ROMANIA – Collective redundancies – what employers need to know for the purpose of calculating the number of dismissed workers

As a rule, a collective redundancy situation applies where:

(i) the dismissal implies a specified/determinable number of employees (e.g. 10 employees in the case of companies employing between 21 – 99 employees);
(ii) the dismissal takes place within a period of 30 calendar days;
(iii) the dismissal occurs for one or more reasons not related to the individual workers concerned.

For the purpose of calculating the number of redundancies, “๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ด ๐˜ฐ๐˜ง ๐˜ข๐˜ฏ ๐˜ฆ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฐ๐˜บ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต ๐˜ธ๐˜ฉ๐˜ช๐˜ค๐˜ฉ ๐˜ฐ๐˜ค๐˜ค๐˜ถ๐˜ณ ๐˜ฐ๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฆ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฐ๐˜บ๐˜ฆ๐˜ณ’๐˜ด ๐˜ช๐˜ฏ๐˜ช๐˜ต๐˜ช๐˜ข๐˜ต๐˜ช๐˜ท๐˜ฆ ๐˜ง๐˜ฐ๐˜ณ ๐˜ฐ๐˜ฏ๐˜ฆ ๐˜ฐ๐˜ณ ๐˜ฎ๐˜ฐ๐˜ณ๐˜ฆ ๐˜ณ๐˜ฆ๐˜ข๐˜ด๐˜ฐ๐˜ฏ๐˜ด ๐˜ฏ๐˜ฐ๐˜ต ๐˜ณ๐˜ฆ๐˜ญ๐˜ข๐˜ต๐˜ฆ๐˜ฅ ๐˜ต๐˜ฐ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ช๐˜ฏ๐˜ฅ๐˜ช๐˜ท๐˜ช๐˜ฅ๐˜ถ๐˜ข๐˜ญ ๐˜ธ๐˜ฐ๐˜ณ๐˜ฌ๐˜ฆ๐˜ณ๐˜ด ๐˜ค๐˜ฐ๐˜ฏ๐˜ค๐˜ฆ๐˜ณ๐˜ฏ๐˜ฆ๐˜ฅ ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ ๐˜ข๐˜ด๐˜ด๐˜ช๐˜ฎ๐˜ช๐˜ญ๐˜ข๐˜ต๐˜ฆ๐˜ฅ ๐˜ต๐˜ฐ ๐˜ณ๐˜ฆ๐˜ฅ๐˜ถ๐˜ฏ๐˜ฅ๐˜ข๐˜ฏ๐˜ค๐˜ช๐˜ฆ๐˜ด, ๐˜ฑ๐˜ณ๐˜ฐ๐˜ท๐˜ช๐˜ฅ๐˜ฆ๐˜ฅ ๐˜ต๐˜ฉ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ ๐˜ข๐˜ณ๐˜ฆ ๐˜ข๐˜ต ๐˜ญ๐˜ฆ๐˜ข๐˜ด๐˜ต ๐˜ง๐˜ช๐˜ท๐˜ฆ ๐˜ณ๐˜ฆ๐˜ฅ๐˜ถ๐˜ฏ๐˜ฅ๐˜ข๐˜ฏ๐˜ค๐˜ช๐˜ฆ๐˜ด.โ€

๐——๐—ผ ๐—ฒ๐—บ๐—ฝ๐—น๐—ผ๐˜†๐—บ๐—ฒ๐—ป๐˜ ๐˜๐—ฒ๐—ฟ๐—บ๐—ถ๐—ป๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ฏ๐˜† ๐—บ๐˜‚๐˜๐˜‚๐—ฎ๐—น ๐—ฎ๐—ด๐—ฟ๐—ฒ๐—ฒ๐—บ๐—ฒ๐—ป๐˜ ๐—ผ๐—ฟ ๐—ฟ๐—ฒ๐˜€๐—ถ๐—ด๐—ป๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ฐ๐—ผ๐˜‚๐—ป๐˜ ๐—ณ๐—ผ๐—ฟ ๐˜๐—ต๐—ฒ ๐—ฝ๐˜‚๐—ฟ๐—ฝ๐—ผ๐˜€๐—ฒ ๐—ผ๐—ณ ๐—ฐ๐—ฎ๐—น๐—ฐ๐˜‚๐—น๐—ฎ๐˜๐—ถ๐—ป๐—ด ๐˜๐—ต๐—ฒ ๐—ป๐˜‚๐—บ๐—ฏ๐—ฒ๐—ฟ ๐—ผ๐—ณ ๐—ฑ๐—ถ๐˜€๐—บ๐—ถ๐˜€๐˜€๐—ฒ๐—ฑ ๐˜„๐—ผ๐—ฟ๐—ธ๐—ฒ๐—ฟ๐˜€?

Although counter intuitive, according to the case law, for the calculation of the number of employees actually dismissed one has to also take into account the employment contracts terminated by agreement of the parties and/or resignation if such termination has materialized “๐˜ข๐˜ด ๐˜ข ๐˜ณ๐˜ฆ๐˜ด๐˜ถ๐˜ญ๐˜ต ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฆ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฐ๐˜บ๐˜ฆ๐˜ณ’๐˜ด ๐˜ฑ๐˜ณ๐˜ฆ๐˜ด๐˜ด๐˜ถ๐˜ณ๐˜ฆ/๐˜ช๐˜ฏ๐˜ด๐˜ช๐˜ด๐˜ต๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ, ๐˜ธ๐˜ฉ๐˜ฐ ๐˜ช๐˜ฏ๐˜ท๐˜ฐ๐˜ฌ๐˜ฆ๐˜ด ๐˜ฉ๐˜ช๐˜ด ๐˜ฅ๐˜ช๐˜ง๐˜ง๐˜ช๐˜ค๐˜ถ๐˜ญ๐˜ต ๐˜ฆ๐˜ค๐˜ฐ๐˜ฏ๐˜ฐ๐˜ฎ๐˜ช๐˜ค ๐˜ด๐˜ช๐˜ต๐˜ถ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ” (Bucharest Court of Appeal, Decision No 1637/2018).

The Court notes that the notion of “๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ง ๐˜ช๐˜ฏ๐˜ฅ๐˜ช๐˜ท๐˜ช๐˜ฅ๐˜ถ๐˜ข๐˜ญ ๐˜ฆ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฐ๐˜บ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต๐˜ด ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ ๐˜ช๐˜ฏ๐˜ช๐˜ต๐˜ช๐˜ข๐˜ต๐˜ช๐˜ท๐˜ฆ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฆ๐˜ฎ๐˜ฑ๐˜ญ๐˜ฐ๐˜บ๐˜ฆ๐˜ณ” cannot exclude the forms of termination of employment achieved by agreement of the parties or by resignation, where the role of the employer was decisive.

๐—ช๐—ต๐—ฎ๐˜ ๐—ฑ๐—ผ ๐˜„๐—ฒ ๐—ฟ๐—ฒ๐—ฐ๐—ผ๐—บ๐—บ๐—ฒ๐—ป๐—ฑ ๐˜๐—ผ ๐—ฒ๐—บ๐—ฝ๐—น๐—ผ๐˜†๐—ฒ๐—ฟ๐˜€?

Rather than trying to avoid a collective redundancy by encouraging part of the workers concerned to have their employment contract terminated by mutual agreement or by resignation, employers should perform individual dismissals in batches by limiting the number of dismissed workers to the maximum allowed by law within any given 30-day period. 

Dismissals effected in batches should be further based on separate resolutions adopted by the employer. Dismissals effected in batches but based on one single resolution, shall be deemed as a collective redundancy even if the dismissals occured over several months.

This article was first published by our Romanian member firm Suciu – Employment and Data Protection Lawyers on 24 April 2023. For more information on this topic or to discuss your specific case, please contact our representative Andreea Suciu, Managing Partner of the firm.