The Romanian Labour Code stipulates the notice periods required when an employment contract is terminated.

Notice Periods Initiated by the Employer

The statutory minimum notice period is 20 working days, as per the Labour Code, Art.75. Individual or collective agreements may stipulate longer notice periods, but these cannot be less than the mandated statutory minimum. Notice periods do not apply if an employee is dismissed for serious misconduct or during their probationary period due to professional inadequacy.

Notice Periods Initiated by the Employee (Resignation)

For standard positions, employees must provide a maximum of 20 working days' notice, according to the Labour Code, Art.81. For management roles, employees must provide a maximum of 45 working days' notice, as per the same article.

Key Considerations

Notice periods are calculated in working days, excluding weekends and public holidays. Parties may mutually agree to a shorter notice period than legally mandated. Regardless of who initiates the termination, the notice must be in written form.

Important Notes

Special regulations apply in cases of collective redundancies. Notice periods during probationary periods may be shorter depending on the contract and the reason for termination, as per the Labour Code, Art. 31.

In Romania, there is no universal statutory right to severance pay upon the termination of an employment contract. However, there are certain exceptions where severance pay might apply.

Exceptions

Employees who are dismissed due to company restructuring, reorganization, or relocation may be entitled to severance pay. The amount and terms are usually determined by collective bargaining agreements or individual employment contracts (Labour Code, Art. 65).

If an employee's contract is terminated due to a medical condition that prevents them from continuing their work, they may be entitled to severance pay (Labour Code, Art. 61).

An employee terminated upon reaching retirement eligibility may be entitled to severance pay (Labour Code, Art. 61).

Regulation of Severance Pay

Severance pay provisions are often established in collective bargaining agreements (CBAs). These agreements are negotiated between trade unions and employers or employer associations.

Individual employment contracts may also include severance pay clauses and specific terms.

Additional Information

Even when severance pay is granted, Romanian law does not set a mandatory minimum amount. Severance pay entitlements, if they exist, are largely determined through negotiation within the framework of collective bargaining agreements or individual contracts.

Termination of employment contracts in Romania can occur in several ways. Both the employer and employee can mutually agree to terminate the contract at any time, as per the Labour Code, Article 55. No prior notice period is required in this scenario.

Termination Initiated by the Employer

The employer must provide valid grounds for termination. These include serious or repeated breaches of work obligations, professional incompetence, and situations like restructuring that lead to eliminating the employee's position. All these require either a disciplinary investigation procedure or a prior performance evaluation.

The employer must also provide a written notice of termination, which includes the reasons for termination and information on the right to challenge the dismissal in court, as per the Labour Code, Article 76.

Termination Initiated by the Employee (Resignation)

Employees typically must provide a written resignation specifying a termination date.

Special Considerations

Special procedures apply to collective dismissals. Employees in certain categories have additional termination protections, such as pregnant women, trade union members, and employee representatives, as per the Labour Code, Article 60.