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viy2008 iecee'08
 
Labour Regulations and Employment Standards Romania
By courtesy of the KPMG
 
  Labour Regulations and Employment Standards
  Employment documentation
  Employment Standards
  Termination of Individual Labour Contracts
  Employee's Protective Measures in Case of Collective layoffs
  Collective Bargaining Agreements and Trade Unions
  Labour Disputes
  Social Contributions

 

Labour Relations and Employment Standards

The relationships between employers and employees are governed by the provisions of the Labour Code and of the collective bargaining agreements concluded at national level on an annual basis. In addition, there are other labour regulations on specific issues such as work protection, holidays, working hours, social security system, unions and other areas.

 

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Employment documentation

Employment agreements
Generally, work is performed in Romania under individual labour contracts. These agreements usually contain clauses setting forth duties, work hours, overtime (if applicable), benefits, holiday entitlement etc. The contract also stipulates the base salary and any guaranteed bonuses or incentives.

According to Law 130/1999, individual labour contracts must be registered with the Labour Chamber within 20 working days of their conclusion. If the employer does not comply with this legal obligation, the fines charged range from ROL 30,000,000 to ROL 60,000,000.

Private companies frequently pay their employees the ROL equivalent of a gross or net hard currency amount. This means that the gross ROL salary, as indicated in the labour contract, may vary on a monthly basis, depending on fluctuations in the exchange rate.

Civil services agreements
Civil services agreements can be concluded only for those working up to an average of 3 hours per day and are governed by civil, rather than labour, legislation. This type of contract benefits the employer, to the effect that the employer has the possibility to terminate the contract in an informal manner and be exonerated from the obligation to pay certain social contributions. However, the applicability of such agreements is being restricted.

According to Law 130/1999, as subsequently amended (Government Decision no. 238/2002) such contracts also have to be recorded with the competent Labour Chamber, within 20 working days of their conclusion.

Work Books (employment history record)
All employees must have a workbook. The workbook is both an official and a personal document, attesting the holder's overall seniority, seniority within the same company, seniority in a certain position, the period of time during which the employee carried out work under special work conditions, employment salary and all the rights related to the salary earned during his/her activity, the civil status, professional qualifications and studies.

Employees' workbooks are kept and filled in by the general directorates for work and social protection. Upon request by the employers who have the capability to keep and fill in the employees' workbooks, the general directorates for work and social protection can approve that these operations be performed by the employers or by specialised companies, certified according to the legal provisions in force.

Work Permits
A work permit is a document which enables foreigners to work with a Romanian natural or legal person under an individual labour contract. The work permit is issued on behalf of the company for a six-month period and can be renewed. However, if a foreign employee is transferred to another company, a new work permit is required.

The documents required to obtain a work permit include a formal application, original diplomas, medical certificate, police report indicating no criminal record for the applicant, and numerous other formal documents. Once the filing formalities have been completed, the application for a work permit is normally approved.

 

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Employment Standards

The employees' minimum labour rights, i.e. working hours, minimum wages, statutory holidays, paid vacations and paid maternity leave are governed by the applicable Romanian legislation.

A working day is generally 8 hours. With regard to top executive positions, overtime payments are unusual.

Since 1st March 2002, the minimum gross base salary has been ROL 1,800,000 per month.

There are 7 legal holidays, although additional holidays can be legally provided on a yearly basis (e.g. the Monday after Christmas, if the statutory holiday falls on a weekend). Legal holidays include January 1, 2, May 1, Easter Monday, December 1, December 25 and 26.

Full-time employees over the age of 18 must be granted a minimum of 21 days paid holiday per year.

 

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Termination of individual labour contracts

According to the Romanian Labour Code, labour contracts can be terminated only in cases specifically provided by the law. The provisions of the Labour Code governing labour contracts restrict the contractual freedom of parties in certain cases, e.g. termination of the agreement at the employer's initiative.

However, if the individual labour contract is terminated at the employer's initiative due to reasons non-imputable to the employee, employers are required to give the relevant employee a minimum 20-workday prior notice (or payment in lieu of notice). In some circumstances, the employer may also be obliged to give the employee additional severance pay.

 

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Employees' protective measures in case of collective layoffs

The Labour Code, as well the collective bargaining agreement concluded at national level, provide for some specific measures aimed at protecting employees whose individual labour contracts are terminated due to collective layoffs. Moreover, Government Emergency Ordinance 98/1999, as subsequently amended, enacts social protection measures in favour of the personnel dismissed pursuant to mass redundancies caused by the company's restructuring, reorganisation under the provisions of Law 64/1995, temporary suspension of activities, privatisation, liquidation/bankruptcy.

Under Government Emergency Ordinance 98/1999, the compensation to be paid to the dismissed employees will be granted by the State Treasury. Currently, the State Treasury covers only compensation to be paid to employees dismissed by a limited number of companies included in the RICOP Program.

 

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Collective Bargaining Agreements and Trade Unions

Companies with more than 20 employees have to negotiate collective bargaining agreements with their employees on an annual basis. Collective bargaining agreements can be also concluded at different levels (e.g. national level, economic branch level etc.).

Usually, collective bargaining agreements set forth the mutual obligations and rights relative to the following issues:

salaries;
working conditions;
social security provisions;
dispute settlement mechanisms;
protection of trade union leaders; and
miscellaneous rights and obligations of employers and employees.

The collective bargaining agreement also focuses on other benefits, such as canteen meals and employee events. Additionally, collective bargaining agreements concluded at company level must comply with the overall national structure of salary agreements in the relevant sector.

A collective bargaining agreement is generally concluded for a one-year period or more. Upon cessation of the agreement, the parties may decide to extend the agreement duration with slight amendments thereto, or may work out an entirely different arrangement. Collective agreements are always concluded in written form and are registered with the local labour authorities.

Trade unions in Romania are either based on the labour union concept (organised in relation to industry or employer) or craft unions (organised in relation to job classification).

 

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Labour disputes

Law 168/1999 provides for the procedure to be followed in labour disputes.

According to this law, labour disputes are now divided into conflicts of interest and conflicts of rights.

The procedure for solving the conflicts of interest covers three steps as follows:

when the conflict of interest has been openly declared, conciliation procedures are initiated by a representative of the Ministry of Labour and Social Protection;
if such conciliation has failed, mediation can be sought subject to the parties' mutual agreement
arbitration can be resorted to at any moment during a conflict of interests by the parties' mutual agreement.

The first step is compulsory, while the other two are left at the parties' discretion.

The strike (defined as a collective and voluntary cessation of work), can be declared only during a conflict of interest and only after the procedures for settling the conflict of interest have been used and failed. According to the law, there are 3 types of strike: warning strike, proper strike and solidarity strike.

Conflicts of rights will be settled by the competent courts, which are to be established by law. The employees' requests are judged under a special emergency procedure.

 

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Social contributions

The components of social security costs, in accordance with Romanian legislation, are outlined below.

Social security
According to the provisions of Pensions Law 19/2000, as subsequently amended, the contribution to the social security fund is 35%, 40% or 45% of the salary fund. Starting January 2003, employees shall pay 9.5% of their gross salary as social contribution.

Social Health Insurance Fund
The current contribution to the health fund is due both by the employer and the employee. According to Law 145/1997 regarding Social Health Insurance, as subsequently amended, employers shall pay a contribution representing 7% of the total gross salaries paid to the employees working under an individual labour contract and to the employees working under a civil agreement. Employees shall pay a contribution representing 6.5% of the gross salary.

Unemployment Benefit Fund
The Romanian government administers a national unemployment benefit plan which provides short-term benefits for employees made redundant. Employers contribute 3.5% of total monthly gross salaries fund and employees contribute 1% of their monthly gross base salary. Employers are required to collect employee contributions and remit them to the State fund on behalf of the employees.

Territorial Work Inspectorate
The commission paid by employers to the Territorial Work Inspectorates is 0.75% of the monthly gross payroll if the employees' work books are kept by the local inspectorates and 0.25% if the employers have been granted approval to keep the work books in the company.

Work Related Accidents and Occupational Diseases Insurance Fund
Law no. 346/2002 recently instituted a system aimed at covering the risks of loss/diminution of work capacity or death associated to work-related injuries and occupational diseases.

The insurance contributions due by the employers or individuals (optional insurance) shall be set in relation to tariffs and risk categories so as to cover (i) cost of services rendered; (ii) expenses incurred for prevention of work-related accidents and illness; (iii) administrative expenses.

The contribution quotas due by employers will range between 0.5% and 4% of the gross salary fund, depending on risk category.

The contribution due by individuals is common to all the insured, regardless of their activity, and will range between 0.5% and 1% of the monthly insured income.

The law shall come into effect on 1 January 2004, except for the provisions regarding the creation of the initial insurance fund, which will come into effect on 1 January 2003. Over the period between 1 January 2003 and 1 January 2004, employers shall owe a flat contribution of 0.5% of the salary fund, exclusively dedicated to the financing of the National Fund activity and the creation of the initial insurance fund.

 

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Reports


Untuk lebih Jelas mengenai Peraturan Perdagangan di Romania bisa dilihat di Institusi-institusi di bawah ini:

Chamber of Commerce and Industry of Romania
2, Octavian Goga Blvd, Sector 3, Bucharest, Romania,
Tel: (+4021) 319.01.14-18, 319.01.21-23, 319.01.73, 319.01.53, 319.01.57
Fax: (+4021) 319.01.20, 319.01.25;
E-mail:ccir@ccir.ro
Website: www.ccir.ro

Romanian Trade Promotion Center
17, Apollodor Street, POB 1/756 Bucharest 5
Tel: (+4021) 318 50 50
Fax: (+4021) 311 14 91
e-mail: office@traderom.ro
Website: www.traderom.ro

Romanian Agency for Foreign Investment
Address: 22, Primaverii Blvd., District 1, Bucharest
Tel: (+4021) 233 91 03
Fax: (+4021) 233 91 04
e-mail: aris@arisinvest.ro
Website: www.arisinvest.ro

ANEIR, Foreign Trade Promotion Centre SA
25, Unirii Blvd., Bucharest
Tel: (+4021) 335 02 67
Fax: (+4021) 335 02 67
e-mail: aneir-cpce@aneir-cpce.ro
Website: www.aneir-cpce.ro

Untuk penghitungan Tarif Bea Cukai Romania:

http://80.96.3.68:9080/taric/web/main_EN
http://www.customs.ro/
http://ec.europa.eu/taxation_customs/dds/home_en.htm

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