Foreword

With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 inRomania.

01 Overview of the Labor Law System

1. Legal System

Romania has a civil law (continental) legal system based on the French model.

2.Resources and Agencies

The main statutes and regulations relating to employment are Labor Code and Social dialogue law.

In Romania, the central authority responsible for coordinating the aspects related to labor law regulations is the Ministry of Labor and Social Solidarity.

02 Employment Qualifications and Classification

1.Employment Age

In Romania, the general minimum age for employment is 16 years. By way of exception, expressly provided by the Labor Code, the employment of persons aged 15 may be authorized, provided that the work performed does not endanger their health, development, or vocational training, and only with the prior consent of their parents or legal representatives.

The standard retirement age is 65 for both men and women. This age is achieved by increasing the standard retirement ages, according to the schedule provided by law.

2.Qualifications for Employment

Legal Requirements for Employing Local Personnel in Romania Without a Local Entity：

a）There must be an individual employment contract in force

b）Registration of the Employment Contract

c）Taxes and Social Security Contributions

d）Avoiding the Risk of Permanent Establishment

3.Classification of Employment

The various types of contracts under which an activity may be performed are as follows:

a）Individual employment contract

b）Independent contractor

c）Work through a temporary employment agency

d）Outsourcing

4.Foreign Workers

Citizens from outside the EU need an employment permit for long-term employment contracts, but certain exceptions may apply for temporary seasonal work or short periods.

In all cases, the employment permit must be obtained from the General Inspectorate for Immigration (IGI) before signing the contract.

By Government decision, the maximum number of employees from abroad is established annually and in 2025 the contingent of newly admitted foreign workers on the labor market is 100,000.

03 Recruitment and Employment Contracts

1.Background Examination

In the private sector, the law does not impose this, but in practice there are employee selection procedures based on recruitment policies. Recruitment is carried out either using the company's own resources (internal recruitment department) or through recruitment service providers. However, this verification is strictly regulated.

2.Contract Types

Under the Labor Code, the individual employment contract is, as a rule, concluded for an indefinite period of time. This represents the general framework and the default form of employment.

As an exception, fixed-term employment contracts may be concluded, but only in the cases expressly provided by law.

3.Probationary Period 

As a general rule, the maximum duration of the probationary period is:

• up to 90 calendar days for non-managerial positions;

• up to 120 calendar days for managerial positions;

• up to 30 calendar days for employees with disabilities;

• In the case of fixed-term contracts, the length of the probationary period is proportionate to the duration of the contract, ranging from 5 to 45 calendar days, depending on whether the role is managerial or non-managerial.

04 Working Standards

1.Remuneration and Statutory Benefits 

The salary consists of: base salary, allowances, bonuses, and other additions.

The most common form is a fixed monthly salary (base salary), to which bonuses or premiums may be added, depending on the contract and the employer's policy.

2.Social Security and Employment Taxes

The mandatory monthly social security contributions owed by employees and deducted from the gross salaries by the employers are:

• CAS – pension contribution

• CASS

• Salary tax

The contribution owed by the employer is CAM – the insurance contribution for labor, which represents 2.25% of the salary fund.

3.Working Hours

A full time employee in Romania is working 8 hours / day and 40 hours / week. A part-time employee will work less than 40 hours per week.

Overtime is also permitted, but the weekly working time may not exceed 48 hours. By way of exception, weekly working time may exceed 48 hours, provided that the average number of hours worked over a period of four calendar months does not exceed 48 hours per week.

4.Rest and Leave

The weekly rest period is 48 consecutive hours, usually Saturday and Sunday. If it is not possible to grant the weekly rest period on Saturday and Sunday, it may be granted on other consecutive days, but with additional pay.

The duration of annual leave is at least 20 working days (of which at least 10 consecutive days), and employees cannot waive this right.

Employees are entitled to paid leave on public holidays such as Easter, Christmas, Pentecost, and other important religious holidays.

05 Occupational Health and Special Protection

1.Occupational Health and Security

The employer has the obligation to ensure the safety and health of employees in all aspects related to work. If an employer uses external persons or services, this does not exempt him from liability in this area. The employer is obliged to organize training for its employees in the field of occupational health and safety.

2.Special Protection

Romanian labor law provides a combination of general equality principles and targeted protective measures for certain categories of workers considered vulnerable or exposed to particular risks.

06 Personal Information and Privacy

1.General Rules

In Romania, the protection of employees’ privacy and personal data is primarily regulated by GDPR, which is directly applicable, as well as by Law no. 190/2018, which sets out national measures for the implementation of the GDPR.

2.Transnational Transfer 

In Romania, the rules on the transnational transfer of employees’ personal data are governed primarily by GDPR, directly applicable in all Member States. Law no. 190/2018 implements GDPR at national level, while the Labor Code and Law no. 102/2005 provide additional obligations in terms of employee privacy and supervision of compliance.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

Employers have the obligation to prevent and punish any acts of discrimination or harassment in the workplace. They must implement proactive measures to prevent discrimination and harassment, including training staff and promoting a respectful working environment.

2.Protective Characters 

The Labor Code provides for the principle of equal treatment in labor relations. Thus, any direct or indirect discrimination against an employee based on the following criteria is prohibited: race, citizenship, ethnicity, color, language, religion, social origin, genetic characteristics, sex, sexual orientation, age, disability, chronic non-contagious disease, HIV infection, political opinion, family situation or responsibility, trade union membership or activity, membership of a disadvantaged group.

08 Internal Policies

1.Applicability

It is mandatory to have internal policies for work organization and discipline, prevention of discrimination and harassment, occupational safety, use of company resources, etc. These policies cannot contravene the law and must comply with the Labor Code, data protection legislation, anti-harassment and anti-discrimination regulations.

2.Validity

Employees do not have to agree to the validity of internal policies, but their consultation is necessary for the employer to draw up internal regulations. In order to become applicable to them, the internal policies or internal regulations must be clearly communicated to all employees.

3.Whistleblowing

Romania has specific regulations on reporting irregularities, governed by Law No. 361/2022 on the protection of whistleblowers in the public interest. This law provides a legal framework for protecting individuals who report violations of the law within public institutions and private legal entities.

09 Transactions

1.Employment Relationship 

In Romania, in the event of a merger, acquisition, transfer of capital, or transfer of enterprise or a part of it, employees' employment contracts remain in force, and their rights and obligations are transferred in full to the new employer, in accordance with national legislation which refers to the transfer of employees as a protective measure. In this case, the transfer of the undertaking or part of it cannot constitute grounds for individual or collective dismissal of employees.

2.Compensation

According to Romanian legislation (Law No. 67/2006 on the protection of employees in the event of a transfer of undertaking or part of it), employees are not automatically entitled to financial compensation solely as a result of a merger, acquisition, or transfer of assets/equity.

10 Termination of Employment

1.Termination Grounds 

In Romania, an employer does not have the freedom to dismiss an employee for just any reason, but only in the circumstances expressly provided by the Labor Code. The legislation distinguishes between dismissal for reasons related to the employee and dismissal for reasons unrelated to the employee.

2.Termination Procedure 

In Romania, the dismissal of employees is subject to strict procedural rules laid down by the Labor Code.

3.Termination Protection

The Labor Code expressly lists situations in which employees cannot be dismissed. Thus, termination of the employment contract is prohibited during periods of temporary incapacity for work (medically certified), during maternity leave, pregnancy risk leave, childcare or caregiver leave, paternity leave, as well as throughout the duration of annual leave. Pregnant employees also enjoy protection against dismissal, provided that the employer has been notified in writing of the pregnancy prior to the issuance of the dismissal decision. These restrictions do not apply, however, in the case of dismissals determined by judicial reorganization, bankruptcy, or dissolution of the employer.

4.Severance and Compensation

The Labor Code does not establish a general statutory right to severance pay upon termination of employment. Under the law, severance is not automatically owed to employees whose contracts are terminated.

Severance payment may be negotiated and included in individual or collective employment contracts. Also, in practice, many employers include severance packages in their internal policies or negotiate them during restructuring processes, in order to mitigate social impact and reduce litigation risk.

5.Wrongful Termination 

In Romania, termination of employment is deemed wrongful whenever it is carried out without a legitimate and serious cause, or when the employer fails to comply with the strict procedural requirements provided by the Labor Code. Wrongful termination may result from dismissals that are discriminatory, arbitrary, insufficiently motivated, or vitiated by procedural flaws.

6.Mass termination and Layoffs

A dismissal qualifies as “collective” when, over a period of 30 consecutive days, a certain number of employment contracts are terminated for reasons unrelated to the employees’ conduct or performance, but rather due to economic, organizational or technological reasons. The Labor Code sets precise thresholds, depending on the size of the workforce, so that a significant number of simultaneous terminations automatically triggers the special procedure.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

The law contains provisions relating to the obligation of employees to maintain the confidentiality of information. Even if the confidentiality clause is not a mandatory clause in individual employment contracts, but it is a useful and frequently encountered clause. Through the confidentiality clause, the scope of coverage can be increased and the duration of the confidentiality obligation extended even after the termination of the contract.

2.Non-Compete and Non-Solicitation

Both types of clauses, the non-competition clause and the non-solicitation clause, may be validly agreed upon in the employment relationship, with the Labor Code providing precise regulations regarding the non-competition clause, while the non-solicitation clause remains outside the scope of the law.

12 Work Representation and Trade Unions

1.Work Representation 

The Law on social dialogue establishes that, in the case of employers with at least 10 employees/workers and no trade union, the interests of employees/workers may be promoted and defended by their representatives, who are elected and mandated specifically for this purpose, in accordance with the law.

2.Trade Unions

Trade unions may be freely established, in accordance with the law, and may form federations, confederations or territorial unions to represent interests on a broader level. The right to freedom of association is guaranteed and protected: authorities or employers may not interfere in the establishment and activities of trade unions.

13 Dispute Resolution

1.Procedures & Enforcement

Individual labor disputes are heard by tribunals, as courts of first instance, through specialized sections for labor and social security disputes. The procedure is exempt from court fees. Decisions rendered in the first instance by the courts are enforceable by law, even if they are not final and may be appealed.

2.Waiver & Enforcement

Employees cannot waive their rights recognized by law. Any transaction aimed at waiving or limiting the rights recognized by law to employees is null and void.

14 Others

1.Latest Development & Trends

Romania is in a period of convergence between EU rules and domestic regulations: more protection for platform workers, rules on minimum wages and social dialogue, and increased pressure on due diligence in supply chains. For investors, this means potential increases in labor costs, risks of reclassification and litigation, but also opportunities for differentiation through responsible practices and strong social relations.

2.Cultural and Religious Considerations

Romanians are open to foreign investors, but sensitivity may arise in relation to compliance with labor standards and employee rights and perceptions of working conditions (Romanians are attentive to safety, working hours, and fair treatment).

* To avoid ambiguity, this article should not be regarded as legal advice.