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Working with an EOR in Romania is a great way of expanding your business internationally and hiring the best talent without having to set up a local entity in this up-and-coming European country.
An employer of record will assist you with legal compliance, so you can quickly enter the Romanian labor market. They assume legal responsibilities and handle bureaucratic procedures, allowing you to onboard new employees within weeks when hiring global talent.
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Collaborating with an EOR in Romania not only facilitates your understanding of the Romanian growing industries but also offers valuable insights into neighboring countries like Bulgaria, Hungary, and Serbia, where you may find opportunities for future expansion.
Contact us if you want to employ skilled local talent in Romania, or other countries.
Romania: fast facts
Romania is strategically located at the crossroads of Southeastern, Eastern, and Central Europe. It is the largest country in Southeastern Europe and its territory features hills, mountains, plains, and many rivers and lakes. The country’s capital is Bucharest, also the biggest and most populated city.
The official language is Romanian. English and French have emerged as second languages in most cities, especially among younger people. Students in upper secondary education in Romania generally learn two foreign languages, which is the third highest rate in the EU.
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According to UN statistics, Romania is one of the 13 nations that currently hold developed status after joining the European Union since 2004. The Romanian leu is still the currency in all territory, but Euro adoption is coming soon, with the economy just completing the final boxes for accession to the Eurozone.
Romania’s economic performance has shown expansion in the past decades, as the country is known for consistent enforcement of contracts and access to credit. The industrial sector plays an important role in the country’s economy, but the service sector, especially tourism, is still the biggest contributor.
In Romania, tourism is driven by dynamic travel experiences. Visitors can go from skiing resorts to the countryside in order to meet rich history, culture, and scenic wonders. Historic regions such as Maramutes and Bucovina offer an insight into century-old traditions, while places like Transylvania engage tourists in Romanian folklore and legends.
Considerations for employing in Romania
As a member of the EU, Romania is part of the free movement zone for workers within the bloc. Many Romanian professionals have advanced certifications and degrees, making up for skilled and educated workforce in various industries, with an emphasis on STEM fields.
English proficiency facilitates communication, while construction, software, architecture, and hardware development are among the sectors generating plenty of employment opportunities. Romania is also one of the largest electronics producers in Europe and a leader in IT.
When hiring in the country, both national and international companies must strictly follow its work culture. This includes respecting minimum wage, working hour limits, probation periods, and other practices. Companies also have to properly manage taxes and employee benefits that are covered by the law.
You can collaborate with an EOR in Romania to facilitate this process. A registered employer can provide quick solutions for your talent acquisition strategy, as well as help you explore business opportunities in Romania, and avoid legal fines that come from employee misclassification.
Apart from assuming legal responsibilities such as hiring and handling bureaucratic procedures, an EOR in Romania can manage your human resources needs, including payroll, tax payments, and contract terminations. The EOR brings extensive knowledge of the local market, providing insights into important cultural, social, and economic aspects.
Regulations an EOR in Romania will take care of
According to Romanian law, contracts with employees need to be in writing and in Romanian. They include aspects such as social security, benefits, deductions, and time off.
Minimum wage: The current (July 2023) minimum wage is RON3,000 per month or RON18 per hour.
Working hours and overtime: Article 112 of the Labour Code states that the normal working time for full-time employees is 8 hours daily and 40 hours per week. Overtime must be equal to at least 175% of the base salary, although is commonly given in kind as additional leave.
Employee leave: Maternity leave is mandatory at 126 days of paid time off split either side of the expected birth date. Annual vacations are 20 days. There are currently 13 public holidays, with two more to be added from January 2024.
Payroll taxes: The employer is required to pay at least 25% of salary for social security contributions, and up to 37% for certain jobs. Employees contribute 25% of salary in pension and a further 10% for healthcare. The standard rate for sales tax (or VAT) in Romania is 19%.
EOR in Romania: 5 steps to hire successfully
If you decide to team up with an EOR in Romania, there are 5 steps you can take to guarantee a smoother process.
1) Find an EOR in Romania
A reliable employer of record is key to giving you direct access to local market knowledge, which can help you in meeting the most adequate personnel. Once you sign an EOR agreement, they will find the best candidates following your necessities, and a simplified contract.
2) Define your work requirements
To achieve accuracy, it’s important to determine the areas of your company that could best use the benefits of a distributed workforce. Don’t forget to collaborate with your EOR in Romania in outlining the experiences and skills you’re looking for in new hires. This will facilitate search and recruitment.
3) Select the best candidates
An employer of record will then make a preliminary selection of candidates based on how fitting are their resumes to your company’s vacancies. The EOR can start initial interviews to narrow the options down to only the best applicants. More in-depth processes can be taken until positions are filled.
4) Send job offers and contracts
After the hiring decisions have been made, an EOR in Romania takes responsibility as a legal employer and sends the job offers to the selected possible new hires. They can even negotiate and set agreements in full compliance with Romanian law, regarding salary, working hours, and benefits.
5) Start onboarding with new hires
Finally, you’ll have the role of onboarding new collaborators. You can delegate administrative tasks to your EOR so they can manage personnel and help you handle the onboarding process. This stage requires clear communication between the company and new employees, as it will help build a solid relationship.
Alternatives to hiring via an EOR in Romania
If your expansion plans in Romania involve a long-term commitment, opening a legal entity might be recommended, as you will need a substantial workforce, along with the resources for scalability. However, this can become very time-consuming, especially if your company is just starting in a foreign country and has little to no expertise in this field.
Additionally, an alternative to working with full-time employees is directly hiring local professionals who offer their services as independent contractors. They provide specialized knowledge, and flexibility in working hours, operating as independent entities that won’t be part of your company’s payroll. They are subject to different laws compared to full-time employees.
To ensure compliance, partnering with an EOR in Romania for the hiring of international contractors is advisable, as these employers can provide the necessary legal protection and assistance. An EOR can search and recruit contractors, as well as ensure full compliance with local laws and avoid potential risks that may come with misclassification.
Serviap can help you find an EOR in Romania
Serviap Global specializes in providing global hiring solutions, including international PEO/EOR services, contractor hiring, and global talent acquisition to assist companies with finding talent to hire directly.
Our company started in Mexico, and expanded throughout Latin America, before growing beyond the region. Today we assist companies with hiring in over 100 countries worldwide, including Romania.
Contact us if you are looking for an EOR in Romania, or anywhere else.
Or get an idea of hiring costs in different countries using our salary paycheck calculator.
