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Romania

How to Hire Workers in Romania | Employer of Record (EOR) in Romania

Looking to establish your business in Romania? Our EOR services provide expert guidance on local employment regulations, ensuring a smooth entry into this market. We handle all aspects of local employment, from managing payroll to navigating complex labor laws, allowing you to focus on your core business. With our support, you can confidently expand your business into Romania, knowing that you have a trusted partner managing your international employment needs.

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Romania, known for its stunning castles, vibrant culture, and growing economy, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Romania, offering comprehensive solutions for building your contingent workforce.

With a population of over 19 million people, Romania boasts a skilled and educated workforce. From the medieval architecture of Transylvania to the bustling streets of Bucharest, the country offers a unique blend of culture and history.

When expanding your business into Romania, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into Romania. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
Worker Classifications

There are no official subcategories of Workers in Romania.

Fixed-Term Contracts

Fixed-term contracts are permitted for specific reasons such as seasonal business, the replacement of temporarily absent workers, and in cases of a temporary rise in business but must not exceed 36 months. A fixed term contract cannot be extended more than two times, and cannot exceed the 36 month maximum with the extension(s). Depending upon the length of the contract, anywhere from 5 to 45 days' notice may be required to terminate the agreement.

Probationary Periods

Probationary periods are permitted for up to 90 days. For workers in management positions, a probationary period of 120 days is permissible. Notice is not required to terminate an employment agreement during the probationary period if the Worker is deemed professionally unfit.

Holidays

In Romania, Workers recognize 15 paid public holidays. If work is performed on a public holiday, it should be compensated with a paid day off in lieu within 30 days or, if not possible, 200% of wages.

Vacation

Workers are entitled to at least 20 working days of paid vacation each year. The vacation allowance should be paid five days before the commencement of leave. A Worker can request to take leave in multiple periods, but one of the periods must be 10 days. Generally, vacation should be taken in the year it is earned, but that may be extended to a maximum of 18 months after the year of accrual. Vacation time cannot be 'cashed out.' However, accrued but unused vacation is payable at the termination of the employment relationship.

Sick Leave

After one month of service, Workers are entitled to paid medical leave when they have an injury or illness. The maximum duration of paid time off is 183 days per year, which can be increased up to 18 months for certain illnesses. Employers are responsible for issuing sick leave pay, but may recover amounts paid beyond five days of absence by deduction from other payment obligations to the state.

Working Hours

A standard workweek in Romania is 8 hours per day or 40 hours per week. Work performed at night (between 10:00 p.m. and 6:00 a.m.) cannot exceed 8 hours within 24 hours. Workers are entitled to a 30-minute unpaid meal break after six hours of work. Shifts should be separated by 12 hours of consecutive rest. Weekly, Workers should be afforded two consecutive days of rest.

Overtime

Hours exceeding the standard workweek are considered overtime. A worker must consent to performing overtime work. Overtime must not exceed 8 hours per week except in limited, exceptional circumstances. Overtime should be compensated with paid leave during the usual work time within 60 days of when the overtime was worked. If that is not possible, overtime may be compensated at 175%.

Mandatory Bonuses

A 13th month salary is not mandatory or customary in Romania.

Termination

Except in cases of severe or repeated breach of duty, termination requires at least 20 working days' notice after conducting a disciplinary investigation. Dismissal for poor performance can only take place after the employer has verified the Worker's professional competence and determined that other suitable work is not available. Dismissal for economic reasons must be reinforced by strong economic justification. 

Resignation

Workers in non-management positions may provide up to 20 working days' notice of resignation (45 working days for management positions). Workers may resign without notice if the employer fails to fulfill its contractual obligations.

Other End of Employment Rules

Redundancies are the termination of employment by the employer due to economic grounds, without grounds or fault by the employee. Redundancies are generally based on economic grounds and must reveal a real and serious cause for a reduction in the number of jobs available.

Benefits

Workers and their employers contribute to a social security scheme that provides pensions, healthcare, and unemployment benefits.

Leave

"Maternity and Paternity Leave Romanian law provides for a period of 126 mandatory maternity leave days, of which 63 days can be granted before the due date and 63 days after the due date. The employee can receive more than 63 days for each of the periods, but has to benefit from at least 42 days of leave after the due date. The maternity leave is considered a medical leave, the employee’s physician being the deciding factor in how the days are divided between the two periods. Apart from maternity leave, parents can also benefit from a paid leave in order to raise a young child, up to 2 years of age . During this leave period the parent receives an indemnity that is a percentage of the income the parent had prior to the leave period. Incentives are granted to parents that return to work before the 2-year period expires. The indemnity is not paid by the employer. Sickness Leave Medical leave is granted to the employee if the illness prevents him/her from performing his/her activity. The medical leave indemnity is paid by both employer and the state healthcare system depending on the number of days of medical leave. The first 5 days of medical indemnity are paid by the employer and the rest of the period by the state healthcare system. The indemnity is a percentage of the income of the employee. Other Required or Typically Provided Leave(s) Employees have the right to paid or unpaid training leave. The employer has to grant paid training leave if he failed to ensure the periodic training of the employee. Unpaid training leave can be granted to employees who engage in training activities on their own initiative. Parents have the right to receive paid leave if they have children under the age of 12 enrolled in schools where classes were suspended due to exceptional events (such as extreme weather or medical crisis). Only one of the parents can benefit from this type of leave and only if neither of the parents work from home."

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

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When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.