Employer of Record Romania

• Quick, flexible, and easy entry into Romania in compliance with local employment laws
• Complete control over business development with your own team
• Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
• Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
• Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
• Allowing for easy market exit if necessary
• Integrating your employees into our team through motivational events and special meetings

Romania, situated in Eastern Europe, presents a dynamic and burgeoning landscape for business ventures. After navigating through years of economic and political challenges, Romania has achieved notable advancements, showcasing one of Europe’s highest economic growth rates.

FMC Group Romania EOR facilitates expanding your business into Romania without the need to establish a distinct entity.

Employers in Romania are mandated by law to furnish employees with a formal employment contract, encompassing comprehensive details of employment such as salary and benefits. This contract must be drafted in the Romanian language and stipulate transactions in the Romanian leu currency. Additionally, employers are required to register each employment agreement with the General Register of Employees.

Probationary periods are as follows: 30 days for disabled employees, 60 days for most regular employees, and 120 days for top management.

Employees can work a maximum of 48 hours per week, encompassing overtime hours. However, the average weekly working time must not exceed 40 hours per week or eight hours per day. There’s an exception where the maximum allowable working time, including overtime, can exceed 48 hours per week if the average weekly working hours over a four-month period remain below 48 hours.

In Romania, both employees and employers are required to contribute a portion of salaries to various social funds:

1. Social Security Fund:
   • Employers contribute 20.8%.
   • Employees contribute between 31.3% and 41.3%.
2. Health Insurance:
   • Employers contribute 5.2%.
   • Employees contribute 5.5%.
3. Medical Leave/Compensation Fund:
   • Employers contribute 0.85%.
   • Employees contribute between 0.15% and 0.85%.
4. Unemployment Fund:
   • Employers contribute 0.5%.
   • Employees contribute 0.5%.

Health Insurance Benefits: While Romania offers universal free healthcare, patients often have to pay for treatments upfront and then seek reimbursement. Due to concerns about the quality of care in government institutions not consistently meeting Western standards, many employees opt to secure private health insurance.

• New Year’s Day
• Day After New Year’s Day
• Unification Day
• Orthodox Good Friday
• Labor Day
• Children’s Day
• Orthodox Easter Monday
• Orthodox Pentecost Monday
• Feast of the Dormition (St. Mary’s Day)
• St. Andrew’s Day
• National Day
• Christmas Day
• Second Day of Christmas

Employees have the right to up to five days of paid sick leave, receiving compensation equivalent to 75% of their wage. Sick leave can extend up to 183 days, or in cases of severe conditions, up to 18 months. Sick leave exceeding five days is compensated by the state.

Female employees are eligible for a minimum of 126 days of paid parental leave, receiving 85% of their average pay over the preceding six months. This benefit is provided by the government.

Male employees have the right to take five days of leave within the first eight weeks after their child’s birth. This period can extend to 15 days if they attend specific childcare training courses.

To qualify for compensation, employees must have contributed to Romania’s social insurance system for at least six of the previous 12 months.

The termination notice period is one month, and severance is not required unless specified in a collective agreement or employment contract.

When terminating employment, employers are obliged to give at least 20 working days’ notice, except in cases of probationary employee dismissal, termination due to professional inadequacies, or disciplinary reasons.

Upon resignation, employees must provide 20 days’ notice for non-managerial positions and 45 days’ notice for managerial roles. In Romania, there’s no legal mandate for severance compensation.