Transactions involving agricultural land in Romania – often problematic
Romania comprises 14.7 million hectares of agricultural area, of which 10 million hectares are farmland. According to an estimate in 2008, there were then approximately 6.8 million hectares of land left unplanted/unfarmed.
Operational measures to safeguard trade and commercial debts
Debt collection, whether from commercial entities or private individuals, is an ongoing problem in Romania. In case of cross-border matters, the process of forcing debtors to pay is even more complex and laborious.
Simplification of rules about consignment stocks to be expected
On 4th December 2018, EU Directive 2018/1910 on the fiscal treatment of consignment stocks was adopted, which will result in simplification not only for Romanian companies, but for all active in the EU.
Most recent anti-money laundering and terrorism financing provisions in Romania and their impact on companies
Legislation on anti-money laundering measures first came into force in Romania in 2002 and was updated in 2012, to transpose certain provisions of the EU legislation for the first time.
Further effects of the new regulations on money laundering and terrorism financing
We have recently outlined the legal obligations included in the new law on preventing and fighting money laundry and terrorism financing . This article tackles the actual changes, as a result of the new laws
More drastic sanctions for infringements of overtime regulations are expected
On 18th September, a draft amendment to the Romanian Labour Law was approved by the Chamber of Deputies. Its only purpose is to introduce much more drastic sanctions for any employer in Romania not observing the regulations on overtime. For the law to come into force, it has to be approved by the President and published in the Romanian Official Gazette.
Thoughts on the first data protection sanctions in Romania
Just before the summer holiday, the Romanian Data Protection Authority caused intense tumult by imposing the first three data protection sanctions against Romanian companies based on the GDPR. Subject to these fines were a bank (UniCredit, €130,000), a hotel (World Trade Center Bucharest, €15,000) and a consultancy company (Legal Company & Tax Hub SRL, €3,000), which was, ironically, offering advice on data protection issues.
Tax burden on wages – synthesised comparison
Romania has a minimum wage set by law. Each year, it is set by a separate legal norm. For 2019 there are two different minimum wage levels: 2,080 RON and 2,350 RON. For the higher wage, the key elements are the necessary level of education for the role, and the employment period.
Recent changes regarding salaries and taxation in the construction sector
As already reported, Emergency Ordinance no. 114/2018 (“EO 114”) caused quite a stir in the construction industry, as it came up with a drastic increase of the minimum salary and tax exemptions for affected employees. The changes were frequently look at as having a destabilizing effect; for many companies it was problematic to adapt to the new economic context. At the end of July, the government brought a new change with regard to salaries and taxes.
Contractual penalties in employment contracts ineffective for good
Within each and every legal relationship, the situation may arise in which the parties do not fulfill their obligations, this leading to them (for instance) being liable for compensation. When it comes to the liability of the employee to the employer, many employers want to impose contractual penalties in the case of certain breaches of duty. This practice had been controversial for a long time in legal opinions and case law, but since 12th July 2019 it has been excluded following a decision by the Supreme Court .