Practicum, Internship, or Fixed-Term Contract: Comparing the Options

Young people entering the job market in Romania have several distinct paths available for gaining professional experience: the practicum program, the internship program, and the fixed-term individual employment contract. Each has its own purpose, structure, and rules, and understanding the differences helps both individuals and hosting organizations choose the right fit.

Practicum program

The practicum program is an activity carried out in line with an educational plan, aimed at verifying and consolidating the theoretical knowledge students acquire during their studies. It is organized by an educational institution and involves three parties: the organizer, the practicum student, and the practice partner, which can be a commercial company, a central or local institution, or another legal entity.

Through the program, the practicum student applies theoretical knowledge in a real work environment and develops skills specific to their field of study. It runs on the basis of a framework contract or agreement between the organizer and the practice partner, which sets out the program's duration, working hours, and each party's responsibilities. The student must follow the educational plan and complete the activities specified in the practicum contract under the practice partner's guidance and supervision, and receives a certificate at the end verifying the duration and activities undertaken.

Internship program

The internship program is regulated by Law no. 176/2018 and is based on a written contract between a hosting organization and an intern. Its purpose is to develop interns' professional skills and support their transition from education into the job market.

Interns must be at least 16 years old, or 15 with parental consent, and take part in activities related to the hosting organization's field. Maximum working hours are 40 per week under the contract, except for interns under 18, who are capped at 30 hours per week and no more than 6 hours per day, with overtime prohibited. Hosting organizations must provide a safe working environment and genuine opportunities for learning and professional development.

The internship allowance is set in the contract and must be at least 50 percent of the minimum gross national base salary guaranteed by law, granted proportionally to hours worked (1,500 RON for 2023). This allowance is treated as salary-assimilated income under the Fiscal Code, and is subject to:

• Social Insurance Contribution (CAS) at 25 percent
• Health Insurance Contribution (CASS) at 10 percent
• Income Tax at 10 percent
• Labor Insurance Contribution (CAM) at 2.25 percent

At the end of the program, the intern may receive a certificate or recommendation attesting to the activities carried out and the experience gained.

Fixed-term individual employment contract

A fixed-term individual employment contract is used when there is a temporary labor need or a project with a limited timeframe. It is concluded between employer and employee and sets out duration, salary, and working conditions. The employee holds the same rights and obligations as any employee for the duration of the contract, but the employment relationship ends automatically when the agreed period expires, without the need for notice or a separate agreement. Employers must respect the limits set by labor legislation and provide the same rights and benefits as employees on indefinite-term contracts.

Similarities and differences

All three arrangements offer the chance to gain professional experience and apply theoretical knowledge in practice, involve a formal relationship with a hosting organization or employer, and are governed by specific laws and regulations.

They differ in a few key ways:

• Purpose and duration: the practicum verifies the applicability of theoretical knowledge and typically lasts between one week and 12 months, the internship develops professional skills over a variable duration, and the fixed-term contract runs for a defined period with a maximum of three years
• Parties involved: the practicum involves three parties, the organizer, the student, and the practice partner, while the internship involves two, the hosting organization and the intern, and the fixed-term contract involves only the employer and the worker
• Remuneration: a practicum may offer a monthly allowance or other benefits, but it is not mandatory, while both the internship and the fixed-term contract entitle the participant to pay, an internship allowance or a salary respectively

Why this matters

The practicum program, internship program, and fixed-term individual employment contract each offer a distinct route into the job market, with their own rules on duration, parties involved, and pay. The right choice depends on the individual's goals and the hosting organization's needs, but each option offers real opportunities to build skills and gain experience toward a successful career.

Sources: Law no. 176/2018, Romanian Fiscal Code, Romanian Labor Code