In Romania, an indefinite-term employment contract is the standard arrangement. A fixed-term employment contract may be used only when the Labour Code allows it. Employers should document both the temporary reason for the employment and the agreed duration carefully.
Written form and a clear end date
A fixed-term employment contract must be concluded in writing, which must also state expressly how long it will last.
Where an exact end date cannot be set, the contract should refer to a defined period or an objectively determinable future event. For instance, the fixed-term contract shall end when the employee who has the employment contract suspended returns to work.
The temporary nature of the employment relationship should be clear from the contract itself.
What are the main legal risks for employers?
If the contract is not in writing or does not clearly state its duration, the employer may face a dispute regarding its legal nature.
Depending on the facts and evidence, a Court may label the employment relationship as an indefinite-term contract. This can affect termination rights and other employment obligations.
How long can a fixed-term employment contract last?
A fixed-term employment contract may be concluded for a maximum period of 36 months.
There are two main ways in which the employment relationship may continue:
1. Extension for a project, programme or work
With the parties’ written agreement, the contract may be extended for the time needed to complete a specific project, programme or work.
The extension should clearly identify the relevant project, programme or work and the reason why the employee’s role remains temporary.
2. Successive fixed-term contracts
The same parties may enter into no more than three successive fixed-term employment contracts.
Contracts concluded within three months of the end of a previous fixed-term contract are considered successive. Each successive contract may not exceed 12 months.
Therefore, in the appropriate legal circumstances, the overall employment relationship may reach up to 60 months: an initial contract of up to 36 months, followed by two successive contracts of up to 12 months each.
When can an employer use a fixed-term employment contract in Romania?
A fixed-term employment contract may be concluded only in specific situations:
- replacing an employee whose employment contract is suspended, except where that employee is taking part in a strike;
- a temporary increase in, or temporary change to, the employer’s activity structure;
- seasonal work;
- employment under legal measures designed to support certain categories of unemployed persons;
- hiring a person who will meet the conditions for an old-age pension within five years;
- filling an eligible position in a trade union, employers’ association or non-governmental organisation for the duration of the mandate;
- hiring retired persons who may legally combine a pension with employment income;
- carrying out a specific work, project or programme; or
- other situations expressly provided by special legislation.
For temporary increases or changes in activity, the employer should be able to show that the need is genuine, exceptional and temporary. Supporting business documents are important.
A practical checklist for employers
Before signing a fixed-term employment contract, employers should:
- Confirm that a legal ground applies.
- Record the temporary business reason.
- State the duration clearly in the contract.
- Monitor the 36-month limit and any successive contracts.
- Review extensions and rehires before implementation.