Lately, you’ve probably seen headlines about restructurings or staff reductions at large companies, especially in the IT and automotive sectors. Rising taxes and economic pressure are forcing employers to downsize, making layoffs unavoidable. In such times, it’s natural to feel uncertain about your professional future. However, it’s important to remember that as an employee, you do have rights. How are you protected if you’re laid off for economic or organizational reasons? What rights do you have? And most importantly—how can you maintain peace of mind during times of uncertainty?
Can you be laid off?
Romania’s Labor Code clearly sets out the procedures employers must follow when dismissing an employee, as well as the rights employees are entitled to. According to Article 58 of the Labor Code:
1. Dismissal means the termination of an individual employment contract at the employer’s initiative.
2. Dismissal may occur for reasons related to the employee personally, or for reasons that are not connected to the employee.
You Cannot Be Dismissed in the Following Cases
Article 59 of the Labor Code prohibits dismissal based on:
a) Race, nationality, ethnicity, skin color, language, religion, social origin, genetic traits, sex, sexual orientation, age, disability, chronic non-contagious illness, HIV infection, political opinion, family situation or responsibilities, trade union membership or activities, or belonging to a disadvantaged group;
b) Participation, in accordance with the law, in strikes or trade union activities;
c) Exercising rights provided under Articles 17(3), 18(1), 31, 39(1), 85, and 194(2).
Article 60 of the Labor Code also protects you in specific situations. You cannot be dismissed:
Paragraph 1: you are entitled not to be dismissed in the following situations
a) during temporary incapacity for work, established by medical certificate by the law;
b) during the suspension of activity as a result of quarantine;
c) during the period in which the female employee is pregnant, insofar as the employer was made aware of this fact prior to issuing the dismissal decision;
d) during maternity leave;
e) during parental leave for the care of a child up to the age of 2 years, or, in the case of a child with a disability, until the child reaches the age of 3 years;
f) during leave to care for a sick child up to the age of 7, or, in the case of a child with a disability, for intercurrent conditions, until the child reaches the age of 18;
g) during the exercise of an elected position in a trade union body, except in the situation where dismissal is ordered for serious disciplinary misconduct or for repeated disciplinary misconduct committed by that employee; [declared unconstitutional by Decision of the Constitutional Court no. 814/2015]
h) during annual leave;
i) during paternity leave and caregiver’s leave, or during absence from work under the conditions regulated by Article 152².
(2) The provisions of paragraph (1) do not apply in the case of dismissal for reasons arising from judicial reorganization, bankruptcy, or the dissolution of the employer, in accordance with the law.
Dismissal. What types of dismissal exist
1. Dismissal for disciplinary reasons – when the employee violates the company’s internal rules.
According to Art. 61 of the Labor Code, the employer may order dismissal for reasons related to the employee in the following situations:
a) when the employee has committed a serious misconduct or repeated misconduct against labor discipline rules or those established by the individual employment contract, the applicable collective labor agreement, or the internal regulations, as a disciplinary sanction;
b) when the employee is under preventive arrest or house arrest for a period longer than 30 days, under the conditions of the Criminal Procedure Code;
c) when, by decision of the competent medical expertise bodies, the employee is found to be physically and/or mentally unfit, which prevents them from fulfilling the duties corresponding to their position.
Dismissal for economic, technological, or organizational reasons – when the company must reduce staff for genuine business reasons.
According to Art. 65, dismissal for objective reasons exists:
(1) Dismissal for reasons not related to the employee represents the termination of the individual employment contract determined by the elimination of the employee’s position, for one or more reasons unrelated to the employee.
(2) The removal of the position must be authentic and have a valid and serious basis
Dismissal for reasons not related to the employee may be individual or collective, according to Art. 66 of the Labor Code [types of dismissal for objective reasons].
According to Art. 68 of the Labor Code, collective dismissal means dismissal, within 30 calendar days, for one or more reasons not related to the employee, of several.
a) at least 10 employees, if the employer making the redundancies has more than 20 but fewer than 100 employees;
b) at least 10% of the employees, if the employer making the redundancies has at least 100 employees but fewer than 300;
b) at least 10% of the employees, if the employer making the redundancies has at least 100 employees but fewer than 300;
If the employer intends to make collective redundancies, they have the obligation, according to Art. 69 of the Labor Code, to consult, in advance, the trade union or the employees’ representatives, in order to:
find solutions to avoid or reduce the number of dismissals;
take social measures (retraining, professional reconversion) to support those affected.
Within these consultations, the employer must provide, in writing, essential information such as:
the total number and categories of employees;
the reasons for dismissal;
who will be affected;
the legal priority criteria for dismissal;
measures for reducing dismissals and supporting those dismissed;
the date/period of dismissals;
the deadline for submitting proposals by the trade union/representatives.
The selection criteria apply after evaluating employees’ performance.
These obligations remain in force even if the decision on dismissals belongs to the employer or to the company controlling it.
In the case of dismissals for economic reasons, the employer is obliged to follow certain additional procedures, such as consulting employees’ representatives or offering alternatives if possible.
According to Art. 71 of the Labor Code, the trade union or employees’ representatives may propose, within 10 days from notification, measures to avoid or reduce dismissals, and the employer is obliged to respond in writing and with justification within no more than 5 days from receiving these proposals.
3. Dismissal for professional incapacity
This occurs when the employee can no longer fulfill the duties of the position. According to Art. 61 of the Labor Code, letter d), dismissal may also take place if the employee does not professionally correspond to the job in which they are employed.
Your Right to a Reasoned Dismissal Decision
Under Article 76 of the Labor Code, a dismissal decision must be communicated to the employee in writing and must mandatorily include:
a) the reasons for the dismissal;
b) the notice period;
c) the criteria for establishing the order of priority, according to Article 69(2)(d), applicable only in the case of collective dismissals;
d) a list of all available positions within the company and the deadline by which employees may choose to occupy a vacant position, in accordance with Article 64.
You also have the right to a notice period, during which the employer typically continues to pay your salary. This allows you time to search for a new job without financial strain.
Notice Period in Case of Dismissal
According to Article 75 of the Labor Code, in the event of dismissal, you are entitled to a notice period of no less than 20 working days. An exception applies to employees dismissed under Article 61(d) during a probationary period.
If the individual employment contract is suspended during the notice period, the notice period is correspondingly suspended, except as provided under Article 51(2).
In addition, you are entitled to receive your salary during the notice period, which can support you financially while looking for a new position.
Compensation and Allowances You Are Entitled To
If you are dismissed for economic reasons, the Labor Code provides for severance pay, calculated based on your length of service and salary.
Employees dismissed for reasons unrelated to their personal performance are eligible for active labor market measures and may receive compensation as provided by law and the applicable collective labor agreement, under Article 67 of the Labor Code.
The key question is: “How much can this severance help me navigate this period of uncertainty?”
International studies show that in EU countries, severance pay helps employees maintain financial stability and reduces the stress associated with dismissal. For example, according to OECD data (2023), countries with strong employee protection schemes experience faster reintegration of dismissed workers into the labor market.
Unemployment Benefits: How They Are Calculated in 2025 and Their Value
In addition to any severance pay provided by your employer, you may be entitled to claim unemployment benefits – a significant support during periods of transition.
Eligibility Criteria
According to the law, you qualify for unemployment benefits if:
You have a minimum contribution period of 12 months within the last 24 months, as verified by the National Employment Agency (ANOFM).
You have no income, or your income is below the Social Reference Indicator (ISR), which is 660 RON in 2025.
Calculation of Unemployment Benefits
The benefit consists of two components:
1. Fixed Component: 75% of the ISR → 75% × 660 RON = 495 RON
2. Variable Component: Based on work experience and the average gross salary over the last 12 months:
3% for at least 3 years of experience
5% for at least 5 years of experience
7% for at least 10 years of experience
10% for at least 20 years of experience
3% for at least 3 years of experience
5% for at least 5 years of experience
7% for at least 10 years of experience
10% for at least 20 years of experience
Example: If you have 8 years of work experience and an average gross salary of 6,000 RON, your benefit would be calculated as follows:
495 RON (fixed component) + 6,000 RON × 5% (experience bonus) = 495 + 300 = 795 RON per month
Registration with Employment Agencies
Article 72 of the Labor Code stipulates that if, after consulting with the union or employee representatives, an employer decides to implement a collective layoff, they must notify the territorial labor inspectorate and the local employment agency at least 30 calendar days before issuing the layoff decisions.
During this period, the employment agency is required to explore solutions to address the anticipated collective layoffs and communicate these solutions promptly to both the employer and the union or employee representatives, as outlined in Article 73 of the Labor Code.
Challenging an Illegal Dismissal
If you are concerned about the legality of your dismissal, you have the right to challenge it. You can request a court review within 30 days of receiving the decision.
Under the Labor Code, the procedure involves:
Filing a claim with the competent court within 30 days
Presenting the reasons why the dismissal is considered unlawful
Requesting either reinstatement or financial compensation
This option is particularly valuable if you suspect your dismissal was discriminatory or unjustified. In many European countries, employee protection laws have been strengthened, making the right to challenge a dismissal guaranteed rather than merely procedural.
Examples:
If your company reduced staff citing “budget constraints,” but you were the only employee dismissed without clear criteria, you have strong grounds to request a review of the decision.
If you receive severance pay and notice, use this period to actively seek new opportunities, participate in professional development courses, and expand your professional network.
How to Handle the Emotional Impact of Job Loss
Being laid off is not just a legal or financial event – it’s an emotional shock. Feeling frustrated, anxious, or even guilty is completely normal. Here are some strategies to help you manage this situation more effectively:
Acknowledge your emotions: It’s normal to feel upset or disappointed. Don’t judge yourself for your feelings.
Talk to trusted people: Friends, family, or colleagues can provide emotional support and objective perspectives.
Seek professional support: A psychologist or career counselor can help clarify your thoughts and plan your next steps.
Seek professional support: A psychologist or career counselor can help clarify your thoughts and plan your next steps.
Maintain a routine: Even if you’re no longer going to the office, keeping a daily schedule helps preserve discipline and confidence.
OECD studies show that employees who receive emotional and professional support after being laid off reintegrate into the workforce more quickly and experience less financial and psychological stress.
If your dismissal is due to economic reasons, remember: you are not alone. Labor laws provide protections and concrete tools to defend your rights. Knowing your rights and taking the appropriate steps can make the experience manageable, even constructive. Use your notice period and severance pay to reassess your career path and prepare for new opportunities. Don’t forget to care for your emotional wellbeing – managing stress effectively is key to navigating this stage successfully.
Turn to Smartemp for Career Counseling and Job Recommendations
One of the hardest aspects after a layoff is knowing your next career move. You may feel uncertain or doubt your ability to quickly find a suitable position. At such times, the support of a specialized recruitment and career counseling team can make all the difference.
Smartemp has 13 years of experience in the Romanian human resources market, specializing in both recruitment and employee transition support. Smartemp can help you:
- Identify real job opportunities aligned with your professional profile and salary expectations;
- Craft a competitive CV tailored to current employer requirements;
- Practice job interviews to boost confidence and improve your chances of success;
- Explore new fields where your skills may be transferable if you’re considering a career change.
Smartemp’s recruitment expertise comes from ongoing collaboration with companies across diverse industries – IT, call centers, telecom, healthcare, and education. This network can give you direct access to job opportunities not always posted on public recruitment platforms. acces direct la joburi care nu apar intotdeauna pe platformele publice de recrutare.
Additionally, their advisors can provide personalized search strategies: how to organize your applications, leverage LinkedIn to attract recruiters’ attention, and turn your layoff experience into an advantage during interviews.
During a career transition, the most valuable thing is knowing you are not alone. Smartemp not only shows you the way but also provides a trusted partner in your career, whatever challenges you may be facing.
Write to us at: recrutare@smartemp.ro
Sources:
Romanian Labor Code – Articles 58-76 – art. 58-76
Law no. 76/2002 (Unemployment) – Articles 34, 39 – art. 34, 39
OECD Employment Outlook 2023 (protejarea angajatilor în UE)
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