Romanian Senate Tacitly Adopts Opposition’s Draft Labor Code

The draft act will be sent to the Chamber of Deputies for a final vote.

The bill was put forward by opposition parties after the Government sought a confidence vote in Parliament this spring to pass into legislation the Labor Code it drafted. Romania's new labor legislation took effect on May 1.

According to the bill drawn up by social democrats, liberals and unionists, employers that have more than 21 employees must hold collective negotiations.

The opposition's draft Labor Code also states probationary employment period will not exceed 90 days for regular positions and 120 for management positions. During probationary employment period, the individual work contract may be cancelled without previous notice, through a written notification.

Employees will receive compensation of at least 75% of their base salary during periods when the activity is halted or reduced.

Work contracts on a definite period are valid for 36 months, reads the draft act. Also, the minimum wage will be set through collective work contracts.

Employers using illegal labor will be fined 10,000 lei (EUR2,300) to RON20,000 per person employed without a labor contract.

Employers and employees can sign at most three consecutive work contracts on definite period, but their total duration should not exceed 36 months, otherwise the third contract is considered as an indefinite-period one.

(EUR1=RON4.3144)

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