The Social Dialogue Law 367/2022 brings important changes for labour relations in Romania

The Social Dialogue Law 367/2022 brings important changes for labour relations in Romania involving heavy fines in case of non-compliance with the new obligations imposed on the employer. Thus, the new law introduces the obligation to collectively negotiate a labour contract for companies with at least 10 employees (the previous version of the law imposed this obligation for companies with more than 21 employees).

Brief clarification:

• The Social Dialogue Law 367/2022 is in force from 25.12.2022;
• collective bargaining is compulsory for units with at least 10 employees/ workers;
• the deadline for initiating collective bargaining provided for in the law refers to the expiry of the existing contracts or the clauses stipulated in the addenda to them, and no deadline is specified for employers who did not have this obligation until now, but, given that the law is already in force, the obligation must be fulfilled as soon as possible;
• employers will inform the employees/ workers in the unit of the obligation to initiate collective bargaining and will specify the two possible options for starting negotiations, namely the establishment of a trade union or the right to join a trade union established at the level of the bargaining sector or the possibility of electing representatives;
• persons holding managerial positions in the unit cannot be elected as employee/ worker representatives;
• the employer is obliged to give notice of the intention to start collective bargaining at least 15 days before the start of collective bargaining, including the date, place and time set for the start of negotiations;
• the duration of the negotiation is at most 45 days, but with the possibility of extension by agreement of the parties;

The initiative to start collective bargaining lies with both the employer and the trade unions or employee representatives.

If the company already has a collective agreement, negotiations can start at least 60 calendar days before the expiry of the contract or the period of application of the additional acts to the contract.  

If there is no collective agreement in place in a company with at least 10 employees, the employer is obliged to inform the employees of the start of the negotiation procedures and to send a written invitation at least 15 days before the start of the negotiations. 

Failure to comply with the obligation to negotiate a collective labour contract is punishable by a fine of between 15,000 and 20,000 RON. Also, it constitute contraventions and are sanctioned by labour inspectors:

• impeding the exercise of the right to free trade union organisation or association (fine from 30,000 RON to 50,000 RON;
• intervention by public authorities, employers and their organisations, with the aim of limiting/ preventing the exercise of the rights of trade unions to draw up their own regulations, to freely choose their representatives/ organise their management and activity (fine from 20,000 RON to 25,000 RON);
• refusal to invite the members of the representative trade union at the unit level to the works of the board of directors or other similar body in case of discussion of subjects of professional and social interest having an impact on the employees; 
• failure to start the negotiation for the conclusion of the collective labor agreement (fine from 15.000 RON to 20.000 RON);
• failure of the signatory parties to submit the collective labor agreement for publication and to comply with the procedure for signing the collective labor agreement (fine of 5,000 RON, responsibility resting jointly and severally with the parties);
• unjustified refusal to register the collective labor agreement (fine from 5,000 RON to 10,000 RON);
• representatives of employees/ workers are NOT elected with the vote of at least half plus one of the total number of employees/ workers in the respective establishment (fine from 30.000 RON to 50.000 RON).

If you need legal support regarding the procedure for electing employee representatives or for starting and conducting negotiations to conclude a collective labor contract, you can confidently contact Grecu Partners specialists at office@grecupartners.ro or by phone 031.426.0745.