
What must an individual employment agreement contain in order to be legal? ✍️
A properly drafted individual employment agreement (‘IEA’) is the foundation of balanced employment relationships, providing protection for both the employer and the employee. To be legal and valid, it must comply with the legal provisions in force and contain certain mandatory elements. The most relevant of these are listed below.
- Identification of the parties - the IEA must include the full data of the employer and the employee, for example: registered office, phone number, employer's e-mail, but also the name, surname and other data of the employee;
- Duration of contract - The IEA can be concluded for an indefinite period (as a rule) or for a fixed period (applicable by way of exception only in cases expressly provided for by law);
- Probation period - May be a maximum of 90 calendar days for executive positions and 120 calendar days for managerial positions. Also, in case of fixed-term IEAs, the probation period is proportional to the duration of employment;
- Place of work - This should be specified in the IEA and can be either fixed (at the employer's premises/workplace) or mobile (on site/client premises etc). Attention should also be paid if the work is carried out in teleworking;
- Nature of work - The IEA must specify the employee's job position/occupation according to the Classification of Occupations in Romania (COR), and the job description must detail the duties and responsibilities specific to the job position held;
- Working hours - The normal working hours are 8 hours/day and 40 hours/week, except for cases regulated by law. The distribution of working hours by days and hours must be included;
- Annual leave - The duration of annual rest leave shall be a minimum of 20 working days, with the possibility of more days by agreement of the parties;
- Salary - The IEA must provide for the gross monthly basic salary and may also include additional benefits such as: bonuses, meal vouchers, private medical insurance, etc;
- Right to notice - The IEA must include the notice period both in the case of dismissal and resignation;
- Rights and obligations - Both the employer and the employee benefit from a number of rights which offer them protection and must fulfill a number of obligations expressly provided for by law;
- Specific clauses - Depending on the specifics of the activity, certain clauses may be inserted in the IEA, such as a confidentiality clause, a non-competition clause or a professional training clause.
If you need legal assistance in reviewing or drafting an individual employment agreement, our team is always ready to assist you. If you need legal assistance for reviewing or drafting an individual employment agreement, our team of specialists is here to help.We offer personalized legal services tailored to the specific needs of both employers and employees, ensuring that all contractual clauses comply with the current legislation and protect the rights and obligations of the parties involved. Whether it's the conclusion, amendment, or termination of an individual employment agreement, we can provide you with clear advice and effective solutions.