Legal landscape for remote work in Romania
The shift toward remote work and the growing community of digital nomads have created new legal considerations for Romanian employers and foreign companies hiring Romanian talent. Whether a business is engaging a software developer from Cluj or a marketing consultant travelling across Europe, remote work contracts must comply with Romania’s labour laws and, in some cases, EU regulations.
Romanian Labour Code provisions, complemented by Law No. 81/2018 on teleworking, establish the key framework for structuring compliant remote work agreements. These laws set out employer and employee obligations, working conditions, and the documentation required to formalise remote arrangements.
How to structure a legally compliant remote work contract in Romania
A compliant remote work contract in Romania must include all mandatory elements of a standard employment agreement, such as job description, remuneration, and working hours, while also specifying the telework arrangements. Employers must clearly state that the work will be performed remotely, identify the location(s) from which the employee may work, and outline the use of digital tools, communication methods, and reporting obligations.
For foreign companies hiring Romanian residents, it is important to determine whether an employment contract or a contractor agreement is legally and commercially more appropriate. Employment contracts trigger Romanian labour law protections, including paid leave, working time limits, and social security contributions. Contractor agreements, on the other hand, fall under civil or commercial law but require careful structuring to avoid misclassification risks.
Employer obligations for health, safety and equipment in telework
Romanian law obliges employers to ensure health and safety compliance even when the work is performed off-site. This includes risk assessments for the home office or other approved locations, employee training, and ensuring that the equipment provided meets safety standards. Employers must also cover costs related to the use of personal equipment or utilities, if applicable, and clarify these reimbursements in the contract.
For digital nomads working from multiple locations, it is advisable to address mobility in the agreement. Employers should set conditions for work in foreign jurisdictions, including insurance coverage, data protection compliance, and any restrictions on working from certain countries.
Tax and Social Security rules for remote workers in Romania
The place where the employee habitually works can have significant tax implications. Romanian-resident employees are generally subject to Romanian income tax and social security contributions, even when working for a foreign employer. Foreign companies may need to register as an employer in Romania or appoint a payroll representative to meet these obligations.
When employees spend extended periods working from another country, double taxation treaties and local labour laws must be considered. Employers should also be aware of the potential risk of creating a permanent establishment in another jurisdiction if the employee performs core business activities there.
GDPR compliance and confidentiality in remote work contracts in Romania
Remote work often involves the transfer and processing of sensitive company data. Employers must ensure GDPR compliance by implementing appropriate technical and organisational measures, such as secure VPNs, encrypted communications, and clear rules for handling confidential information. Contracts should include robust confidentiality clauses and, where applicable, non-compete or non-solicitation provisions to protect business interests.
Adapting to the legal challenges of digital nomads in Romania
The rise of digital nomads in Romania offers companies access to a highly skilled and flexible workforce, but it also demands careful legal planning. Well-structured remote work contracts, supported by compliance in areas such as health and safety, taxation, and data protection, can help employers attract and retain top talent while minimising legal risks. By understanding and meeting these requirements, businesses can confidently embrace the future of work in a way that is both innovative and legally sound.