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Proposed changes to the legal regime of undeclared work in Romania

June 2017 - Romanian labour legislation is under a mood of change. Legislator implements EU message for tackling undeclared work at the national level by recent proposed amendments of the Romanian Labour Code.

The legislative proposal focuses on enhancing the fight against partially declared work and on facilitating the labour authorities’ and courts’ control activities.

Below is an outline of the proposed changes:

  • undeclared work shall cover:

―  engaging a person to work without concluding an individual employment agreement the day prior to the start of work;

For infringements, the currently regulated sanctions are maintained:

! up to five persons, administrative fine of RON 10,000 (approx. EUR 2,222) to RON 20,000 (approx. EUR 4,445) per person;

! criminal offence, if involving five or more persons.

―  failure to register employment with the registry of employees, at the latest, the day before work starts;

! administrative fine of RON 10,000 (approx. EUR 2,222) to RON 20,000 (approx. EUR 4,445) per person;

―  engaging a person to work during a period of suspension of the employment agreement e.g. medical leave, maternity leave;

! administrative fine of RON 10,000 (approx. EUR 2,222) to RON 20,000 (approx. EUR 4,445) per person;

―  engaging a person to work outside regular working hours agreed for part-time employees.

! administrative fine of RON 5,000 (approx. EUR 1,111) to RON 10,000 (approx. EUR 2,222) per person;

Note: Companies can pay half of the minimum administrative fine if the fine is paid within 48 hours as of issuance of the sanctioning or communication thereof.

  • if the employer breaches the obligation to conclude a written employment agreement, employees can prove the employment relation by any means of evidence legally permitted;
  • amendments to the employment agreement via addendum must now be performed before the contractual change actually occurs;
  • companies shall keep records of the daily working hours of each employee clearly reflecting the hours work starts and ends; such documentation must be provided to labour inspectors at their request.

These amendments shall enter into force in the near term. We will let you know when this happens.

In the meantime, for more information and our legal advice, contact Razvan Popa, Partner, at +40 21 307 1618,

e-mail

and Diana Rogozea, Senior Associate, at +40 21 307 1615, .