Terminating Employment in Romania: A Practical Guide for International Employers

Romania's employment termination framework requires careful navigation to ensure legal compliance. The Romanian Labor Code outlines specific procedures that employers must follow when ending employment relationships, with distinct categories for termination reasons and corresponding obligations.

Valid Grounds for Dismissal

Romanian law recognizes two primary categories of legitimate dismissal reasons:

Employee-Related Grounds

Employers may terminate employment for reasons directly attributable to the employee, including:

Serious or repeated violations of workplace discipline
Preventive arrest or house arrest exceeding 30 days
Medical incapacity preventing job performance
Professional incompetence for the assigned role

Employers must issue written dismissal decisions within 30 days of identifying the cause, detailing appeal procedures and relevant courts.

Objective Business Reasons

Terminations may occur due to business restructuring, position elimination, or economic constraints unrelated to employee performance.

Collective Dismissal Procedures

Romanian law establishes specific thresholds for collective dismissals:

Company Size	Minimum Employees Affected
20-100 employees	At least 10 employees
100-300 employees	At least 10% of workforce
300+ employees	Minimum 30 employees

Collective dismissals require extensive consultation with employee representatives and advance notification to labor authorities. For example, a manufacturing company reducing its workforce must provide detailed justification and explore alternatives before proceeding.

Notice Period Requirements

Romanian employment law mandates minimum notice periods:

Standard positions: 20 working days minimum
Managerial roles: 45 working days
Probationary employees: No notice required

Severance Pay Obligations

Severance payments typically apply in cases of company closure, relocation, or redundancy situations. The standard minimum is one month's salary, though collective agreements may specify higher amounts.

Protected Employment Situations

Romanian law prohibits termination during specific protected periods:

Medical leave with valid certification
Pregnancy and maternity leave
Parental leave for children under 2 years (3 years for disabled children)
Caregiving for ill children under 7 (or disabled children under 18)

Discriminatory dismissals based on gender, age, religion, or union activity are strictly prohibited and may result in reinstatement orders.

Romanian Unemployment Benefits System

Romania's unemployment system provides support for eligible workers meeting specific criteria:

Eligibility Requirements

Legal residence in Romania
Involuntary unemployment status
Registration with local employment agency
Minimum 12 months of unemployment insurance contributions
Application within 12 months of employment termination

Benefit Duration and Calculation

Unemployment benefits are calculated based on contribution history and reference social indicators:

Contribution Period	Benefit Duration
1+ years	6 months
5+ years	9 months
10+ years	12 months

Recent graduates may receive 6 months of benefits if unemployed within 60 days of graduation.

Best Practices for International Employers

Companies like SailGlobal recommend developing comprehensive termination protocols that include documented performance reviews, clear communication channels, and legal compliance checks. Proper documentation and procedural fairness significantly reduce legal risks in cross-border employment terminations.

Romania Employment Termination Guide: Dismissal Procedures & Legal Requirements