1. Best Practice Case – Labour Law Human Resources Management

2. Agenda • Legal Provisions • Duration of labour contract • Probation Period – Labour contract for undetermined period • Termination of Labour Contract • Dismissal • Dismissal/Termination due to other reasons • Standard Labour Contract • Social Security Contributions

3. Labour Law Law nr. 53/24.01.2003 Official Gazette nr. 72/05.02.2003 as amended several times most important one Ordonanta de urgenta a Guvernului nr. 65/29.06.2005 for more flexibility in labour contracts In general: EU provisions are already implemented in the labour law

4. Labour Law Duration of labour contract • determined period of time including prolongation (max period 24 months max 3 times/contracts) • undetermined period of time • part-time (min 2 hours per day or 10 hours a week)

5. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Probation Period – labour contract for undetermined period According to the function and position of the job: max. 5 working days for not qualified workers max. 30 calendar days for regular workers max. 3 months for executive manager max. 6 months for university graduates at the beginning of their job history

6. By employee: 15 calendar days for regular workers 30 calendar days for executive managers A longer term is always possible if the collective labour contract stipulates so. By employer: 20 working days It can be longer, depending on the collective labour contract. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Termination of Labour Contract

7. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Dismissal without notice due to employee’s fault – other reasons • Infringement of disciplinary rules • More than 30 days in prison for investigation • Physical or psychological inability for the job and for other positions within the company (expert opinion!) • The employee does not fit to the position (needs to be described in advance)The employee fulfills (age and age of service) all the conditions for retirement, but is not asking for it

8. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Dismissal/Termination without employee’s fault • Shutdown • Reorganization: changes in the organization for a certain position • Collective Labour Contract allows reduction of employees and stipulates the compensatory measurements (can be eg 3 salaries; eventual at national level)

9. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Standard Labour Contract • General Provisions • Parties

10. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Standard Labour Contract • Duration • Working Place • Kind of Work incl classification • Special risks • Holidays (min 21 days) Notice period • Salary • Rights and obligations of the parties • Working Conditions • Working Health and Safety

11. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Special provisions • Comptetition Clause • Confidentiality Clause • Mobilility Clause • Education / Professional training

12. MH-Advice S. R. L. Dr. Monika Hirsch Labour Law Social Security Contributions Contribution Obligation for employee for employer Social insurance X X Accident and professional illness X Vacancy - X Health found X X Unemployment X X Legal Income Taxes X - Commissions for keeping the working books - X