How to hire in Romania through an EOR

Romania requires every employment relationship to start with a written contract in Romanian, registered with the government before the employee's first day. That's non-negotiable. Beyond that, you have real flexibility in how you structure the relationship, but there are hard limits on fixed-term contracts and serious risks if you misclassify someone as a contractor when they should be an employee.

Contract types and when to use them

Most companies in Romania use indefinite (open-ended) contracts. They're the legal default, simpler to manage, and give you flexibility to adjust roles without renegotiating. You can terminate an indefinite contract with proper notice and severance, which is a straightforward process.

Fixed-term contracts are for specific situations: covering a maternity leave, a temporary project, or a seasonal need. But there's a hard limit: a fixed-term contract can't exceed 36 months total, including all renewals combined. You can renew up to three times within that window, but once you hit 36 months, the law automatically converts it to indefinite. If you keep cycling someone through fixed-term contracts beyond that point, you've created a permanent employee whether you intended to or not.

Part-time contracts work for reduced hours and can be either indefinite or fixed-term. They carry the same protections as full-time roles, just prorated. You'll specify the hours and schedule in the contract itself.

Romania also allows permanent intermittent contracts for variable, as-needed work. You guarantee a minimum number of hours per month or year but only call the employee in when you need them. They still get social security, health insurance, and minimum wage protections. This works well for seasonal or fluctuating workloads.

Probationary periods are allowed for up to 90 days. During probation, either party can walk away without notice or severance. Use this if you're genuinely uncertain about fit, but don't treat it as a period where normal employment rules are suspended once it ends.

What the contract must include

Romanian law sets out mandatory content. Your contract needs: job responsibilities, contract type, pay and benefits, work hours, annual leave entitlement, notice periods for both termination and resignation, job-specific risks, evaluation criteria, and the start date (plus end date if fixed-term). If there's a probationary period, spell out its length and conditions. If you're using electronic signatures, include that too.

The contract must be in writing, in Romanian, and signed by both parties. You register it with REVISAL (the electronic employee registry) no later than the day before the employee starts. This isn't optional. It's how the government tracks employment history for tax and social security purposes.

You can add non-mandatory benefits like extra medical insurance or pension contributions, but the mandatory items are fixed. You can't negotiate away the minimum wage, minimum leave days, or other statutory protections.

Contractor vs. employee: where companies get burned

This is the biggest risk area. Romania's test is straightforward: if someone performs dependent activities under your direction and control, they're an employee, regardless of what the contract says. The actual working relationship matters more than the label.

Employees get employment contracts governed by the Labor Code. Contractors work under civil contracts (like mandate agreements) and have far fewer protections. The problem is when you classify someone as a contractor but they're working like an employee: showing up on your schedule, taking direction, integrated into your team. That's where you're exposed.

Misclassification can trigger back taxes, social security contributions, penalties, and damages. The employee can claim they were entitled to minimum wage, leave, severance, and other benefits the whole time. You'll owe it all retroactively, plus interest.

Non-compete and IP assignment clauses are enforceable in Romania, but they need to be reasonable in scope and duration. A blanket non-compete covering all industries with no time limit won't hold up. Keep them specific to your actual business needs and limited in time.

Romanian employees are entitled to a minimum of 20 days of annual leave, but most competitive employers offer 25 or more. The legal floor is clear, but if you're hiring experienced people, expect them to notice where you land.

Time off

Employees earn 20 days of paid annual leave, accrued based on hours worked. Part-timers get a proportional share. At least two weeks must be taken in one block, and you'll need to schedule leave by year-end for the following year.

Unused leave carries over for 18 months. You only pay out unused days on termination, calculated at the employee's average daily rate from the prior three months. Public holidays don't count toward this quota. Romania has 17 of them.

Religious holiday dates shift year to year. Employees from other faiths are entitled to two extra paid days for every three of their own religious holidays. If someone works on a public holiday, they're owed double pay or a day off within three months.

All leave types

Here's what Romanian law requires. Job protection applies across all leave types. Contracts suspend during leave but don't terminate. Pay rates vary depending on the type.

Sick leave requires a doctor's note within 24 hours and at least 6 months of prior contributions. Parental leave can be split between parents, but only one can take it at a time. Some mothers return early to qualify for a state bonus that runs until the child turns 3.

Mandatory benefits

You're required by law to make social security contributions on gross salary. The total rate is roughly 35% for employers and 25% for employees (2024 figures; worth checking for updates). Here's the breakdown:

There's no blanket mandate for extras like meal vouchers or transport allowances, but some sectors have collective agreements that include them. Private pension (Pillar 2/3) is mandatory for employees under 35. Employers can optionally contribute an additional 3.75% on top of that.

What people actually expect

The 20-day minimum won't get you far with experienced hires. Most employers offer 22-25 days, often adding one extra day per year of service. In tech and finance, 25 days is widely seen as the baseline.

Private health insurance is something people actively look for. The public system works, but waiting times frustrate a lot of people. Meal vouchers (up to RON 40/day tax-free) are close to standard, and gym memberships or phone allowances are common too. Since 2020, remote work stipends have become more expected, typically around RON 200-500 per month.

If you stick to legal minimums, you'll find it harder to hire in Bucharest or attract senior candidates anywhere in the country. Offering 25 days leave, private medical cover, and flexible hours puts you in a reasonable position without importantly inflating your costs.

Romania sits in the middle when it comes to employee protections around termination. You can let someone go, but you need solid grounds and careful documentation. The real risk isn't that termination is impossible - it's that a procedural misstep lands you in court paying damages.

Valid grounds for termination

Termination falls into two categories: objective grounds (tied to the employee) or economic grounds (tied to the business).

Objective grounds include serious or repeated disciplinary breaches, physical or mental incapacity confirmed by medical examination, poor performance or unsatisfactory professional skills, and criminal detention or house arrest exceeding 30 days. Minor infractions won't hold up - the breach needs to be genuinely serious.

Economic grounds mean you're eliminating the position itself, not dismissing someone for cause. The cancellation has to be real and backed by genuine business justification. You can't use economic grounds as a workaround to remove someone you simply want gone.

Some employees are fully protected from dismissal: pregnant women (once they've notified you), employees on maternity or childcare leave, those on sick child care leave, paternity leave, or caregiver leave, and trade union leaders or employee representatives during their term of office. Dismissing a protected employee is unlawful, full stop.

What counts as unfair dismissal

If you dismiss someone without valid grounds or without following the correct process, they can sue for unlawful dismissal. If they win, the court can order reinstatement and award damages equal to the salary they would have earned since the dismissal date. That's why getting the paperwork right matters.

You must provide written notice of termination that sets out the legal and factual grounds for dismissal. For disciplinary dismissals, you're required to run a formal investigation and give the employee a chance to defend themselves at a disciplinary hearing before you proceed. Skipping that step is a procedural violation courts take seriously.

Summary dismissal (termination without notice) is only permitted in two situations: severe or repeated disciplinary breaches after a proper investigation, or if the employee is arrested or under house arrest for more than 30 days. Even then, you must act within 30 days of becoming aware of the grounds. Everything else requires notice.

Notice periods

The standard notice period is 20 working days for execution-level positions and 45 working days for management positions. This applies whether you or the employee initiates termination. During the notice period, the employee keeps working and receiving their salary unless you both agree otherwise.

Your employment contract or collective bargaining agreement can extend these periods, but not shorten them. The notice period starts when the employee receives formal written notification.

Severance

There's no universal legal minimum for severance in Romania. What you owe depends on your employment contract, collective bargaining agreement, or company policy. If your contract or CBA specifies severance, you're required to pay it. If it doesn't, there's no legal obligation - though many employers offer something to keep the exit clean.

One exception worth noting: if you're dismissing someone on economic grounds (position elimination), you may need to offer alternative positions or negotiate a severance package depending on what your collective agreement says.

Work permits and visas

Visa sponsorship and work permit rules for Romania aren't something we can cover reliably here - requirements shift frequently and vary depending on the employee's nationality. Talk directly to your EOR provider or a local immigration specialist before hiring foreign nationals in Romania.

Non-compete clauses and trade unions

Non-compete agreements are enforceable in Romania but capped at two years post-employment. If you include one, you must compensate the former employee with at least 50% of their average salary over the past six months (or average salary during employment if they worked less than six months). The clause must specify prohibited activities, restricted geographic areas, third parties they can't work for, and the monthly indemnification amount.

If your workplace has a collective bargaining agreement, its terms take precedence over individual contract terms where they're more favorable to the employee. Trade union leaders and employee representatives also have specific protections against dismissal connected to their role.

Recent regulatory changes

Romania is transposing a new EU directive on employment enforcement, with a deadline of June 7, 2026. The details aren't finalized yet, but it's likely to bring new compliance requirements around dismissal procedures and worker protections. Keep an eye on updates from your EOR or legal counsel as that deadline gets closer.

The short version: termination in Romania is possible, but it requires valid grounds, solid documentation, and procedural compliance. The cost of getting it wrong - court proceedings, reinstatement orders, back pay - makes it worth doing carefully from the start.