Hammond, Bogaru & Associates

Despite the current political turmoil the new Romanian Government has already passed legislation aimed at improving the investment climate. In the Official Gazette no. 563 of August 9, 2012 was published Government Resolution no. 797/2012 (“Resolution”) setting up a State aid scheme to support investments promoting regional development using new technologies and which created new jobs.

Romania has recently passed into law, Law no. 148/2012 which establishes the legal framework for the issuing of electronic documents (invoices, tax bills, receipts) which will contain data regarding economic operations such as exchange or sale of goods or services. This is a further step to modernise the financial and banking system in Romania. As electronic commerce continues to expand Romania will continue to be at the fore front of this industry.

In the course of running a business and in a financial crisis, employers sometimes have to consider making some of their employees redundant. This is not a situation which is pleasant, but it is necessary and the employer has to ensure that the legal formalities are complied with. This article is intended to provide an outline of, and to draw the reader’s attention to the provisions of Romanian law and possible consequences.

For foreign employers sometimes it is important to consider when is an employee at work and when is he not. Whilst this may seem a strange question recent decisions and practice in Romania have raised the enquiry as to what is the correct answer. The question is important also for foreign employers who send their employees to work on projects to Romania. This note is intended to draw the reader’s attention to the provisions of Romanian law, recent decisions and possible consequences.