Romania has one of the most employee friendly legal regimes in the EU. One hears about the problems in terms of restructuring and employee removal in France and Italy but Romania comes very close behind.
For all employers the question of employee protection and employee rights becomes important as a company develops or needs to restructure.
There are a number of ways in which employers can take advantage of the rules and regulations, but these need to be followed closely. Often we are approached to try and resolve an employer/employee relationship after the employer has terminated the employees contract of employment. We should have been approached for advice before rather than after the contract was terminated to ensure that the legal formalities were observed. For many western managers where the ability to hire and fire is an attribute of management, Romania’s employment legislation represents a real problem.
The rules of employment are enshrined in the Romanian Labor Code which was passed in 2003. There have been a number of amendments since then in various statutes but the basic rules still apply. Romania also requires employers to observe the terms of the “National Collective Bargaining Agreement”. Every two years the employers’ confederation agrees with the employee’s representatives the National Collective Bargaining Agreement which sets out basic terms of employment which are applicable to all employer/employee. The National Collective Bargaining Agreement sets out basic terms of employment such as to holidays; time of for maternity matters; compassionate leave, terms of redundancy and similar matters. It also deals with health and safety at work.
Following on from the National Collective Bargaining Agreement each industry will have their own agreements which are in addition to the National Collective Bargaining Agreement. These are in such industries as mining, oil, aviation, transport etc. and each relevant union will negotiate a further agreement. In some industries there is then bargaining at plant level which puts additional clauses and terms in to the employment contract. This means that employers need to be fully aware of the provisions of each agreement. This places great responsibility on the company’s human resources department which has to be aware not only of the legislation, the various agreements and also each individual contract of employment.
Before taking any action against an employee the employer needs to examine carefully both its position and that of its employees. If disciplinary measures are contemplated then the provisions as set out in the law and the relevant Collective Agreements must be followed. If they are not then an employee can apply to the court for review and the court can order the employee to be re-employed as well as awarding damages.
To many managers this appears to be grossly unfair and anti-business. The rule has therefore be before you take any steps make sure that you are fully aware of your rights and obligations as an employer and if in doubt then obtain proper legal advice and follow the advice and the provisions of the law.
Make sure any discussions and decisions are recorded in writing and advised to the employee in writing if required by the law and the bargaining agreements and the contract. Do not believe that the problems can be solved by payment of monies by way of compensation. It can be disconcerting to have to re-employ someone who you wish to remove from the company. It is not good for staff relations and can cause problems in the future with other employees. Following the strict rules of procedure (form over substance) may appear to be time consuming and archaic but in the future will save the company and management time and money.
