Romania – Employer of Record
Customers who want to recruit staff and run payroll without first creating a branch office or subsidiary in Romania may use AtoZ Serwis Plus Romania employer of record services. Your candidate is recruited in compliance with local labour laws using The AtoZ Serwis Plus GEO Solution, and can be onboarded in days rather than months . The person is assigned to your team and will work on your company's behalf as if he or she were an employee to complete your in-country requirements.
Table of Contents
- Romania Holidays
- Bonus in Romania
- Working Hours in Romania
- Vacation in Romania
- Sick Leave in Romania
- Maternity/Paternity Leave in Romania
- Termination/Severance in Romania
- Romania Tax
- Health Insurance in Romania
- Additional Benefits in Romania
- Employment Contracts in Romania
- Why AtoZ Serwis Plus Romania
Customers can run payroll in Romania using our comprehensive solution and The AtoZ Serwis Plus GEO Solution service, while HR utilities, tax, and enforcement management are handled by us. We handle employment contract best practises, statutory and industry standard compensation, employee costs, as well as severance and termination if applicable as a GEO Solution specialist. We also hold you up to date on any amendments to Romanian labour laws.
Your new recruit is more effective right away, has a stronger recruiting experience, and is fully committed to your team. You'll have peace of mind knowing that any hire is assisted by a team of committed job experts. AtoZ Serwis Plus Romania enables you to easily and painlessly tap into the creativity of the brightest people in more than 8 EU countries.
Romania is situated on the Black Sea in Southeastern Europe, separated from Bulgaria by the storied Danube River. The nation has a population of 20 million people, and Bucharest, the capital, is the EU's sixth largest city.
When negotiating the terms of an employment contract and offer letter with a Romanian employee, it's a good idea to note the following standard benefits:
Romania Holidays
Romania celebrates 11 public holidays for which employees are given the day off, 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
Bonus in Romania
The 13th month bonus in Romania is considered a gratuity and is not required by local law. Most employers offer performance based bonuses.
Working Hours in Romania
The standard work week in Romania consists of up to 8 hours per day, 40 hours per week. Working hours may not exceed 48 hours per week including overtime. Overtime is compensated by either additional time off within 30 days of the overtime work performed in lieu of pay, or at a rate of 75% pay above base salary.
Vacation in Romania
Employees in Romania are entitled to a minimum of 20 days off per year. Employees are also entitled to the following days off for personal reasons:
- Marriage: 5 days
- Marriage of an employee’s child: 2 days
- Death of a family member: days
Sick Leave in Romania
Employees are entitled to pay for up to 5 days of sick leave with a compensation of 75% of salary. The maximum duration of sick leave is 183 days or up to 18 months for serious illnesses. Compensation is provided by the state for sick leave exceeding 5 days.
Maternity/Paternity Leave in Romania
Pregnant employees are entitled to at least 126 days of maternity leave at 85% of their average salary during the previous 6 months; leave is paid by the National Social Security fund.
Fathers are entitled to 5 days off for paternity leave within the first 8 weeks of the birth. This can be extended to up to 15 days if they participate in childcare courses.
After the maternity leave has been taken, parents are entitled to up to two years of additional childcare leave at 85% of their average salary during the 12 months prior to taking the leave (this payment is capped at 6.8 times the reference social indicator.)
Parents caring for a disabled child up to 18 years of age or a chronically ill child up to 7 years of age are entitled to 45 days of paid leave for each disabled or ill child at 85% of the employee’s average salary during the previous 6 months (this payment is capped at 12 times the monthly minimum wage.)
Termination/Severance in Romania
The employer can set a probationary period in the employment contract of up to 30 days for operational positions or up to 90 days for managerial positions.
In the event of termination, employers must provide a notice period of at least 20 working days. This does not apply to the dismissal of a worker under a probationary period, a dismissal based on professional inadequacy, or a dismissal based on disciplinary grounds.
Employees must provide 20 days’ notice upon resignation or 45 days’ notice for managerial positions.
There is no legal obligation to make severance payments in Romania.
Romania Tax
Employers contribute 20.8% of the employee’s salary to the state social security fund, 5.2% to public health insurance, 0.85% for the medical leave and compensation fund, and 0.5% to the unemployment fund.
Employees contribute between 31.3% and 41.3% of their salary to the state social security fund, 5.5% to health insurance, 0.15%-0.85% for the medical leave and compensation fund, and 0.5% to the unemployment fund.
Health Insurance in Romania
Romania offers universal free healthcare, but often services need to be paid for up front and then reimbursed. Additionally, the quality of care in government facilities is not generally up to western standards, so employees may wish to purchase private health insurance.
Additional Benefits in Romania
Additional private health insurance coverage is typically not provided by employers.
Meal vouchers are a tax-free benefit commonly offered to employees in Romania.
Employment Contracts in Romania
The general rule in Romania is that employment contracts are executed for an indefinite duration. Individual employment contracts should be registered with the Employees’ General Register.
Fixed-term contracts are also allowed for a period of up to 12 months and can be extended for no more than 18 months.
It is legally required to put a strong, written employment contract in place in Romania, in the local language, which spells out the start date of employment; location of employment; and terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Romania should always state the salary and any compensation amounts in Romanian new leu rather than a foreign currency.
This information is provided as generally accepted information and is not intended as advisory services.
Why AtoZ Serwis Plus Romania
Creating a branch office or subsidiary in Romania to employ a small team requires time, resources, and effort. Romanian labour law provides good worker protections, but it necessitates careful attention to detail and knowledge of local best practises. AtoZ Serwis Plus Romania makes expanding into Romania quick and painless. We will assist you in recruiting your chosen candidate, handling HR and payroll, and maintaining compliance with local laws without the hassle of creating an international branch office or subsidiary. Our Romania GEO Solution and Global Employer of Record Solution give you peace of mind so you can concentrate on your business.
Please contact us if you'd like to learn more about how AtoZ Serwis Plus Romania can provide smooth employee leasing or The AtoZ Serwis Plus GEO Solution for recruiting employees in Romania.