Termination in Romania 2026: Employers'

Complete Guide: Procedures, Deadlines, and Rights for Employers and Employees

Updated: January 2026 | Author: Rikhard Pantilimon | Reading time: 15 minutes

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Introduction

Termination of employment is the ending of the individual employment contract at the employer's initiative and is one of the most strictly regulated and controlled procedures in Romanian labor law. The Labor Code (Codul Muncii), officially Legea nr. 53/2003, comprehensively establishes the conditions, procedures, and deadlines that employers must comply with. Failure to comply with these provisions can lead to the annulment of the termination decision by a court and the employer being ordered to reinstate the employee and pay significant damages equivalent to the salaries and other entitlements the employee would have received, plus interest and legal expenses.

This guide presents the complete legal framework for termination under Legea nr. 53/2003 – Codul Muncii, with its current amendments applicable in 2026. It elaborates on procedures for different types of termination, outlines employee rights, details employer obligations, and highlights the most common mistakes that lead to the annulment of termination decisions in court. Understanding these nuances is critical for both employers seeking to lawfully terminate an employment contract and employees wishing to protect their rights.

⚖️ IMPORTANT: ICCJ DECISION NO. 8/2024

The High Court of Cassation and Justice (Înalta Curte de Casație și Justiție) ruled in Decision no. 8/2024 (RIL), that the notice period begins on the day following the communication of the notification and concludes on the last day of the period. The rules of the Civil Code (Codul civil), specifically Art. 2555 din Legea nr. 287/2009 privind Codul Civil, regarding the exclusion of the first and last days when calculating time periods, do not apply to the notice period in labor law. This clarification provides much-needed uniformity in the application of notice periods.

1. Types of Termination

The Labor Code (Codul Muncii) distinguishes between several categories of termination, each with specific procedures, requirements, and legal implications. Understanding these distinctions is fundamental to ensuring compliance.

1.1. Termination for Reasons Pertaining to the Employee (Art. 61)

Termination for reasons pertaining to the employee means that the ending of the employment contract is a direct consequence of the employee's conduct, performance, or legal status.

a) Disciplinary termination (Art. 61 lit. a din Legea nr. 53/2003): This type of termination applies when an employee commits a serious disciplinary offense or repeated breaches of labor discipline rules, including the internal regulations, collective labor agreement, or individual employment contract. It is the only form of termination that does not require a notice period as per Art. 61 lit. a din Legea nr. 53/2003. This requires a thorough disciplinary inquiry process.
- Procedure:
b) Pre-trial detention or house arrest (Art. 61 lit. b din Legea nr. 53/2003): This applies when a final judicial decision establishes that the employee is held in pre-trial detention or house arrest for a period exceeding 30 calendar days. The employer cannot maintain the employment contract under such conditions due to the employee's effective unavailability.
- Procedure: A notice period is not required. The termination takes effect from the date the employer becomes aware of the final decision ordering detention/arrest exceeding 30 days.
- Legal Basis: The employer must have a copy of the judicial decision proving that the conditions have been met.
- Registration in ReGES: Within 3 working days from the date of termination.
c) Physical/mental incapacity (Art. 61 lit. c din Legea nr. 53/2003): This occurs when the employee's physical and/or mental incapacity, established by an expert medical determination, renders them unable to perform their professional duties. This is not a disciplinary measure but a consequence of the employee's health status.
- Procedure:

1.2. Termination for Reasons Not Pertaining to the Employee (Art. 65-66)

These terminations are generally referred to as "redundancy" and are a consequence of the employer's operational or economic needs, rather than the employee's fault or performance.

Individual termination (Art. 65 din Legea nr. 53/2003): This results from the abolition of the job held by the employee for economic, technological, or organizational reasons. The abolition must be effective (the position must genuinely cease to exist) and have a real (objective and verifiable) and serious cause (of sufficient weight to justify the measure). The job cannot be re-established for a period of at least 9 months after its abolition (Art. 67 din Legea nr. 53/2003).
- Procedure:
Collective termination (Art. 68-74 din Legea nr. 53/2003): This procedure applies when, within a 30-day period, a minimum number of employees are dismissed for reasons unrelated to them. The thresholds are defined by Art. 68 din Legea nr. 53/2003:
- at least 10 employees, for units with 21-99 employees;
- at least 10% of employees, for units with 100-299 employees;
- at least 30 employees, for units with 300 or more employees.
- Procedure:

2. Prohibitions on Termination

Romanian labor law imposes strict prohibitions on termination to protect vulnerable categories of employees and ensure fair treatment.

2.1. Absolute Prohibitions (Art. 59 din Legea nr. 53/2003)

It is forbidden to dismiss employees on the basis of sex, sexual orientation, genetic characteristics, age, national affiliation, race, color, ethnicity, religion, political preference, social origin, disability, family status or responsibility, or trade union membership or activity. These prohibitions are absolute and do not allow exceptions. Termination based on these criteria constitutes discrimination and can lead to severe penalties for the employer, including criminal liability under Art. 297 alin. (1) Cod Penal if it involves restricting the exercise of a right.

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2.2. Temporary Prohibitions (Art. 60 din Legea nr. 53/2003)

Termination is temporarily prohibited during specific periods, irrespective of the type of termination (disciplinary or for reasons not pertaining to the employee), to provide social protection for employees in vulnerable situations. An exception applies only to termination for disciplinary reasons (Art. 61 lit. a)) if the employer proves culpability.

Termination cannot be ordered during the following periods:

During temporary incapacity for work (medical leave): as long as the employee presents a valid medical certificate, even if it is for an extended period, as per Art. 60 alin. (1) lit. a) of Legea nr. 53/2003.
During suspension of activity due to quarantine: as per Art. 60 alin. (1) lit. b) of Legea nr. 53/2003.
While the female employee is pregnant (if the employer has been informed): from the moment the employer is informed of the pregnancy, confirmed by a medical document, until the child reaches 16 months of age, as per OUG nr. 96/2003 privind protecția maternității la locurile de muncă, Art. 2 alin. (1) and Art. 60 alin. (1) lit. c) of Legea nr. 53/2003.
During maternity leave: as defined by OUG nr. 96/2003, as per Art. 60 alin. (1) lit. d) of Legea nr. 53/2003.
During child-rearing leave: until the child is 2 years old (or 3 years old for a child with a severe disability), as per OUG nr. 111/2010 privind concediul și indemnizația lunară pentru creșterea copiilor, Art. 2 alin. (1) and Art. 60 alin. (1) lit. e) of Legea nr. 53/2003.
During leave to care for a sick child: until they are 7 years old (or 18 years old for a child with a disability requiring special care), as per Art. 60 alin. (1) lit. f) of Legea nr. 53/2003.
While holding elected office within a trade union body or serving as an employee representative: throughout the term of office, under the conditions established by law, contract, or internal regulations, except in cases of serious disciplinary misconduct, as per Art. 60 alin. (1) lit. g) of Legea nr. 53/2003.
During annual leave: as per Art. 60 alin. (1) lit. h) of Legea nr. 53/2003.

It is crucial to note that the temporary prohibitions mentioned in Art. 60 of the Labor Code do not apply in the case of termination for disciplinary reasons (Art. 61 lit. a)), provided the employer has exhausted all legal procedures and can prove the employee's culpability for a serious violation. Additionally, they do not apply to the termination of the individual employment contract due to the employer's judicial liquidation or bankruptcy, as per Art. 60 para. (2) of Legea nr. 53/2003.

3. General Obligations for Employers and Rights for Employees

Beyond the specific procedures for each type of termination, there are overarching obligations for employers and fundamental rights for employees.

3.1. Employer Obligations

Strict Adherence to Procedure: Any deviation from the legally prescribed procedures, deadlines, or requirements for the content of documents can render a termination decision unlawful and lead to its annulment. This includes issuing decisions in writing, communicating them correctly, and respecting all specific timelines.
Proof of Cause: The employer bears the burden of proving the existence and validity of the grounds for termination in court. This requires maintaining thorough documentation, including disciplinary inquiry reports, medical assessment decisions, economic justifications, and communication records.
Registration in ReGES: As per HG nr. 295/2025, all employment contract terminations must be registered in ReGES within 3 working days from the date of termination. Failure to comply can result in administrative fines ranging from 500 RON to 10,000 RON, as per Art. 8 alin. (2) of the same Government Decision.
Final Settlement: Upon termination, the employer must settle all outstanding financial obligations to the employee, including:
- Salary entitlements for the days actually worked.
- Compensation for unused annual leave, calculated proportionally to the period worked in the year of termination, as per Art. 146 alin. (1) of Legea nr. 53/2003.
- Any other compensatory payments or bonuses stipulated in the individual employment contract or collective labor agreement.
Issuance of Documents: The employer must issue a Certificate of Employment (Adeverință de vechime) and a copy of the ReGES extract reflecting the termination, as per Art. 34 alin. (5) of Legea nr. 53/2003, upon the employee's request. These documents are essential for future employment or access to social benefits.

3.2. Employee Rights

Right to a Notice Period: Except in cases of disciplinary termination, employees are entitled to a notice period of at least 20 working days, as per Art. 75 alin. (1) din Legea nr. 53/2003.
Right to Contest Termination: Employees have the right to challenge the termination decision in courts of law (tribunals) within 45 calendar days from the date of communication of the termination decision, as per art. 268 alin. (1) lit. a) of the Labour Code (Codul muncii).
Right to Reinstatement and Damages: If the court finds the termination unlawful or unjustified, it will annul the decision and order the employer to reinstate the employee to their previous position and pay damages equivalent to the salaries and other entitlements that the employee would have received from the date of unlawful termination until actual reinstatement, as per Art. 80 alin. (1) și (2) din Legea nr. 53/2003.
Right to Information and Consultation: In cases of collective termination, employees (through their representatives or trade union) have the right to be informed and consulted regarding the proposed measures, as per Art. 69 din Legea nr. 53/2003.
Right to Unemployment Benefits: Employees whose employment is terminated for reasons unrelated to them are generally eligible for unemployment benefits, provided they meet the conditions stipulated by Legea nr. 76/2002 privind sistemul asigurărilor pentru șomaj și stimularea ocupării forței de muncă.

4. Key Deadlines and Timelines

Strict adherence to deadlines is critical in termination procedures. Missed deadlines can invalidate the entire process.

Procedure Step	Type of Termination	Deadline	Legal Basis
Notification of the initiation of a disciplinary inquiry	Disciplinary (Art. 61 lit. a))	At least 5 working days before the hearing	Art. 251 alin. (2) Codul Muncii
Issuance of disciplinary sanction decision	Disciplinary (Art. 61 lit. a))	30 calendar days from becoming aware of the offense, maximum 6 months from the offense	Art. 252 alin. (1) Codul Muncii
Communication of disciplinary sanction decision	Disciplinary (Art. 61 lit. a))	5 working days from issuance	Art. 252 alin. (3) Codul Muncii
Request for AJOFM support (if no suitable job is available)	Incapacity (Art. 61 lit. c))	15 working days from the medical assessment decision	Art. 64 alin. (2) Codul Muncii
Notice period (minimum)	All except disciplinary (Art. 61 lit. a))	At least 20 working days	Art. 75 alin. (1) Codul Muncii
Collective termination consultations	Collective (Art. 68-74)	At least 10 calendar days	Art. 69 alin. (1) Codul Muncii
Collective termination notification to ITM/AJOFM	Collective (Art. 68-74)	At least 45 calendar days before the effective date	Art. 69 alin. (3) Codul Muncii
Employee re-employment priority	Collective (Art. 68-74)	45 working days from termination	Art. 74 alin. (1) Codul Muncii
Registration in ReGES	All types	3 working days from the date of termination	HG nr. 295/2025
Employee's right to contest termination decision	All types	45 calendar days from communication	art. 268 alin. (1) lit. a) Codul muncii

5. Practical Steps for Employers

A structured approach is essential for employers to navigate the complexities of termination procedures.

5.1. For Disciplinary Termination (Art. 61 lit. a))

5.2. For Individual Termination (Art. 65)

6. Mistakes Leading to Annulment of Termination Decisions

Court judgments frequently annul termination decisions due to common procedural or substantive errors. Employers must be vigilant to avoid these pitfalls.

Failure to Conduct a Disciplinary Inquiry: For disciplinary termination, omissions in following Art. 251 of Legea nr. 53/2003 (e.g., not notifying the employee, not hearing their defense) automatically lead to annulment.
Lack of Real and Serious Cause: For terminations under Art. 65, if the employer cannot prove the job abolition is effective, real, and serious, the termination will be annulled. Reinstating the same job within 9 months is strong evidence against the genuineness of the abolition.
Failure to Respect the Notice Period: Not granting the mandatory 20-working-day notice period (where applicable) or calculating it incorrectly is a common error. This includes the rule clarified by ICCJ Decision no. 8/2024.
Violation of Temporary Prohibitions (Art. 60): Terminating an employee during medical leave, maternity leave, or child-rearing leave (when explicitly prohibited) directly leads to annulment.
Discriminatory Reasons (Art. 59): Even if not explicitly stated, if the underlying reason for termination can be linked to discriminatory criteria, the termination will be overturned.
Procedural Errors in Collective Termination: Not conducting consultations with employee representatives or not notifying ITM/AJOFM in due time are critical procedural flaws in collective redundancy.
Formal Defects in the Termination Decision: The decision must contain all elements required by Art. 252 alin. (2) of Legea nr. 53/2003 for disciplinary terminations, and similar specific details for other types. The absence of a legal basis, factual description, or instructions for challenging the decision constitutes grounds for annulment.
Failure to Offer Alternative Jobs (Art. 61 lit. c): For termination due to incapacity, failing to meet the obligation to offer other suitable positions renders the termination unlawful.

7. Compliance Checklist for Employers (2026)

This checklist provides a quick reference for employers to ensure compliance with Romanian labor law during termination.

General Compliance:

Is the reason for termination explicitly allowed by Codul Muncii (e.g., Art. 61, 65, 68)?
Does the termination fall under any absolute (Art. 59) or temporary (Art. 60) prohibition?
Is the termination decision in writing?
Does the decision clearly state the legal basis, factual grounds, and instructions for challenging it?
Has the decision been communicated to the employee with proof of receipt?
Will the termination be registered in ReGES within 3 working days?
Are all final financial settlements (salary, unused leave) prepared for payment?
Are the ReGES extract and Certificate of Employment prepared for issuance upon request?

Specific to Disciplinary Termination (Art. 61 lit. a):

Is there clear evidence of a serious disciplinary offense or repeated breaches?
Was the employee notified in writing to attend the disciplinary inquiry (at least 5 working days beforehand)?
Was the disciplinary inquiry conducted, allowing the employee to present their defense?
Was the disciplinary decision issued within 30 days of discovery (no more than 6 months after the offense)?
Was the decision communicated to the employee within 5 working days of issuance?

Specific to Termination Due to Incapacity (Art. 61 lit. c):

Is there a valid medical expert decision confirming the incapacity?
Was an offer of other available, suitable jobs made to the employee?
If there were no suitable jobs, was support requested from AJOFM within 15 working days?
Was a notice period of at least 20 working days granted?

Specific to Individual Termination (Art. 65):

Is there a formal decision to abolish the job due to economic, technological, or organizational causes?
Is the cause real, serious, and effective?
Is there an assurance that the job will not be re-established for 9 months?
Was a notice period of at least 20 working days granted?

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8. Frequently Asked Questions (FAQ)

Q1: Can an employer terminate an employee without notice in Romania for any reason?

A1: No. In Romania, termination without a notice period is an exception, not the rule. It is only permitted in the case of disciplinary termination (Art. 61 lit. a of Legea nr. 53/2003) for a serious disciplinary offense or repeated breaches of labor discipline. For all other types of termination initiated by the employer, including those for reasons not pertaining to the employee (redundancy) or due to physical/mental incapacity, a notice period of at least 20 working days is mandatory, as per Art. 75 alin. (1) of Legea nr. 53/2003.

Q2: What are the consequences for an employer if a termination is ruled unlawful by a court?

A2: If a court annuls a termination decision, the consequences for the employer are significant:

Q3: How is the 20-working-day notice period calculated according to Romanian law, especially after ICCJ Decision no. 8/2024?

A3: Following the clarification by ICCJ Decision no. 8/2024 (RIL), the notice period officially starts on the day following the communication of the termination notification to the employee. The notice period concludes on the last day of the stipulated period. For instance, if a notice is communicated on Monday, January 5th, the period begins on Tuesday, January 6th, and lasts for the required number of working days. This means that weekends and public holidays that fall within the notice period are not counted as working days, effectively extending the calendar duration of the notice. The Civil Code's rules on excluding the start and end days do not apply to labor law notice periods.

Q4: Can an employer terminate an employee who is also a trade union leader?

A4: Generally, no. Art. 60 alin. (1) lit. g) din Legea nr. 53/2003 provides temporary protection against termination for employees holding an elected position within a trade union body or serving as employee representatives, throughout their term of office. However, this protection has an exception: if the termination is for serious disciplinary misconduct, duly proven, the employer may proceed with termination after obtaining the prior consent of the trade union in question or of the employee representatives.

Q5: What is the purpose of ReGES and what is the current share capital requirement for an SRL in Romania?

A5: ReGES (Registrul General de Evidență a Salariaților) is the electronic general register for employee records in Romania, maintained by the Territorial Labor Inspectorates (ITM). It replaced the former ReGES system. Employers are mandated to register and update all individual employment contract events (conclusion, modification, suspension, termination) within specific deadlines, as per HG nr. 295/2025. Failure to comply with registration obligations can result in significant fines. As for the share capital for an SRL (Societate cu Răspundere Limitată – Limited Liability Company) in Romania, effective from 2026, the minimum share capital requirement is 500 RON, as amended by Legea nr. 239/2025. This revision aims to simplify company formation.

Q6: Does Romanian law impose any specific VAT rate that foreign employers should be aware of for 2026?

A6: Yes, for 2026, the standard VAT rate in Romania is 21%. This rate applies unless specific goods or services fall under reduced VAT rates (the 11% reduced rate applies to eligible supplies from 1 August 2025) or are exempt from VAT, as stipulated by Legea nr. 227/2015 privind Codul fiscal, with subsequent amendments. Foreign employers operating in Romania should be aware of these rates for compliance with local tax regulations.

Q7: Can an employee terminate their employment contract in Romania?

A7: Yes, an employee can terminate their individual employment contract in Romania at any time through a procedure called "demisie" (resignation). The employee must notify the employer in writing, and a notice period must be observed. The standard notice period for employees is usually between 10 and 20 working days, depending on the position (Art. 81 alin. (2) din Legea nr. 53/2003). For managerial positions, the notice period can be up to 45 working days. During this period, the employee continues to work. The employment contract terminates at the end of the notice period, even if the employer does not approve the resignation. The employee may request a shorter notice period or immediate termination, but this requires the employer's consent.

This article is for informational purposes only and does not constitute legal advice. For specific situations, please consult a specialized lawyer.

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