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer reach agreement with a worker on the termination of employment in which the employee validly waives his rights in return for a payment? If yes, in what form, should the agreement be documented?  Describe any limitations that apply, including in respect of non-disclosure or confidentiality clauses.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, the employer and the employee may agree on the termination of employment by mutual consent. In practice, such agreements are frequently used where the parties wish to avoid a dispute and to settle the termination on agreed terms, including the payment of compensation.<\/p>\n<p>However, employees may not waive statutory rights granted by law and any agreement providing for a general waiver of legal rights or for the exclusion of access to the courts may be declared invalid. In practice, the parties may agree on the payment of compensation in exchange for the termination of employment and the settlement of potential claims, provided that the agreement does not infringe mandatory legal provisions.<\/p>\n<p>The termination agreement must be concluded in writing and must reflect the free and informed consent of the employee. It is common for such agreements to include clauses regarding the termination date, the amount of compensation and, where applicable, confidentiality or non-disclosure obligations. Confidentiality clauses are generally permitted, but they may not restrict the employee\u2019s statutory rights or prevent the employee from exercising rights recognised by law. A non-disclosure clause may not be enforceable where the employee is required to disclose information by law or pursuant to an order of a competent court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from working for competitors after the termination of employment? If yes, describe any relevant requirements or limitations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, post-termination non-compete restrictions are permitted if agreed between the parties through a non-compete clause included in the individual employment contract or in an addendum concluded during employment. Such clause cannot be imposed unilaterally at the time of termination.<\/p>\n<p>For the clause to be valid, the contract must expressly specify the prohibited activities, the third parties in whose favour the restriction applies, the geographical scope, the duration of the restriction and the amount of the non-compete indemnity. The restriction must be proportionate and may not result in a complete prohibition on the employee exercising their profession. The maximum duration of a non-compete clause is two years after termination of employment.<\/p>\n<p>The employer must pay a monthly non-compete indemnity for the entire duration of the restriction. The amount must be agreed in writing and may not be less than 50% of the employee\u2019s average gross monthly income during the last six months prior to termination.<\/p>\n<p>If the employee breaches the non-compete clause, the employee may be required to repay the indemnity received and, where applicable, to compensate the employer for the caused damage.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from soliciting customers or clients, or employees of the employer, after the termination of employment? If yes, describe any relevant requirements or limitations (including any payments that must be made to the worker for the restriction to be valid and enforceable).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Post-termination restrictions preventing an employee from soliciting the employer\u2019s clients, customers or employees may be agreed between the parties. Romanian law does not expressly regulate \u2018non-solicitation clauses\u2019, but such provisions are generally considered valid if they are agreed in writing and do not breach mandatory legal rules, public policy or the employee\u2019s right to work.<\/p>\n<p>Non-solicitation clauses are usually included in the employment contract or in an addendum and must clearly define the scope of the restriction, including the categories of clients, customers or employees concerned, the prohibited activities and the duration of the restriction. The limitation must be reasonable and proportionate and in practice is usually limited to a defined period after termination.<\/p>\n<p>Unlike non-compete clauses, the law does not require the employer to pay compensation for a non-solicitation restriction, although the parties may agree such payment contractually. The validity of the clause will depend on many factors, such its proportionality and on whether it results in an excessive restriction of the employee\u2019s professional activity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to keep information relating to the employer confidential after the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Romanian law, an employer may require an employee to keep confidential any information obtained during employment and such obligation may continue after the termination of the employment relationship. Confidentiality obligations are commonly included in the employment contract or in separate confidentiality agreements.<\/p>\n<p>The law does not provide for a specific time limit for post-termination confidentiality obligations, provided that the restriction concerns genuinely confidential information and does not amount to an unlawful restriction of the employee\u2019s right to work.<\/p>\n<p>A breach of confidentiality may give rise to civil liability and the employer may seek damages for any loss caused by the unauthorised disclosure or use of confidential information.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are employers obliged to provide references to new employers if these are requested?  If so, what information must the reference include? What duties apply to employers giving references?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer is not under a legal obligation to provide references for former employees. However, if the employee requests a reference, the employer can issue a letter of recommendation.<\/p>\n<p>Separately, the Labour Code allows a prospective employer to request information from a former employer, provided that the disclosure is limited to the positions held and the duration of employment and the employee is informed in advance.<\/p>\n<p>When providing references or information about a former employee, the employer must ensure that the statements made are accurate, limited to relevant professional aspects and compliant with confidentiality and data protection rules.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are the most common difficulties faced by employers in your jurisdiction when terminating employment and how do you consider employers can mitigate these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In practice, employers in Romania may face practical challenges when terminating employment, as the applicable rules require careful compliance with the legal conditions and procedures governing each type of dismissal.<\/p>\n<p>A common difficulty arises where the employer has already initiated or is during a termination procedure, but the employee goes on medical leave, resulting in the suspension of the employment contract, as dismissal cannot be implemented during this period. In such situation, the employer must postpone the procedure, which may create practical difficulties, particularly where a disciplinary or other formal process is already ongoing.<\/p>\n<p>Employers may also encounter difficulties in practice when the termination must be supported by objective justification and proper documentation. For example, in redundancy cases the employer must be able to demonstrate that the position has been genuinely eliminated for real business reasons, while dismissals for professional inadequacy require a prior evaluation carried out in accordance with the employer\u2019s internal procedures. If these steps are not properly implemented or documented, the risk of the termination being challenged increases. Situations involving medical restrictions or fitness-for-work limitations may further complicate the process, as the employer may need to consider reassignment or other suitable positions before proceeding with dismissal.<\/p>\n<p>These risks can be mitigated through careful planning, consistent application of internal rules and proper documentation of the reasons for termination before the decision is implemented. In practice, employers reduce exposure to disputes by carrying out prior legal review, ensuring that clear internal procedures are in place and properly followed and maintaining adequate records supporting the termination decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any legal changes planned that are likely to impact the way employers in your jurisdiction approach termination of employment? If so, please describe what impact you foresee from such changes and how employers can prepare for them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No legislative changes regarding termination of employment have been adopted or officially proposed, although the current legal framework would benefit from modernisation, as certain areas &#8211; such as dismissals for professional inadequacy, remain broadly regulated and open to interpretation, which has resulted in heterogeneous case law.<\/p>\n<p>Furthermore, although jurisprudence is not a formal source of law in Romania, cases concerning redundancies, including position eliminations carried out in the context of digitalisation or the use of artificial intelligence, have started to reach the courts and future case law in this area may influence how employers assess the risks associated with restructuring processes, given that the existing legislation provides only limited guidance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5323<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/137286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=137286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}