In Romania, labor law permits several types of employment agreements, each designed to meet different employment requirements.

Indefinite Term Contracts

Indefinite Term Contracts, or Contract pe durata nedeterminata, are the standard form of employment agreement in Romania. These contracts provide job security as they do not have a pre-defined end date. The contract remains in effect until either the employer or the employee decides to terminate it, adhering to the notice periods outlined in the Labour Code.

Fixed-Term Contracts

Fixed-Term Contracts, or Contract pe durata determinata, are ideal for temporary positions or specific projects. These contracts have a predetermined end date, and early termination typically requires justification as per the Labour Code. There are restrictions on the use of fixed-term contracts; they can only be renewed a maximum of three times, with a total duration not exceeding 36 months.

Part-Time Contracts

Part-Time Contracts, or Contract cu timp partial, allow employees to work a reduced schedule compared to a full-time position. The specific working hours are mutually agreed upon and detailed in the contract. Part-time employees generally enjoy the same rights and benefits as full-time employees, but on a pro-rated basis.

Trial Period

Both indefinite and fixed-term contracts can include a trial period, allowing both the employer and the employee to assess suitability for the role. The maximum length of the trial period is regulated by law and depends on the position, typically ranging between 30 and 120 days.

These are the most common types of employment agreements in Romania. Romanian labor law is extensive and can be complex, so if you're uncertain about a specific type of employment agreement or its implications, it's always advisable to consult with a legal professional.

Employment agreements in Romania must adhere to specific legal requirements outlined in the Labour Code. Including these essential clauses ensures clarity, protects both parties' rights, and fosters a smooth working relationship.

Parties to the Agreement

The agreement must clearly identify both the employer and the employee, including their full names and legal entities (for companies).

Job Details

• Position and Description: Specify the employee's job title, referencing the Romanian Classification of Occupations or relevant regulatory documents. Briefly outline the core responsibilities and duties associated with the role.
• Workplace: Indicate the employee's primary workplace or, if applicable, the possibility of working from multiple locations.

Contract Duration

• Indefinite vs. Fixed-Term: Specify whether the contract is indefinite (no end date) or fixed-term (with a pre-defined end date).
• Fixed-Term Details (if applicable): For fixed-term contracts, mention the exact duration and any renewal possibilities.

Remuneration and Benefits

• Basic Salary: Clearly state the employee's base salary, including the currency and payment frequency.
• Other Compensation (if applicable): Outline any additional benefits or bonuses offered, such as transportation allowances, meal vouchers, or health insurance.

Work Schedule

• Full-Time vs. Part-Time: Indicate whether the position is full-time or part-time, specifying the agreed-upon working hours per day and week for part-time arrangements.

Leave and Vacation

• Annual Leave: Mention the employee's annual entitlement to paid leave days.

Termination Clauses

• Notice Periods: Outline the required notice periods for termination by either party, as stipulated in the Labour Code.

These are the essential clauses required by Romanian law. Additionally, employers may include optional clauses, such as confidentiality agreements, non-competition clauses (with specific limitations), and training and development provisions.

Probationary periods are a common feature in Romanian employment contracts, allowing employers to assess an employee's suitability for the role. The Romanian Labour Code outlines the regulations governing these periods.

Key Points on Probationary Periods:

• Purpose: The probationary period is used to evaluate an employee's skills and determine their fit for the position.
• Maximum Duration: The maximum duration varies depending on the type of employment contract and the employee's category.
  • Indefinite Contracts:
    • Standard Positions: 90 calendar days.
    • Management Positions: 120 calendar days.
    • Employees with Disabilities: 30 calendar days (maximum).
  • Fixed-Term Contracts:
    • Less than 3 Months: 5 working days.
    • 3 to 6 Months: 15 working days.
    • Over 6 Months: 30 working days (standard positions) or 45 working days (management positions).
• Single Use: Generally, only one probationary period is allowed per employment contract.
• Employee Rights: During the probationary period, employees enjoy all rights and obligations outlined in the employment contract, collective labour agreement, and labour legislation.
• Termination: During or at the end of the probationary period, either party can terminate the contract with written notice.

Romanian employment agreements often incorporate confidentiality and non-compete clauses to safeguard an employer's legitimate interests. These clauses, however, are subject to specific requirements and limitations as per the Romanian Labour Code.

Confidentiality Clauses

Confidentiality clauses, which are generally enforceable throughout the employment relationship, obligate the employee to protect the employer's confidential information. This could include trade secrets, client lists, or internal processes.

While the Romanian Labour Code does not stipulate specific requirements for confidentiality clauses, they must be clearly defined within the employment contract to be enforceable. This includes:

• Identifying confidential information: The specific types of information deemed confidential should be clearly outlined.
• Employee obligations: The clause should detail how the employee must handle confidential information, including restrictions on use and disclosure.

Non-Compete Clauses

Non-compete clauses in Romania are valid only after the termination of the employment contract and come with specific limitations:

• Maximum duration: A non-compete clause can restrict an employee's competitive activities for a maximum of two years following termination.
• Compensation: The employer must provide a monthly non-compete allowance during this period. This amount cannot be less than 50% of the employee's average gross salary from the last six months of employment.
• Specificity: The clause must clearly define:
  • The prohibited activities that compete with the employer's business.
  • The geographical area where the restriction applies (must be reasonable in scope).
  • Any third-party employers the employee cannot work for.

Non-compete clauses can be challenged in court if they are deemed overly broad or if the employer fails to meet their obligation to provide compensation.