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Romanian employment law

Romanian employment law is the product of constant changes made over the last years in order to establish equilibrium between the power of union organisations and the power of the employers. This has proven a hard task. As a result, Romanian legislation has both pro-employee regulations, being one of the few that establishes the mandatory reinstatement of wrongfully dismissed employees, allowing the union federations to participate in collective negotiations at the company level, as well as pro-employer regulations limiting the right to strike for employees under collective agreements.



Key Points

  • Most disputes involve financial claims from employees that usually include overtime payment, granting of working conditions, bonuses, etc. Employers often face collective actions from employees regarding these financial claims. Unions usually promote such collective actions.
  • Unions must represent 50%+1 of the employees in one company in order to be representative and part of a collective agreement. In order to still make the collective negotiations accessible to unions, the law allows union federations to participate in company level collective negotiations, as representatives of the member unions that do not reach the requirements to be representative, if the federations represent 7% of the employees in the industry sector.
  • Employers have the right to regulate working hours, but special legal provisions limit this right.
  • Great importance is given to the form of the documents drafted by the employer. Court cases usually involve verifying the form of the documents and a significant number of rulings are based exclusively on this aspect.
  • Strict regulations apply to individual and collective dismissals. In case of unlawful dismissal, the employee has the right to reinstatement and is granted all financial rights for the entire period in which he was unlawfully dismissed. Dismissed employees will often sue for unlawful dismissal.

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Magda Volonciu and Associates
10 Montreal Square, 1st Floor
011469 1st District Bucharest
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81 Mamaia Boulevard, LS4 Building, Entrance B, ground floor, Ap. 11
900590 Constanța
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+40 372 755 699

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