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The Individual and Collective Labor Agreements

by Vlad Cuc

Hiring Romanian employees implies signing an Individual Labor Agreement and depending on certain factors, a Collective Labor Agreement. The Individual Labor Agreement is a specially regulated agreement concluded in written form with each respective employee. This type of agreement is formed of 2 parts, respectively: 1) A mandatory part which contains the rights and obligations expressly stipulated by the law in effect and 2) A conventional part which contains rights and obligations established by the parties.
An Individual Labor Agreement shall contain clauses related to the following issues:
a) Duration of Contract – The rule is to conclude the Labor Agreement for an undetermined period of time, however signing Agreements for determined periods of time can be done as an exception;
b) Working Location – City and Unit where actual work takes place;
c) Type of Work;
d) Working Conditions;
e) Salary;
f) Working Hours.

Besides the above, the Individual Labor Agreement can contain specific clauses related to professional formation of employees, mobility, confidentiality etc.

The Individual Labor Agreement must be registered by the employer with the Romanian Local Labor Inspectorate within 20 days from the date is has been signed.

If an employer has at least or more than 21 employees then the employer must start negotiations for the signing of the Collective Labor Agreement with the employees for determining working conditions, payment and other rights and obligations resulted from labor relationships. The clauses stipulated by the this Labor Agreement are regarded as minimal when compared to those contained in the Individual Labor Agreement, in other words the employee’s rights cannot be established at an inferior level than the one in the Collective Agreement. This type of agreement concluded at the Unit’s level must be registered with the Directorate of Labor, Social Solidarity and Family at the respective county level.
Collective Labor Agreements concluded at a higher level (groups of Units, activity branches or national level) shall be registered with the Ministry of Labor, Social Solidarity and Family.