Country profile

Romania

Capital
Bucharest
Public holidays
15
Minimum Salary
€515.30
L
Currency
Romanian leu
About country
Costs
Holidays
Employment Classification

What defines an employee:

A person performing regular work activities under the instruction/authority of a legal person/company in exchange for financial remuneration.

Under Romanian law, whether a working relationship would be considered to be classified as employment depends on the existence of a dependent or subordinate relationship. So that a person is regularly working for the same person/entity and taking instruction on the work that is produced, how it’s produced and when i.e. during specified hours of the day.

The main differences between an employment relationship and an independent contractor are the social security contributions which should be paid by the employer for any employees. This grants the employee rights to statutory benefits in Romania. The employee is also entitled to certain protections against terminations under Romanian law

It’s important to take note of what an independent contractor looks like under Romanian law:

– someone who has the freedom to decide the location of where they work, their work schedule, and how they work
– someone who can work for multiple clients at the same time
– the person that carries the risks associated with carrying out their work, i.e. responsible for the security of the information they are working with on behalf of their clients
– someone who is using their own equipment to carry out their work
– someone who has the right to do the work for their clients directly, or hire staff to fulfill the requirements of the work


Penalties for misclassification


The labor authorities, or more specifically the tax authorities may reclassify the contract agreement to an employment contract if they are found to acting as an employee rather than an independent contractor. The employer could be required to pay income tax and social security contributions + interest. The Romanian authorities may also impose penalties for engaging in a working relationship without the associated written contract of employment.

Details
Essential information
  • Social Security
  • Employer Social Security
  • Population
    19.29m
  • Minimum vacation days
    20 days
  • Time zone
    CET