Fixed-term individual employment agreements

The fall of communism has brought significant changes in employment relations in Romania. On the one hand, changes were triggered by the transition from a centralised economy, in which the state was the only employer, to a market economy with private employers. On the other hand, employment relations were altered pursuant to Romania’s accession to the European Union, with the relevant European directives being transposed into the local legal system.

Romania has transposed European Directive No 1999/70/EC, concerning the framework agreement on fixed-term work concluded by the European Trade Union Confederation, Union of Industrial and Employers’ Confederations of Europe and European Centre of Enterprises with Public Participation.

A new Labour Code was enacted in 2003 in Romania, imposing a rule that each employee should be hired under a written individual employment agreement. The employment agreement should be concluded for an unlimited term, except for in several circumstances expressly indicated by the Code, where the agreement may be for a fixed term.

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