The company’s obligation to inform the employee

As part of the activity of our law firm, legal consultancy in various areas of civil law is essential. Legal consultancy in the area of ​​labor law is also included in this category. Our team of lawyers has represented the parties involved in labor disputes over time, but the most important thing is that they have approached the issue of labor relations from a preventive perspective.

For this reason, our lawyers specialized in labor law consider it opportune to report some important aspects for companies and their employees.

It is important to remember that the Romanian law, respectively the Labor Code obliges the employer to inform the employee about the essential conditions of employment, before concluding the individual employment contract or at the latest on the date of its signing. The same condition of information must be respected in the situation where the individual employment contract is amended. In other words, the proof of information can also be made by the employee signing the individual employment contract or the additional amending act, in the situation where there is an ongoing employment contract. The problems that may arise in connection with not informing the employee are related to the situation in which the information is not done in a separate way, but should be ratified by signing the individual employment contract/additional act to the CIM. Our team of lawyers, through the rich experience gained during the years of practice, recommends employers, as well as employees, to take into account the aspects related to information and to ensure that the law is applied in order to avoid any conflicts that may arise in the future defend the negotiated working conditions.

For your information, below are the conditions stipulated by the Labor Code regarding the obligation of prior information of the employee in order to conclude the individual employment contract or the additional act to it:

a) the identity of the parties;

b) the place of work or, in the absence of a fixed place of work, the possibility for the employee to carry out his activity in different places of work, as well as if the movement between them is ensured or settled by the employer, as the case may be; (Note: amendment introduced in October 2022 by Law 283/2022)

c) the headquarters or, as the case may be, the domicile of the employer;

d) the function/occupation according to the specification of the Classification of Occupations in Romania or other normative acts, as well as the job description, specifying the attributions of the position;

e) the criteria for evaluating the professional activity of the employee applicable at the level of the employer;

f) job-specific risks;

g) the date from which the contract is to produce its effects;

h) in the case of a fixed-term employment contract or a temporary employment contract, their duration;

i) the duration of the vacation to which the employee is entitled;

j) the conditions for granting notice by the contracting parties and its duration;

k) the basic salary, other constituent elements of salary income, highlighted separately, the periodicity of salary payment to which the employee is entitled and the method of payment; (Note: amendment introduced in October 2022 by Law 283/2022)

l) the normal duration of work, expressed in hours/day and/or hours/week, the conditions for performing and compensating or paying overtime, as well as, if applicable, the methods of organizing work in shifts; (Note: amendment introduced in October 2022 by Law 283/2022)

m) indication of the collective labor contract that regulates the working conditions of the employee;

n) the duration and conditions of the trial period, if any. (Note: amendment introduced in October 2022 by Law 283/2022)

o) the procedures regarding the use of the electronic signature, the advanced electronic signature and the qualified electronic signature.

p) the right and conditions regarding professional training offered by the employer; (Note: amendment introduced in October 2022 by Law 283/2022)

q) the employer’s bearing of private medical insurance, additional contributions to the employee’s optional pension or occupational pension, under the law, as well as the granting, at the employer’s initiative, of any other rights, when they constitute advantages in money granted or paid by the employer to the employee as a result of his professional activity, as the case may be. (Note: amendment introduced in October 2022 by Law 283/2022).

The elements contained in the information must also be found in the content of the individual employment contract. I make an exception for the information provided in letter m), o) and p).

Regarding the information provided, prior to the conclusion of the individual employment contract or during its execution, including during the conciliation, a confidentiality agreement may be entered into between the parties.

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The main management structure of the company in Romania is the general meeting of associates / shareholders. The constitutive act establishes the rules for convening and adopting decisions and whether the exercise of the vote can be delegated by special mandate by the associate / shareholder who cannot take part in the meeting. In the limited liability company, each shareholder entitles the holder to one vote in the respective meeting. The general meeting of associates has the following main obligations: ✓ to approve the annual financial statement and to establish the distribution of the net profit. ✓ to appoint the administrators and the censors, to revoke / dismiss them and to discharge them, as well as to decide to contract the financial audit, when it is not obligatory, according to the law; ✓ to decide the pursuit of the administrators and censors for the damages caused to the company, designating also the person in charge to exercise it; ✓ to modify the constitutive act.
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The limited liability company is the most common form of company in Romania, being the legal entity that best serves the interests of investors both from the point of view of the reliability of the activity, and from the perspective of its management. The limited liability company is abbreviated "SRL" in Romania and is the equivalent of the American limited liability company Limited Liability Company (abbreviated to LLC) or the German economic structure "Gesellschaft mit beschränkter Haftung" (abbreviated to GmbH), or the structure called "limited" , the structure used in most Latin American states.
The limited liability company is characterized by:
✓ the character intuitu personae, which means that this economic structure is based on the trust between the associates;
✓ the division of the share capital into fractions called shares, which cannot be negotiable securities;
✓ the liability of the associates is limited to their contribution to the share capital.
The limited liability company may also have a single partner, natural or legal person, of Romanian or foreign nationality, who will be the owner of all shares. Instead, the maximum number of associates is 50 people.
At present, the Romanian law no longer conditions the subscription and payment of a certain amount as share capital.
Through registration, the company acquires legal personality, becoming, under the law, a collective subject of law. The conclusion given by the judge is sent, ex officio, to the Official Gazette of Romania for publication at the expense of the company and to the Financial Administration in whose territorial area is the main headquarters of the company for fiscal registration, mentioning the registration number in the Trade Register .

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