Romania is currently facing a persistent and structural shortage of labour across multiple sectors, including construction, hospitality, logistics, and manufacturing. In response to these economic pressures and the increasing reliance on workers from third countries, the Romanian Government has adopted a new Emergency Ordinance regulating the employment of foreign nationals and the activity of placement agencies.

This legislative act introduces, for the first time, a coherent and comprehensive regulatory framework governing the placement of foreign workers on the Romanian labour market. It aims to eliminate abusive practices, enhance worker protection, and align Romania’s legal regime with European standards on labour mobility and anti-trafficking.

From the perspective of a Romanian law firm advising employers, recruiters, and foreign investors, this ordinance represents a paradigm shift—moving from a relatively permissive system to a strictly regulated, compliance-driven environment.

At its core, the ordinance establishes a controlled access mechanism for both employers and intermediaries involved in hiring foreign workers.

Unlike the previous framework, which allowed significant operational flexibility, the new regime imposes:

• Mandatory registration of employers
• Prior authorization of placement agencies
• Recruitment limited to “shortage occupations” officially defined by authorities
• Full integration into a centralized digital system

This approach reflects a broader policy objective: ensuring that labour migration is predictable, transparent, and aligned with national economic priorities, while minimizing risks such as illegal migration and labour exploitation .

A New Licensing Regime

One of the most significant innovations is the introduction of a mandatory licensing system for agencies placing foreign workers in Romania.

Under the ordinance:

• Agencies must obtain authorization from the competent authority before operating
• Authorization is granted for a limited duration (typically 2 years) and is subject to renewal
• Authorities may suspend or revoke licenses in cases of non-compliance

This transforms placement activity into a regulated profession, subject to ongoing supervision.

Financial Guarantee Requirement

A key compliance condition is the obligation to provide a financial guarantee of at least EUR 75,000, with additional amounts required depending on the number of workers placed.

This guarantee serves multiple legal purposes:

• Ensuring the agency’s financial reliability
• Covering potential costs related to:
  • Repatriation of workers
  • Support for vulnerable individuals
  • Payment of administrative fines

While this measure enhances protection mechanisms, it also creates a significant barrier to market entry, particularly for smaller operators.

Prohibition of Worker Fees

The ordinance explicitly prohibits agencies from charging fees or commissions to foreign workers.

Instead:

• All recruitment costs must be borne by the employer

This provision aligns with international labour standards and anti-trafficking norms, but it may also:

• Increase overall hiring costs for businesses
• Lead to contractual renegotiations between employers and intermediaries

Mandatory Registration

Employers intending to hire foreign workers must register in a newly created electronic system and meet strict eligibility criteria, including:

• Absence of outstanding tax liabilities
• Clean criminal and compliance record
• Evidence of genuine economic activity

This effectively introduces a “fit and proper” test for employers operating in this space.

Enhanced Transparency Requirements

Employers are required to submit a detailed job offer containing extensive information, such as:

• Salary (gross and net)
• Working hours and rest periods
• Benefits, bonuses, and allowances
• Accommodation and transport arrangements

These requirements go beyond traditional labour law obligations and create a quasi-contractual disclosure regime, designed to ensure full transparency for foreign workers.

Expanded Employer Duties

The ordinance imposes additional obligations, including:

• Ensuring equal treatment with Romanian workers
• Providing contracts in a language understood by the employee
• Offering Romanian language training and cultural integration programs
• Notifying authorities of specific events (e.g. absence, termination, or risk situations)

From a legal perspective, this reflects a shift toward a holistic compliance model, combining elements of labour law, migration law, and human rights protection.

A central feature of the new framework is the creation of a national digital platform for managing all aspects of foreign labour employment.

Through this platform, authorities and stakeholders can:

• Register employers and agencies
• Submit and process work permit applications
• Monitor compliance in real time
• Generate statistics and reports

For businesses, this represents both:

• An opportunity for streamlined administrative processes
• A source of potential risk, given the reliance on a single digital interface

From a legal standpoint, companies should pay particular attention to:

• Data protection compliance (GDPR)
• Accuracy and completeness of submitted information
• Internal procedures for managing digital workflows

The ordinance introduces a system whereby foreign workers may only be recruited for positions included in an official “shortage occupations list”, updated periodically by authorities.

This mechanism:

• Ensures that foreign labour addresses genuine market needs
• Protects the domestic workforce
• Aligns with EU labour mobility policies

However, it also restricts employer flexibility and may:

• Delay recruitment processes
• Limit access to foreign talent in emerging sectors

A central objective of the ordinance is the protection of foreign workers, particularly against exploitation and abuse.

Contractual Safeguards

The law requires:

• Detailed written contracts
• Clear information on employment conditions
• Availability of documents in a language understood by the worker

Prohibition of Abusive Practices

The ordinance addresses common risks identified in practice, including:

• Misrepresentation of working conditions
• Illegal fees
• Inadequate accommodation or transport

Access to Remedies

Foreign workers are granted access to:

• Complaint mechanisms
• Relevant authorities (labour inspectorate, immigration authorities, anti-trafficking bodies)

These provisions significantly strengthen the legal position of foreign workers and align Romania with international human rights standards.

The ordinance establishes a multi-layered enforcement framework, involving several authorities:

• Labour Inspectorate
• Immigration authorities
• Police and other competent institutions

Types of Sanctions

Non-compliance may result in:

• Suspension or revocation of employer registration
• Suspension or withdrawal of agency authorization
• Financial penalties

Preventive Enforcement

Notably, the system is designed to operate on a preventive basis, with monitoring indicators such as:

• High rejection rates of visa applications
• Discrepancies between job requirements and worker qualifications
• Failure to meet contractual obligations

This reflects a shift from reactive enforcement to risk-based regulatory oversight.

Increased Compliance Burden

For both employers and agencies, the ordinance introduces:

• Extensive documentation requirements
• Continuous monitoring obligations
• Greater interaction with public authorities

As a result, businesses will need to implement:

• Internal compliance systems
• Legal and HR support structures

Barriers to Market Entry

The financial and administrative requirements may:

• Reduce the number of active placement agencies
• Encourage market consolidation

While this may improve overall quality, it could also:

• Limit competition
• Increase service costs

Operational Risks

Potential challenges include:

• Delays in administrative processing
• Dependence on the functionality of the digital platform
• Uncertainty in the interpretation of certain provisions

Short-Term Effects

In the short term, the ordinance is likely to:

• Increase recruitment costs
• Slow down hiring processes
• Require adaptation from market participants

Long-Term Outlook

Over time, however, the framework is expected to:

• Improve transparency and accountability
• Reduce illegal and abusive practices
• Enhance Romania’s attractiveness for foreign workers and investors

Conclusion

The new Emergency Ordinance marks a fundamental transformation of the legal framework governing foreign workers in Romania.

It introduces a highly regulated, transparent, and compliance-oriented system, designed to balance:

• Economic needs for labour
• Protection of workers’ rights
• Public policy objectives related to migration control

For employers, placement agencies, and investors, the message is clear:
compliance is no longer optional but a central operational requirement.

Engaging experienced Romanian lawyers or a specialized law firm in Romania will be essential to navigating this complex regulatory landscape and ensuring full compliance with the new legal framework.

This article is for general informational purposes only and does not constitute legal advice. For tailored assistance, please contact our team of lawyers in Romania.