Employer of Record Romania

Think of it like this: Agility EOR becomes the legal employer of your employees, taking care of all the paperwork and compliance headaches.

Agility EOR

• We manage the onboarding process and ensure everything’s in order before your employee starts
• We make sure your employees are treated fairly and compliantly in their relevant territory
• We take care of all HR matters, and can answer any and all HR queries you may have e.g. maternity/paternity leave, holidays, sick pay, and more
• We provide compliant contracts, process local payroll, and file taxes
• We issue payslips and handle payments to the employee and authorities

Your Company

• You find and manage your employees’ daily tasks
• You support their development through their work
• You follow our guidance on employment laws and best practices
• You ensure payroll bills are paid to Agility EOR on time

Benefits of using an Employer of Record (EOR)

• Faster and easier hiring: No need to set up your own legal entity.
• Reduced risk and compliance burden: We handle the legal and administrative complexities.
• More time and resources: Focus on your core business while we manage your employees.

There are various ways to employ people in Romania, each with differing levels of costs and compliance:

Employee is employed by you and paid by you from your overseas Company

• Pros: It appears to be the most cost-effective and convenient choice.
• Cons: The inability to cover the mandatory social security contributions, leading to the application of Romanian employment law for the employee.

Entity Set-up

• Pros: This choice could potentially offer the most economical resolution for hiring a substantial amount of staff, usually surpassing 15 individuals.
• Cons: Setting up a legitimate business entity and adhering to the employment and tax laws of Romania can pose a considerable financial and time constraint, particularly for smaller-scale operations. This method often becomes unfeasible for companies with less than 15 employees.

Using an Employer of Record

• Pros: In Romania, opting for an Employer of Record service is demonstrated to be the most efficient solution in terms of both time and cost for overseeing payroll, HR, and compliance responsibilities, especially for forming employer-employee connections within teams consisting of fewer than 15 members.
• Cons: Becomes expensive with a substantial workforce. Selecting the appropriate Employer of Record provider may pose a challenge.

Hire a contractor in Romania

• Pros: This resolution demonstrates its cost efficiency when the employee is not bound exclusively to your organization and is able to arrange for a replacement to fulfil their responsibilities during days off.
• Cons: Employing a full-time worker who is exclusively committed to your company without the appropriate employment status is considered a legal infringement in Romania. Consequences for this misclassification can vary from monetary penalties to facing criminal allegations.

In Romania, if a worker is exclusively dedicated to your company and follows instructions from your organization regarding their duties and tasks, they should be considered an employee. Not doing so would violate Romanian employment regulations.

Misclassifying an employee in Romania may result in significant penalties, the requirement to settle unpaid vacation time and social security contributions, the possible necessity to establish a local office, and potential legal repercussions from the employee for violating their employment rights.

Registering your business with the Commercial Register and obtaining a trade license from the relevant authorities are the initial steps in establishing your business in Romania.

However, setting up a physical office for tax purposes, opening a bank account in Romania (often requiring in-person presence), ensuring compliance with Romania’s payroll software regulations, and meeting tax filing obligations introduce complexities to the overall process.

Hiring people in Romania means adhering to specific legal obligations is essential for HR compliance. This ensures that your company strictly follows all employment and work practice regulations. Compliance with HR regulations in Romania is crucial as it goes beyond mere formalities; it protects both your employees and your business.

By following employment regulations, you guarantee fair treatment for your workforce, covering areas such as sick leave, annual leave, minimum wage, and appropriate working hours. This not only promotes a positive work environment but also reduces the chances of facing financial penalties, legal consequences, and potential lawsuits due to non-compliance.

By collaborating with Agility EOR as your Employer of Record in Romania, the complexities of tax and social security obligations are simplified. We take care of all employee-related filings and contributions, ensuring total compliance and enabling you to dedicate your attention to the smooth operation of your business.

Agility EOR manages the intricacies of Romanian employment regulations and adherence, while your organization retains accountability for the daily supervision and interaction with your staff. This includes managing performance concerns, implementing disciplinary measures as needed, and cultivating a supportive work atmosphere through transparent communication.

Agility EOR handles the legal side of things in Romania, so you can focus on managing your team and their daily tasks.

In Romania, both employers and employees have tax obligations. Employers pay work insurance contributions, while employees contribute to social and health insurance and income tax.

Workers who are under the employment of a Romanian Employer of Record are safeguarded by legal provisions and are furnished with a typical employment agreement. This encompasses statutory perks like maternity leave, annual leave, and sick pay, in addition to relevant tax deductions. It is crucial to highlight that the Romania public healthcare system extends coverage to all inhabitants, not just employees.

Agility EOR handles the administrative burden of HR compliance for you:

Trusted Partners: Agility EOR works in partnership with top employment lawyers and advisors in Romania to guarantee that your employment contracts and other crucial documents fully comply with all local legal regulations.

Comprehensive Understanding: We possess an extensive knowledge of the complex facets of Romanian employment law, encompassing payroll, social security, data privacy, notice periods, and regulations pertaining to remote work.

Swift Action: If an issue arises, our internal team are immediately on hand to help and assist.