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Termination of Employment Contracts in Romania

Grounds for termination

Under Romanian law, the employment contract may terminate de jure, by mutual consent or by notice given by one of the two parties.

The grounds for dismissal must be real and serious and there are two types of valid grounds: (i) Subjective Grounds; and (ii) Economic Grounds.

2. Collective Dismissals

When the employer intends a collective redundancy, it shall initiate, in reasonable time and with a view to reaching an agreement, under the terms provided by the law, consultations with the trade union or, as the case may be, with the representatives of the employees. Also, the employer shall notify in writing the Territorial Labor Inspectorate and the local public employment office, at least 30 calendar days before issuing the dismissal decisions.

3. Termination Agreement

In all cases, the employer must issue the dismissal decision within 30 calendar days since the date the employer acknowledged the cause of the dismissal.

4. Unfair Dismissal

The law provides several time limits for the challenge of the unfair dismissal before court.

Employees who consider that they are unfairly dismissed can challenge their dismissals before the Employment Tribunal. If the judges find the dismissals unfair, they may grant compensations representing the equivalent of the salary rights from the moment of the dismissal until the moment of the Tribunal’s decision or the moment of reinstatement.

For more information on these articles or any other issues involving labour and employment matters in Romania, please contact Magda Volonciu and Associates
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