Moldova, Republic of Employment Guide

Navigating Employment Termination in Moldova: Key Requirements

Terminating employment contracts in Moldova requires careful adherence to specific legal frameworks. Once an employee completes their probationary period, employers cannot terminate contracts arbitrarily and must demonstrate valid justification for dismissal.

Legally compliant termination methods include:

• Voluntary resignation by the employee
• Mutual agreement between both parties
• Employer-initiated termination based on:
  • Probationary period assessment
  • Objective business reasons
  • Disciplinary dismissal
  • Performance-related issues
• Contract expiration

Notice Period Regulations

Moldovan labor law mandates a minimum notice period of 30 days, with extensions required depending on termination circumstances.

• Termination due to repeated failure to perform duties: 30 days
• Redundancy-based termination: 60 days

Severance Pay Obligations

Employees terminated without valid cause in Moldova are entitled to severance compensation. The standard calculation provides one week's salary for each year of service, capped at six months' base salary.

To mitigate financial risks associated with employment termination, SailGlobal implements proactive severance accrual mechanisms in all Moldovan employment agreements. Our global expertise in litigation risk management ensures that severance calculations align with both statutory requirements and local best practices. Should employees resign or become ineligible for severance, any unused accrued amounts are fully returned to the client.

Practical Case Example

Consider a multinational company that recently underwent restructuring in Moldova. By implementing SailGlobal's severance accrual system, the organization successfully managed termination costs for 15 affected employees while maintaining full compliance with local regulations. This approach prevented unexpected financial liabilities and preserved the company's reputation in the Moldovan market.