The legislative updates adopted in 2024 regarding labor relations, applicable in 2025 as well

The year 2024 brought significant changes in labor and tax legislation, which will directly influence the way salaries, employee rights, and employer obligations are managed. Among the most important changes are the regulations regarding the gross minimum wage, employee benefits in case of workplace accidents, as well as protection measures for persons with disabilities.

If you are an employer or an employee, it is essential to understand the legal provisions and how they will affect your rights and obligations. Whether it’s about the minimum wage or  social protection rights, adapting to the new regulations will ensure compliance with current legislation and help avoid penalties.

Discover the main legislative updates of 2024 and how they might impact you so you can be prepared for their implementation in 2025!

1. LEGISLATIVE UPDATES ON MINIMUM WAGE DETERMINATION AND EMPLOYEE RIGHTS PROTECTION THROUGH LAW 283/2024

On November 14, 2024, Law no. 283/2024 was published in the Official Gazette, introducing significant amendments to the Labor Code and establishing a clear mechanism for determining and updating the gross national minimum wage. Compliance with these provisions is essential to avoid severe penalties and ensure a work environment that meets European standards.

This law transposes EU Directive 2022/2041 on adequate minimum wages in the European Union and includes important changes to the Labor Code, strengthening worker protection and promoting a work environment aligned with European standards.

KEY PROVISIONS OF THE LAW:

1. Definition of the Guaranteed Gross National Minimum Wage
   The gross minimum wage will be set annually by Government decision, based on consultations with social partners and will reflect criteria such as the cost of living, wage growth rate, and national productivity.
2. Duration of Minimum Wage Applicability
   An employee can be paid the gross minimum wage for a maximum of 24 months from the signing of the individual employment contract, after which they must receive a wage higher than the minimum.
3. Clear Criteria for Updates
   The update procedure includes monitoring economic and social indicators, ensuring an indicative ratio of 47%-52% of the gross minimum wage relative to the gross average wage.
4. Differentiated Minimum Wage
   The Government may introduce differentiated minimum wages based on education levels and work experience.
5. Harsher Penalties for Non-Compliance
   Employers who fail to meet minimum wage obligations risk fines ranging from 3,000 to 5,000 lei per affected employee, capped at a total of 200,000 lei.

IMPACT ON EMPLOYERS AND EMPLOYEES

Employers must inform workers about changes to the minimum wage to avoid penalties and ensure compliance with the legislation. Employees, on the other hand, will benefit from an adequate minimum remuneration, ensuring a decent standard of living.

Law no. 283/2024 underscores Romania’s commitment to European standards, emphasizing social equity and the development of a sustainable economic environment.

Discover here the provisions of Law 283/2024

2. NEW BENEFITS FOR EMPLOYEES IN CASE OF WORK ACCIDENTS AND OCCUPATIONAL DISEASES THROUGH EMERGENCY ORDINANCE NO. 127/2024

In November 2024, legislative changes were introduced in the social domain regarding the calculation basis for medical leave. Additionally, there is good news for people with disabilities: they will benefit from new financial support and more employment opportunities, as new obligations are imposed on employers. Find out in detail what changes the new legal provisions bring and how they will impact your income or that of your colleagues!

ENHANCED BENEFITS FOR EMPLOYEES IN CASE OF WORK ACCIDENTS

A notable amendment to Law No. 346/2002 stipulates that the calculation basis for allowances for temporary work incapacity will be determined from the average gross income earned over the last six months, excluding income from other employers.
Moreover, a new article, 361, establishes that employees who suffer severe burns from work accidents will receive an allowance of 100% of the average gross income for treatment and recovery.

3. EXTENDED PROTECTION FOR PERSONS WITH DISABILITIES BY UPDATING LAW NO. 448/2006

Law No. 448/2006 has been supplemented with two new types of benefits:

Solidarity allowance, intended for persons with severe or severe disabilities.

The support point is granted for each year of contribution period in conditions of severe or severe disability, which will increase the old-age pension.

These measures apply from January 2025, bringing additional support for the recalculation of pensions and the establishment of beneficiaries’ rights.

NEW OBLIGATIONS FOR EMPLOYERS TO SUPPORT THE EMPLOYMENT OF PERSONS WITH DISABILITIES

Companies with over 50 employees must comply with an employment percentage of at least 4% persons with disabilities. If they cannot meet this requirement, companies are required to collaborate with specialized NGOs. Employers must also submit an annual centralized report by January 31 on the number of disabled people employed and the skills required for the positions.

The implementation of these measures is expected to bring benefits to both employees and employers, strengthening social protection and promoting responsibility in the professional environment.

Discover here the provisions of Emergency Ordinance 127/2024 and the new provisions of Law no. 448/2006.

4. BENEFITS FOR PUBLIC SECTOR EMPLOYEES UNDER EMERGENCY ORDINANCE NO. 53/2024

The Government of Romania has adopted Emergency Ordinance No. 53/2024, published in the Official Gazette No. 484 on May 24, 2024, introducing significant measures for the remuneration of personnel in certain public sectors, as well as organizational regulations. Among the main changes is the obligation for public authorities and institutions to cover the costs of special optical correction devices for employees who regularly work with equipment equipped with display screens.

According to the legal act, public institutions will reimburse employees up to 500 lei for the purchase of necessary optical correction devices, based on an ophthalmological examination confirming their necessity. The measure also applies in cases where existing devices require replacement or adjustment. This provision is intended to protect the eye health of workers who spend extended periods in front of screens.

5. HIGH COURT DECISION REGARDING THE NOTICE PERIOD CALCULATION

Additionally, Decision No. 8/2024 of the High Court of Cassation and Justice, issued in case file No. 471/1/2024, clarifies the interpretation of the notice period stipulated by the Labor Code. According to this decision, the notice period begins the day after the notice communication is delivered and ends on the last day of the period, without applying the provisions of the Civil Procedure Code or the Civil Code.

The measures and clarifications introduced by these regulations are expected to simplify the application of legal provisions and provide tangible benefits to employees, particularly those engaged in activities involving intensive use of digital equipment.

Discover here the provisions of Emergency Ordinance 53/2024 and Decision No. 8/2024.

6. NEW OCCUPATIONS ADDED TO THE ROMANIAN OCCUPATIONAL CLASSIFICATION (ROC) BY ORDER NO. 573/180/2024

On April 12, 2024, Order No. 573/180/2024 was published in the Official Gazette, which introduces important changes and additions to the Romanian Occupational Classification (COR). The document regulates the introduction of new occupations to better reflect the dynamics of the labor market and the requirements of the national economy.

According to the order, the Romanian Occupational Classification, initially approved by Order No. 1,832/856/2011 and later updated, now includes the following occupations:

• Attaché for labor and social affairs (ROC code: 242239)
• Chief pharmacist (ROC code: 226205)
• Road freight transport engineer (ROC code: 214144)
• Road passenger transport engineer (ROC code: 214145)
• Cost manager for project development (ROC code: 242122)
• Execution graphic programmer for project implementation (ROC code: 432206)
• Mechatronics technician (ROC code: 311540)

IMPACT OF THE CHANGES

These additions reflect the adaptation of legislation to the new demands and trends of the labor market in Romania, recognizing and formalizing essential occupations in various sectors, including transport, technology, healthcare, and project development.

The new COR codes will assist employers and employees in recruitment, reporting, and regulation processes, providing greater clarity in defining and recognizing these professions.

7. MEASURES FOR SUPPORTING MOTHERS AND NEWBORNS FROM DISADVANTAGED FAMILIES THROUGH EMERGENCY ORDINANCE 34/2024

On April 12, 2024, Emergency Ordinance No. 34/2024 was published in the Official Gazette, introducing important measures to support vulnerable categories of mothers and newborns. The normative act provides for the issuance of social vouchers on electronic support, funded by non-reimbursable external funds, intended for the needs of newborns from disadvantaged families.

8. TYPES OF SICK LEAVE FOR WHICH CASS IS PAID

Government Emergency Ordinance 34/2024 also brings significant changes to Law No. 227/2015 regarding the Fiscal Code. One of the main changes concerns the obligation to pay the health social insurance contribution (CASS) for certain types of sick leave, in accordance with the provisions of Emergency Ordinance No. 158/2005.

Thus, the CASS contribution will apply only to the following categories of sick leave:

• Code 01: Sick leave for common illnesses;
• Code 07: Sick leave for quarantine;
• Code 10: Allowance for reducing working hours by a quarter of the normal duration.

This clarification aims to reduce ambiguities regarding the application of the contribution and ensure uniform implementation of the fiscal regulations.

IMPACT OF SOCIAL MEASURES

Through these measures, the government aims to support mothers in vulnerable situations, providing them with essential resources for the care of newborns. Social vouchers can be used to purchase strictly necessary products, thus contributing to the reduction of social inequalities and improving living conditions for disadvantaged groups.

At the same time, the fiscal changes included in the ordinance highlight the concern for efficient and equitable management of the social insurance system, for the benefit of all taxpayers.

Discover here the provisions of Order 573/180/2024, the provisions of GEO 34/2024, and Law 87/2024.

NEW REGULATIONS REGARDING THE STAY AND EMPLOYMENT OF FOREIGN CITIZENS IN ROMANIA, THROUGH GEO NO. 25/2024

The Romanian Government has adopted Emergency Ordinance no. 25/2024, published in the Official Gazette on March 22, 2024, which introduces significant changes to the legislation regarding foreigners and borders. The regulation aims to clarify the obligations of host entities, employers, and foreign citizens, as well as to establish new conditions for the issuance of work permits.

OBLIGATIONS FOR HOST ENTITIES AND EMPLOYERS

According to the new regulations:

• Host entities must inform the General Inspectorate for Immigration (IGI) about the termination or suspension of legal relationships with foreign citizens within 5 working days from the date of the event.
• Employers are required to conclude individual labor contracts within 15 working days from the foreigner’s entry into Romania or from obtaining the work permit. Failure to meet this deadline will result in fines ranging from 5,000 to 10,000 lei, except in cases where the delay is attributable to the foreign citizen.

CHANGES IN THE EMPLOYMENT AND STAY PROCEDURE

• Foreign citizens who change their employment conditions are required to notify IGI within 3 working days.
• An additional condition is introduced for the issuance of work permits for permanent workers: employers must demonstrate that they have been operating in the requested field for at least one year.

NEW RULES FOR CITIZENS WITH SCHENGEN VISAS

• Foreigners holding long-stay visas or residence permits issued by other Schengen countries can enter and stay in Romania for a maximum period of 90 days within a 180-day period, with the cumulative period including days spent in other Schengen states.

IMPACT OF GEO NO. 25/2024 AND PROSPECTS

The new regulations bring more clarity and predictability in managing relationships with foreign citizens, especially regarding their stay and employment. At the same time, the measures ensure compliance with Schengen standards and support the fight against illegal labor by holding employers accountable.

These changes are expected to contribute to better integration of foreigners in Romania and efficient management of labor and stay flows.

Discover here the provisions of GEO 25/2024.

11. LEGISLATIVE NEWS FOR STRENGTHENING THE LEGAL REGIME OF FOREIGN CITIZENS AND PROTECTING THEIR RIGHTS IN ROMANIA THROUGH LAW NO. 28/2024

On March 5, 2024, Law No. 28/2024 was published in the Official Gazette, which introduces significant changes to the legislation applicable to foreign citizens, including new provisions in the Government Emergency Ordinance No. 194/2002 regarding the regime of foreigners and the Government Ordinance No. 25/2014 concerning their employment and secondment on the territory of Romania.

KEY CHANGES FOR FOREIGN CITIZENS:

• Declaration of personal changes: Foreigners residing in Romania are required to declare changes such as name, citizenship, residence, or family status (marriage, divorce, birth of a child, death of a family member) within 10 days. The theft or loss of border-crossing documents must be reported to the police within 48 hours.
• Visa and residence rights applications: Foreigners can apply for a long-stay visa for secondment within 180 days of obtaining the secondment approval.
• Temporary work residence rights are extended for a maximum of two years, depending on the validity of the employment contract. For highly skilled workers, the extension may be up to three years, with an additional three-month period.
• Family reunification: Applications are approved only if the applicant can demonstrate sufficient financial means to support each family member for three months, equivalent to the minimum gross salary.

REGULATIONS FOR EMPLOYERS AND EMPLOYED FOREIGNERS:

• Facilities for students: Foreigners with temporary residence for studies can work without an employment permit, but only with part-time contracts, of a maximum of six hours per day.
• Employment permit: This is conditioned by the actual activity of the employer on Romanian territory and the payment of fiscal obligations. It cannot be granted if the employer’s activity is solely aimed at facilitating the entry of foreigners into Romania.
• Highly skilled workers: Strict requirements are introduced for obtaining the employment permit, including more detailed selection procedures.

The law aims to strengthen the legal regime of foreign citizens in Romania, protect their rights, and increase compliance with European Union legislation. Authorities will impose strict sanctions for non-compliance with the new regulations.

Discover here the provisions of law 28/2024.

The legislative changes of 2024 bring a set of essential regulations to improve working conditions, protect employee rights, and stimulate specific economic sectors. Regardless of your role, whether employee or employer, it is important to understand the new provisions to avoid penalties and take advantage of the benefits of these changes. Understanding the impact of these measures and applying them correctly will support a sustainable and fair economic environment.

REQUEST THE GUIDANCE OF BIA HCS COMPANY TO UNDERSTAND AND INTERPRET THE NEW LEGAL PROVISIONS

Considering the legislative changes in the past year that target fiscal aspects impacting labor relations, aspects regarding collective bargaining at the company level, and many others, as well as unforeseen situations that may arise in the usual employer-employee relationship, discover the main advantages and reasons why BIA HCS partners turn to HR consultancy services.

“The main reasons why companies turn to our HR consultancy services are the consolidated know-how gained over more than 30 years of BIA’s activity, as well as the promptness and professionalism that BIA consultants offer in responding to requests. Furthermore, some of the services provided by BIA consultants are time-consuming, such as the local hiring processes for foreign citizens. Therefore, the support and assistance of specialists reduce the time allocated by our service beneficiaries, as well as their minimal involvement in such processes,” says Ioana Dobre, Consultancy Manager at BIA HCS.

Specifically, we carry out the following activities:

• We provide support to partners for the accurate interpretation of certain legal acts or for their implementation;
• We prepare and distribute legislative content information to subscribers;
• We prepare Internal Regulations for companies from various fields, according to the needs of our partners and the provisions of the applicable laws;
• We offer assistance in drafting individual employment contracts or specific clauses;
• We provide support regarding the conduct of disciplinary investigations;
• We analyze positions within the organization and prepare job descriptions;
• We offer consultancy and assistance regarding the employment of non-EU citizens, as well as assistance in notifying the authorities regarding the employment of persons exempt from the employment authorization procedure;
• We offer consultancy and assistance for obtaining the A1 form;
• We offer consultancy and assistance for obtaining the tax identification number from ANAF (NIF).

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