Notice period and termination in Romania: What foreign employers must know in 2026
Author
James Kelly
Last Updated
24 July 2026
Read Time
12 min
Romanian employment law is one of the more prescriptive frameworks in Central and Eastern Europe, and nowhere is that more apparent than in termination. Every employer-initiated dismissal must be based on one of the statutory grounds set out in Law No. 53/2003 (the Labour Code) and follow a strictly defined legal procedure. Missing a procedural step can render the dismissal null and void, exposing the employer to reinstatement orders and back pay covering the period between dismissal and reinstatement. Although Romanian law does not provide universal statutory severance, it imposes detailed rules on notice periods, dismissal procedures, and protected periods during which termination is prohibited.
For foreign employers managing teams in Romania, understanding those procedural requirements is just as important as identifying the legal grounds for dismissal. Termination rules differ depending on whether employment ends through resignation, mutual agreement, redundancy, disciplinary action, medical incapacity, or professional inadequacy, with each route carrying its own notice requirements and documentation obligations. This article reflects the current Labour Code, the July 2026 national minimum wage of RON 4,325, and recent High Court of Cassation and Justice decisions, including Decision No. 18/2025 on dismissal during sick leave and Decision No. 415/2025 on weekend work compensation.
The four termination modes
Romanian labour law recognises four ways an individual employment contract can end:
Mode
Romanian term
Notice required
Key feature
By operation of law
Încetare de drept
None
Death, dissolution, court order, retirement, fixed-term expiry
Mutual agreement
Acord de voință
None (agreed date)
Written; no grounds required
Employer dismissal
Concediere
20 working days in most cases
Statutory ground plus written decision required
Employee resignation
Demisie
Up to 20 working days (operational) or 45 working days (management)
Written; no grounds required
The Labour Code sets a mandatory floor. Individual contracts and collective bargaining agreements may improve on statutory rights, but cannot reduce them.
Grounds for employer-initiated dismissal
Employee-related grounds (Article 61)
Article 61 permits dismissal on four specific employee-related grounds:
- Disciplinary misconduct (Article 61(a)): Serious or repeated breaches of workplace discipline. Before dismissal, the employer must complete the disciplinary investigation required under Articles 247 to 252.
- Preventive arrest or house arrest exceeding 30 days (Article 61(b)): Applies where the employee is subject to a preventive arrest or house arrest order under the Code of Criminal Procedure for more than 30 days.
- Medical incapacity (Article 61(c)): Applies where the competent occupational health body certifies that the employee is no longer medically fit to perform the role. The employer must first consider any suitable alternative position.
- Professional inadequacy (Article 61(d)): Applies where the employee fails to meet the employer’s documented performance standards following the formal evaluation procedure. The employer must first consider any suitable alternative position.
For dismissals under Articles 61(c) and 61(d), the employer must first offer any vacant position compatible with the employee’s qualifications. If no suitable vacancy exists, the employer must notify ANOFM (the territorial employment agency) to assist with redeployment before issuing the dismissal decision.
Non-employee grounds (Articles 65–66)
Redundancy dismissal (for reasons not related to the employee) requires the genuine elimination of the position for real and serious economic, financial, technological, or organisational reasons. Three constraints apply:
- The eliminated position must actually be abolished. The employer may not re-create the same position within six months of the dismissal date.
- Courts look through restructuring labels to verify substance. “Fictitious reorganisation” is a leading litigation risk.
- Where multiple employees hold comparable positions, objective and non-discriminatory selection criteria must be applied and documented.
Redundancy may be individual (Article 65) or collective (Articles 68 to 74). Collective rules are covered below.
Notice periods
Statutory minimum notice by scenario
Scenario: Employer dismissal, medical incapacity (Article 61(c))
Notice period: 20 working days
Statutory basis: Article 75(1)
Scenario: Employer dismissal, professional inadequacy (Article 61(d))
Notice period: 20 working days
Statutory basis: Article 75(1)
Scenario: Individual redundancy (Article 65)
Notice period: 20 working days
Statutory basis: Article 75(1)
Scenario: Collective redundancy (Articles 68–74)
Notice period: 20 working days' individual notice plus 30-day institutional notification
Statutory basis: Articles 71, 72, 75
Scenario: Disciplinary dismissal (Article 61(a))
Notice period: None
Statutory basis: Article 75(2)
Scenario: Arrest or house arrest over 30 days (Article 61(b))
Notice period: None
Statutory basis: Article 75(2)
Scenario: During probation (Article 31(3))
Notice period: None; written notification only
Statutory basis: Article 31(3)
Scenario: Mutual agreement
Notice period: None; parties set the date
Statutory basis: Article 55(b)
Scenario: Resignation, operational role
Notice period: Up to 20 working days
Statutory basis: Article 81(4)
Scenario: Resignation, management role
Notice period: Up to 45 working days
Statutory basis: Article 81(4)
Scenario: Fixed-term contract expiry
Notice period: None
Statutory basis: Article 56(1)(i)
“Working days” means weekdays excluding public holidays. Romania observes 17 public holidays in 2026, so the calendar impact of a 20-working-day notice depends on which weeks the notice falls in.
Payment in lieu of notice (PILON) is not regulated by Romanian law and cannot substitute for the statutory notice period. Garden leave (keeping the employee off-site while paying salary during notice) is used in practice for senior or sensitive roles; it must be formalised in writing, and the employer must continue all benefits during the leave period.
Probation and notice
Contract type: Indefinite-term
Position: Executive/operational
Maximum probation: 90 calendar days
Contract type: Indefinite-term
Position: Management
Maximum probation: 120 calendar days
Contract type: Indefinite-term
Position: Employee with disability
Maximum probation: 30 calendar days
Contract type: Fixed-term ≤ 3 months
Position: Any
Maximum probation: 5 working days
Contract type: Fixed-term 3–6 months
Position: Any
Maximum probation: 15 working days
Contract type: Fixed-term > 6 months
Position: Operational
Maximum probation: 30 working days
Contract type: Fixed-term > 6 months
Position: Management
Maximum probation: 45 working days
During probation, either party may terminate by written notification without notice, without grounds, and without following the full dismissal procedure. Only one probation period per contract is permitted; a second applies only if the employee takes a genuinely new position or moves to hazardous work. Post-Law No. 283/2022, probation conditions must be expressly stated in the employment contract.
Procedural requirements
Every employer-initiated dismissal requires a written dismissal decision (decizie de concediere). The decision must contain, at a minimum:
- The legal and factual grounds for dismissal.
- The notice period to which the employee is entitled.
- The priority selection criteria applied (in collective redundancy).
- The list of available vacant positions (or a statement that none exist) and the deadline for the employee to accept one (in medical incapacity or professional inadequacy dismissals).
- The legal deadline within which the decision may be challenged in court.
- The competent court before which the challenge may be lodged.
An employer cannot, in litigation, rely on factual or legal grounds not stated in the dismissal decision. Verbal dismissal is invalid.
Disciplinary dismissal procedure (Articles 247–252)
Disciplinary dismissal is the most procedurally intensive route. The mandatory seven-step sequence:
- Identify and document the alleged misconduct.
- Summon the employee in writing to a disciplinary investigation (cercetare disciplinară prealabilă), specifying the date, time, place, and alleged misconduct.
- Conduct the investigation. The employee has the right to be heard, present evidence, and be assisted by a lawyer or a trade-union representative.
- Record the investigation findings in writing.
- Issue the disciplinary sanction decision in writing within 30 calendar days of the employer becoming aware of the misconduct, and no later than 6 months from the date the misconduct occurred.
- Communicate the decision to the employee within 5 calendar days of issuance. The sanction becomes effective upon notification.
- Inform the employee of appeal rights. A 30-day deadline applies for the employee to challenge in court.
Any gap in this sequence (failure to summon, failure to conduct an investigation, missing the 30-day or 6-month deadlines) renders the dismissal decision null and exposes the employer to reinstatement and full back-pay liability.
Professional inadequacy procedure
Before dismissing an employee for professional inadequacy, the employer must complete a formal performance evaluation in accordance with the evaluation procedure set out in the Regulamentul Intern. If the employee does not meet the required standards, the employer must first offer any suitable vacant position compatible with the employee’s qualifications and allow a reasonable period for improvement. Where no appropriate vacancy exists, the employer must notify ANOFM to assist with redeployment before issuing the dismissal decision. Once these steps have been completed, the dismissal decision must be issued within 30 calendar days of establishing the grounds for dismissal and must include details of any vacant positions offered, or confirm that none were available.
Medical incapacity procedure
A dismissal for medical incapacity begins with a decision from the competent medical examination body (comisie de expertiză medicală) confirming that the employee is permanently unable to perform the role. Before proceeding with dismissal, the employer must offer any suitable vacant position compatible with the employee’s remaining work capacity. If no appropriate vacancy exists, the employer must notify ANOFM to assist with redeployment. The dismissal decision must be issued within 30 calendar days of the medical finding and cannot be issued while the employee is on temporary sick leave.
Individual redundancy procedure
- Prepare a documented business case establishing the real and serious grounds for position elimination (board or management decision, org-chart change, financial analysis).
- Apply objective selection criteria if multiple comparable positions are affected.
- Issue the written dismissal decision with 20 working days’ notice.
- Do not recreate the same position within 6 months of the dismissal date.
Courts scrutinise individual redundancies intensely where patterns suggest the redundancy is a pretext for a personal reason.
Protections and prohibited dismissals
Absolute prohibition on discriminatory dismissal (Article 59)
Dismissal is absolutely prohibited where the reason is, directly or indirectly:
- Race, nationality, ethnicity, skin colour, language, religion, social origin, genetic characteristics, sex, sexual orientation, age, disability, chronic non-contagious illness, or HIV infection.
- Political opinion, trade union membership, or trade union activities.
- Family situation or responsibilities.
- Participation in strikes or any lawful collective action.
- Exercise of statutory employment rights (for example, requesting information, asserting maternity or parental rights).
Prohibition on dismissal in protected situations (Article 60)
The employer cannot order a dismissal decision while the employee is in any of the following protected situations:
- Temporary incapacity for work (medical certificate). The dismissal decision is void even if issued the same day sick leave commences; the communication date is irrelevant.
- Quarantine leave.
- Pregnancy, where the employer has been informed prior to issuing the decision.
- Maternity leave (126 days).
- Childcare (parental) leave up to age 2, or age 3 for a child with a disability.
- Sick-child care leave (child up to age 7, or age 18 for a disabled child).
- Annual leave or authorised absence.
- Maternal risk leave.
- Post-parental-leave insertion incentive period, until the child reaches age 3 (or age 4 for a disabled child).
Under the High Court of Cassation and Justice Decision No. 18 of 29 September 2025, the prohibition on dismissal during sick leave attaches to the moment of issuance of the dismissal decision, not the date of communication or effective termination. A decision issued while the employee is on sick leave is absolutely null, even if communicated after sick leave ends. This clarification has practical consequences for employers: the decision must be dated after the sick-leave certificate expires.
These protections fall away only in the event of the employer’s judicial reorganisation, bankruptcy, or court-ordered dissolution.
Special category protections
- Trade union leaders and representatives: Additional protections under Law No. 62/2011.
- Whistleblowers: Protected against dismissal or retaliation under Law No. 361/2022 transposing EU Directive 2019/1937. The employer bears the burden of proving a non-retaliatory reason.
- Employees with disabilities: Shorter probation (30 calendar days) applies; no general extra notice requirement.
- Fixed-term employees: Cannot be dismissed before expiry except on the same grounds applicable to open-ended contracts; the employer must inform them of vacancies.
- Employees returning from parental leave: Right to return to the same or an equivalent position; employment protected for the insertion incentive period.
Collective redundancy rules
Collective redundancy rules apply where an employer with more than 20 employees plans to dismiss the following numbers within any 30-calendar-day window:
Employer headcount: 20 to 99 employees
Minimum dismissals to trigger: At least 10 employees
Employer headcount: 100 to 299 employees
Minimum dismissals to trigger: At least 10% of the workforce
Employer headcount: At least 300 employees
Minimum dismissals to trigger: At least 30 employees
The collective redundancy procedure requires the employer to consult with trade union representatives or elected employee representatives and to notify the territorial labour inspectorate (ITM) and ANOFM. Minimum institutional notification is 30 calendar days before the dismissal decisions are taken; individual notice remains at 20 working days.
Collective dismissals also require the employer to consider alternatives, apply objective and non-discriminatory selection criteria, and offer priority rehiring for at least 45 days if the same or comparable positions become available within nine months.
Severance pay
Romanian law does not mandate a universal statutory severance for individual redundancies. Severance becomes payable where:
- The individual employment contract or offer letter expressly provides for it.
- A collective bargaining agreement applicable to the employer stipulates severance (the 2024 banking sector CBA, for example, requires up to six months of salary for employees with 15 or more years of seniority).
- A company-wide internal policy or social plan establishes severance entitlements.
- It is negotiated in a mutual termination agreement.
For foreign employers, this is one of the areas where local negotiation practice matters more than statute. Where the workforce management platform’s local entity has an internal severance policy, the foreign client should confirm terms before dismissal decisions are taken.
Resignation from the employee's side
An employee may terminate unilaterally by giving written notice. Notice caps are up to 20 working days for operational roles and up to 45 working days for management roles. The employee is not required to state reasons. Where the employer fails to register the resignation, the employment is deemed terminated at the end of the notice period.
Pressuring an employee into resignation is treated as constructive dismissal, with the same consequences as an unlawful dismissal (reinstatement plus back pay).
End-of-employment obligations
On or before the final payroll date, the local entity managing the employment relationship must:
- Update and close the employment record in REGES-Online.
- Pay final salary, outstanding bonuses, and all accrued but unused annual leave in cash.
- Issue the work certificate (adeverință de vechime/experiență în muncă) confirming employment history, role, and salary.
- Issue a fiscal income statement for the year.
- Issue a social contribution certificate (adeverință CNAS) for the employee’s health insurance history.
- File the final D112 return reporting the termination month’s payroll.
Why Romanian terminations reward procedural discipline over commercial urgency
The pattern that recurs across Romanian termination disputes is procedural: an employer with a valid business reason to end a relationship, but who moved too quickly or missed a step in the mandated sequence, ends up losing the case regardless of the underlying merits. A dismissal decision without the vacancy-offer list, a disciplinary decision issued outside the statutory deadline, a redundancy followed by the recreation of the same role, or a dismissal signed while an employee is on certified sick leave can all expose the employer to significant legal risk.
For organisations managing teams in Romania, successful termination processes depend as much on planning and documentation as on identifying the correct legal ground for dismissal. Boundless, a Payoneer company, provides a workforce management platform that supports organisations in building and managing international teams. See how we can help simplify workforce administration across global markets.
FAQs
Most employer-initiated dismissals require at least 20 working days’ notice. Disciplinary dismissals and dismissals following arrest exceeding 30 days do not require notice. Employment contracts or collective agreements may provide longer notice periods.
No. Article 60 of the Labour Code prohibits employers from issuing a dismissal decision while an employee is on certified sick leave. The High Court confirmed in Decision No. 18/2025 that any decision issued during this protected period is void.
No. Romanian law does not provide universal statutory severance. Severance is payable only where it is required under an employment contract, a collective bargaining agreement, a company policy, or a mutual termination agreement.
Disciplinary dismissal requires the employer to complete a formal disciplinary investigation before issuing a dismissal decision. The decision must be issued within the statutory deadlines, communicated to the employee in writing, and include information about the employee’s right to challenge it in court. Failure to follow the procedure can render the dismissal invalid.
The making available of information to you on this site by Boundless shall not create a legal, confidential or other relationship between you and Boundless and does not constitute the provision of legal, tax, commercial or other professional advice by Boundless. You acknowledge and agree that any information on this site has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute advice intended for reliance. You assume all risk and liability that may result from any such reliance on the information and you should seek independent advice from a lawyer or tax professional in the relevant jurisdiction(s) before doing so.
Explore more resources
Romania IT tax exemption after abolition: What the Article 60(2) regime looked like and what applies in 2026
A guide to how Romania's former IT tax exemption worked, why it ended, and the payroll rules employers now follow after its abolition.
Best EOR services in Romania for 2026: REGES-Online, pricing, and local fit compared
Compare Romania's leading EOR providers across pricing, REGES-Online compliance, contractor support, local fit, and hiring models in 2026
Employer of Record guide for Romania: Contracts, REGES-Online, and payroll in 2026
Hiring in Romania involves more than contracts. Explore registration, payroll, compliance, and EOR considerations for 2026.
Maternity, paternity, and parental leave in Romania
Compare Romania's family leave entitlements, payment rules, employer responsibilities, employee rights, and leave requirements.
Global employment made gloriously uneventful
Talk to us and discover Boundless possibilities
Book a personalised discovery and get your questions answered by our experts.





