Introduction

With more companies hiring globally or expanding into new markets, understanding the differences between national employment laws has never been more important. Romania and the United States are increasingly on the radar for international business - Romania as an emerging hub for skilled talent in tech and outsourcing, and the US as a massive, complex employment market. But their labour laws sit at opposite ends of the spectrum.

If your business operates in both regions or plans to, being compliant in one won’t protect you in the other. And assuming alignment can lead to fines, disputes, or worse - reputational damage. Here’s what HR and business leaders need to know to avoid pitfalls and build strong, legally sound employment frameworks in both countries.

Quick Tips

• Romania mandates written employment contracts - in the US, they're often optional.

• Terminations in Romania require legal cause and strict procedures - the US allows 'at-will' dismissal in most states.

• Overtime rules are tighter in Romania, with capped hours and mandated rest periods.

• Employee representation is more formal in Romania, with trade unions and works councils.

• Misclassification of contractors carries severe penalties in both countries - diligence is key.

Contracts: Required vs Recommended

In Romania, a written employment contract is mandatory and must be registered with the local labour authorities before work begins. It must include specific elements such as job title, duties, salary, and working hours. The Labour Code is precise and protective.

In contrast, most US states don’t require written employment contracts for standard roles. Many employers rely on offer letters or handbooks, especially due to the doctrine of 'at-will employment', which allows either party to terminate the relationship without cause.

While the US model offers flexibility, it also creates risk if policies are unclear or inconsistently applied. I’ve seen US companies run into trouble when a termination decision is challenged and no contract exists to clarify expectations. In Romania, failure to issue a compliant contract can lead to immediate penalties.

Termination: Process vs Discretion

Perhaps the starkest difference lies in dismissal rights. In Romania, termination must be justified and follow a clear process. Common reasons include employee misconduct, redundancy, or performance concerns - each with associated documentation and notice periods.

Compare this with the US, where in most states an employee can be terminated at any time, for any reason, as long as it's not discriminatory or retaliatory. This flexibility can aid speed, but also exposes employers to risk if due process isn’t followed or if biases emerge.

When I worked with a client offboarding staff in both countries, Romania required formal written notices, a disciplinary hearing in one case, and detailed documentation. In the US, the same process would’ve been optional. Navigating both with fairness and compliance required a tailored approach.

Working Time and Overtime

Romanian law limits working hours to 40 per week, with a maximum of 8 per day. Overtime is strictly regulated - it must be compensated by paid time off or increased wages, and employees are entitled to a minimum daily and weekly rest period.

In the US, the Fair Labor Standards Act (FLSA) sets out federal rules, including time-and-a-half pay for hours over 40. However, states can add their own requirements, and exemptions (like for salaried workers) can complicate matters. There’s no statutory maximum on weekly working hours, and breaks aren’t universally guaranteed.

If your business is operating across both, assume nothing. One of our clients assumed their global policy of 50-hour weeks with flexible time off would apply in Romania - it didn’t. We helped them restructure roles and implement compliant scheduling.

A Real Example: Building Smart Systems Across Borders

A tech client recently expanded from their US base into Romania to access engineering talent. They initially applied their US templates and handbook to all hires. When we reviewed their setup, we found missing contract clauses, non-compliant probation terms, and no overtime tracking.

We supported them in creating compliant Romanian contracts, translated into Romanian, implemented proper timekeeping tools, and trained managers on cultural expectations. This not only prevented future penalties but improved employee satisfaction and retention.

Final Thoughts

When navigating labour laws in Romania and the US, there is no shortcut. These systems reflect different legal, social, and cultural values. But with the right guidance, you can build compliant frameworks that empower your teams in both countries.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you need help reviewing local contracts, handling terminations, or building systems that scale across borders, we’re here to help with practical insight and unwavering support.