Hiring someone is an exciting step for any business. It means growth, progress, and the need for helping hands. But before a new employee starts working, there’s something very important that every business in Romania needs to understand: the employment contract.
In Romania, employment contracts are not just formal paperwork. They are legal agreements that protect both the employer and the employee. Whether you run a small company or a large corporation, understanding how employment contracts work in Romania will help you stay compliant with the law and build strong, clear relationships with your workers.
Let’s break it down in a simple and natural way.
What Is an Employment Contract?
An employment contract is a written agreement between an employer (the company) and an employee (the worker). It describes the job, responsibilities, rights, and rules for both sides.
Think of it as a handshake—only in writing.
In Romania, the Labour Code (Codul Muncii) makes it mandatory that all employment contracts must be in writing and must be signed before the employee starts working.
Why Employment Contracts Matter?
These contracts are not just a formality—they are very important. Here’s why:
- They protect your company if there is ever a disagreement with an employee.
- They make sure the employee knows exactly what is expected from them.
- They help you follow Romanian labor laws.
- They avoid confusion or misunderstandings.
- They are often required for inspections or audits.
Without a proper contract, businesses can face legal trouble, fines, or labor disputes.
Key Elements Every Employment Contract in Romania Should Include
When preparing an employment contract in Romania, make sure you include these essential parts:
1. Identification of Both Parties
- The employer’s legal name, address, and company number.
- The employee’s name, address, personal ID number (CNP), and sometimes their education background.
2. Job Title and Description
- What position will the employee hold?
- What tasks and responsibilities are expected?
Example: “Software Developer responsible for building and testing mobile applications.”
3. Working Hours
- Full-time or part-time?
- How many hours per day or week?
- Work schedule: morning shifts, night shifts, flexible hours?
In Romania, full-time work is usually 8 hours per day, 5 days per week, adding up to 40 hours.
4. Start Date and Duration
- When will the job begin?
- Is it a fixed-term contract (temporary) or a permanent one?
Fixed-term contracts are allowed, but they must meet special conditions and can’t be used repeatedly to avoid offering a permanent job.
5. Salary and Payment
- The employee’s base salary.
- Bonuses, incentives, meal vouchers, or other benefits.
- When and how will the salary be paid (monthly, by bank transfer, etc.)?
In Romania, salaries must not be lower than the minimum wage, which changes from time to time.
6. Trial Period
- Most contracts include a trial period where both sides can see if it’s a good fit.
- For regular employees: up to 90 calendar days
- For management positions: up to 120 calendar days
During this time, the contract can be ended with shorter notice.
7. Holiday and Leave
- How many vacation days the employee gets (usually 20 per year as a minimum).
- Sick leave, maternity/paternity leave, and other types of time off.
8. Notice Period
- How much notice must be given before leaving the job or ending the contract?
- The Labour Code requires at least:
- 20 working days for resignations
- 20 to 45 working days for dismissals, depending on role
9. Confidentiality and Non-Compete Clauses
- Does the employee have access to sensitive data?
- You can include rules to protect company secrets.
- A non-compete clause can prevent employees from working for direct competitors—but it must be fair and legally justified.
Types of Employment Contracts in Romania
There are a few types of employment contracts businesses can use:
1. Individual Employment Contract (CIM)
This is the most common one. It’s a one-on-one contract between the employee and employer.
2. Fixed-Term Contract
Used for seasonal work, project-based roles, or temporary needs. It must not last longer than 36 months in total, including extensions.
3. Part-Time Contract
When someone works fewer hours than a full-time employee.
4. Telework or Remote Work Contract
When the employee works from home using technology.
In 2025, more and more Romanian businesses are using remote work contracts for roles in IT, marketing, customer service, and more.
Common Mistakes Businesses Should Avoid
Even well-meaning employers can make errors when hiring. Here are some mistakes to watch out for:
- Hiring someone without a written contract
- Not registering the contract in REVISAL (the national labor registry)
- Using fixed-term contracts too often or incorrectly
- Not clearly stating job duties or working hours
- Failing to provide copies of the contract to the employee
Avoiding these mistakes keeps your business safe and your employees happy.
Registration in REVISAL
Once the contract is signed, it must be recorded in REVISAL (The General Registry of Employees in Romania). This is done by the employer and must happen before the employee starts working.
Failing to do this can lead to fines or legal issues.
Can Contracts Be Changed?
Yes. But changes must be agreed on by both sides and recorded in an addendum (act adițional). This could include salary changes, working hours, or job responsibilities.
Never change a contract without the employee’s written agreement.
Ending an Employment Contract
Contracts can end for many reasons:
- The employee resigns
- The employer dismisses the employee
- The contract period ends
- The company shuts down or restructures
Each situation has different legal rules. Employers must follow proper procedures when ending a contract to avoid penalties.
Final Thoughts: Getting It Right
In Romania, a strong employment contract is not just paperwork—it’s your foundation for building a legal, respectful, and productive work relationship.
For Romanian businesses, understanding the Labour Code and writing clear, fair contracts is key to:
- Attracting and keeping great employees
- Avoiding legal trouble
- Creating a professional company culture
If your business needs support creating or reviewing employment contracts, Rina Recruitment Agency in Romania is here to help. We can guide you through hiring legally, fairly, and confidently.
