Limited employment contract Q&A’s

For the replacement of employees with whose individual employment contract has been suspended, for the execution of seasonal activity, and for the situations stipulated by art. 83 of the Labor Code, the employers shall have the possibility to employ personnel under an individual employment contract of limited duration.

How an individual work contract of limited duration may be concluded?

The individual employment contract of limited duration is concluded as an individual employment contract for an indefinite period, in writing, in the Romanian language and has the same content, with the express mention of the period it takes effect.

The medical certificate, signing and registering the contract at least one day before the date of employment – according to GD 500/2011, are mandatory for any type of contract, whether is for a fixed period, indefinite or with part time.

Length of probationary period for the individual employment contract of limited duration is between 5 business days and 30/45 business days, which can be a disadvantage for employers, compared to the length of probationary  of indefinite employment contracts which is of 90/120 calendar days.

How many times can an individual employment contract of limited duration be extended?

An individual employment contract of limited duration may be extended whenever the parties agree, even from month to month, provided we do not exceed 36 months. After 36 months it can only be extended for an indefinite period. The extension is done with the written agreement of the parties and is submitted within general registry of employees.

The same parties may successively conclude at most 3 individual employment contracts of limited duration.

The individual employment contracts of limited duration, concluded within three months from the cessation of an employment contract of limited duration, shall be considered successive contracts and may not exceed 12 months each.

Are the employees with an individual employment contract of limited duration inferior to the employees with an individual employment contract for an indefinite period?

Under the principle of equality of opportunity and treatment, the employees with an individual employment contract of limited duration have the same rights and obligations as employees with an individual employment contract for an indefinite period on the same position and carrying out the same activity.

The employees with an individual employment contract of limited duration have to respect the employer’s internal regulations and the collective labor agreement applicable to the unit, where applicable.If in the organization appear vacancies on the same post but for an indefinite period, employers have the duty to inform employees with an individual employment contract of limited duration, in order to choose an indefinite employment contract.

What happens if the employee has sick leave and he’s individual employment contract of limited duration has been expires? 

The period of sick leave is the reason for the suspension of the individual employment contract, and the cessation of an employment contract of limited duration is cease de jure. According to the Labor Code, if there is a suspension during a cessation, the cease has priority. The medical leave will be paid according with GEO 158/2005, by the employer until the termination, the remaining days of sick leave will be paid by the health insurance house with which the employee’s family doctor has concluded the convention, from the FNUASS budget.

Can employees with an employment contract of limited duration benefit from unemployment?

The employees with an individual employment contract of limited duration may apply to the Unemployment Agency if the termination of the individual employment contract was not initiated by them. For this, it is necessary to prove that the employer no longer wished to extend the contract.Under Law 76/2002, however, in order to benefit from unemployment, the employee has to have a 12-month contribution period in the last 24 months before the unemployment claim. Individual employment contracts of limited duration constitute a contribution period.