Romania's new Labor Code released on May 1; black labor penalized with imprisonment

The provisions of the new Romanian Labor Code, which increases the period of notice, introduces temporary work agents, and tightens sanctions for illegal employment, have been officially released on May 1. According to the new Code, employers can go to prison for one or two years or pay a fine if they have more than five employees without legal forms. For those who hire up to five people without a labor contract, the fine will be of up to EUR 5,000 for each employee. According to the new Labor Code, the work performed by an individual without a labor contract shall be punished with a EUR 250 fine. Also, employers can be punished, if they don’t comply with the obligation to keep track of work or if they employ people without a medical certificates. The fine for those actions is of almost EUR 800. The Code also changed the notice periods. The new notice periods are of 20 days in the case of dismissal for reasons beyond the control of the employee, 20 working days in case of resignation, for employees with executive positions and 45 working days for employees with leadership positions. More information here. Alex Camburu, alex.camburu@romania-insider.com