Overview

In Romania, the relevant norms mainly consist of Law no. 67/2006 on the protection of employees’ rights in case of transfers of undertakings, units or parts thereof (Law 67/2006). Some relevant provisions can also be found in the Romanian Labour Code (art. 169-170).

Law 67/2006 generally transposes Council Directive no. 2001/23/EC on the approximation of the laws of the member states relating to the safeguarding of employees’ rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses (the Directive). Its provisions thus regulate, among others: (i) the automatic and full transfer of employment relationships to the transferee, (ii) a prohibition to terminate employment contracts because of the transfer, (iii) an obligation to uphold collective labour agreements and (iv), an obligation to undertake an information and consultation process.

At first glance the norms appear to have been implemented in a straightforward manner. However, as the national legislation failed (i) to accurately implement the EU provisions and (ii) to provide satisfactory implementation instruments, in practice the parties may find that some provisions are subject to different interpretations or enforcement procedures, giving rise to potential financial risks.

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