|GH 2017 Romania|
A clear understanding of the distinction between the legal notions of Contractor and Employee is important in order to ensure that the right tax regime is applied to the two distinct legal relationships under the Romanian Law, but also in order to establish what type of benefits an individual is entitled to, or the type of protection that an individual can legally claim. In Romania the distinction has its roots in the Fiscal Code that was the first normative act that recognized the need for providing legal guidelines in determining what type of legal relationship an individual receives income from.
The possibility of re-characterization of a legal relationship, as being an employment relationship, has been recognized by Romanian courts. Individuals have claimed that they performed activity that should be considered as employment and national courts have recognized the existence of employment relationships even in the absence of employment contracts.