The revised Romanian Labour Code

The Law no.40/2011, which modified important provisions of labour law which were in force until this date, entered into force on 30 April 2011.

The new regulations should ensure a greater flexibility and fight illegal work.
In this respect, the government continued the deregulation of labour law, after the first steps have already been taken at the beginning at the year and on 01 January 2011 the employment record cards have been elliminated and the employer's obligation to register the employment contracts with the Territorial Labour Inspectorates has become innapplicable. The Government continues to act in order to create a labour law (which tends to be) more favourable to the employer.

Summary of important developments

The maximum duration of fixed-term employment contracts was extended from 24 to 36 months. In any case, the fixed-term employment contracts may still be concluded between the employer and the employee only if there are given reasons for limiting the duration which are enumerated exclusively in the Labour Code. In addition, the temporary increase in the employer's activity was added as a reason for limiting the duration so that a supplementary extension of the list of reasons for limiting the duration was achieved.

The probationary period can be of maximum 90 days for employees and of 120 days for management positions.

Any position can be occupied for a maximum of 12 months by the employees during the probationary period established on a case-by-case basis.

The period of notice is of 20 days for the employer and the employee and of 45 days for management positions.

Part-time employment contracts can be concluded initially for a 24-months period. The duration of part-time employment contracts can be extended subsequently for another periods, but without exceeding a total period of 36 months.

The employees must be informed of the employer's criteria for assessing their professional activity.

In any case, besides the facilities described and the deregulation of labour law, there are possibilities of sanctioning in order to fight illegal work.

The use of up to five workers in the absence of a written employment contract is punished by a fine between RON 10.000 - RON 20.000 per person used in the absence of a written employment contract.

The use of more than five persons in the absence of a written employment contract shall be considered a criminal offence and shall be punished with a prison term from 1 to 2 years or by a fine.

A new wage setting, at a lower level than the legal minimum wage, is punished with a prison term from 6 months to 1 year or by a fine.

Discussion partners

Dr. Bernhard Heringhaus, Osnabrück
Dr. Heinrich Nerlich, Osnabrück
Helge Schirkonyer, Bukarest