The Posting in Romania for EU Residents
Posting occurs when the employer “deploys” its employee to a third party, for whose benefit the worker performs the work. Directive 96/71/EC regulates and harmonizes for member states the case that under a transnational service contract, an enterprise in one state sends its workers to the client enterprise in another EU state. Thus, there must be a service contract between two enterprises residing in EU member states and an employment relationship between the posting enterprise and the posted worker during the (limited) period of service abroad. Other regulatory texts are included in EC Regulations No. 883/2004 and No. 988/2009.
In order to protect the social rights of posted workers where companies make use of the freedom to provide services and in order to facilitate the exercise of this freedom, Directive 96/71/EC establishes basic working conditions applicable to posted workers, such as:
- maximum work periods and minimum rest periods;
- The minimum duration of paid annual leave;
- Minimum wage rates, including increased rates for overtime;
- occupational health, safety and hygiene.
From the point of view of Romanian national legislation, it is expected that the nonresident person will follow a predefined bureaucratic procedure, with the following translated and legalized documents being filed with the competent Labor Office:
– Service contract between the two enterprises;
– Employment contract between employee and posting company;
– letter/contract of posting;
– A1 certificate relating to the mandatory contribution paid in the state of the seconding party;
– Worker’s tax residence certificate, health card etc.
In addition, an appropriate form must be completed and filed with the relevant Labor Inspectorate (ITM) at least 5 days before the start of the posting.
Last note but of definite interest: be careful not to exceed 183 days of the posted worker’s stay in Romania otherwise he/she will be subject to double taxation.
We remain available for further clarification
