HR Solutions & Employee Relations in Romania with IRIS  

IRIS HR Consulting has experience helping businesses grow in Romania. Without expert guidance, it can otherwise be risky and costly to leave local laws and legislation open to interpretation. For a scalable, compliant operation, IRIS can manage your HR in Romania to help businesses hire, recruit, and pay staff. As a popular destination for businesses, IRIS can navigate local barriers – from culture to compliance – to arrive at a rewarding opportunity for your business to thrive in this exciting marketplace.  

Take your business to Romania with IRIS HR Consultancy.  

Employment in Romania

Thinking of Doing Business in Romania? 

A valued member of the EU, Romania has undergone several favourable economic reforms, which have opened borders to international business and allows the country to maintain global credibility as a relatively easy European site to launch and conduct business. Along with strategic neighbours, and involvement in European trade, Romania is mostly attractive for its talent availability. This comprises a well-educated workforce with a reputation for being multilingual, which eliminates language barriers across diverse, competing cultures. This talented labour pool involves both experienced professionals and motivated graduates, which is partly owed to the country’s recent growth in service industries, including research and IT.  

Key strengths for Romania include: 

  • Ease of doing business  
  • Access to a growing and diverse talent pool  
  • A reputation for multilingualism, which is a critical resource for global citizens  

A Strategic Crossroads  

Situated in South East Europe, Romania is on the crossroads with the European Union (EU), the Commonwealth of Independent States (CIS), and the Middle East. With a healthy population, Romania’s capital Bucharest is known as a hub of cultural activity throughout Europe.  

Attracting business from far and wide, there are approximately 5,000 UK organisations alone operating in Romania. This correlates with a steady and climbing growth, with trade and imports being a valuable part of Romanian business. With its strategic trading corridors, and multiaccess to foreign markets that are often harder to reach for American businesses, Romania has proven to be a valuable post for Western expansion.  


Establishing your business into Romania      

Embarking on a global expansion is a strategic move to gain extra value from exciting foreign markets, which are constantly evolving and full of opportunity. But the international stage isn’t always easy to navigate.  

Yet, before establishing your operation in these South Eastern markets, you must ensure compliance with employment regulations, which are constantly evolving.  

Starting a business in Romania can be economically advantageous, especially for access to its trade routes within Europe. But every business must first establish its intent and register within Romania. Fortunately, Romania enjoys a professional climate that’s conducive for business, including an easy start-up environment for new or entering organisations.  

Before enjoying the perks of establishing your business in Romania, you must: 

  • Plan payroll compliance  
  • Establish your business representation (Joint Stock, Limited liability, or Partnership) 
  • Register trading licence  

Did you know?

Repeated changes and amendments to national legislation means that regulation is a key topic for businesses (this expands to cover fiscal, commercial and civil codes). This is paired with a bureaucracy that can levy hard penalties for non-compliance.  

Employment rights & contracts in Romania   

As a general rule, contracts are operated on an indefinite basis, running for unfixed durations of employment. Contracts should also be submitted with the Employee’ General Register.  

To officialise contracts in league with local compliance, it is advisable to supply employees with written contracts with stipulated features (such as renumeration). Contracts are a legitimate space to negotiate and fix employment conditions. This should be captured in the local language.  

This should stipulate:  

  • Location of employment (i.e. offices) 
  • Starting date of employment  
  • Compensation and benefits  
  • Termination settlements  

Hiring & recruitment in Romania   

When getting your first hire overseas, you will need to negotiate terms of employment. But that requires local knowledge, strict compliance, and an understanding of what to include in an offer.  

Romanian employment law is subject to the following legislation:  

  • Romanian Labor Code (Law 53/2003) 
  • Law no. 16/2017 regarding secondment of the employees 
  • The Order of the Ministry of employment no. 64/2003 regarding the type-form of the labour contract 
  • Law no. 227/2015 regarding the Fiscal Code 
  • Law no. 202/2002 regarding the equality of chances between women and men 

Fixed term contracts  

This should run on limited durations of no more than 18 months if extended. Yet, the standard fixed term contract will, typically, expire after 12 months of operation.  

Overtime in the Romania  

The codes on overtime align with working hours closely: joint weekly hours cannot exceed 48-hours, including additional hours of work. Overtime can be compensated for either through remuneration, set at 75% pay above normal salary, or with extra time-off (to be taken within 30-days of the overtime).  

Maternity Leave in Romania (Including Paternity)  

Pregnant employees can expect to receive 126 days of leave with security of funding set at 75% against the salary from their previous 6 months. This leave is financed by the National Social security Fund.  

Within the first 8-weeks of childbirth, fathers are entitled to 5-days leave, which can be extended up to 15 days if childcare training courses are taken.  

Once this benefit has been used, parents can opt into extra childcare leave for up to two years after childbirth, which is fixed at 85% against their average salary.  

Equal Opportunities in Romania  

The central tenet of equal opportunity, here, describes how equality of chances between genders is strived for, and protected, by labour codes.   

Sick Leave in Romania  

For up to 5 days of sick-leave, employees can expect 75% against their salary as remuneration. Thereafter, the state supplies funding for sick-related absences (exceeding 5 days).  

The maximum time-off allowance equates to 18-months (183 days), which is justifiable for serious illnesses.  

Public Holidays in Romania   

In Romania, there are 11 national public holidays, including:  

  • New Year’s Day 
  • Day After New Year’s Day 
  • Unification Day 
  • Labor Day 
  • Orthodox Easter Monday 
  • Orthodox Pentecost Monday 
  • Feast of the Dormition (St. Mary’s Day) 
  • Andrew’s Day 
  • National Day 
  • Christmas Day 
  • Second Day of Christmas 

Vacation  

As a minimum standard, vacation time is set at 20 days-off annually. Yet, additional time-off may be given in lieu of personal reasons, including the following: 

  • Marriage: 5 days 
  • Marriage of an employee’s child: 2 days 

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Deliver your business to new, exciting markets with confidence and compliance.

End of Service 

HR in Romania requires compliance not only during an employee’s service, but also at the end of it. End of service might include severance, termination, redundancy, and leaving packages. Or, for globally mobile companies with teams in foreign markets, this could be repatriation services for those returning from an assignment overseas.  

For these more complicated matters, you will need expert HR guidance to navigate Romanian labor laws and remain compliant.  

HR in Romania

Termination (including Severance) in Romania   

The length and duration of probationary periods will be dependant on the type of employment. For those in operational roles, there is a 30-day period; and, in managerial roles, this period extends until 90-days.  

Severance pay is not a current legal obligation in Romania. Yet, during termination, employees are bound to certain expectations. Notice periods are established at 20 days as a minimum. Dismissal, however, is not subjected to the same conventions as termination.  

Retirement & pensions in Romania   

Operated like a conventional pension scheme, participants must meet the age criteria and have contributed to the social system prior to pay-out. The public pension fund is at the centre of retirement in Romania, where it’s unconventional to offer private pension.  

Romanian Tax  

In Romania, social security is funded jointly. Employers contribute 20.8% of the employer’s wages voluntarily, which funds the following: 

  • 5.2% on public health insurance  
  • 0.85% on medical leave  
  • 0.5% on unemployment fund  


Supplemental benefits

Health Insurance 

Employees can expect universal free health care as a benefit of their employment, and subsequent contributions to social security. This works, typically, through reimbursements, where services are charged and paid for up-front. The reputation for public health care is that it is less effective than its western counterpart, which often leads to employers requesting private insurance.  

Living in Romania

Why Partner With IRIS?

When entering new, exciting countries in Europe, like Romania, you will need an employment specialist to navigate the parts of local laws that are mandatory and those that are not. Delivering a compliant solution, IRIS can help your business arrive into new marketplaces whilst protecting your workforce – our partners can discover power and protection through us.  

Overseas expansions can seem risky to those who dare it alone. Understanding the complexity of a fully complaint solution, IRIS can help businesses reach Europe, especially when they build bridges in the Romania.  

Our cost-effective, knowledgeable approach to HR in Romania makes us an ideal partner to commence your overseas plans.