Study: Cheaper to fire staff in Romania than elsewhere in Europe

It is cheaper to fire staff in Romania for fault of their own or for economic reasons than in other European countries, according to a recent Deloitte study. The firing cost is not influenced by the staff seniority, as the Labor Code in Romania does not distinguish on seniority. “Many employers have regulated massive layoffs through collective labor contracts, and, in our experience, severance packages do take into account seniority. However, such deals have a limited applicability, so they are not a general practice for the entire market,” said Florentina Munteanu, partner and coordinator for labor law with Reff & Asociaţii. The calculation basis is another explanation for Romania’s lower firing costs, said Raluca Bontas, partner global employer services Deloitte Romania. Labor costs on the rise in Romania but still four times below EU average editor@romania-insider.com