The High Court of Cassation and Justice of Romania issues a decision in favor of workers without employment agreements

A decision issued by the High Court of Cassation and Justice holds that an employer’s failure to establish a labor agreement in writing with an individual who worked for the employer can give rise to a legal action by the employee to request confirmation of the employment relationship and its legal effects. Employees have this right even if their employment has ended before any claim is filed.

Before issuing this decision, the Romanian Labor Code about the form required for individual labor agreements was amended to require the execution of labor agreements in writing to assure their validity.  Previous provisions required the written form only to prove the parties’ agreement. This measure intends to encourage employers and employees to enter into written contracts. Written contracts will benefit employees and increase their social protection because registered employment agreements oblige employers to make payments on behalf of the employee for social security.

This decision grants employees the legal means to confirm their employment relationship despite the failure of the employer to issue a written contract. Furthermore, employees who qualify under this provision may request confirmation of the previous employment relationship even if the request is filed after the termination of their employment

The Court’s decision is found in the Official Gazette of Romania, no. 114 of February 10, 2017.

 

Stratulat Albulescu - Attorneys at law