ROMANIA Law and Practice Contributed by: Oana Palita and Camelia Meirosu, Eversheds Sutherland Romania
1. Employment Terms 1.1 Employee Status
There is a set of clauses that an employment contract must have as a minimum. These are provided by the law, as follows: • the identity of the parties; • the place of work – if the employee will travel between different workplaces, the employment contract needs to specify whether travel costs are covered by the employer; • the corresponding position/occupation and duties; • the start date; • the duration of the work and the duration of the contract; • salary rights (including other constitutive elements of the salary), periodicity and means of payment; • the duration of the leave; • the duration of the probationary period; • notice period and conditions; • job-specific risks; • the professional criteria for evaluating the activity; and • provision of private insurance, supplementary con - tributions on pension or other rights granted by the employer (if granted). Other specific clauses – such as non-competition, confidentiality, mobility, professional training provi - sion, electronic signature procedures or an applica - ble collective bargaining agreement – can also be included in the employment contract. 1.3 Working Hours Full-Time Work A full-time working schedule is 40 hours per week. The distribution of working time throughout the week is generally uniform – namely eight hours per day for five days, followed by 48 consecutive hours of rest (usually Saturday and Sunday). Full-time contracts concluded for employees under 18 years of age are limited to six hours per day and 30 hours per week. Unequal distribution of working time and flexible arrangements An unequal distribution of working time may be applied, provided that the limit of 40 hours per week is still observed and this pattern is agreed with the employee. Usually, unequal distribution of work is implemented as a working schedule of ten hours per
Romanian labour law does not apply the concepts of blue-collar workers and white-collar workers. A “seniority” distinction is made between manage - rial functions (with decision-making, co-ordinating and representative powers) and execution functions (where operational, technical or administrative tasks are performed). Such distinction is important as dif - ferent functions are subject to different employment terms, such as varying probation periods and notice Permanent employment contracts are the rule under Romanian labour law, with permanent roles being highly preferred and prioritised by candidates seek - ing employment. By exception, fixed-term term contracts may be used, but only in specific and limited circumstances/scenar - ios, which are regulated by the Labour Code. Fixed- term contracts are, by nature, limited in time (a definite term contract can have a maximum of 36 months) as well as frequency (a maximum of three successive contracts, each having a limitation of 12 months, can be concluded between the same parties). requirements upon resignation. 1.2 Employment Contracts Other than the duration of their employment, perma - nent and fixed-term employees benefit from equal treatment and similar employment-related rights. The individual employment contract (either fixed-term or permanent) must be concluded in writing and reg - istered in the General Registry of Employees prior to the beginning of the employment relationship. Allowing employees to work without having a signed and registered employment contract, before the first day of work, qualifies as undeclared work and exposes both the employer and the employee to administrative fines – in certain cases, even separate fines can be applied for not having a signed contract and not hav - ing a registered contract, within the legal deadlines.
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