Living and working in Romania

19 Gegužė 2022

Data source: Eurostat

Eurofound provides research, data and analysis on a wide range of social and work-related topics. This information is largely comparative, but also offers country-specific information for each of the EU Member States, which included the UK prior to its withdrawal from the European Union on 31 January 2020. Most information is available in English but some has been translated to facilitate access at national level.

Eurofound strives to strengthen the ongoing link between its own work and national policy debates and priorities related to quality of life and work. Increasingly important in this context are the EU’s policy priorities for a European Green Deal, a digital future, an economy that works for people, promoting and strengthening European democracy. To help repair the economic and social damage caused by the COVID-19 pandemic, the European Commission, the European Parliament and EU leaders have also agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget to help rebuild a post-COVID-19 Europe. 

The European Semester provides a framework for the coordination of economic policies across the EU. It allows Member States to discuss their economic and budget plans and monitor progress at specific times throughout the year. For 2022, the European Semester resumes it broad economic and employment policy coordination, while further adapting in line with the implementation requirements of  the Recovery and Resilience Facility. As part of this, Member States are encouraged to submit national reform programmes and stability/convergence programmes that will set out their economic and fiscal policy plans, as in previous Semester cycles. The main change in the 2022 cycle will be that the national reform programme will play a dual role. Besides its role for the European Semester, it will also fulfil one of the two bi-annual reporting requirements of Member States under the Recovery and Resilience Facility.

 

2015 Eurofound EWCS survey results in Romania: 73% of people receive the recognition they deserve for their work

Living and working in Romania and COVID-19

COVID-19 continues to have a profound impact on people’s lives across the globe, with major implications for quality of life and work. Eurofound has taken a multipronged response to the pandemic, adapting its research focus in a variety of ways. A new database of national-level policy responses, EU PolicyWatch, collates information on measures taken by government and social partners, as well as company practices, aiming to cushion the effects of the crisis. Eurofound's unique e-survey, Living, working and COVID-19, provides an insight into the impact of the pandemic on people’s lives across the EU, with the aim of helping policymakers to bring about an equal recovery from the crisis. Five rounds of the survey have been carried out to date: in April 2020 when most Member States were in lockdown, in July 2020 when society and economies were slowly reopening, in March 2021 as countries dealt again with various levels of lockdown and vaccine rollout, a panel survey in October/November 2021 to track developments since the start of the pandemic, and in March–May 2022, charting the latest developments and looking at how life has changed over the past two years. The survey investigates the impact on quality of life and society, democracy and trust, working and teleworking, the financial situation and security of people, the quality of public services, support measures and vaccinations during COVID-19. Findings for each country and a range of data pages are available.

Explore our data pages by country to find out more on the situation in Romania.

 

The country page gives access to Eurofound's most recent survey data and news, directly related to Romania:

Research carried out prior to the UK’s withdrawal from the European Union on 31 January 2020, and published subsequently, may include data relating to the 28 EU Member States. Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise.

Survey results

Ability to choose or change
methods of work

Data source: 2015 EWCS survey

Possibility to accumulate overtime
for days off

Data source: 2013 ECS survey

Recent developments

Eurofound contacts in Romania

Correspondents in Romania

Correspondents report on topics related to developments in the country's working life and inform Eurofound’s pan-European comparative analysis. Read more

Consortium Syndex Consulting SRL & Association Center for Public Innovation (Asociația Centrul pentru Inovare Publică) 

Eurofound Management Board members form Romania

Eurofound's Management Board is made up of representatives of the social partners and national governments of all Member States, European Commission representatives and an independent expert appointed by the European Parliament. Read more

Ioan Cristinel Raileanu Ministry of Labour, Family and Social Protection

Diana Pasat General Union of Romanian Industrialists

Sabin Rusu Democratic Trade Union Confederation of Romania (CSDR)

Related content

Other country-specific information may be available in certain areas on demand. Please feel free to contact your country contact at Eurofound for this or any other information at information@eurofound.europa.eu

Living in Romania

Quality of life

Quality of life

Eurofound’s European Quality of Life Survey (EQLS) shows that the share of respondents reporting difficulties in making ends meet has decreased in Romania from 77% in 2003 to 66% in 2016. However, this is still significantly higher than the respective EU28 average of 39% in 2016.

The share of respondents reporting that they feel free to decide how to live their lives has decreased in Romania from 41% in 2011 to 33% in 2016. Nevertheless, the share is still higher than the EU average of 26% in 2016.

Other indicators shown below about quality of life in Romania have remained fairly stable in recent years, although often slightly below their EU28 averages.

  2003200720112016
Life satisfactionMean (1-10)6.16.56.76.5
Taking all things together on a scale of 1 to 10, how happy would you say you are?Mean (1-10)7.27.07.07.0
Optimism about own futureAgree & strongly agree---63%
Optimism about children’s or grandchildren’s futureAgree & strongly agree---63%
Take part in sports or physical exerciseAt least once a week--15%14%
In general, how is your health?Very good-14%15%18%
WHO-5 mental wellbeing indexMean (1-100)-545762
Making ends meetWith some difficulty, difficulty, and great difficulty77%69%72%66%
I feel I am free to decide how to live my lifeStrongly agree--41%33%
I find it difficult to deal with important problems that come up in my lifeAgree & strongly agree---36%
When things go wrong in my life, it generally takes me a long time to get back to normalAgree & strongly agree---33%

 

Work-life balance

Work-life balance

Work–life balance related problems are relatively more frequent in Romania than on average in the EU. For instance, in 2016, 67% of respondents in Romania were too tired from work to do household jobs at least several times a month, compared with 59% for the EU28. Furthermore, in 2016, 52% of respondents in Romania experienced difficulties to fulfil family responsibilities because of work at least several times a month, which was significantly higher than the EU average of 38%. The least common work–life balance problem was having difficulties to concentrate at work because of family responsibilities, reported by 36% of respondents in Romania in 2016, which was also much higher than the EU28 average of 19%. When looking at the gender-specific breakdowns, it can be observed that men in Romania report work–life balance problems more often than women.

  2003200720112016
(At least several times a month)   
I have come home from work too tired to do some of the household jobs which need to be doneTotal66%65%61%67%
Men63%69%59%72%
Women71%59%63%60%
      
It has been difficult for me to fulfil my family responsibilities because of the amount of time I spend on the jobTotal37%47%38%52%
Men38%50%33%54%
Women35%43%44%50%
      
I have found it difficult to concentrate at work because of my family responsibilitiesTotal11%17%16%36%
Men11%15%13%42%
Women10%20%20%28%

Quality of society

Quality of society

The Social Exclusion Index has improved in Romania from 2.6 in 2007 to 2.3 in 2016 (on a scale of 1–5, where a higher value means a higher incidence of social exclusion). However, it is still higher than the EU28 average of 2.1 in 2016. Similarly, perceived tensions between poor and rich people have decreased, from 48% of respondents reporting a lot of tension in 2011 to 40% in 2016.

Trust in people has decreased in Romania in recent years, from 5.4 in 2007 to 4.8 in 2016, falling below the EU28 average of 5.2 in 2016 (on a scale of 1–10).

  2003200720112016
Social exclusion indexMean (1-5)-2.62.42.3
Trust in peopleMean (1-10)5.45.55.04.8
Involvement in unpaid voluntary work% 'at least once a month'--3%3%
Tension between poor and rich people% reporting 'a lot of tension'52%37%48%40%
Tension between different racial and ethnic groups% reporting 'a lot of tension'32%30%33%27%
I feel safe when I walk alone after darkStrongly agree---42%

Quality of public services 

Quality of public services 

Quality ratings for seven public services

Note: scale of 1-10, Source: EQLS 2016.

The perceived quality of several public services has increased in Romania since 2011. For instance, the perceived quality of health services has increased from 4.7 in 2011 to 5.9 in 2016 (on a scale of 1–10). Similarly, the perceived quality of the education system, childcare services, long-term care services and social housing has increased almost 1 point during the same time period. This implies that, even though the perceived quality of public services is lower in Romania than on average in the EU, the quality ratings are making progress towards their EU28 averages.
 

  2003200720112016
Health servicesMean (1-10)5.65.54.75.9
Education systemMean (1-10)6.65.95.36.2
Public transportMean (1-10)6.36.36.26.5
Childcare servicesMean (1-10)-5.35.05.9
Long-term care servicesMean (1-10)--4.65.5
Social housingMean (1-10)--4.15.0
State pension systemMean (1-10)5.34.24.04.7

Working life in Romania

About

  • Autorius: Victoria Stoiciu
  • Institution: European Institute of Romania (IER)
  • Published on: Ketvirtadienis, Rugpjūtis 12, 2021

This profile describes the key characteristics of working life in Romania. It aims to complement other EurWORK research by providing the relevant background information on the structures, institutions and relevant regulations regarding working life. This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are updated annually.

 

Highlights – Working life in 2021

Highlights – Working life in 2021

Authors: Valentina Vasile, Cristina Boboc, Simona Ghiță, Alexandra Deliu
Institution: European Institute of Romania
Highlights updated on: 19 May 2022
Working paper: Romania: Working life in the COVID-19 pandemic 2021

The most significant development in the labour market in Romania in 2021 was the partial and gradual resumption of economic and social, cultural and sports activities during the relaxed periods between pandemic waves. But 2021 was characterised by a turbulent political context, resulting in the transfer of power between centre–right to left–right political coalition. The measures adopted to manage the pandemic and its effects on the economy were a matter for political dispute throughout the year. Moreover, according to many observers, politics and the media sent confusing, often contradictory messages and the sanctions for noncompliance were modest, discouraging vaccination and the observance of protective measures by the general population and businesses alike.

The measures adopted to help businesses to stay afloat in the pandemic were mainly of a financial nature, consisting of micro-grants or working capital grants to SMEs that had difficulties carrying out their activities during the pandemic. Another category of measures concerned employees and work organisation, adapting legislation on flexible work forms (such as teleworking), in order to simplify it and introduce the possibility of providing financial support for teleworkers. However, the current legislative framework in Romania does not support the training of employers or employees for the new post-COVID work model, including the adaption to telework.

The pandemic accentuated existing labour shortages, with the highest vacancy rates in the first three quarters of 2021 registered in the following sectors: Public administration and defence, compulsory social security, arts, entertainment and recreation, and human health and social work activities.

The measures for ensuring health and safety at work in 2020 were maintained in 2021 during the state of alert. Employers have tried to keep their businesses open and limit the spread of the COVID-19 infection, especially in the context of a slow vaccination campaign that has not been very successful among the population. There were attempts to impose an obligation to present the COVID-19 certificate at the workplace but in the end this measure was abandoned.

Although in the first 10 months of 2021 the average gross monthly earnings at country level have increased compared to the same months of the previous year, these increases were offset by inflation, which recorded significant increases especially in the second half of the year. There were, however, some areas of activity – such as IT – in which wages increased significantly. In the private sector, the gross monthly average salary was about 40% higher than in the public sector. Regarding the gross minimum wage level, it has registered an increase of RON100, compared to the previous level.

The social dialogue activity was quite restricted and sporadic in 2021, taking the form of some formal consultations of the social partners within the meetings of the social dialogue committees, the Economic and Social Council and the Tripartite National Council for Social Dialogue and at the level of the Ministry of Labour and Social Protection or the Government. There is still dissatisfaction expressed by trade unions regarding the current form of the social dialogue law, which is under revision.

The recovery of the Romanian economy is associated with a growing foreign trade deficit, rising external debt and cost inflation. The trap of low incomes associated with rising inflation has put pressure on the business environment to maintain the purchasing power of earnings from work.

One of the most worrying realities is that after two years of pandemic, the Romanian labour market has not developed the tools for recovery and adaptation to post-COVID working conditions.

Key figures

Key figures

Comparative figures on working life in Romania

 

2019

2020

% (point) change 2012 –2019

% (point) change 2019 –2020

 

Romania

EU27

Romania

EU27

Romania

EU27

Romania

EU27

GDP per capita

9,110

27,970

8,780

26,230

40.2%

11.5%

-3.6%

-6.2%

Unemployment rate – total

3.9

6.7

5

7.1

-2.9 pp

-4.1

1.1

0.4

Unemployment rate – women

3.4

7

4.7

7.3

-2.7

-4.0

1.3

0.3

Unemployment rate – men

4.3

6.4

5.3

6.8

-3.1

-4.3

1.0

0.4

Unemployment rate – youth

16.8

15

17.3

16.8

-5.8

-8.7

0.5

1.8

Employment rate – total

68.6

73.4

69.2

72.9

3.8

2.4

0.6

-0.5

Employment rate – women

58.9

67.9

59.3

67.5

2.5

3.0

0.4

-0.4

Employment rate – men

78

79

78.7

78.3

4.8

1.8

0.7

-0.7

Employment rate – youth

29.6

39.4

29.7

37.9

-0.9

-0.4

0.1

-1.5

Source: Eurostat – Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012–2020 (both based on sdg_08_10). Unemployment rate by sex and age – annual average (15–74 years, % active population) and youth (15–24 years) % [une_rt_a]; Employment rate by sex and age – annual average (15–64 years, unit % total population, employment indicator active population) % [lfsi_emp_a].

Background

Background

Economic and labour market context

Between 2012 and 2019, there was a substantial increase in GDP (by 40.2%), while the EU27 average increase was much lower (11.5). During this time, unemployment rates for all categories decreased slightly, and total unemployment in 2019 was 3.9%, below the EU average of 6.7%. Overall employment rate increased by 3.8 percentage points (p.p) over seven years, reaching 68.6% in 2019. The highest growth rate was registered for male employment – 7p.p, more than female employment (4pp) and then EU average for male employment (4.8pp). The COVID-19 pandemic reversed this trend: in 2020, the GDP declined by 3.6% compared to 2019. The labour market was also affected – in the first three quarters of 2020, the number of employed persons declined by 185,000 compared to the third quarter of 2019 – in Q-3 2020 the overall employment represented only 97% of the employment in Q-3 2019. The unemployment reached 5.2 in the third quarter of 2020, as compared to 3.8% in the third quarter of 2019.

More information on:

Legal context

The main law in the field of labour legislation is the Labour Code 53/2005, modified in 2011 in the sense of a higher flexibility in labour relations.

Since 2011, the Labour Code was amended several times. In August 2017, in an attempt to fight undeclared work, the Government amended the Labour Code to include definitions of working situations to be considered as undeclared work. According to the new provisions, undeclared work is defined as employing a person without submitting an employment report to the General Register of Employees no later than the day before the start of the activity; employing a person without an individual employment contract in written form, the day before the start of the activity; employing a person when their individual employment contract is suspended; employing a person outside of part-time working hours. The work of an employee outside the work schedule established under the individual part-time employment contracts has ceased to be sanctioned as a mere failure to comply with the provisions on overtime (sanctioned with a fine of RON 1,500 to RON 3,000), but has become a situation of undeclared work (sanctioned with a fine of RON 10,000).

Starting in August 2017, each employer is obliged to keep a copy of the individual employment contract for employees in the respective workplace. The civil fine for failure to comply with this legal provision is RON 10,000 (EUR2,200).

In 2011, a new Social Dialogue Law (62/2011) abolished national collective bargaining, which implied a unique national collective agreement. Currently, collective bargaining is allowed only at company and at sectoral level. The Social Dialogue Law outlines the conditions for creating a trade union or employers’ organisation, the representativeness criteria for employers’ organisations and trade unions, and the functioning of social dialogue in Romania.

A new social dialogue bill, bringing substantial amendments to the current Social Dialogue Act entered parliamentary debate in the fall of 2018. The draft law provides for lowering the number of employees needed for setting up a trade union (from 15 to 3), makes collective bargaining compulsory in companies with minimum 10 employees and prescribes new mechanisms for starting and solving the collective labour disputes. Following the debates in the Committee for Labour, Family and Social Protection of the Senate, the trade union organisations managed to negotiate and bring other significant amendment to the draft law that facilitate the collective bargaining and social dialogue at company and sectorial level. The bill was rejected by the Senate at the end of November and sent to the Chamber of Deputies in 2019,. In 2020, the bill was debated with social partners in the Committee for Labour and Social Protection of the Chamber of Deputies but was not sent to plenary for vote. The change in parliamentary majority following the general elections in December 2020 diminish the chances that the bill will receive a positive vote in 2021.

The law which provides that the living wage (monthly consumption basket for decent living) is the main criteria in setting the minimum wage became effective in August 2020. The addendum of the law provides a structure with categories of monthly expenditure of a household. However, in the process of setting the minimum wage for 2021, the Government did not apply the law, despite the criticism of the trade unions.

Industrial relations context

Social dialogue in Romania only became effective after the country’s transition to democracy in 1989. Before 1989, although trade unions were legally allowed, in practice they functioned as an annex to the Communist Party and the state. After 1989, the privatisation of state-owned companies put the jobs of thousands of workers in jeopardy, resulting in a rather conflict-driven type of industrial relations. Despite their opposition to it, the trade unions did not obstruct the privatisation process. The restructuring and privatisation led to a massive decline in trade union membership. Once the transition period and the deindustrialisation process came to an end, industrial relations became more consensus oriented. Collective bargaining legally allowed at all levels – national, sectoral and company. The national and sectoral trade unions had a stronger negotiation capacity than the company-level unions, which often lacked the know-how and human resources. These circumstances led to the situation in which the national and branch collective agreements were decisive for the negotiations of wages at the company level.

In 2011, social dialogue legislation was changed, resulting in a new law (62/2011) that abolished national collective bargaining and made sectoral bargaining almost impossible. The abolition of national-level collective bargaining left approximately 1.2 million employees uncovered – those working in 450,000 companies with less than 21 employees because for these companies collective bargaining is not compulsory by law. Collective bargaining at company level became more important in this context, but company-level trade unions still struggle against a lack of adequate expertise and the high representativeness criteria imposed by law. According to the data from the Labour Inspection, in 2017 more than 85% of the collective agreements concluded at company level were concluded by representatives of employees, not by trade unions. In 2020, the number of active collective agreements was 16.600, covering 2.113,237 employees, according to the data of the Labour Inspection. This indicates a declining trend compared to 2019, when the number of active collective agreements was 17827, covering 2.357,957 employees; however, compared to 2016, when there were only 7709 active collective agreements, covering 965,336 employees, the situation of collective bargaining in 2020 shows a positive trend.

The COVID-19 pandemic and especially the state of emergency in the second quarter of 2020 had a negative impact on social dialogue and industrial relations. During the state of emergency, a series of legal provisions (military ordinances), affecting labour market, employees etc, have entered into force without the prior consultation of social partners. The right to strike was also suspended during the state of emergency. After the state of emergency has ended, the social dialogue has slowly recovered, many of the consultations and collective bargaining taking place online.

Actors and institutions

Actors and institutions

Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Romania.

Public authorities involved in regulating working life

In Romania, the public authority and institutions active in the industrial relations area are detailed below.

The National Tripartite Council for Social Dialogue (Consiliul National Tripartit pentru Dialog Social, CNTDS) is a national-level consultative body that includes trade unions and employers’ organisation representatives as well as representatives of the government, the National Bank and the Economic and Social Council.

The Economic and Social Council (CES) is a national institution, formed by civil society, trade union and employers’ organisation representatives, that must be consulted on any legal changes with implications for the economic, social and fiscal area. In 2017, CES was relaunched, after its activity had been blocked for several years due to unclear legislative provisions.

The Ministry of Labour and Social Justice is the public authority responsible for social protection, employment, labour mobility.

The Ministry of Labour and Social Justice is in charge of the elaboration and application of policies and strategies regarding social inclusion, social protection, employment and the labour market. Several public institutions responsible for working conditions are coordinated by the Ministry of Labour (Labour Inspection, the National Agency for Occupation of the Workforce, the National House of Public Pensions). The National Agency for Occupation of the Workforce (ANOFM) oversees the application of employment strategies and professional training as well as the implementation of social protection for the unemployed.

Labour Inspection supervises and controls the application of the labour legislation by the employers concerning working conditions, health and security at the workplace and other legal provisions.

Although there are no distinct labour courts, work litigation/conflict settlement may be done by initiating judicial action through the regular courts.

When resolving conflicts between an employer and employee, the newly issued Civil Code introduces a mandatory provision requiring the parties to go through a session during which the advantages of the mediation procedure are presented. Upon completion of this informative session, the parties may decide to carry on with the mediation procedure to resolve the conflict or to present their case in court.

The Labour Code and Law 319/2006 provide the legal framework for the area of health and safety at the workplace. The law stipulates the creation of Health and Safety Committees in companies with more than 50 employees. However, the Labour Inspectorate can compel the creation of Health and Safety Committees in companies with fewer than 50 employees if the nature of the activity and the risks associated with the workplace require such a committee. The committees, formed by representatives of employers, workers and labour medicine specialists, coordinate and supervise the application of the health and safety provisions.

The Ministry of Labour and Social Justice is the authority in the field of health and security at the workplace. They are also in charge of elaborating strategies and policies as well as the legislation monitoring and appointing the companies/people that provide prevention and protection services in the field of health and safety at the workplace.

The Ministry of Health is the key authority in the field of public health assistance that elaborates the regulations in the field of health protection at the workplace. The Ministry of Health also supervises workers’ health and is responsible for professional training in the area of occupational health.

The Labour Inspection controls the application of the health and safety at work legislation through implementing programmes regarding professional risks, running investigations and imposing sanctions if need be.

Lastly, the National Institute for Scientific Research within the Labour and Social Protection offers scientific research that substantiates the policy measures in the area of health and safety at work.

Representativeness

A trade union organisation is considered to be representative at national level if the affiliated organisations account for at least 5% of the overall number of employees in the national economy and it has territorial structures in at least 50%+1 of the counties, including the capital, Bucharest. Similarly, an employers’ organisation is considered to be representative if its members account for at least 7% of the overall number of employees at national level and it has territorial structures in 50%+1 of the counties, including Bucharest.

More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.

Trade unions

About trade union representation

The right to join a trade union is limited only to those workers that have an individual work contract, which prevents workers involved in atypical forms of work from joining a trade union. Moreover, Law 62/2011 provides that a trade union may be formed by at least 15 founding members, all employed in the same company, which prevents workers in companies with fewer employees from forming a union (the previous legislation provided that a trade union could be founded by 15 employees from different companies, but in the same profession). According to the most recent data, in 2015 there were 468,374 companies with less than 15 employees, employing over 1 million people and where legislation restricts the creation of a trade union.

People who hold a public function, such as magistrates, people in the military, employees of the Ministry of the Interior and employees of the secret services, cannot form or join a trade union.

Currently, BNS, Cartel Afla, CNSLR Fratia, CSDR and Meridian, the five nationally representative confederations, publish their official documents on the Ministry for Public Consultation and Social Dialogue website. Together, they account for 1.3880,237 members out of 6.505.000 (October 2018) employees, indicating a trade union density of 23%. The ICTWSS database puts union density in Romania at 32% in 2008, while the ILO estimates indicate a union density of 32.2% in 2007. These data might suggest that no significant loss in union density took place after 2011, but there is some difficulty in assessing the accuracy of this estimation, since data are unreliable and often conflicting, depending on the source.

Trade union membership

There seems to by a high variation of trade union density at sectoral level – some sectors, such as public administration, education or health care have a trade union density exceeding 50%, while in manufacturing, clothing and commerce it is much lower. One of the main reason is the high number of companies with less than 15 employees, which cannot be unionised, according to the law – 45% of the commerce sector’s employees and 32,6% of the constructions’ sector employees work in establishments with less than 15 employees, according to some estimates.

Trade union membership and trade union density

 

2015

2016

2017

2018

2019

Source

Trade union density in terms of active employees

n.a.

21.6

n.a.

21.4

n.a

OECD/AIAS ICTWSS Database 2021

Trade union membership in 1000s

n.a.

1340

n.a.

1390

n.a.

OECD/AIAS ICTWSS Database 2021

Achieving representativeness seems to be harder at sectoral level and at company level. Data from the end of 2015 show that representative trade union federations exist in 21 economic sectors, out of 29 economic sectors in total. Large sectors, such as textiles and commerce, that together account for around 1 million employees, do not have representative federations. Research shows that the actual representativeness threshold for some sectors is much higher than the legal one – 13.3% for the commerce sector, 10.4% for construction, 8.7% for IT&C.

Main trade union confederations and federations

There are five national representative confederations in Romania: CNSLR Fratia, CNS Cartel Alfa, BNS, CNS Meridian and CSDR. The number of representative trade union confederations remained unchanged in the last five years. Bellow, we provide the list with the representative trade union confederations and the most important federation (which are the most numerous and are representative at sectoral level)

Main trade union confederations and federations

Long name

Abbreviation

Members*

Involved in collective bargaining

National Trade Unions Confederation ‘Cartel Alfa’ (CNS ‘Cartel Alfa’; Confederaţia Naţională Sindicală ‘Cartel Alfa’)

CNS Cartel Alfa

258,099 (2019)

Not at national level ever since law 62/2011 abolished national collective bargaining. Signed the collective agreement for the healthcare sector on 21 November 2013.

National Confederation of Free Trade Unions from Romania Frăţia (Confederaţia Naţională a Sindicatelor Libere din România Frăţia)

CNSLR Fratia

304,842 (2020)

Not at national level ever since law 62/2011 abolished national collective bargaining. Signed the collective agreement for the healthcare sector on 21 November 2013.

National Trade Union Bloc (Blocul Naţional Sindical)

BNS

259,428 (2019)

Not at national level ever since law 62/2011 abolished national collective bargaining. Signed the collective agreement for the healthcare sector on 21 November 2013.

Meridian National Trade Union Confederation (Confederaţia Sindicală Naţională Meridian)

CSN Meridian

254,280 (2020)

Not at national level ever since law 62/2011 abolished national collective bargaining. Signed the collective agreement for the healthcare sector on 21 November 2013.

Confederation of Democratic Trade Unions in Romania (Confederaţia Sindicatelor Democratice din România)

CSDR

262,663 (2020)

No, law 62/2011 abolished national collective bargaining.

National Federation of Free Unions from Education (Federatia Sindictelor Libere din Invatamant)

FSLI

162,194 (2020)

Yes, signed the collective agreement for the primary education sector on 13 November 2014.

Federation Agrostar (Federatia Arostar)

Agrostar

63,251 members (2017)

Not at sector level

National Trade Union of Police and Contractual Staff of Romania (Sindicatul National al Politistilor si Personalului Contractual din Romania)

FNP

43,975 (2019)

Not at sector level

Trade Union Federation for Romanian Automotive (Federatia Sindicatelor Automobilului Romanesc)

FSAR

21,539 members (2016)

Not at sector level

Federation of Unions of Automotive Manufacturing 'Infratirea' (Federatia Sindicatelor din Con-structii de Masini Infratirea)

“Infratirea”

22,720 members (2020)

Not at sector level

Federatia Sanitas

 

101,248 (2019)

Yes, signed the collective agreement for the health sector on 21 November 2013.

FSI Spiru Haret

 

72,662 (2019)

Yes, signed the collective agreement for the primary education sector on 13 November 2014.

Postal and Communication Trade Union Federation (Federația Sindicatelor din Poștă și Comunicații)

FSPC

18,236 members (2019)

Not at sector level

Federation of Insurance and Banks (Federatia Asigurari si Banci)

FASB

13,000 (2019)

Not at sector level

National Federation of Administration Unions (Federatia Nationala a Sindicatelor din Aministratie)

FNSA

23,542 (2019)

Not at sector level

Federation of Trade Unions Gas-Romania (Federatia Sindicatelor 'Gaz Romania')

FS Gaz Romania

18,000 (2019)

Not at sectoral level

National Federation Railway Movement/Commercial Wagon (Federatia Nationala Feroviara Miscare/ Comercial Vagoane)

FNFMCV

21,862 (2019)

Not at sectoral level

Federation Publisind (Federatia Publisind)

Publisind

28,775 members (2019)

Not at sector level

* estimated figures, based on the representatives files available on the Ministry of Social Dialogue website.

Employers’ organisations

About employers’ representation

The employers can freely form or join an employers’ organisation. An employers’ organisation can be affiliated only to a hierarchically superior employers’ organisation.

The 2011 Social Dialogue Law stipulates that the employers’ organisations that pursue national representativeness must account, through the affiliated companies, for at least 7% of the total workforce in the economy (minus public sector employees). The employer federations must account, through their members, for at least 10% of the total workforce in the respective sector.

The effect of these legal provisions was a drop in the number of nationally representative confederations, from 12 in 2011 to seven in 2020.

In 2020, seven employers’ organisations were acknowledged as representative. Below, we provide the list with the confederations of employers’ organisations representative at national level and the most important federations of employers’ organisations (with the most of members and representative at sectoral level).

Employers’ organisations – membership and density

 

2015

2016

2017

2018

2019

Source

Employers’ organisation density in terms of active employees

n.a.

n.a..

60%.

n.a.

n.a

OECD/AIAS ICTWSS Database 2021

Employers’ organisation density in private sector establishments

n.a

n.a.

n.a.

n.a.

5%

European Company Survey (ECS) 2013/ 2019

Main employers’ organisations and confederations

The Ministry of Labour publishes the documents the representative employers’ confederations.

Main employers’ organisations and confederations

Long name

Abbreviation

Members*

Year

Involved in collective bargaining

Employers’ Confederation Concordia (Confedereatia Patronala Concordia)

Concordia

230, 343

2017

No

General Union of Romanian Industrialists (Uniunea Generala a Industriasilor din România)

UGIR

141,800

2014

No

Confederation of Romanian Employers (Confederatia Patronatului Roman)

CPR

503,359

2019

No

Romanian National Council of Private Small and Medium Enterprises (Consiliul Național al Întreprinderilor Private Mici și Mijlocii din România)

CNIPMMR

327,433

2016

No

Romanian Employers Organisation Confederation (Confederatia Nationala a Patronatului Român)

PNR

262.519

2018

No

Employeers Organisation from Industry, Agriculture, Constructions and Services of Romania (Confederatia Patronala din Industrie, Agricultura, Constructii si Servicii din Romania )

CONPIROM

324, 906

2019

No

Confederation of Unions of Employers’ Organisations-Business Romania (Confederatia Uniunea Patronatelor din Romania – Business Romania)

Business Romania

298, 801*

2019

No

Federation of Employers’ Organisations of Financial Services of Romania (Federatia Patronala a Serviciilor Financiare din Romania)

FPSFR

19,948

2016

Not at sectoral level

Federation of Employers’ Organisations of producers of Agriculture, Food Industry and Connected Services Pro Agro (Federația Națională a Producătorilor din Agricultură, Industria Alimentară și Servicii Conexe din România PRO AGRO)

Pro Agro

51,941

2017

Not at sectoral level

Romanian Association of Entrepreneurs of Building (Asociatia Romana a Antreprenorilor de Constructii)

ARACO

45,266

2018

Not at sectoral level

Federation of Employers’ Organisations of Romanian Tourism (Federatia Patronatelor din Turismul Romanesc)

FPTR

73,752

2019

Not ats ectoral level

Federation of Employers’ Organisations of Construction Companies (Federatia Patronatelor Societatilor din Constructii)

FPSC

35,629

2019

Not at sectoral level

Employers’ Organisation of Commerce Networks (Federatia Patronala a Retelelor din Comert )

FPRC

113,771

2019

Not at sectoral level

Federation of Associations of Energy Utility Companies (Federaţia Asociaţiilor Companiilor de Utilităţi din Energie)

ACUE

18,820

2020

Not at sectoral level

Employers Organisations Garment and Leather (Federation of Textile, Federatia Patronala a Textilelor, Confectiilor si Pielariei)

FPTCP

n.d

 

Not at sectoral level

Employers’ Organisation metalurgia (Federatia Patronala Metalurgia)

FP Metalurgia

14,455

2020

Not at sectoral level

*estimated figures, based on the representatives files available on the Ministry of Social Dialogue website.

Tripartite and bipartite bodies and concertation

Tripartite social dialogue is organised at national, territorial and sectoral level. In an attempt to reform social dialogue at all levels, in 2011 the composition of the Social and Economic Council (CES), a tripartite body for social dialogue at national level, was modified. After the 2011 legislative change (Law 62/2011), the government left CES and was replaced instead by the representatives of civil society, which, in the opinion of some stakeholders, transformed CES, which was formerly a tripartite body, into a bipartite social dialogue structure. CES is a consultative forum and it must be consulted for all the draft laws in its area of competence (economy, taxes, labour, social protection, health, education, research, culture and wages).

Law 62/2011 provided for the formation of a new body for tripartite dialogue: the National Tripartite Council for Social Dialogue (Consiliul National Tripartit pentru Dialog Social, CNTDS), a tripartite consultative body formed by representatives of the employers’ organisations, trade union organisations, the government, the National Bank and the president of the CES. The CNTDS is the consultative forum for setting the minimum wage at national level, for analysing governmental strategies and programmes and for solving, via tripartite dialogue, economic and social disputes. On several occasions, the trade unions accused the government of not convening the CNTDS regularly or not adequately preparing for the tripartite body’s meetings and thus obstructing social dialogue.

At local level, the social dialogue commissions are established at the prefecture level. The participants are the representatives of local administration, representatives from each nationally representative confederation as well as other relevant stakeholders that may take part should their presence be agreed upon.

At the national level, social dialogue tripartite committees are formed within 18 public authorities and institutions, such as the Ministry of Labour, Ministry of Finance, Ministry of Health and so on.

Main tripartite and bipartite bodies

Name

Type

Level

Issues covered

National Tripartite Council for Social Dialogue (Consiliul Naţional Tripartit pentru Dialog Social, CNTDS)

Tripartite

National

Minimum wage, labour relations, labour disputes

Social and Economic Council (Coniliul Economic si Social, CES)

Tripartite

National

Labour relations, fiscal and financial policies, public health policies, social protection policies, education

Social dialogue commissions at ministry level

Tripartite

National

Sectoral policies elaborated by the ministries

Social dialogue commissions at county prefecture level

Tripartite

Local

Local policies

Advisory board of the National Agency for Employment (Agenţia Naţională pentru Ocuparea Forţei de Muncă, ANOFM)

Tripartite

National

Employment, labour market policies

Advisory Board of the National House of Public Pensions (Casa Naţională de Pensii Publice, CNPP)

Tripartite

National

Social insurances, pensions

National Health Insurance Agency (Casa Naţionala de Asigurări de Sănătate, CNAS)

Tripartite

National

Public health

Workplace-level employee representation

Representation of employees at the workplace is accomplished by trade union organisations at company level. There are no work councils or other bodies at the company level in Romania that would ensure employee representation. However, a trade union cannot be founded in companies with fewer than 15 employees, leaving workers employed by small companies without any legal representation. In companies with more than 20 employees, but without a trade union organisation, the workers are represented by the employees’ representatives .

The establishment of European work councils was introduced in 2005, but the law only applies to companies of community size.

Regulation, composition and competences of the bodies

 

Regulation

Composition

Competences of the body

Involved in company-level collective bargaining?

Thresholds/rules when they need to be/can be set up

Trade union organisation

The trade union functioning is codified by the Social Dialogue Law (62/2011).

Employees with a working contract that work in the same company.

Yes. They defend the rights of their members in courts and negotiate the collective agreement (only if they fulfil the representativeness criteria).

A trade union can be founded by a minimum of 15 employees working in the same company. In order for a trade union to be representative, it must account for at least 50%+1 of the overall employees of the company.

Employees’ representative

The Labour Law provides the legal context regarding the employees’ representative.

The representative of the employees is elected from within the company’s employees, with the vote of at least half of the employees.

Yes. They promote the workers’ interests; inform the labour inspectorate whenever the labour legislation is not properly applied; and negotiate the collective bargaining (when there is no representative trade union organisation in the company).

A representative of the employees is elected only in companies that have at least 20 employees and where there is no representative trade union organisation.

Collective bargaining

Collective bargaining

The central concern of employment relations is the collective governance of work and employment. This section looks into collective bargaining in Romania.

Bargaining system

Social Dialogue Law 62/2011 abolished collective bargaining at national level. At the same time, the new legislation replaced the branch collective bargaining with sectoral collective bargaining. The new legal framework decentralised collective bargaining by increasing the importance of the collective agreements at company level. Between 2011–2018, the only collective bargaining was mainly at company level, but it is not mandatory to reach a collective agreement as a result of the bargaining. Collective bargaining is legally binding only at company level and only in companies with at least 21 employees.

In January 2016, Law no. 1/2016 amended the Social Dialogue Law (no. 62/2011) and provided that in those units where the trade union is not representative (50%+1 of the company’s employees), the collective agreement can be concluded by the representative trade union federation to which the respective company union is affiliated. In such situations, the trade union federation is also entitled to conclude the collective agreement at the company level.

Wage bargaining coverage

The abolishment of collective bargaining left approximately 1.2 million employees working in 450,000 companies with fewer than 21 employees uncovered. As for the respective companies, collective bargaining is not compulsory by law.

Before Law 62/2011 came into effect, the law provided a mechanism for extending collective agreements to companies that were not affiliated to the signatory federation. Under the 2011 legislation, such a mechanism no longer exists.

After the 2011 legislative change, only few sectoral collective agreements have been concluded in total at sectoral level between 2012 and 2018, as opposed to 8 sectoral collective agreements concluded in 2010. Two sectoral collective agreements have been concluded in 2019 – a collective agreement for public health care sector, valid 2019-2021 and a collective agreement for pre-university education sector, valid 2019-2021. No sectoral agreement was concluded in 2020. In addition, 9 multi-employers collective agreement have been concluded in 2019 and 5 multi-employer collective agreements have been concluded in 2020.

Collective wage bargaining coverage of employees from different sources

Level

(%) Year

Source

All levels

150% (2017)

2021 – OECD/AIAS ICTWSS Database

All levels

78% (2013)

2013 - ECS

All levels

48% (2019)

2019 - ECS

All levels

97% (2010)

2010 - SES

All levels

95% (2014)

2014 - SES

All levels

94% (2018)

2018 - SES

All levels

35% (2013)

author’s estimate

Company level

32% (2020)

Labour inspection. (2020): author’s calculation

Sources: Eurofound, European Company Survey 2019 (ECS), private sector companies with establishments >10 employees (NACE B-S) – multiple answers possible; Eurostat, Structure of Earnings Survey (SES), companies >10 employees (NACE B-SxO), single answer for each local unit: more than 50% of employees covered by such an agreement – online dataset codes: [ EARN_SES10_01 ], [ EARN_SES14_01 ], [ EARN_SES18_01 ] (Percentage of employees working in local units where more than 50% of the employees are covered under a collective pay agreement against the total number of employees in the scope of the survey); OECD/AIAS ICTWSS Database 2021

Number of collective agreements at company level – national data

2015

2016

2017

2018

2019

2020

8,702 agreements

23% collective bargaining coverage

7,709

14,368

19,060

17,827

16600

Source: Ministry of Labour and Social Justice, and Labour Inspection Office (2021)

The 2011 decentralisation of social dialogue led to the concentration of collective bargaining at company level, a situation perpetuated in 2020. Previous data indicated that following the abolition of national collective bargaining in 2011, the collective bargaining coverage had declined from almost 100% in 2010 to approximately 35% in 2013. Data from the Labour Inspection indicate that in 2020 a number of 2.113,237 employees were covered by an active collective agreement, indicating a collective bargaining coverage of 32%.

Bargaining levels

After the 2011 reform of the social dialogue legislative framework, Romania moved from a centralised to a decentralised collective bargaining system. Before 2011, national collective bargaining was very important, as its provisions were mandatory for the lower levels of the bargaining system (branch, sector and company). In theory, collective bargaining at sectoral level should play an important role, as the provisions of the sectoral collective agreement are mandatory (under specific legal conditions) for all the companies belonging to the respective sector, but in practice the sectoral collective bargaining is blocked. As a result, collective bargaining at local level (company level and group of units) is more important.

Levels of collective bargaining, 2019

 

National level (intersectoral)

Sectoral level

Company level

Wages

Working time

Wages

Working time

Wages

Working time

Principal or dominant level

       

X

X

Important but not dominant level

           

Existing level

   

X

X

   

Articulation

The clauses of the collective agreement signed at the sectoral level are mandatory for all the employees of the companies belonging to the respective sector. However, a collective agreement is considered sectoral only if the number of employees from the companies affiliated to the signatory employers’ organisation account for more than half of the overall number of employees in the respective economic sector. If this condition is not fulfilled, the collective agreement is registered as an agreement at the level of group of establishment.

Timing of the bargaining rounds

The bargaining round is initiated by the employer or by the employers’ organisation at least 45 days before the collective agreement in force expires. The collective bargaining cannot last more than 60 days and it is not mandatory for the bargaining to reach a collective agreement.

In the public sector, the bargaining starts, as a rule, in the fourth quarter of the year, when the government adopts the decision regarding the minimum wage for the following year.

Coordination

Prior to the 2011 legislation change, the law provided the framework for automatic coordination among different bargaining levels. The clauses negotiated at the upper level were minimal and automatically applicable to all lower levels by extension. After 2011, only the sectoral collective agreement is applicable to all employees in thesector. Also, a form of vertical coordination is ensured by the implicit coordination of wages demands by the trade union federations and sectoral employers’ federation, who are entitled by law to take part in collective bargaining at company level and even to conclude collective bargaining at company level in certain situations.

Extension mechanisms

There are no voluntary mechanisms of extension/application of the terms of collective agreements. The sectoral collective agreement is automatically applicable to all employees of the sector, but only if the units that are affiliated to the signatory employers’ organisation account for more than half of the employees in the sector. Otherwise, the collective agreement is not considered to be a sectoral agreement and is applicable only to the group of units that are affiliated to the signatory employers’ organisation.

Derogation mechanisms

There were cases between 1999 and 2011 when branch collective agreements included derogations, allowing companies in economic and financial difficulties to derogate and to pay below the threshold.

The collective agreements for the ferrous, nonferrous and refractory industries, for example, stipulated that for limited periods of time, ‘the minimum wage may be reduced, but never below 80% of the value initially bargained upon’.

After 2011, some collective bargaining at establishment level contained clauses that allowed the companies to derogate from the statutory minimum wage. The derogation is permitted based on a financial and economic analysis showing that the company has financial difficulties.

Expiry of collective agreements

When a collective agreement expires, the social partners have the right to extend it by 12 more months. The extension is permitted only once; afterwards, renegotiation is the only available option. The employer or the employers’ organisation must initiate collective bargaining at least 45 days before the collective agreement in force expires. If the employer does not initiate the collective agreement, the trade union organisation is entitled to demand that collective bargaining must start at most 10 days from the written demand submitted by the trade union. If the employer refuses to start the bargaining, the trade union has the right to initiate a labour conflict. The collective bargaining should not last more than 60 days. If the employer and the trade unions cannot reach a consensus and conclude a collective agreement within this time, the trade union organisation has the right to start a labour conflict.

Other aspects of working life addressed in collective agreements

The most important issues in collective bargaining in Romania are wages and payment for overtime. Issues like lifelong learning or gender equality are not as important.

Industrial action and disputes

Industrial action and disputes

The right to strike is regulated by the Labour Code and the Social Dialogue Law (62/2011). The strike cannot be declared unless all other legally binding mechanisms for the reconciliation have been exhausted and a warning strike has taken place. A strike cannot be organised during the period of application of the collective agreement that is in force or during the mediation and arbitrage procedures (or if so, it is considered illegal).

The law regulates two other types of industrial actions: the solidarity strike and the warning strike. The solidarity strike is declared with the aim to support the demands of the employees from other companies belonging to the same group of units or to the same sector. It cannot last more than one working day. The warning strike must last a maximum of two hours and must be organised at least two days before the ‘main’ strike. As of 2010, the National Statistical Institute no longer reports on strikes.

Industrial action developments, 2015–2019

 

2015

2016

2017

2018

2019

Source

Number of strikes

n.d.

n.d.

n.d.

n.d.

n.d.

National Institute of Statistics

Number of labour disputes

35 labour disputes, involving 30,236 employees (52.97% participation index). 9 conflicts have been resolved, 6 were only partially conciliated and 20 remained unresolved

30 labour disputes, involving 23,397 employees (63% participation index) 13 disputes have been resolved, 4 partially conciliated and 13 remained unconciliated/unresolved.

21 labour disputes, involving 17,887 employees

26 labour disputes, involving 14,253 employees.

26 labour disputes, involving 22,461 employees

Ministry of Labour and Social Justice

Dispute resolution mechanisms

Collective dispute resolution mechanisms

According to the legal framework (Law 62/2011), legal disputes can occur under very specific conditions: if the employer/employers’ organisation refuses to start collective bargaining; if, during the collective bargaining, the employer/employers’ organisation does not accept the demands of the employees; or if the parties involved in collective bargaining cannot reach a collective agreement until the finalisation of the bargaining.

The law also provides for labour dispute resolution mechanisms: conciliation, mediation and arbitration. The conciliation procedure, organised by the Minister of Labour or by the labour inspectorates, is compulsory by law.

If the parties involved in the conflict reach a consensus during the conciliation, the labour dispute is closed. If not, the conflicting parties have the right to go through the mediation and arbitration procedure.

Individual dispute resolution mechanisms

Individual industrial disputes are solved by law courts. The conflicting parties have the option to go through the mediation procedure. The competent courts that rule over the resolution of individual disputes are established by law. There are no labour courts in Romania, but only sections (departments) in charge of the labour disputes. The demand to start such a conflict is sent to the competent court located in the constituency of the person initiating the complaint. The main aspects covered are the unilateral termination of the individual work contract, financial aspects and unilateral changes in the provisions of the work contract. Under legal provisions, the maximum term for solving individual labour disputes is 10 days, but in practice it takes longer.

Individual employment relations

Individual employment relations

Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks into the start and termination of the employment relationship and entitlements and obligations in Romania.

Start and termination of the employment relationship

Requirements regarding an employment contract

The minimum age for entering into an employment relationship is 16 years. Special requirements regarding working time are stipulated for workers younger than 18 years (16–18 years old), namely a maximum 30 hours or work per week, 6 hours per day. An individual working contract must be signed between the future employee and employer. The employee is required to pass a medical examination prior to starting work. The process is finalised when the contract is uploaded in REVISAL (a database in which employees are registered).

In order to test the employee’s skills, a trial period of 90 days maximum for executive positions and 120 for management positions is stipulated by law. For disabled people, the trial period is 30 days maximum.

Dismissal and termination procedures

According to the Labour Code adopted in 2011, an employee can be dismissed either due to objective conditions (if the company is being restructured or if the position has been terminated, in which case the

employer cannot reinstate the position after dismissing the employee and hire someone else in the same position for six months) or due to the employer’s subjective reasons (such as non-compliance with the discipline rules (of behaviour in the workplace), breach of the working contract’s clauses or professional non-conformity to the job description). In case of repeated disciplinary measures, the employer is obliged to make a disciplinary investigation prior to the dismissal. In case the employee has to be dismissed because of non-conformity to the job description, a preliminary evaluation of the employee must be done in order to verify whether or not it is a case of job description non-conformity.

The labour inspectorates verify the conformity of procedures upon the termination of an individual work contract. To be valid, a termination notice must be given by the employer to the employee in writing. An employee can contest the employer’s decision before a court of law.

Entitlements and obligations

Parental, maternity and paternity leave: Statutory leave arrangements

Maternity leave

Maximum duration

63 days prenatal, 63 days postnatal. In addition, the mother/father can opt for a two-year childcare leave and 3 years for children without disabilities

Reimbursement

85% of the average income of the last 12 months

Who pays?

National Fund of Social and Health Insurance (Fondul naţional unic de asigurări sociale de sănătate)

Legal basis

Government’s Emergency Ordinance (OUG) no.158/2005, OUG no. 111/2010, Law no. 66/2016

Parental leave

Maximum duration

The legislation grants the second parent the right to one month’s parental leave. The second parent can either 1) request one month of leave or 2) compensation and leave are suspended for the other parent for this month and the first parent will have the choice of taking unpaid leave or coming back to work.

Reimbursement

85% of the average income of the last 24 months, but not less than 85% of the value of gross national minimum wage and not more than 8,500 RON (around 1,800 EUR).

Who pays?

National Fund of Social and Health Insurance (Fondul naţional unic de asigurări sociale de sănătate)

Legal basis

Government’s Emergency Ordinance (OUG) no.158/2005, OUG no. 111/2010, Law no. 66/2016, OUG nr. 55/2017

Paternity leave

Maximum duration

There are no mandatory periods for fathers, fathers being subject to the same legislation as mothers if they want to take parental leave. Additionally, they can take 5 days of paid paternity leave, which can be supplemented with 10 more days if the father has taken child-rearing classes.

Reimbursement

100% of the average income of the last 12 months

Who pays?

Supported by the company where the father is employed

Legal basis

Law 210/1999

Sick leave

The law provides for the right to paid sick leave for both employees and self-employed people. This applies to the entire period, from the first day. A medical certificate is required. The beneficiary of the paid medical leave must be insured and must pay the social contributions. The minimum contribution period for a paid sick leave is one month within the last 12 months prior to the period for which the medical leave is taken. For some diseases, like emergencies, HIV or TBC, the right to medical leave is not conditional on social contributions. The maximum period of paid leave is 183 days per year, but for some diseases, like cancer, HIV, etc., this period can be prolonged. The cover during the sick leave is 75% of the last 12 months’ revenues. For some diseases, the amount increases to 100%.

The employee is obliged to present the medical certificate and documents that attest to the number of days spent on sick leave. Since 2014, sick leave is counted as a period of activity by the pension system.

Retirement age

Starting in January 2011, the public system is regulated by Law 263/2010 on the unified pension system, which replaced the former Law 19/2000. The standard retirement age was gradually increased to 65 years for men and 60 years for women up to January 2015. Women’s retirement age will be raised to 63 years until January 2030. Early retirement is allowed under specific legal conditions. Until 31 December 2014, the minimum contributory period was 14.4 years and was raised for both men and women to 15 years after January 2015. The standard contributory period entitling the beneficiary to a full pension is 35 years for both genders, but it will come into force later for women (January 2030) than for men (January 2015).

Pay

Pay

Pay: For workers, the reward for work and main source of income; for employers, a cost of production and focus of bargaining and legislation. This section looks into minimum wage setting in Romania and guides the reader to further material on collective wage bargaining.

Minimum wages

The national minimum wage is set by the government following consultations with the social partners. CNTDS (Consiliul National Tripartit pentru Dialog Social) provides the framework for consultations on the minimum wage. Until 2011, apart from the minimum wage set by the government, a national minimum wage was negotiated among social partners and the government and included in the national collective agreement.

The minimum wage that is set by the government is compulsory for all employers. The collective agreements at sectoral or company level can set the minimum wages for the respective sectors/companies, but it should not be less than the minimum wage set by the government.

In August 2020, the law 174/2020 entered into force – the law provides that the living wage is the main fundament in setting the minimum wage at national level.

The minimum wage is set for a full-time working day of eight hours. For part-time workers, working less than eight hours per day, the minimum wage is calculated as a ratio of the national minimum gross hourly wage.

In January 2018, the minimum wage increased to 1900 RON gross (413 EUR). However, due to the fact that the contributions for social security paid by the employees increased by 20%, the increase of the net wage is lower: the net income of the minimum wage earners will amount to 1,163 RON (252 EUR), as compared to 1,065 RON (231 EUR) in 2017. Although this is the highest gross minimum wage in the last 10 years (31%), the net wage increase is only 8%.

Starting 1 January 2019, the minimum gross wage was increased to RON 2,080 (approx. EUR 430), while the minimum gross wage for employees who have graduated from university studies was set at RON 2,350 (approx. EUR 490). Starting 1 January 2020, the minimum gross wage was increased to RON 2, 230 (approx. EUR 455). The minimum gross wage for employees who have graduated university studies remained the same as in 2019 – RON 2,350 (approx. EUR 490).

For more information regarding the level and development of minimum wages, please see:

Collectively agreed pay outcomes

For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:

Working time

Working time

Working time: ‘Any period during which the worker is working, at the employer’s disposal and carrying out his activities or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises regulation and issues regarding working time, overtime, part-time work as well as working time flexibility in Romania.

Working time regulation

Working time is set by law (the Labour Code). The standard working week for employees over 18 years of age is 40 hours per week, divided into eight hours per day. For employees under 18 years of age, it is 30 hours per week, divided into six hours per day. The maximum length of a working week must not exceed 48 hours, overtime included. In some cases, the working time per week can exceed 48 hours, but only if the average of the working hours calculated for a period of four months does not exceed 48 hours per week. For some sectors of activity or professions, the parties of the collective agreement can agree on a longer reference period, but this period should not exceed six months. Through collective agreements a working day longer than eight hours can be set for some activity sectors, but without exceeding 12 hours per day, in which case the long working day must be followed by a 24-hour break.

For more detailed information on working time (including annual leave, statutory and collectively agreed working time), please consult:

Overtime regulation

Overtime is regulated by the Labour Law and is defined as work that exceeds the standard working time of 40 hours per week, eight hours per day. Overtime work is not permitted for workers younger than 18 years of age. As a rule, overtime is compensated by free hours within a period of 60 days after it was performed. In cases where the compensation is not possible within the legal term of 60 days, the working time will be compensated in money. The amount of money for overtime is set by collective bargaining or in the individual work contract and cannot be lower than 75% of the wage.

In 2017, the Labour Code was amended by Government Emergency Ordinance no. 53/2017, especially with regard to the definition and sanctioning of undeclared work. The impact of these changes was also significant in terms of organising working time and working hours. The inspections carried out by labour inspectors aimed at identifying cases of overtime which, in the case of part-time workers, constitute undeclared work. In addition, according to art. 119 of the Labour Code, as amended by Government Emergency Ordinance no. 53/2017, the employer is obliged to keep at the workplace a record of hours worked daily by each employee, highlighting the starting and ending hours of the work programme, and to submit this record to the labour inspectors, whenever requested to do so. The purpose of this amendment is to make the labour inspector's work more effective, as regards overtime.

Part-time work

The Labour Code regulates part-time work. It stipulates that part-time workers should be treated comparably to the full-time workers within the same company performing the same or similar tasks. When a comparable employee does not exist within the company, the collective agreement or the legal provisions in the field are applicable. Romania has one of the lowest shares of part-time workers in the EU (almost three times less), and as a rule, this status is associated with high levels of poverty and social exclusion. While part-time employment represented 9% of total employment in 2012, in 2019 only 5.8% worked part-time.

The low levels of part-time employment in Romania could be explained by the involuntary choice of this form of work. In 2019, 56% part-time workers declared they would rather work full time. While in other EU countries part-time work is a means of balancing family life with one’s career, in Romania it seems to be a choice made in the absence of better alternatives. Those working part time do so because invariably they have to take care of children or incapacitated adults. Another difference compared to the EU27 is the very small gap between male and female part-time employment, as illustrated in the table below.

Persons employed part-time in Romania and EU27 (% of total employment)

 

2015

2016

2017

2018

2019

2020

Total (EU27)

18.2

18.1

18

17.8

17.8

16.6

Total (Romania)

8.4

7.2

6.5

6.3

5.8

5.6

Women (EU27)

30.2

30

29.8

29.5

29.4

27.6

Women (Romania)

8.8

7.4

6.6

6.6

6

5.7

Men (EU27)

8

7.9

7.9

7.7

7.8

7.2

Men (Romania)

8.2

7

6.4

6

5.7

5.5

Source: Eurostat Labour Force Survey [lfsi_pt_a] – Persons employed part-time (20 to 64 years of age) – total and by sex.

Involuntary part-time

Involuntary part-time workers can be defined as those working part time because they could not find a full-time job.

Persons employed in involuntary part-time in Romania and EU27 (% of total part-time employment)

 

2015

2016

2017

2018

2019

2020

Total (EU27)

32.3

31

29.7

28

26.5

25

Total (Romania)

58.7

58.1

56.5

54.9

56

57.4

Women (EU27)

28.8

27.7

26.4

25.2

23.9

22.5

Women (Romania)

44.7

44.7

42.9

41.7

43.1

44.2

Men (EU27)

43.6

41.8

40.4

37.2

34.9

33.1

Men (Romania)

70.1

68.8

67.3

65.8

66

67.6

Source: Eurostat Labour Force Survey [lfsa_eppgai]- involuntary part-time employment as a percentage of the total part-time employment, by sex and age (20 to 64 years of age)

Night work

The Romanian Labour Code defines as night work any work performed between 22:00 and 06:00 hours. It also provides the criteria for the definition of a night employee, which can be a) an employee performing night work at least three hours of his/her daily working time; b) an employee performing night work amounting to at least 30% of his/her monthly working time. The law also provides that the normal length of the working time, for the night employee, shall not exceed an average of eight hours a day, calculated over a reference period of maximum three calendar months, in compliance with the legal provisions on the weekly rest period. For employees whose activity takes place in special working conditions, the normal length of the working time shall not exceed eight hours within any 24-hour period.

The Labour Code also provides that a night employees shall benefit either from a work schedule shorter by an hour than the normal length of the working day, for those days when they perform at least three hours of night work, without any decrease of basic pay, or from extra pay of at least 15% of the basic pay for each hour of night work performed.

The law prohibits night work for underage persons, pregnant women and breastfeeding mothers.

Shift work

The Labour Law defines shift work as any method of organising the work schedule, according to which the employees succeed each other at the same workplace, according to a schedule, including a rotating schedule, of continuous or discontinuous type, requiring the employee to perform an activity within different time ranges in relation to a daily or weekly period, as established in the individual employment contract.

The law also defines a shift employee as any employee whose work schedule is of the shift work schedule type. The employees also have the right, between two working days, to a rest period that may not be shorter than 12 consecutive hours. In the case of shift work, that rest period between the shifts may not be shorter than eight hours.

Weekend work

The Labour Code provides that the weekly rest period shall be taken in two consecutive days, usually Saturday and Sunday. Should the rest during Saturday and Sunday be detrimental to the public interest or the normal course of the activity, the weekly rest period may also be taken in other days. In this case, the employees shall enjoy an extra pay, as laid down in the collective labour agreement or, as the case may be, in the individual employment contract. In exceptional cases, the weekly rest period days may be taken on a cumulative basis, after a continuous activity that may not exceed 14 calendar days, with the authorisation of the territorial labour inspectorate and with the agreement of the trade union or, as the case may be, the representatives of the employees.

Rest and breaks

The Labour Code provides for daily and weekly rest and breaks.

Should the daily length of the working time exceed six hours, the employees shall have the right to a meal break and other breaks, under the terms provided for in the applicable collective labour agreement or in the rules of procedure. Young people under the age of eighteen years shall enjoy a meal break of at least 30 minutes if the daily length of the working time exceeds four and a half hours.

Employees also have the right, between two working days, to a rest period that may not be shorter than 12 consecutive hours.

Working time flexibility

Flexible work is regulated by individual work contracts or by collective agreement. Flexible work is not a widespread practice in Romania. It is more frequent in small companies than in medium or large companies.

Health and well-being

Health and well-being

Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill-health of their workers. This section looks into psychosocial risks and health and safety in Romania.

Health and safety at work

The Eurostat data indicate an increase in the number of work accidents as well as in the frequency of work accidents per 1,000 employees for the last four years.

Accidents at work, with four days’ absence or more – working days lost

 

2015

2016

2017

2018

2019 *

All accidents

3,597

3,860

4,134

4,211

5,145

Percent change on previous year

16.0

7.3

7.1

1.8

- 10,4

Per 1,000 employees

0.6

0.6

0.65

0.65

0.95

Source: Eurostat, [hsw_mi01] and [lfsa_eegaed], *Ministry of Labour and Social Justice

In 2019, according to the data provided by the Ministry of labour and Social Justice, the number of persons experiencing work accidents was 5,145.

Psychosocial risks

Psychosocial risks and health and safety risks in Romania are regulated by the Labour Code and by a special law (319/2006) on health and safety at the workplace. There are no specific legal provisions concerning the psychosocial risks at work or work stress, but Law 319/2006 covers all kinds of health and safety issues at the workplace. Article 177 of the Labour Code provides that the employer must undertake all necessary measures for protecting the health and safety of the employees. The employer is obliged to evaluate the risks, avoid the risks, provide adequate equipment, train the employees and inform them about the professional risks, and adapt the working tasks to the employees’ capabilities. The implementation of health and safety at work should not involve any costs for the employees. The employer has to appoint one or more workers to be in charge of prevention and the protection of health and safety at the workplace. A health and safety commission, formed by employee and employer representatives, must be created in each company with more than 50 employees. In some high-risk sectors, the labour inspectorate can dispose of the creation of a health and safety commission in companies with fewer than 50 employees.

All professional diseases have to be declared to the Public Health Institute and all work accidents must be reported to the labour inspectorates. Vulnerable groups, such as pregnant women, young people or disabled people, are granted special protection under the law. The Labour Inspection is the competent authority to supervise the implementation of the health and safety at work legislation.

Non-observance by any person of the provisions regarding health and safety at work, leading to serious work accidents, is punished by law.

For more detailed information on health and well-being at work, please consult:

Skills, learning and employability

Skills, learning and employability

Skills are the passport to employment; the better skilled an individual, the more employable they are. Good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Romanian system for ensuring skills and employability and looks into the extent of training.

National system for ensuring skills and employability

The National Authority for Qualifications (ANC) is a public institution under the umbrella of the Ministry of Education that elaborates the national framework of skills identification, development and recognition and manages the national register of qualifications. ANC is responsible for the monitoring, evaluation and control of the professional training and skill formation system. The trade union organisations (one representative) and employers’ organisations (one representative) are members of the ANC’s board.

Some trade union organisations have developed professional training programmes and training centres, offering training that is recognised and validated by ANC. The National Trade Union Bloc (BNS), for example, has 13 training centres, while CNSLR Fratia reports delivering skill formation and professional training through several projects financed by the European Social Fund.

At company level, the Labour Law provides that employers with more than 20 employees must elaborate and introduce, in consultation with the trade union organisation, an annual plan for employee training.

Training

At national level, the National Agency for Labour Force Employment (Agentia Nationala pentru Ocuparea Fortei de Munca, ANOFM) is the public authority responsible for organising and implementing professional training and skills formation. The social partners are represented at the level of the ANOMF. ANOFM coordinates the activity of eight regional training centres and according to its figures 30,901 persons received training in 2019, 41,942 in 2017, 33,500 in 2014, 32,977 in 2013 and 34,974 in 2012.

The Romanian Labour Law stipulates that employers are obliged to ensure professional training for all employees at least every two years for companies with at least 21 employees and every three years for companies with fewer than 21 employees. For professional training initiated by the employer, the related expenses are covered by the employer, while the employee benefits from paid time off for the training. However, the ECS 2013 data show that the share of employees receiving paid time off for training is minimal. The highest proportion of employees receiving paid time off for professional training is found in medium-sized companies. There is no evidence that representation at an establishment coincides with more training, but the fact that the highest proportion of employees receiving paid time off for training is in companies with 50–249 employees could be an indicator in this respect, since trade union organisations cannot be created in companies with fewer than 15 employees and collective bargaining is mandatory only for establishments with at least 21 employees. It is worth mentioning that in establishments with more than 21 employees, the employer must elaborate and apply, together with the trade union, an annual training plan.

Work organisation

Work organisation

Work organisation underpins economic and business development and has important consequences for productivity, innovation and working conditions. Eurofound research finds that some types of work organisation are associated with a better quality of work and employment. Therefore, developing or introducing different forms of work organisation are of particular interest because of the expected effects on productivity, efficiency and competitiveness of companies, as well as on workers’ working conditions. Ongoing research by Eurofound, based on EurWORK, the European Working Conditions Survey and the European Company Survey, monitors developments in work organisation.

For more detailed information on work organisation, please consult:

Equality and non-discrimination at work

Equality and non-discrimination at work

A wide range of acts provide the legislative framework that ensures equality and non-discrimination at the workplace: Law 202/2002 regarding equal opportunities among men and women; Government Emergency Ordinance 137/2000, which sets the framework for the prevention and sanction of discrimination; and the Labour Code through a special chapter regarding equality of treatment at work.

The National Council for Combating Discrimination (CNCD) is the national body in charge of ensuring equality at the workplace. CNCD’s main responsibilities are related to the prevention, mediation, investigation, sanctioning and monitoring of discrimination in all areas, including discrimination at work. The CNCD reports that in 2019 , the highest number of complaints and petitions were related to work related discrimination ( 432 out of 904). The people being discriminated against at work can submit the complaint either to the CNCD or to a court of law.

Equal pay and gender pay gap

The national legislation compels employers to ensure equal treatment at work through different measures, including internal statute’s references that forbid discrimination. The labour inspectorates are the competent authorities in charge of applying the labour legislation, including equal pay aspects, but there are no reports or data regarding sanctions applied to companies in this matter. The gender pay gap in Romania is 5.2% in 2016. The figure is above the EU average, but the indicator is due to the difference in employment among men and women by level of education attained: the employment rate of women with primary and secondary education is much lower than the employment rate of men with a similar level of education. The share in employment is equal only in the case of men and women with tertiary education. This might encourage the conclusion that the low gender pay gap indicator is explained by the comparison between highly educated women’s wages and low-educated men’s wages. It is worth mentioning that women represent 59% of the overall number of higher education graduates.

Quota regulations

At national level, the supervisory role in the area of equality between men and women belongs to the National Council for Combating Discrimination, to the National Agency for Equality between Men and Women (ANES) and to the National Commission for Equality of Chances between Men and Women (CONES), although the latter only has a purely consultative role. ANES is a public administration institution, which functions since 2016 under the Ministry of Labour and Social Justice. ANES elaborates national strategies and action plans in the field of equality between men and women, is responsible for the armonization of the national legislation with the European and internationale legislation/treaties. CONES is formed by representatives from the government, trade unions, employers and NGOs. CONES evaluates and monitors the implementation of the national legislation and makes recommendations for central authorities aimed at the application of specific programmes in the area of equality of opportunities between men and women. There are no quotas in place for men and women. Romania ranks high in the percentage of women in leading positions, at 47% in 2013.

Bibliography

Bibliography

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Eurofound (2020a), Industrial relations: Developments 2015–2019 , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg

Eurofound (2020b), Minimum Wages in 2020: Annual review , Publications Office of the European Union, Luxembourg.

Eurofound (2020c), Collective agreements and bargaining coverage in the EU: A mapping of types, regulations and first findings from the European Company Survey 2019, working paper, Dublin.

Eurofound (2020d), Employee representation at establishment or company level: A mapping report ahead of the 4th European Company Survey, working paper, Dublin.

Eurofound (2021), Working conditions and sustainable work: An analysis using the job quality framework , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg.

Eurofound and Cedefop (2020), European Company Survey 2019: Workplace practices unlocking employee potentia l , European Company Survey 2019 series, Publications Office of the European Union, Luxembourg

Eurostat, LFS ad-hoc modules: 2019. Work organisation and working time arrangements . Eurostat database.

Eurostat, Part-time employment and temporary contracts - quarterly data [lfsi_pt_q]. Eurostat database.

Eurostat (2011), GDP per capita varied by more than six to one across the EU in 2010 Statistics in focus, 64/2011, Luxembourg.

Eurostat (2015), GDP per capita, consumption per capita and price level indices , Statistics Explained, 16 June.

Guga, S., Constantin, C. (2015) , Analiza impactului noii legislații a dialogului social adoptate în 2011: Cercetare sociologică și juridică , Asociația Conect.

Guga, S., Spatari, M., Chelaru, D., Situația salariaților din România, Syndex Romania, 2018

Guga, S., Spatari, M., Chelaru, D., Situația salariaților din România, 2019, Syndex Romania, 2019

OECD (2021), OECD/AIAS ICTWSS Database , version: 17 Feb 2021, Paris

Stoiciu, V. (2012), Austerity measures and structural reforms in Romania: Severe measures, questionable economic results and negative social consequences, Friedrich-Ebert-Stiftung, Belgrade.

Stoiciu, V. (2016), Romania’s Trade Unions at the Crossroads. Challenged by Legislative Reforms, Economic Crises and a Power-loss of 60 per cent , Friedrich-Ebert-Stiftung, Berlin.

Stoiciu, V (2018), 2017 Annual review of labour relations and social dialogue in south-east Europe: Romania, Friedrich-Ebert-Stiftung, Berlin.

Trif, A. (2014), Austerity and collective bargaining in Romania national report: Romania, Dublin City University, Dublin.

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