Ensuring Transparency in Employment Contracts: Article 17 and Article 18 of the Romanian Labor Code

Transparency plays a crucial role in building trust between employers and employees. Romanian labor law recognizes this by requiring employers to provide essential information to prospective employees before entering into an individual employment contract. This obligation, set out in Article 17 of the Romanian Labor Code, is designed to ensure individuals are well-informed about the terms of their employment before they sign.

Article 17: pre-contractual information obligations

Before signing an individual employment contract, employers must ensure prospective employees are informed of a range of details, including:

• The identity of both parties to the contract
• The place of work, including whether the role involves multiple locations and whether transportation between them is provided or reimbursed
• The employer's official address or domicile
• The job title or occupation, in line with the Classification of Occupations in Romania, along with a clear job description
• The criteria used to appraise the employee's professional performance
• Risks specific to the position, to support employee safety and welfare
• The intended start date of the contract
• For fixed-term contracts, the duration of the engagement
• The duration of annual leave
• The conditions and notice period for either party to terminate the contract
• A breakdown of salary, including the basic salary and additional components, along with payment frequency and method
• Normal working hours, along with details on overtime, compensation, and shift arrangements where applicable
• Reference to any applicable collective labor agreement
• The duration and conditions of any probationary period
• Procedures for the use of electronic signatures or seals, where applicable
• The employee's right to professional training offered by the employer
• Any additional benefits, such as private medical insurance or contributions to optional or occupational pensions

Most of these elements must also be included in the content of the individual employment contract itself, with the exception of information about professional training, additional benefits, and electronic signature procedures.

Article 18: information for employees working abroad

Article 18 sets out additional disclosure requirements for employees who will carry out work abroad. Before departure, employers must provide:

• The country or countries where the employee will work and the expected duration of the assignment
• The currency in which salary will be paid and the available payment methods
• The cash and in-kind benefits the employee is entitled to while working abroad
• Key information on climate conditions and labor law regulations in the host country
• Local customs and safety measures relevant to the assignment
• Repatriation conditions

All of the information outlined in Article 18 must also be incorporated into the content of the individual employment contract.

Compliance and redress

If an employer fails to provide the information required under Article 17 or Article 18, employees have recourse. They can contact the Labor Inspection to report non-compliance, and they have the option to file a lawsuit within 30 days of the failure to provide the required information, potentially seeking compensation for any resulting damages.

Why this matters

Article 17 and Article 18 of the Romanian Labor Code underscore the importance of transparency and clear communication in the employment relationship. Employers who take these disclosure obligations seriously reduce their compliance risk and help set the foundation for a well-informed, productive working relationship from day one.

Sources: Romanian Labor Code, Article 17 and Article 18