In Romania, the termination process for an employment contract as an employer generally involves several steps and considerations.
Here’s an overview of the process an employer should follow when considering terminating the employment of a team member in Romania.
Make sure you have grounds for Termination
The employer must have valid grounds for terminating an employment contract. Common grounds include redundancy, employee misconduct, incapacity to perform the job, or other legitimate reasons as specified by law.
Notice Period
The employer is usually required to provide the employee with a written notice of termination. The length of the notice period depends on the length of service of the employee and is determined by law or the employment contract. Typically, the notice period ranges from 20 days (usually for executive positions) to 45 days (usually or Management positions) maximum.
Hold a Termination Meeting
In Romania, it is advisable to hold a termination meeting with the employee to discuss the reasons for termination, provide any necessary documentation, and address any concerns the employee may have. The meeting should be conducted in a respectful and professional manner.
Send a Termination Letter
After the termination meeting, the employer should provide the employee with a written termination letter. The letter should clearly state the reasons for termination, the effective date of termination, and any applicable severance or compensation details. It is important to comply with the legal requirements and include all necessary information in the letter.
Calculate Severance Payments
Depending on the circumstances of the termination, the employee may be entitled to severance pay or other statutory benefits. The amount of severance pay is usually based on the employee’s length of service and salary. However in most cases, Severance pay is not compulsory and is usually only paid if it was previously mentioned in the employment agreement or the collective agreement. The Labour Code in Romania can help to provide specific guidelines regarding severance pay calculations.
Pay the final settlement
The employer should settle any outstanding financial matters with the employee, including payment for unused vacation days, bonuses, or other benefits owed. The settlement should be done in accordance with the employment contract, applicable laws, and any collective bargaining agreements.
Documentation and Record-Keeping are important
It is crucial to maintain proper documentation throughout the termination process, including the termination letter, any written correspondence, meeting minutes, and evidence supporting the grounds for termination. These records may be required in case of legal disputes or audits, so as soon as you detect disciplinary or performance issues, make sure you start documenting this and communicate the problem to your employees to avoid future surprises.
Legal Advice is always recommended
It is well known by HR professionals that even if you take all precautions and follow the process to the letter, you may face future issues such as a legal suit by an employee. Therefor, for extra peace of mind, it is highly recommended to consult with legal professionals experienced in Romanian labour laws to ensure compliance with all legal requirements and to mitigate any potential risks or liabilities associated with the termination process.
Please note that employment law can be complex, and the specific details and requirements for termination may vary depending on the individual circumstances, collective bargaining agreements, and the nature of the employment relationship. It is advisable to seek professional legal advice to ensure accurate and up-to-date information tailored to your specific situation.
