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Employment conditions in Romania

Employment conditions in Romania

Non-compete

A contract can contain a non-compete clause compelling the employee not to perform in anyone’s interest any activity competing with the employee’s duties performed while working for the employer. For this clause to be compliant with the local rules, the employee has to receive indemnity for the duration of the non-compete clause period. This clause can be effective only if the contract contains the following clearly set elements:

  • Specific forbidden activities
  • Amount of the monthly non-compete indemnity — negotiable but not lower than 50% of the average gross salary from the last six months prior to the termination date
  • Other parties that the employee can’t perform activities for
  • Geographic area where the employee can’t perform activities due to the potential competition with the employer

The non-compete clause applies for a maximum of two years, beginning on the termination date. Not complying with this clause can lead to court action or payment of damages. However, the contract can’t contain any specific penalty amount, and the employer has to prove financial loss while seeking damages via legal action.

Business transfer

The EU TUPE rules don’t apply. During a business transfer, employees are transferred automatically to the new employer, cannot be dismissed before or after the transfer, and retain the same rights and obligations as covered under the previous employment relationship. This means that the new employer inherits the same responsibilities and must uphold the same employment conditions as stipulated in the employee’s employment agreement with the transferor, while the transfer has no legal consequence for the employee.

Employers must inform and consult with all employees being transferred at least 30 days before the transfer takes place. However, if trade unions or work councils represent such employees, the employer must inform and consult with them instead. The employer must discuss the legal, economic, and social consequences of the transfer, as well as the reasons, transfer date, and the likely effect of the transfer on the workforce.

Intellectual property

Intellectual property rights over the creations made during employment usually belong to employees unless the contract contains different provisions. However, exceptions exist. The employer keeps the intellectual property rights over computer programs unless the contract states otherwise.

If the employee invents something during an inventive mission or as part of their employment relationship in general, the employer gets patent rights. Where the employer doesn’t claim patent rights, the inventor gets them.

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