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Global employment briefing: Romania, October 2018

  • Romania
  • Employment law


Changes to teleworking legislation

The new law on Teleworking came into force in April 2018. “Telework Law” regulates the conditions under which employees may carry out their work using a computer or another form of remote communication from a non-fixed location.

It sets out mandatory provisions for this flexible working structure. These provisions include allocating liability for safe teleworking conditions, the employee’s working hours and measures for the integration of the teleworker within the organization.

Employers with teleworkers need to ensure that the following requirements are met in order to be complaint with the new legislation:

  • for new employees, the individual labour agreement should include the mandatory provisions for teleworking
  • for existing employees, changes should be made to reflect the specific provisions imposed by the Telework Law

Failure to comply with the above requirements for individual labour agreements could result in a fine of RON 10,000 (approx. EUR 2200).

New legislation on internships

The Internship Law which entered into force as of July 2018, regulates the use of internships by organisations.

According to the Internship Law, an internship agreement must be concluded between the intern and the organisation further to which the intern is entitled to an indemnity whilst taking part in the internship.

An intern must be at least 16 years old and there are limits to the overall number of internship agreements at any one time. Companies which subsequently hire previous interns are entitled to certain tax benefits, subject to conditions. Entering into an internship agreement, in order to avoid the conclusion of an employment agreement, is prohibited.

Decision regarding terminating female employment who meet pension conditions

Female and male employees in Romania have different standard age conditions for retirement, namely 63 years for female employees and 65 years for male employees.

At the same time, the law provides that an individual labor agreement terminates automatically and by the effect of the law, if:

  • the employee meets the required standard age conditions for retirement; and
  • the employee fulfilled the minimum contributory period

In a recent decision, the Romanian Constitutional Court held that although the standard age conditions for retirement are differentiated by gender due to social and economic reasons, such reasons are not justified when they prejudice the right to work.

The Court decided on an identical treatment, meaning that if the female employee meets the two conditions above-mentioned, her employment agreement does not terminate by operation of law and she has the option to either a) continue her employment relation until she reaches the legal male age for retirement or b) terminate her employment relation and benefit from the retirement rights.

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