Employment Contracts in Romania: A Practical Guide for Employers

Romanian labour law sets out clear rules for employment relationships, and getting the contract right from the start is essential for any business. Whether you are hiring your first employee or expanding a team, understanding the legal framework helps you stay compliant and build trust with your staff.

The main piece of legislation is the Labour Code (Codul Muncii). It applies to all employment relationships in Romania and overrides any contractual terms that are less favourable to the employee. This guide covers the key points employers need to know.

Types of employment contracts

Romanian law recognises several types of employment contracts. The most common is the indefinite contract, which provides the highest level of job security. Fixed-term contracts are allowed but only under specific conditions, such as replacing an employee on leave, seasonal work, or temporary increases in workload. A fixed-term contract can generally be concluded for a maximum of 36 months, and consecutive fixed-term contracts for the same position are restricted.

Part-time contracts are also common, with the employee working fewer hours than a full-time schedule (typically 8 hours per day, 40 hours per week). Employers must ensure that part-time employees receive the same rights as full-time employees on a pro-rata basis.

Mandatory clauses

Every employment contract must include certain mandatory elements. These are set out in the Labour Code and include:

• The identity of the parties (employer and employee).
• The place of work or, if the employee works in multiple locations, a statement that they may work in various places.
• The job title and a description of the main duties.
• The date on which the contract begins.
• For fixed-term contracts, the duration or expected end date.
• The duration of annual leave to which the employee is entitled.
• The notice periods for termination, which must not be less than the legal minimum (20 working days for employees, 20 working days for employers in most cases, but longer if stipulated).
• The basic salary and any other components of pay, as well as the payment schedule.
• The normal working hours, expressed in hours per day and hours per week.
• Any applicable collective bargaining agreement, if one exists.
• The probation period, if any.

If any mandatory clause is missing, the contract is not automatically void, but the employer may face fines, and the employee can request that the missing terms be added.

Probation period

The probation period is optional but widely used. For most positions, it can be up to 90 calendar days for non-managerial roles and up to 120 calendar days for managerial positions. During this time, either party may terminate the contract with a shorter notice period (usually 5 working days) and without stating a reason. The probation period must be specified in writing in the contract.

Written contract and registration

The employment contract must be concluded in writing and signed by both parties before the employee starts work. Employers are required to register the employment relationship in the general register of employees (REVISAL) no later than the day before the start of work. The employee must also be provided with a copy of the contract and any subsequent amendments.

Additional legal requirements

Employers must also provide employees with a written information document containing details such as the applicable collective agreement, the duration of the probation period (if any), the right to training, and the procedure for terminating the contract. This document is normally included in the contract itself or provided as an annex.

If a foreign national is employed, additional work permit requirements may apply. These are governed by separate legislation and not covered here.

Why it matters

A well-drafted employment contract protects both the employer and the employee. It sets clear expectations, reduces the risk of disputes, and ensures compliance with Romanian labour law. Given the complexity of the Labour Code, many employers seek legal advice when preparing contracts, especially for senior roles or when using less common clauses such as non-compete agreements.

By understanding the fundamentals of employment contracts in Romania, businesses can build solid employment relationships that support long-term success.