Information and consultation of employees - a vague task in Romania
Employees have the right to be informed about facts and developments relevant to their employment. In addition, the employer even has a duty to involve them in company processes and decisions that affect the workforce. The technical term is “information and consultation”. So, what exactly are companies required to do?
AI-Act: use of AI in companies
On June 13th, 2024, the “AI Act” (Regulation (EU) 2024/1689) was published as one of the first regulations worldwide for artificial intelligence (AI) systems. It came into force on August 1st 2024 and will be applied in stages on certain dates (02.02.2025, 02.08.2025, 02.08.2026 and 02.08.2027). The comprehensive AI Act sets a framework aimed at maximizing the benefits of AI while minimizing its risks. Its guiding principles include technical safety, privacy and transparency, fairness, social welfare and accountability. AI should be safe and trustworthy, and its use should guarantee the health, safety and fundamental rights of people as well as ensuring legal certainty for companies in EU member states.
Tax risk assessments - some basics
It is well known that the tax authorities carry out their audits according to an audit plan. The selection of audited companies is based on internal risk analyses by the authorities, taking certain criteria into account. However, these criteria are only defined in the tax authorities' internal working guidelines and are not generally accessible. However, some criteria can be taken from the tax and procedural tax regulations, while others can be logically derived based on the economic assessment of an investment.
Buyer protection for real estate transactions - new rules for developers in sight
In recent years, the Romanian residential real estate market has had its share of problems. Unfair or abusive practices by certain property developers often caused delays in the completion or handover of projects that had already been paid for, resulting in financial losses for buyers. Problems such as requesting substantial advance payments, the lack of adequate guarantees for late delivery, and sometimes the sale of the same property to several buyers are some examples. In response to this, a new law on contractual liability and financial responsibility in preliminary agreements with real estate developers is currently being debated in the Romanian parliament. This is intended to strengthen the legal and financial protection of buyers, particularly in real estate development projects involving condominiums and residential neighborhoods. The aim is to clarify key contractual practices, raise standards of responsibility for developers and ensure a safe and transparent environment for transactions.
ViDA - VAT in the digital age: EU tax reform with significant effects
The European Union is taking a decisive step towards digitalizing the VAT system, with major benefits for SMEs and national budgets. On 11.03.2025, the European legislative package “Value Added Tax in the Digital Age” (ViDA) for the modernization of VAT, received final approval from the Council. It essentially consists of a directive, a regulation and an implementing regulation. The legal acts will generally enter into force within 20 days of publication, followed by a staggered implementation until 2035. The main objectives of the package include improving tax collection, reducing fraud and simplifying VAT compliance for businesses and tax administrations through the use of technology.
Important changes for licenses and operating permits in the energy sector
A new regulation on the granting of licenses and permits in the energy sector, approved by ANRE Order no. 6/12.03.2025 (hereinafter referred to as the “new regulation”), was published in the Romanian Official Gazette on 26 March 2025. This means that all applications for the granting, amendment, suspension or withdrawal of licenses and permits submitted to the ANRE (national regulatory authority in the energy sector), that had not yet been completed before the new regulation came into force, will be examined in accordance with the new regulation.
Harassment at work - Legislative Amendments
By Government Decision no. 27/2025 (published in Romania’s Official Gazette no. 97 of 03 February 2025) amendments were adopted to the Methodology on preventing and combating harassment on the basis of sex and moral harassment at work (hereinafter the "Methodology"). The modifications come after the Methodology had been adopted by GD no. 970/2023 only on October 17th 2023. Harassment at the workplace - concept Harassment involves any behaviour exercised towards an employee by another employee (his hierarchical superior, a subordinate and/ or a hierarchically comparable employee), in relation to the employment relationship, which has as its purpose or effect a deterioration of working conditions by harming the rights or dignity of the employee, by affecting his physical or mental health or by compromising his professional future, endangering his work or degrading the working climate. As a rule, harassment involves the existence of several incidents and/ or actions of a repetitive, systematic nature, which can be represented by physical, verbal and nonverbal conduct. Stress and physical exhaustion fall under the incidence of moral harassment at work.
The development of PV projects on pastureland: legal framework and challenges
With the entry into force of Law 254/2022 amending Land Fund Law 18/1991 (“Law 18”), the possibility of using pastures in a dual system for both grazing and fodder production and for the production of renewable energy was introduced for the first time. In the absence of explicit regulations on the procedure for this dual use, the developers of renewable energy plants (“RE plants”) have had to contend with the reluctance of the public authorities over the last two years. The use of pastureland for RE plants could now become more attractive, as the long-awaited application norms on the possibilities of dual use of pastureland have been approved with the entry into force of Government Decision no. 1700/2024 of December 23, 2024 (“GD 1700”)
Environmental taxes and green tax policy in Romania in 2025: A comparison with the past
In recent years, Romania has made significant progress in environmental taxation and green tax policy, demonstrating its commitment to the EU's Sustainable Development Goals and national environmental targets. These efforts focus on reducing greenhouse gas emissions, promoting renewable energy and fostering a sustainable economy. Environmental taxes: Progress and change When it comes to encouraging companies and individuals to adopt more sustainable practices, environmental taxes play an important role. In Romania, tax policies such as carbon pricing and excise duties have had positive results. The country actively participates in the EU Emissions Trading System (EU ETS), which aims to incentivize emission reductions by setting a price for emitted CO2. At the beginning of 2025, CO2 allowances have risen to over EUR 70 per tonne of CO2, compared to EUR 50-60 in previous years, and the plan is to increase this to EUR 160 by 2027. This is intended to provide stronger financial incentives for companies to switch to lower-carbon technologies and practices.
REVISAL / REGES, new functionalities as of 2025
From spring, an updated version of the REGES software will be available in Romania, allowing employees to access information about their employment contracts directly from their cell phones. What is REVISAL / REGES? REVISAL, also known by its full name as the “General Register of Employees”, is a free software used by employers to register and transmit information on individual employment contracts of employees to the Labor Inspectorate (ITM). Its main purpose is to ensure transparency and compliance with labor legislation and to help the authorities monitor compliance with workers' rights and working conditions more easily. The REVISAL registers are transmitted to the ITM via REGES, a complementary REVISAL computer system used for the electronic management of data relating to the individual employment contracts of employees and which facilitates the transmission of information between employers and the competent authorities. REGES and REVISAL are therefore closely linked, with REGES being an online portal that facilitates the reporting and transmission of files generated by the REVISAL application to the ITM.