With over 10 years of experience in Romania, WTS Energy supports companies in navigating the country’s labor market with full compliance and local expertise.

Romania offers a skilled workforce, competitive costs, and EU market access, but hiring here requires a clear understanding of local labor laws, employment contracts, and immigration rules. This guide provides a practical overview of the Romanian hiring landscape, including legal hiring options, foreign worker requirements, cost considerations, and compliance essentials to help you build your team successfully.

Three ways to hire in Romania

Hiring in Romania requires navigating a well-defined legal and regulatory framework. Unlike in some countries where global Employer of Record (EOR) models are widely accepted, Romania operates under a stricter set of rules, aligned with Directive 2008/104/EC and enhanced by national labor laws.

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1. Setting Up a Legal Entity

Establishing your own company in Romania, typically an SRL (Limited Liability Company), is the most direct and long-term solution for hiring employees.

Key Advantages:

• Full control over employment relationships and operations.

• Low entry barrier: minimum capital requirement is just €40.

• Access to favorable tax rates and EU funding incentives in some sectors.

Considerations:

• Requires company registration with the Trade Register and a Romanian bank account.

• Must manage payroll, employment contracts, social contributions, and compliance in-house or through a local partner which can take a lot of time and resources.

• Very strict rules on hiring foreigners – non EU nationals

This is the best option for companies planning multiple or long-term projects in Romania.

2. Hiring through a licensed temporary work agency

Temporary Agency Work (manpower company) is a legally regulated form of employment in Romania, designed to provide companies with flexible access to labor while ensuring strong protections for workers.

Under this model, a licensed temporary work agency employs individuals and assigns them to perform tasks for a third-party company, known as the “user undertaking.” Although the employee works under the supervision and direction of the user company, their legal employment relationship remains with the agency.

Key Features of Temporary Agency Work:

• Governed by Romanian labor legislation and aligned with EU Directive 2008/104/EC

• Requires a valid license issued by Romanian authorities for the agency

• Ensures equal treatment for temporary workers, including pay, working hours, access to facilities, and training, comparable to direct employees

When It’s Typically Used:

• To cover short-term assignments or seasonal peaks in workload

• For project-based roles requiring flexibility in staffing

• When companies want to avoid the administrative burden of direct employment

Temporary Agency Work can be a useful tool in specific business scenarios, but it must be implemented carefully to remain within the strict boundaries of Romanian labor law.

3. Engaging Independent Contractors

Hiring independent contractors offers flexibility for project-based work. This is done if they deliver a SERVICE not work. That’s why, it’s important to distinguish between contractors and employees to avoid misclassification and fiscal implications.

Considerations:

• Contractual Agreements: Clearly define the scope of work, payment terms, and duration.

• Tax Obligations: Contractors are responsible for their own tax filings and social contributions.

• Risk of Misclassification: Ensure the contractor’s role doesn’t mirror that of an employee to prevent legal issues.

Navigating the Romanian employment landscape requires careful planning and compliance with local laws. Whether you choose to establish a local entity, partner with a specialized manpower agency, or engage independent contractors, understanding the legal and administrative requirements is essential for successful hiring in Romania.

What your company needs for hiring foreign employees in Romania

Hiring foreign employees in Romania requires strict compliance with local labor laws, immigration rules, and employer registration procedures. Also, the track record of the company is of the essence and also a long term presence on the market.

Determine work permit requirements

Citizens of EU/EEA countries and Switzerland do not need a work permit to be employed in Romania. However, they must register their residence with Romanian immigration authorities if they stay longer than 90 days.

Non-EU/EEA nationals require:

• A work authorization (aviz de muncă), which the employer must obtain before the employee can apply for a long term visa;

• A long-stay visa for employment purposes valid for up to one year, extendable;

• A residence permit, issued after arrival, which allows the individual to legally live and work in Romania beyond the 90-day visa.

Employers are responsible for initiating this process with the General Inspectorate for Immigration (IGI), including justification that the job cannot be filled by a Romanian or EU national. Also, work authorization process is lengthy, bureaucratic and meticulous. Proper CAEN codes authorization for the employer are of the essence.

Apply for the right visa and documentation

After the work authorization is granted, the employee applies for the long-stay visa at a Romanian consulate in their country of residence. Once they arrive in Romania, they must apply for a residence permit within 30 days.

Employers must ensure that:

• The job offer meets salary thresholds and legal employment standards.

• The job was impossible to fill with candidates from Romania or EU

• The role is listed in the work permit application as approved by Romanian authorities.

• The employment contract complies with Romanian labor law and is registered in the REVISAL system (employee contract database).

What to know before hiring in Romania

Before hiring employees in Romania, it’s important to understand the country’s legal and regulatory framework, including who can work without a permit, employment obligations, and contract types. As such, this section outlines the key considerations for a compliant hiring process in Romania.

Who Can Work in Romania Without a Work Permit?

Several categories of individuals can work in Romania without needing a separate work permit:

• Citizens of EU/EEA countries and Switzerland: These individuals can live and work in Romania without a visa or work permit. However, if their stay exceeds 90 days, they must register their residence with the General Inspectorate for Immigration (IGI).

• Permanent residents or long-term residents in Romania: Foreign nationals who hold valid long-term residence permits issued by Romania or other EU countries can work without obtaining a new work permit, depending on the purpose of their stay. Additionally, they must ensure their long-term residence permit remains valid and renew it annually with the General Inspectorate for Immigration (IGI).

• Family members of EU/EEA/Swiss citizens: Eligible family members may work without a work permit once they have a residence card confirming their legal stay.

Employment Laws and Regulations

Romania’s labor framework is governed by Law No. 53/2003 – the Labour Code, which outlines employer and employee obligations related to working time, leave, termination, and benefits.

Key points include:

• Working hours: The standard workweek is 8 hours per day, 40 hours per week. Overtime must be compensated either through time off or extra pay (minimum 75% above base wage).

• Annual leave: There are at least 20 working days of paid vacation per calendar year. Additional days may apply under collective agreements.

• Sick leave: Employers and the state jointly cover sick leave compensation, with the employer paying a portion and the state covering the rest, for up to 90 days with medical certification.

• Maternity leave: Employers provide 126 calendar days of maternity leave, paid at 85% of the employee’s average gross salary. The public health insurance system funds this. Afterward, either parent may take up to two years of child-raising leave, with the state paying a monthly benefit capped at 8,500 RON.

• Paternity leave: Employers grant 10 working days of paternity leave to eligible fathers.

• Termination notice: Standard notice periods are:
  • 20 working days for regular employees
  • 45 working days for managers or executives. Dismissals must follow a clear legal process with written justification.

• Social contributions (as of 2024):
  • Employer contributions: ~2.25% of gross salary (for labor insurance)
  • Employee contributions: 25% for pension, 10% for health, 10% income tax all withheld by the employer and by the employer on behalf of the employee

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Recruitment and Manpower Solutions with WTS Energy

At WTS Energy Romania, we specialize in helping companies build effective teams through targeted recruitment and manpower solutions, always in full compliance with Romanian labor regulations.

With over 10 years of on-the-ground experience, we deliver people solutions tailored to your business needs, whether you’re scaling up for a major project or establishing a long-term presence in Romania.

What We Offer:

• Headhunting and executive search: We identify and attract top talent for technical, managerial, and executive roles.

• Manpower supply: We recruit and place skilled professionals who can be employed directly by you or deployed through WTS Energy under compliant employment structures.

• Regulatory guidance: We ensure all employment practices meet Romanian legal requirements, from contract terms to employee protections.

Why Choose WTS Energy:

• Fully licensed and locally established in Romania with a deep knowledge of the Romanian labor market and legislation

• We are authorized for manpower and engineering work in Romania and have a proven track record in the energy and infrastructure sectors

• End-to-end support: from sourcing talent to onboarding and compliance

• Strong local footprint with 2 offices in Romania – Bucharest and Constanta

• We are invested in the client’s success and a true partner in all aspects of local hiring

• Strong track record in authorization processes, legal compliance, problem-solving and working with the authorities

Ideal for:

• Companies launching new operations in Romania

• Short- or long-term project staffing needs

• Businesses that require quick access to skilled local or international professionals

The true cost of hiring an employee in Romania

Employers in Romania benefit from predictable employment costs, as they apply fixed contributions on top of the gross salary. However, they must also navigate various hiring options, manage onboarding requirements, ensure legal compliance, and account for industry-specific exceptions, all of which can add complexity to the process.

When expanding into Romania, employers should plan for key setup and recruitment costs. They need to register a local SRL, open a Romanian bank account, and obtain a tax ID (CUI). Likewise, they may also invest in recruitment services, legal support to draft compliant contracts, payroll outsourcing, and translation of key documents into Romanian. Training and onboarding new staff, especially in regulated industries, also requires careful planning.

Compliance risks when hiring employees in Romania

Misclassification

Misclassifying employees as independent contractors is a common risk in Romania. For example, if a contractor works under conditions similar to those of a full-time employee, such as fixed working hours, reporting to a manager, or relying solely on one client, authorities may reclassify the relationship. Consequently, this can result in fines, back payments, and mandatory social security contributions.

Solution: Consult with local legal advisors or local manpower experts to properly assess and document employment relationships.

Failure to register contracts in REVISAL

All employment contracts in Romania must be registered in REVISAL (the national electronic labor registry) before the employee begins work. Failure to comply can result in penalties from the Labour Inspectorate.

Solution: Ensure all contracts are signed in writing and uploaded to REVISAL before the employee’s start date.

Incomplete work permit procedures for foreign workers

Hiring non-EU nationals without a valid work permit and residence authorization can result in sanctions, including fines or bans on future work sponsorships.

Solution: Follow the correct process through the General Inspectorate for Immigration (IGI) and allow sufficient time for work permit and visa approvals.

Incorrect payroll tax and social contributions

Employers must calculate and withhold income tax and social security contributions accurately. Errors or delays can lead to audits and financial penalties.

Solution: Work with a certified local manpower and payroll provider or accountant familiar with ANAF regulations.

Streamline your Romania hiring with WTS Energy’s headhunting and recruitment services

Navigating Romania’s strict labor and immigration laws requires local insight, licensing, and regulatory alignment. WTS Energy provides targeted recruitment and manpower solutions, ensuring your projects are staffed with qualified professionals under fully compliant employment models.

• Stay fully compliant with Romanian labor and tax regulations

• Access a strong pool of local and EU-based professionals

• End-to-end recruitment support, from job posting to onboarding

• As a licensed manpower supplier, we manage the recruitment process and ensure that contracts and documentation meet Romanian labor standards

Let us take care of the details while you build a high-performing team in Romania.

Frequently asked questions

*The content provided is for general informational purposes only and is based on publicly available sources deemed trustworthy at the time of writing. However, we do not guarantee its accuracy, completeness, or ongoing relevance. For the most up-to-date guidance or advice tailored to your specific situation, please reach out to our team directly*