Legislative developments in the labor code and work relations sectors

A new draft law introduces rules on pay transparency and equal pay. It applies to both public and private employers and covers the full employment process.

Employers must show salary ranges in job ads or before interviews. They cannot ask about past salaries. Recruitment must be gender-neutral.

Companies must set clear and transparent pay rules and share them with employees. They must also respond to requests about pay levels and comparisons between similar roles.

Employers with at least 100 employees must report gender pay gap data and take action if gaps appear.

Smaller companies have fewer reporting obligations.

The draft is in public consultation and will be adopted by the Government, then debated in Parliament before entering into force.

Read more about this draft law here. 

Companies must adapt to new transparency and reporting rules. They need to update recruitment, compensation policies, and internal data systems.

HR processes must change to include salary disclosures and clear, gender-neutral pay criteria.

Companies with over 100 employees must report gender pay gaps and take action if needed, which increases administrative work.

Salary transparency may change how negotiations work and raise employee expectations. It can also lead to more internal questions or disputes, but helps build trust over time.

Companies should assess their compensation structures and recruitment practices to identify gaps against upcoming pay transparency requirements and prepare for increased scrutiny on pay equity.

The Government plans to change how foreign workers are hired in Romania, with stricter rules for employers and recruitment.

Companies will be able to hire foreign workers only for roles on a “Shortage Occupations List”. Annual quotas remain, which affects workforce planning. Hiring procedures will be digital, through a new online platform.

Employers must follow clearer rules on recruitment, onboarding, and working conditions. Job offers must match actual roles, and companies must comply with immigration and labor laws.

Recruitment agencies will need authorization and will be more closely monitored. This may affect how companies find international talent.

The changes aim to reduce mismatches, failed hiring processes, and risks like illegal work or exploitation.

The draft ordinance is in public consultation until April 6. It may change before adoption and publication in the Official Gazette.

Companies will face increased compliance requirements when hiring foreign workers, including stricter eligibility conditions tied to shortage occupations and closer scrutiny of recruitment practices. This may limit flexibility in accessing international labor while increasing administrative burden and due diligence obligations. Employers relying on external recruitment agencies will need to ensure that partners are properly authorized and compliant, as liability and reputational risks may rise in cases of irregular practices. At the same time, the new framework could improve predictability and reduce exposure to fraud, unqualified hires, and legal risks associated with non-compliant employment or immigration processes. 

Companies should proactively review their foreign hiring practices and partnerships to anticipate stricter compliance requirements and ensure alignment with the upcoming regulatory framework, and follow the publication of subsequent legislation

The rules for the Salary Guarantee Fund have been updated. They now cover employee salary claims in more detail when a company faces insolvency or restructuring.

The main change is how unpaid salaries are covered. The coverage period now varies between 5 and 12 months, depending on the company’s status.

The rules also clarify:

• how claims are calculated,
• who is eligible, and
• how they are submitted.

Some tax and social contributions will be handled by public authorities instead of the employer.

There are also stricter documentation and control rules for administrators involved in these processes.

The decision was published in the Official Gazette and entered into force on March 30.

The measure mainly impacts companies in insolvency or restructuring.

These companies must follow:

• clearer rules on procedures,
• timelines, and
• responsibilities for unpaid salaries.

This includes stricter documentation and closer work with public authorities.

For companies in strategic sectors, longer coverage periods may affect restructuring plans and workforce costs.

Changes in how taxes and contributions are handled may also impact internal processes.

Overall, the rules bring more clarity and predictability, but also more control and accountability.

Companies should monitor these changes to understand how salary obligations and administrative responsibilities would be handled in potential insolvency or restructuring scenarios.