Assistance with drawing up, amending and terminating employment contracts in Romania

The individual employment contract is the primary legal document that establishes the relationship between employer and employee. Drafting and managing it must strictly comply with the Labor Code and related legislation to avoid the risk of penalties, litigation, and financial losses.

We provide specialized consultancy for both employers and employees in drafting and implementing legally compliant employment contracts, as well as legal assistance for contract modifications or termination.

1. Drafting the Individual Employment Contract – Preventing Legal Risks in Romania

According to Article 16(1) of the Labor Code, an individual employment contract must be concluded in writing before the employee starts work. Failure to comply with this obligation may result in a fine of up to 20,000 RON for each person found working without a formal contract.

Thus, if an employer allows an employee to start work without a signed contract, and a dispute arises (e.g., unpaid wages or refusal to comply with work schedules), the employer will not have legal proof of the agreed conditions, which may lead to costly litigation.

Additionally, a poorly drafted contract that lacks all essential clauses required by Article 17(3) of the Labor Code may create uncertainties and disputes. Common omissions include:

• Failure to clearly describe the job role and responsibilities – allowing the employee to refuse certain tasks on the grounds that they were not contractually specified.
• Incorrect regulation of contract duration – if it is not explicitly stated as a fixed-term contract, it is automatically considered indefinite, potentially preventing its termination at the employer’s desired time.
• Omission of a non-compete clause – enabling a former employee to immediately work for a direct competitor, harming the company’s economic interests.

Our services ensure that all these aspects are properly addressed in the contract, offering legal protection for both employers and employees.

2. Modifying the Individual Employment Contract – Procedures and Legal Implications in Romania

To protect employee rights, according to Article 41 of the Labor Code, any changes to essential elements of the contract can be made only with mutual agreement, with certain legally specified exceptions. Key elements subject to modification include the employee’s job role and responsibilities, workplace, contract duration, working hours and rest periods, salary and wage-related rights, and working conditions.

Once the elements requiring modification are identified, the employer and employee must reach a consensus, as any change must be agreed upon by both parties and formalized through an addendum to the individual employment contract, which must be signed before the modification takes effect.

However, certain situations allow the employer to unilaterally modify the contract without the employee’s consent. The Labor Code permits employers to temporarily delegate or second employees without fundamentally altering the employment relationship. Additionally, temporary changes to job location or responsibilities may be made in exceptional cases such as force majeure, necessity, or for the employee’s health and safety. Business reorganization may also justify unilateral changes, provided that employee rights are respected.

To be legally valid, contract modifications must be recorded in the Revisal (General Register of Employees) and submitted to the Territorial Labor Inspectorate within the legally required timeframe.

3. Termination of the Individual Employment Contract in Romania

An individual employment contract may terminate under various circumstances, each with specific legal implications for both employer and employee. It may end automatically due to retirement, expiration of a fixed-term contract, or the employee’s death. In such cases, the employer must prepare the necessary documentation and register the termination in Revisal. Alternatively, the contract may be terminated by mutual agreement, where both employer and employee consent to ending the employment relationship, possibly with agreed compensation.

However, the most common source of legal disputes arises when the contract is unilaterally terminated by either party. Firstly, resignation allows the employee to voluntarily leave their job, provided they observe the notice period specified in the contract or law. The employer cannot prevent this and must formally acknowledge the resignation. Secondly, termination may occur through dismissal initiated by the employer, which must be justified and follow the legally required procedure. If not, the employee may challenge the decision in court, and the employer may be required to reinstate the employee and pay damages for lost wages during litigation.

Given the legal implications of employment termination, both employees and employers should seek legal consultation. For employees, this ensures they do not unknowingly forfeit their rights or accept unfair terms under pressure. For employers, legal guidance ensures compliance with regulations, preventing wrongful dismissal claims that could lead to costly court rulings.

Why Choose Blaj Law?

With our expertise in labor law, we offer comprehensive legal assistance to mitigate risks related to drafting, modifying, or terminating employment contracts.

Whether you are an employer or an employee, our legal services ensure full compliance with current regulations, helping you avoid penalties, disputes, and financial losses.