Termination Process in Romania: Complete Guide for Employers in 2026

You've just received word that your Romanian team member isn't working out. Maybe it's a performance issue that's dragged on for months, or perhaps a restructuring decision made at board level last week. Either way, you're now facing a question that keeps People leaders up at night: how do you end this employment relationship without creating a compliance disaster?

Romania doesn't do at-will termination. If you're used to more flexible employment regimes, this is the first thing you need to understand about the termination process in Romania. Every dismissal requires a legally recognised ground, documented evidence, and a written decision that Romanian courts will scrutinise if challenged. Get it wrong, and you're looking at reinstatement orders and back pay that can stretch for months.

For mid-market companies coordinating exits across multiple European countries, Romania often becomes the schedule-critical jurisdiction. Protected leave rules are stricter than many neighbouring markets, and the timing of when you sign a dismissal decision matters as much as the substance behind it.

Key Takeaways

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What Is the Termination Process in Romania for Employers

Termination of employment in Romania is a legally regulated end of an individual employment contract that must be based on a recognised legal ground and formalised through a written employer decision or a written mutual agreement. Romania sits within Europe's strong worker-protection model, which means if you're coordinating Romanian terminations alongside exits in Germany, France, or Poland, you're dealing with similar principles but different procedural details.

Here's what the process involves at a high level:

The sections that follow break down each element: grounds, notice, severance, procedure, protections, and planning. If you're managing a Romanian team through an Employer of Record, there's a dedicated section on how responsibilities split between you and the EOR.

Legal Grounds for Dismissal under Romanian Employment Law

A dismissal decision in Romania is a written, reasoned act issued by the employer that states the legal ground, factual basis, and effective details of the termination. Romanian courts routinely annul dismissals that lack sufficient reasoning or required elements, which is why choosing the correct ground matters as much as following the right steps.

Redundancy applies when the role is eliminated for objective business reasons. This requires a genuine organisational change rather than individual underperformance. You'll need a credible business case showing why the position no longer exists.

Professional inadequacy is the performance-based route. It requires objective evaluation against defined role requirements and documented steps showing the employee was assessed and informed. This isn't about one bad quarter; it's about demonstrable capability gaps after support and fair assessment.

Disciplinary dismissal covers misconduct. A formal disciplinary investigation and hearing process is required, with procedural defects commonly leading to annulment in court. Time-stamped evidence and proportionality matter here.

Probationary termination is an expedited end of employment during a valid probation period is an expedited end of employment during a valid probation period (90 calendar days for executives, 120 for management positions), typically executed by written notice, while still requiring compliance with Romanian form and evidence standards.

Mutual termination agreement isn't technically a dismissal. It's a written agreement signed by both parties that ends the employment contract by consent and is often used to reduce litigation risk when a unilateral dismissal would be contested.

One common mistake: calling a redundancy "performance" or vice versa. Choosing the wrong ground increases unfair dismissal exposure significantly. For companies running multi-country restructurings, align Romanian grounds with how terminations are described in Germany or France to keep board and auditor narratives consistent.

Notice Period for Termination in Romania

Notice is the period between the written dismissal decision and the end date. The employee remains employed and paid during this time, and garden leave may apply if the contract permits.

For standard economic or performance dismissals, the statutory minimumFor standard economic or performance dismissals, the statutory minimum of 20 working days applies. Contracts and collective bargaining agreements may extend notice, especially for employees with longer tenure.

Disciplinary dismissals for serious misconduct generally carry no notice requirement, but the full disciplinary procedure must still be completed before issuing the decision.

Probationary endings often require no notice, subject to simplified formalities.

Miscalculating or skipping notice is a common and easily litigated error for foreign employers. If you're used to markets where notice is flexible or waivable, Romania will feel more rigid.

What is the termination period in Romania? The statutory minimum notice period depends on the type of dismissal and any applicable collective agreement, but contracts frequently specify longer periods for senior roles or long-service employees. Always check the individual contract and any CBA before assuming the statutory minimum applies.

Severance Pay and Redundancy Rules in Romania

Redundancy in Romania is a termination ground based on the elimination of a position for objective business reasons, requiring a genuine organisational change rather than individual underperformance. But understanding when severance applies requires looking beyond the Labour Code.

Statutory entitlements aren't universal across all dismissals. Check the Labour Code triggers for your specific situation. Collective agreements often drive severance obligations for redundancy in Romania, and individual contracts or company policies may promise severance beyond statutory or collective terms.

In practice, employers frequently offer enhanced severance to reduce dispute risk or secure settlement agreements. This is particularly common when the legal ground is arguable or the employee is likely to contest.

For CFOs modelling costs before restructuring announcements, severance calculations typically include base salary plus elements specified by CBAs or policies. In workforce reductions affecting 10 or more roles across Europe, Teamed recommends building a consolidated cost model that includes at least 4 Romania-specific cost lines: notice pay, potential contractual or CBA severance, accrued leave payout, and local legal review costs.

One critical point: paying severance does not cure an unlawful procedure. Courts can still find unfair dismissal even if the employee received generous compensation.

Step by Step Dismissal Procedure in Romania

Teamed advises budgeting for at least 10 to 20 business days of internal preparation time for evidence, translations, and decision approvals before any dismissal document is issued, even when the operational target date is earlier.

1. Internal assessment (HR and manager): Confirm the legal ground. Check for protected statuses including pregnancy, sick leave, and union roles. This step prevents issuing a decision that's automatically invalid.

2. Evidence gathering (HR, manager, legal): Collect appraisals, warnings, investigation reports, or redundancy business cases. Teamed recommends a minimum evidence pack of 6 document types for contested exits: contract and amendments, job description, performance records or incident logs, written warnings or investigation notes, protected-status checks, and the draft dismissal decision with delivery proof.

3. Ground-specific steps (HR, legal):

4. Draft and issue dismissal decision (legal, HR): The written decision must state The written decision must include the legal ground, facts, notice terms, and effective date, list of available positions, and challenge period. Ensure proof of delivery. This document is what Romanian courts examine in unfair dismissal disputes.

5. Post-termination actions (HR, Payroll, IT): Final pay, unused holiday payout, statutory employment documents, property reclaim, and systems offboarding.

Use a standard internal checklist adaptable to Romania and other European markets to ensure consistency across jurisdictions.

Termination Protections for Sick Leave and Maternity in Romania

Romanian termination programmes managed across 3 or more jurisdictions typically require a single, board-ready narrative that maps each exit to a local legal ground. Romania's protected leave rules can force re-sequencing of the overall plan.

Sick leave: Dismissal while the contract is suspended for medically certified sick leave Dismissal while the contract is suspended for medically certified sick leave can be automatically invalid. This isn't about fairness; it's about legal validity.

Maternity leave and parental leave: Prohibitions and restrictions apply. Do not sign a dismissal decision during protected suspension.

Maternity risk leave: On submission of required medical documents, the contract suspends automatically. Signing a dismissal then risks invalidity.

Here's the critical timing rule: check protected status on the exact date the employer signs the dismissal decision, not just the planned send or effective date. Recent High Court decisions in Romania clarified sick leave and maternity risk leave timing, making these protections stricter than some European peers.

For regulated-sector employers, Teamed advises setting a governance threshold where any Romania dismissal with potential protected status exposure triggers Legal sign-off within 24 to 48 hours to prevent invalid issuance timing.

Termination Planning for Mid Market Companies in Romania

Mid-market employers operating across Europe commonly run multi-country restructurings on a 6 to 12 week timeline, but Romania often requires longer lead time when performance documentation or protected-leave checks are needed.

Decision framework: Is it performance, behaviour, or structural change? Match to the correct Romanian route. Misidentifying the ground is the most common root cause of termination disputes.

Lead time: Build in documentation, PIP, or consultation time. Avoid "quick fix" assumptions that work in more flexible jurisdictions.

Costing: Model notice, potential severance, legal fees, and disruption before approval. CFOs should see Romania-specific line items before restructuring announcements.

Consistency: Align Romanian rationales with European board and investor messaging. Inconsistencies between the stated ground and the real rationale increase unfair dismissal exposure.

Operating model: Decide entity versus EOR versus contractors with future termination implications in mind. Each model carries different process requirements and risk profiles.

Advisory: Use Teamed or local counsel to pick the most defensible route for Romania. In Europe and UK mid-market organisations, Teamed commonly sees termination execution split across 3 internal owners (People, Legal, Finance), and advises assigning a single accountable approver for Romania dismissal decisions to avoid inconsistent grounds or timelines.

Redundancy and Workforce Restructuring for Mid Market Employers in Romania

Across Europe, Teamed flags that the most common root cause category for termination disputes is documentation failure, and for Romania specifically the risk is elevated when employers cannot show a written rationale tied to a Labour Code ground.

Building blocks for defensible redundancy:

Scope: Distinguish individual redundancy from larger restructuring that may trigger collective elements.

Criteria: Use objective, transparent selection including skills, performance, and business criticality. Subjective criteria invite challenge.

Business case: Document financial or operational drivers for role elimination in Romania. This document becomes evidence if the dismissal is contested.

Consultation and communication: Plan beyond legal minimums to manage employee relations. How you communicate matters for retention of remaining staff.

Cost modelling: Aggregate notice, severance, and dispute risk across scenarios before announcements.

For EU coordination, some countries have stricter collective timelines. Sequence Romanian steps so they don't conflict with European consultation duties. Mid-market restructurings need discipline in documentation and timing to satisfy auditors and courts while meeting budget targets.

How Romanian Termination Rules Compare with Other European Countries

Romania differs from more flexible non-European regimes because at-will termination is not a standard concept, and employers must link the termination to a legally recognised ground supported by written documentation.

Grounds required: Romania, like Germany and France, requires a lawful reason and documented process. You can't simply decide to part ways.

Notice culture: Common across Europe, but exact lengths and rules vary. Poland, France, and Romania all have different notice frameworks, affecting planning for simultaneous exits.

Protections: Romania's sick leave and maternity protections are robust, making last-minute changes harder than in some neighbouring markets.

Court scrutiny: Romanian courts closely examine substance and procedure, similar to Western European jurisdictions.

For firms used to flexible non-European regimes, Romanian termination may feel slower and more documentation-heavy. That's the reality of operating in Europe's worker-protection framework.

Coordinating Romanian Terminations with a Wider European People Strategy

Most existing guides cite Romanian law sources but do not provide a board-ready sequencing framework that shows how Romanian protected-leave timing can force re-ordering of a multi-country European restructuring plan.

Sequencing: Integrate Romanian exits with other markets so messaging and timing align. A dismissal announced in Germany before the Romanian process is complete creates narrative inconsistency.

Playbook: Shared principles on fairness, documentation standards, and approvals, with a local Romanian annex for specific steps.

Timeline risks: Romanian protected leave and consultation requirements may extend project schedules. Build buffer time.

Cross-functional alignment: Legal, HR, Finance, and Romanian managers coordinate to avoid mixed messages.

Board-ready mapping: Use advisors like Teamed to visualise Romanian and EU timelines, risks, and costs in one plan.

Consider a pan-European downsizing including Romania. You'll need to decide the order of terminations and explain timeline differences in internal communications. Romanian exits may need to go last if protected-leave checks reveal complications.

Working with an Employer of Record to Terminate Employees in Romania

Termination of a Romanian employee via a Employer of Record differs from termination via a Romanian entity because the EOR issues and delivers the formal employer documents as the legal employer, while the client still owns the business rationale, evidence quality, and reputational risk.

Definition: The Employer of Record is the legal employer, while the client directs daily work. Romanian labour law still governs dismissals regardless of the EOR arrangement.

Responsibilities split:

The client owns the business decision, gathers evidence, defines the legal ground, and agrees strategy. You can't outsource the substance of why you're terminating someone.

The EOR implements the formal employee dismissal procedure in Romania and drafts and delivers compliant documents based on client-provided facts.

Both parties coordinate communication planning, timing checks for protected leave, and final payment coordination.

Risk note: EORs cannot eliminate unfair dismissal exposure. Clients face reputational and operational consequences if the termination is challenged successfully.

Due diligence: Ask how the EOR handles sick leave, maternity, and redundancy in Romania, especially in complex exits. Many articles mention EOR terminations superficially and do not specify the operational split of responsibilities between client and EOR in Romania, including who owns evidence creation, ground selection, and delivery proof.

Mixed models: Coordinate terminations across EOR and local-entity employees so processes feel fair and legally consistent.

How Teamed Supports Mid Market Leaders with Termination Decisions in Romania

Teamed acts as a strategic advisor helping mid-market leaders navigate Romanian terminations within an integrated European employment strategy, combining local legal insight with operational feasibility across 180+ countries.

Ground selection: Performance, misconduct, redundancy, or mutual agreement, matched to risk tolerance and timelines.

Local law insight: Current Romanian law and case developments, including sick leave and maternity protections, interpreted for HR and Finance decisions.

Operating model choices: Contractors, EOR, or Romanian entity, and the termination implications and costs of each.

Execution alignment: Coordinate with in-country partners so chosen strategies translate into compliant actions.

Regulated sectors: Build audit-ready termination strategies for financial services, healthcare, defence, and similar environments.

If you're facing a Romanian termination decision and want strategic guidance rather than generic legal summaries, talk to the experts.

FAQs about Termination in Romania

How does the termination process change if the Romanian employee is hired through an Employer of Record?

Although the EOR is the legal employer implementing the dismissal in Romania, the client drives the business decision, provides evidence and rationale, and co-plans a compliant process and timing with the EOR. You can't hand off responsibility for the substance of the termination.

What should mid market companies document before approving a termination in Romania?

The legal ground, supporting performance or misconduct evidence, prior warnings or improvement steps, redundancy business case, checks for protected statuses, applicable notice and severance terms, and internal approvals. Teamed recommends a minimum of 6 document types for contested exits.

How do Romanian terminations interact with wider European restructuring plans?

Sequence Romanian exits with other countries, factoring local notice, redundancy steps, and protected leave rules so the overall rationale and timeline are consistent and defensible across markets. Romanian protected-leave rules often make it the schedule-critical jurisdiction.

What are the main risks of unfair dismissal claims in Romania for foreign employers?

Misidentifying the legal ground, weak documentation, overlooking sick leave or maternity protections, and skipping procedural steps. Each can lead to reinstatement and back pay.

How should companies handle terminations when moving from an Employer of Record to a Romanian legal entity?

Treat non-transfer decisions as potential terminations in Romania. Select the correct ground, align timing with protections, and plan process jointly with the EOR and local counsel. Structure changes are not a shortcut around proper termination procedure.

Can employees claim unfair dismissal in Romania?

Yes. Employees can challenge grounds and procedure in court. Judges scrutinise substance and steps and can order reinstatement and compensation.

What is mid market?

Typically companies with 200 to 2,000 employees or £10 million to £1 billion in revenue. Large enough for complex global employment questions but without full enterprise legal infrastructure.or

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