Companies used to German, Austrian or French employment law usually ask how long the notice period (‘Kündigungsfrist’) is, who must be informed and how great the risk is that the court will annul the dismissal. Romanian law does not allow dismissal without cause: the employer may terminate the contract only in the cases provided for by law, following a strict procedure, and a formal error may lead to the dismissal being annulled.
The rules are set out in Law no. 53/2003 – the Labour Code, republished, as subsequently amended and supplemented (the ‘Labour Code’). In 2025 and 2026 the Labour Code was amended several times, but the provisions on dismissal (Articles 58–80) have remained essentially unchanged. For employers of foreign workers, Government Emergency Ordinance no. 32/2026 on the access of foreign nationals to the labour market in Romania (‘GEO no. 32/2026’) is relevant, as it introduced two new cases of termination by operation of law (încetare de drept).
1. How the employment contract may terminate
Article 55 of the Labour Code provides for three ways in which the individual employment contract may terminate:
- by operation of law, in the cases set out in Article 56(1), for example on the expiry of a fixed-term contract or on the withdrawal of the permits (avize) required to practise the profession; the employer records the termination by a written decision within 5 working days [Article 56(2)];
- by mutual agreement of the parties, on the date agreed by them;
- by the unilateral will of one of the parties: resignation or dismissal, the latter only in the cases expressly and exhaustively provided for by law.
Dismissal is the termination of the contract at the employer’s initiative (Article 58). Resignation cannot be refused; the employee observes a notice period of no more than 20 working days for non-managerial positions and no more than 45 working days for managerial positions (Article 81). Each ground for dismissal has its own procedure, and the reason cannot be changed subsequently.
2. When you cannot dismiss: the prohibitions in Articles 59 and 60
Article 59 prohibits dismissal on discriminatory grounds and for the exercise of trade union rights or of the right to strike. Article 60(1) sets out periods during which dismissal may not be ordered, regardless of the reason:
- temporary incapacity for work certified by a medical certificate;
- for the duration of the suspension of activity as a result of the imposition of quarantine;
- pregnancy, if the employer became aware of it before the decision was issued, and maternity leave;
- childcare leave for a child up to the age of 2 (3 for a child with a disability) and leave to care for a sick child up to the age of 7 (18 for a child with a disability, for intercurrent illnesses);
- annual leave, paternity leave, carer’s leave and absence on grounds of family emergency (Article 152^2).
The prohibitions do not apply in the case of dismissal resulting from the judicial reorganisation, bankruptcy or dissolution of the employer [Article 60(2)]. Special laws on maternity protection and childcare leave may extend the protection even after the return to work.
3. Dismissal for reasons related to the employee
Article 61 permits dismissal in four situations:
- point (a): serious misconduct or repeated breaches of work discipline, as a disciplinary sanction;
- point (b): pre-trial detention or house arrest for more than 30 days;
- point (c): physical and/or mental unfitness, established by the competent medical assessment bodies;
- point (d): professional unsuitability (necorespundere profesională).
In the cases under points (b)–(d), the decision is issued within 30 calendar days of the date on which the cause was established [Article 62(1)]. For points (c) and (d), the employer must first offer the employee other compatible vacant positions or, if there are none, request the assistance of the County Employment Agency (agenția teritorială pentru ocuparea forței de muncă, ‘AJOFM’). The employee has 3 working days to give consent in writing (Article 64).
Disciplinary dismissal and the prior investigation
Dismissal for a disciplinary offence may be ordered only after a prior disciplinary investigation (cercetare disciplinară prealabilă) [Article 63(1)]. The procedure (Articles 251 and 252):
- the investigation is carried out by a person or committee appointed by the employer or by an external consultant specialising in employment law (for example, a lawyer);
- the employee is summoned in writing, with an indication of the subject matter, date, time and place; if the employee fails to attend without an objective reason, they may be sanctioned without an investigation;
- the employee may present a defence and may be assisted by an external consultant or by a trade union representative;
- the decision is issued within 30 calendar days of the date on which the employer became aware of the offence, but no later than 6 months after the act was committed, and is communicated within no more than 5 calendar days [Article 252(1) and (3)];
- the decision contains, on pain of absolute nullity, a description of the act, the provisions breached, the reasons for rejecting the defence, the legal basis, the time limit for challenge and the competent court [Article 252(2)].
The sanction must be proportionate to the seriousness of the act, having regard to the criteria in Article 250 (circumstances, degree of fault, consequences, general conduct, previous sanctions).
Professional unsuitability and the prior assessment
Dismissal for professional unsuitability may be ordered only after a prior assessment of the employee, in accordance with the procedure laid down in the applicable collective labour agreement (contract colectiv de muncă) or, in the absence thereof, in the internal regulations (regulament intern) [Article 63(2)].
4. Dismissal for reasons not related to the employee (redundancy)
Article 65 permits dismissal resulting from the abolition of the position held by the employee, for one or more reasons unrelated to the employee. The abolition must be actual and have a real and serious cause [Article 65(2)]. In practice, the courts examine whether the position has disappeared from the organisational chart and has not been recreated under another name with the same duties, and whether there is an objective and documented cause, for example a decline in business or the outsourcing of a service.
For subsidiaries of foreign groups, the decision taken at group level must be transposed into a resolution of the management body of the Romanian company, setting out the economic rationale and the new organisational chart. Dismissed employees may receive compensation under the conditions laid down by law and by the applicable collective labour agreement (Article 67).
Are you preparing a reorganisation or an individual dismissal? We review the legal basis, the internal documents and the procedural timetable before the decisions are issued.
5. Collective dismissal: thresholds and procedure
Collective dismissal means the dismissal, within a period of 30 calendar days, for reasons not related to the employee, of [Article 68(1)]:
- at least 10 employees, if the employer has more than 20 and fewer than 100 employees;
- at least 10% of the employees, if the employer has at least 100 but fewer than 300 employees;
- at least 30 employees, if the employer has at least 300 employees.
The calculation also takes into account contracts terminated at the employer’s initiative for reasons not related to the employee, provided that there are at least 5 dismissals [Article 68(2)]. The procedure has several stages:
- consultation of the trade union or the employees’ representatives and written notification of the intention to dismiss, stating the reasons, the number and categories of employees, the priority criteria and the compensation (Article 69);
- sending, on the same day, to the Territorial Labour Inspectorate (‘ITM’) and the AJOFM a copy of the notification of the intention to carry out collective dismissals and of the initiation of consultations with the trade union or the employees’ representatives (Article 70);
- proposals from the trade union or the representatives within 10 calendar days, and the employer’s reasoned response within 5 calendar days (Article 71);
- final notification to the ITM and the AJOFM at least 30 calendar days before the decisions are issued; the ITM may shorten or extend the period or postpone the issuing of the decisions by no more than 10 calendar days (Articles 72 and 73).
These obligations also apply where the decision is taken by the company controlling the employer; the subsidiary cannot defend itself by relying on a lack of information from the parent company (Article 69). Employees dismissed collectively have priority for re-employment for 45 calendar days (Article 74).
6. Notice period
Employees dismissed for physical or mental unfitness, for professional unsuitability or for the abolition of their position (Article 61(c) and (d), Articles 65 and 66) are entitled to a notice period of at least 20 working days [Article 75(1)]. No notice is given:
- in the case of disciplinary dismissal [Article 61(a)];
- in the case of dismissal for pre-trial detention or house arrest [Article 61(b)];
- in the case of dismissal for professional unsuitability during the probationary period [Article 75(2)].
If the contract is suspended during the notice period, for example due to sick leave, the notice period is suspended accordingly [Article 75(3)]. According to Decision no. 8/2024 of the High Court of Cassation and Justice (ÎCCJ) (appeal in the interest of the law, recurs în interesul legii), the notice period runs from the day following communication of the notification.
7. The dismissal decision: content and communication
The decision is issued in writing and must state the reasons of fact and of law, on pain of absolute nullity; it indicates the time limit within which it may be challenged and the competent court [Article 62(3)]. Article 76 adds the mandatory content:
- the reasons for the dismissal;
- the length of the notice period;
- the criteria for establishing the order of priority, only in the case of collective dismissal;
- the list of all vacancies available in the undertaking and the period within which the employees may choose, in the cases provided for in Article 64.
The decision takes effect upon communication (Article 77). It is communicated by handing it over against signature or, in the event of refusal, by registered letter or through a court bailiff. A dismissal ordered in breach of the legal procedure is affected by absolute nullity (Article 78), and in court the employer may not rely on grounds of fact or law other than those stated in the decision (Article 79).
8. Challenging the dismissal in court
The challenge is heard by the Tribunal (county court of general jurisdiction), within the time limits laid down in Article 268(1):
- 45 calendar days from the date on which the employee became aware of the measure terminating the contract [point (a), as amended by Law no. 269/2021];
- 30 calendar days from communication, for a disciplinary sanction decision [point (b) and Article 252(5)]; in the case of disciplinary dismissal, it is prudent to take this time limit into account.
The burden of proof lies with the employer, which proves the lawfulness of the procedure and the merits of the grounds (Article 272). If the court finds that the dismissal was unfounded or unlawful, it annuls it and orders the employer to pay compensation equal to the indexed, increased and updated salaries and the other entitlements the employee would have received [Article 80(1)]. At the employee’s request, the court restores the parties to their previous position, i.e. orders reinstatement [Article 80(2)]. If the employee does not request reinstatement, the contract terminates by operation of law on the date on which the judgment becomes final [Article 80(3)].
9. Mutual agreement as an alternative
Termination by mutual agreement of the parties [Article 55(b)] requires no reasons, notice or prior procedure and is not subject to the prohibitions in Article 60. As a rule, the employer offers a compensatory payment, negotiated according to length of service and the risk of litigation.
An agreement signed under pressure may be challenged on grounds of defective consent. We recommend a written document stating the termination date, the amount and the payment deadline, the treatment of untaken annual leave and a confidentiality clause. The employee must be informed that they will not be entitled to unemployment benefit. The tax treatment of the compensatory payment must be checked before signing.
10. Foreign employees and internal documents
For employees who are nationals of states outside the European Union, termination of the contract has consequences for their right of residence. GEO no. 32/2026 introduced into Article 56(1) of the Labour Code two new cases of termination by operation of law: the rejection of the single application within the meaning of Government Emergency Ordinance no. 194/2002 on the regime of foreign nationals in Romania (‘GEO no. 194/2002’) [point (k)], and a finding by the General Inspectorate for Immigration (‘IGI’) that the foreign national is staying illegally [point (l)]. On termination of the contract, the employer notifies the IGI and the placement agency within the time limit laid down in GEO no. 32/2026. Further details are set out in our article on employing foreign nationals under GEO no. 32/2026.
Every dismissal relies on internal documents. The internal regulations (regulament intern, ‘ROI’) must contain the disciplinary rules, the disciplinary offences, the disciplinary procedure and the criteria for professional assessment (Article 242). The job description sets out the duties against which the disciplinary offence or professional unsuitability is assessed.
What you should do
- Establish the legal basis and check whether the employee is in one of the situations listed in Article 60.
- Update the ROI, the assessment procedure and the job descriptions.
- In the event of a disciplinary offence, document the facts immediately and comply with the time limits in Article 252.
- In a reorganisation, adopt the resolution and the new organisational chart before the decisions and check the collective dismissal thresholds.
- Draft the dismissal decision with all the particulars required by Articles 62 and 76 and keep proof of communication.
- For foreign employees, notify the IGI within the time limit.
- Assess the mutual agreement option and the cost of litigation.
Frequently asked questions
What is the notice period for dismissal in Romania?
At least 20 working days in the case of dismissal for unfitness, professional unsuitability or abolition of the position (Article 75). No notice is given in the case of disciplinary dismissal.
Can an employee be dismissed without cause?
No. Dismissal is permitted only on the grounds provided for in the Labour Code. Without cause, the contract may terminate only by mutual agreement of the parties.
Can an employee on sick leave be dismissed?
No. Article 60(1)(a) prohibits dismissal during temporary incapacity for work certified by a medical certificate. The exceptions are judicial reorganisation, bankruptcy and dissolution.
Within what period can the dismissal decision be challenged?
The general time limit is 45 calendar days from the date on which the employee became aware of the measure. For a disciplinary sanction decision, the time limit is 30 calendar days from communication.
What does the employer risk if the court annuls the dismissal?
Payment of the indexed, increased and updated salaries from the date of dismissal and, at the employee’s request, reinstatement (Article 80).
Adesman & Asociații assists employers in Romania and subsidiaries of foreign companies with individual and collective dismissals, reorganisations, the negotiation of termination agreements and employment disputes. Find out more about our employment law practice and about the new obligations on pay transparency.
Do you have a dismissal or reorganisation decision to make? Talk to our employment law team.
This material is provided for general information purposes only and does not constitute legal advice. The applicable legal regime must be assessed in light of the specific circumstances of each employment relationship and the legislation in force at the date of the assessment.
