e. Acceptable Conditions of Work
Wage and Hour Laws: The law provides for a national minimum wage that is greater than the official estimate for the poverty income level and has nearly tripled in nominal terms since 2012. Approximately one in three employees earned the minimum wage according to the labor ministry. Despite minimum wage increases, 14.9 percent of employed Romanians remained at risk of poverty. During the year the country’s courts ruled in favor of female clothing-factory workers who reported unjustified 50 percent wage cuts during the COVID-19 pandemic. After receiving public pressure to investigate the allegations, officials confirmed inaccurate shift reporting, unpaid mandatory social insurance contributions, unpaid overtime wages, and worker harassment and intimidation.
The law provides for a standard workweek of 40 hours or five days. Workers are entitled to overtime pay for weekend or holiday work or work of more than 40 hours. An employee’s workweek may not exceed 48 hours per week on average over a four-month reference period, although exceptions are allowed for certain sectors or professions. The law requires a 48-hour rest period in the workweek, although most workers received two days off per week. During reductions in workplace activity for economic or technical reasons, the law allows employers to shorten an employee’s workweek and reduce the associated salary.
In response to COVID-19 restrictions, the government extended the category of eligible furlough (technical unemployment) benefits to independently registered businesspersons, lawyers, and individuals with income deriving from copyright and sports activities. The government adopted a flexible work plan modeled after Germany’s Kurzarbeit (flexible work) program with the aim of retaining employees on payrolls with joint government and employer contributions. The plan required employers to cover half of full-time wages and the Romanian government to pay 75 percent of the difference between the gross wage and the basic wage paid to the employee, based on the number of hours worked. Kurzarbeit and technical unemployment support was extended in July and was expected to remain in effect through the pandemic state of emergency.
Excessive overtime may lead to fines for employers if workers file a complaint, but complaints were rare. The law prohibits compulsory overtime. Starting during the year, the law allows for one of two caretakers of children to receive paid days off for periods when schools are closed; the income is capped at maximum 75 percent of the average economy wage.
In July, 13 members of the Cartel Alfa trade union led a protest caravan from Bucharest to Brussels regarding low wages and poor working conditions in Romania. The protest highlighted the concerns of more than four million Romanians seeking work in other EU countries due to limited opportunities in Romania who were often vulnerable to labor exploitation as migrant workers.
The Ministry of Labor and Social Protection, through the Labor Inspectorate, is responsible for enforcing the law on working conditions, hours, and minimum wage rates, but it did not effectively enforce all aspects consistently. Penalties for violations of these laws were commensurate with those for other similar crimes but were not consistently applied. Labor inspectors have the authority to make unannounced visits and initiate sanctions, but the number of inspectors was insufficient to enforce compliance in all sectors.
According to trade union reports, many employers paid supplemental salaries under the table to reduce tax burdens for employees and employers alike. Additionally, the Labor Inspectorate collaborated with the National Authority for Fiscal Administration to conduct joint operations to check employers in sectors prone to underreported labor, including the textile, construction, security, cleaning, food-preparation, transportation, and storage industries. These investigations often focused on underpayment of taxes rather than workers’ rights.
The government did not effectively enforce overtime standards. Union leaders complained that overtime violations were the main problem facing their members, since employers often required employees to work longer than the legal maximum without receiving mandatory overtime compensation. This practice was especially prevalent in the textile, banking and finance, and construction sectors.
Occupational Safety and Health: Occupational safety and health standards were appropriate for the main industries, but compliance and enforcement remained weak. Workers can remove themselves from situations they deemed dangerous to their health or safety without jeopardy to their employment. The labor inspectorate also had authority over occupational safety and health laws; however, not all workplace accidents were investigated by labor inspectors. Companies investigated minor incidents, while labor inspectors investigated more severe ones, typically those that resulted in fatalities or serious injuries. If appropriate, incidents may be referred for criminal investigation. Union leaders often claimed labor inspectors only superficially investigated workplace accidents, including ones involving fatalities, and that inspectors often wrongly concluded that the victims were at fault in most fatal accidents. In 2019 the country reported three deaths per 100,000 employees resulting from accidents at work.
The construction, agriculture, and small manufacturers sectors were particularly problematic sectors for both labor underreporting and neglecting health and safety standards. The government did not effectively enforce occupational safety and health laws. Penalties for violations of these laws were commensurate with those for other similar crimes but were not consistently applied. In November 2021, four persons died at the Babeni Mechanical Factory after explosive products were handled poorly. In August 2021, two workers died and four were hurt on a construction site in Bucharest city center, after a deep ditch collapsed.
In the context of the COVID-19 pandemic, additional risk bonuses were awarded to healthcare staff caring for COVID-19 patients or for those involved in pandemic response. Peaks in the number of critical cases of COVID-19 added pressure on hospital infrastructure, particularly in intensive care units. Medical staff and patients were hurt and killed in several hospital fire incidents over the year.
Informal Sector: Informal employment continued to affect employees in the agriculture, retail, hospitality, and construction sectors. In 2013 undeclared work represented 18.9 percent of total labor output in the private sector. In 2019 some 25 percent of Romanians admitted they had engaged in undeclared work and 44 percent knew someone who had engaged in undeclared labor.
The prevalence of the minimum wage, a tight labor market, and labor taxation exemptions for vulnerable sectors have made undeclared work less attractive. As a result of a mass outflow of unskilled and skilled labor, the country has experienced a tight labor market. Over the past decade, some 2.7 million Romanians of working age (20 to 64) have moved to other EU countries seeking employment. The construction sector has a higher minimum gross wage (3,000 lei or $728) and is exempt from income tax and health and pension mandatory contributions.
The law provides for temporary and seasonal work and sets penalties for undeclared labor. In accordance with EU regulations, the maximum duration of a temporary contract is 36 months. Workers in the informal sector were not covered by wage, hour, and occupational safety and health laws, and inspections.