How to Apply Work Permit to Romania?

Recruiting in Romania

As important as it is to understand Romanian culture and build a connection with your potential hires, you should also spend some time preparing for the practical aspects of staffing in Romania. You might want to begin the recruitment process by identifying the best channels for sourcing talent overseas.

In Romania, many employers advertise job listings in national newspapers. Keep in mind that the majority of newspapers are printed exclusively in Romanian. That said, some newspapers do have an online presence in English.

You might also consider advertising your company’s open positions on job-focused websites.

Laws Against Discrimination in Romania

Throughout the process of staffing and recruiting, it’s your responsibility as the employer to ensure that your company is compliant with all of the relevant laws and regulations in Romania, including laws against discrimination in the workplace. Romanian law strictly prohibits discrimination on the following grounds:

• Nationality
• Race
• Ethnic origin
• Religion
• Family or marital status
• Social status
• Language
• Sexual orientation
• Beliefs
• Gender
• Handicap
• Age
• Belonging to a disadvantaged social group
• HIV positive status
• Non-contagious chronic disease status

In addition to the above characteristics, union affiliation cannot influence a hiring decision. To ensure compliance, you should avoid asking candidates any questions pertaining to these characteristics throughout the recruitment process.

How to Hire Employees in Romania

Romania requires employers to draft a written employment contract in the local language. These contracts are typically executed for an indefinite amount of time. However, fixed-term contracts are allowed for up to 36 months under certain circumstances.

An employment contract should include specifics such as:

• Compensation
• Start date of employment
• Location of the company’s headquarters
• Job duties
• Benefits
• Private pension fund obligation
• Termination
• Severance

Contracts must be signed prior to the employee’s start date and the employee must receive a copy. The employer also must keep a copy of each employment contract at their workplace or can face fines.

You will also need to register the new employee in your company’s official “general register of employees.” Your business’ employee register is required to be in a specific format and submitted to the country’s labor authorities on a regular basis.

Romania Employment Laws

Romania employment compliance starts with drafting the employment contract mentioned above. Once you officially hire employees in Romania, you’ll also need to follow guidelines such as the country’s standard working hours. Romanian workers typically work eight-hour days and 40-hour weeks. An employee can work a maximum of 48 hours per week, including any overtime; however, this maximum can be exceeded as long as work time does not exceed 48 hours per week over a four-month period.

If an employee does accrue overtime, you should either compensate them at a rate of at least 75% above their base salary or give them additional time off within 60 days of the overtime work.

Onboarding in Romania

Onboard your employees after you have clearly defined your company’s code of conduct and workplace culture. You can curate materials or training that will help workers embrace the culture your office is hoping to promote. Fly in some key company players from the parent company for employees’ first day or week to make them feel like valued members of the team.

Although your new employee has already signed the employment contract at this point in the process, it is a good idea to go over it with them during their first day. This instruction can help address any lingering questions and ensure you and your employee are on the same page concerning the contract.

Taxation Rules in Romania

Employers must contribute different percentages of employees’ salaries as part of Romania payroll laws. For example, employers must typically pay 4% of an employee’s salary to the state social security fund, while 2.25% will go to Romania’s work insurance.

Employees must also make tax contributions to the funds listed above. They contribute 25% of their salary to social security and 10% to health insurance.

Romania Payroll Options for Companies

Companies have four main options for setting up their Romania payroll. Since every business is different, it’s best to carefully consider each possibility to determine which is best for your company or industry. These include:

• Internal: Larger companies with a commitment to Romania may run their payroll out of their subsidiary by hiring additional staff members to handle HR and payroll needs. This option is the most expensive and time-consuming.
• Remote: If you handle payroll at your parent company, you can add your Romanian employees to this existing internal payroll. However, keep in mind employment compliance laws will differ between the two groups.
• Romania payroll processing company: You can also outsource your payroll to a local Romania payroll processing company. You will still be held liable for any mistakes.
• Globalization Partners: The surest way to run your Romania payroll and stay compliant is through Globalization Partners. Our Romania payroll outsourcing services will get you started faster and ensure you do not have to worry about compliance.

How to Set Up a Payroll in Romania

Before you set up your Romania payroll, you will have to incorporate your subsidiary. To do this, you’ll need registered capital, management, registered offices, assets, a Romania bank account, and the names of directors and shareholders. All businesses must register with the country’s National Office of the Trade Register and the Labor Chamber.

Alternatively, you can choose a subsidiary alternative like Globalization Partners, which allows you to skip this lengthy process.

Entitlement/Termination Terms

Probationary periods up to 30 or 90 days are popular in Romania, so keep this in mind when drafting an employment contract. As an employer, you’ll need to provide at least 20 working days of notice in case of a termination. However, these terms could differ if the employee is still in their probationary period.

Types of Work Visas in Romania

Romania is a member state of the European Union (EU), so the laws regarding work visas and permits are similar to those of other countries in the EU. Citizens of other EU member states do not need a permit to work in Romania, nor do citizens of Switzerland and other countries in the European Economic Area (EEA). These countries include Norway, Iceland, and Liechtenstein.

Any prospective employee who is not from one of these countries will need a work permit. There are several kinds of permits for foreign citizens in Romania, including permits for:

• Seasonal workers
• Trainees
• Athletes
• Permanent employees
• Cross-border workers
• Nominal work

Requirements to Obtain Romania Work Visas

In Romania, foreign citizens cannot apply for a work permit on their own behalf. The employer must apply for them.

A permit will be issued only if there are no Romanian citizens or citizens in other EU or EEA member states who are eligible to fill the position. This is one condition of eligibility for a permit. Other conditions include that the prospective employee must:

• Meet all of the employer’s requirements for the position under legal provisions
• Have no criminal record that would prevent them from working in Romania
• Provide a medical certificate that states their capability to carry out the tasks required for the job
• Fall within the yearly quota for foreign citizens who may be granted a work permit

The employee will also need to apply for a long-term visa. Along with the application, the employee should be prepared to provide several documents, including:

• The work permit obtained by the employer
• Proof of accommodation in Romania
• A valid passport
• Two recent identifying photos
• Proof of medical insurance for the duration of the visit
• Police clearance or a background check from the employee’s country of residence
• Evidence of sufficient financial means to support the visit
• A flight ticket or proof of other accommodations for travel

Application Process

Foreign citizens will need a work permit as well as a long-term visa to live and work in Romania legally. Here are the necessary steps to obtain these documents:

• The employer must apply for the work permit on behalf of the prospective employee, submitting all relevant documents to the Inspectorate General for Immigration (IGI) and paying the applicable fees.
• The IGI will answer the request within 30 days, either providing a decision or requesting more information for verification. If additional verification is needed, the process may be extended for up to 15 days.
• Once the application is approved by the IGI, a work permit will be issued to the prospective employee.
• The employee must then obtain a long-term visa by applying through the diplomatic missions and consular offices of Romania. The employee has a window of 60 days to apply after obtaining their work permit.

Other Important Considerations

If an employee needs to extend the residence granted by their long-term visa, they can request to do so through the IGI. They’ll need to file the request at least 30 days before their visa is set to expire. Their work permit may be renewed at the same time.

In Romania, most work permits can be extended for up to a year. Highly skilled employees may be qualified for an extension of two years.

It’s likely that some of your employees will be traveling with family members. Each family member will need their own long-term visa as well as their own work permit if they wish to seek employment in Romania.