First, let’s recall the definition of a secondment, according to the Romanian legislation in force. Thus, according to art. 45 of the current Romanian Labor Code, the secondment is “the operation which entails a temporary change of job location for an employee to a second employer, at his current employer’s disposal, for the purpose of performing work in the second employer’s interest.”
Usually, during the secondment the employee gets to retain his position, as well as all the employment rights ensured by his Romanian employment contract signed with the original employer.
Thus, according to the same provisions of the Romanian Labor Code, during the secondment, only exceptionally can the type of work be modified, and only with the written consent of the employee. Therefore, if it is necessary to amend any other essential element of the employment contract, such as the position the employee, we recommend signing an addendum to the existing employment contract.
As per the law, during the secondment the employee must be guaranteed the rights that are most favorable to him. These can be provided either by the company (employer) who enacts the secondment, or by the company to whom the employee is seconded.
For the purpose of secondment, it is not mandatory for the posting employer to suspend the employment contract (make it a dormant contract). The suspension of the contract can be done optionally, at the initiative of the employer, in certain situations – for example, if the employer to which the employee is seconded ensures more favorable rights to the latter. In case of suspension however, the employee will receive all the rights from the company to which he is seconded.
Maximum secondment period, according to Romanian labor law
According to the Romanian legal provisions in force (art. 46, paragraphs (1) and (2) of the Labor Code), the employer may decide the secondment for an initial period of no more than one year (12 months). But exceptionally, the period of secondment may be extended every 6 months.
Attention: the extension can only be done with the written consent of the employee.
Who has the obligation to register the seconded employee in the Employee Electronic Registry (Revisal)
In any of the situations – posting with or without suspension of the employment contract – the obligation to register a seconded employee in Revisal rests with the employer who orders the secondment.
Therefore, only the company seconding the employee has the obligation to record the secondment in the general register of employees. As long as no additional employment contract is signed with the employee, the employer to whom the employee is assigned has no obligation of reporting any information in the Employee Electronic Registry (Revisal or REGES).
What is the information that must be completed in Revisal?
At the start of the secondment, the posting employer is required to register the following information in Revisal:
- The start date and the estimated end date of the secondment;
- Identification data of the employer to whom the secondment is made: tax ID number, name and state of residence;
- The state in which the secondment is to be carried out (if it is a transnational secondment), the name of the beneficiary/user to which the employee is to perform the activity, as well as the nature of the activity;
- Any changes to the data in the employment contract (position, working hours, etc.), only if applicable.
Also, during the secondment, the employer has the obligation to register any changes related to the secondment period, if applicable.
The registration in Revisal must be done from the “Contracts” menu, where the “Secondment” (in Romanian: “Detașare”) must be selected. Here, the contract of the employee who will be seconded must be selected from the list of contracts. Then, all necessary data must be completed, as follows: the start date and the end date, as well as the name, tax ID number (CIF) of the employer to which the employee is seconded, and the country of the destination employer.
Also, if applicable, the suspension of the employment contract is registered by accessing the “Suspension” element (in Romanian: “Suspendare”).
What is the legal deadline to register a seconded employee in the Romanian Employee Electronic Registry?
According to the applicable legislation (Government Decision 905/2017, art. 4, paragraph (1) letters c and d), for the registration in Revisal of the date on which the secondment begins and the date on which the secondment ends, as well as the identification data of the employer to which makes the secondment, the applicable deadline is at the latest on the day before the start/end date of the secondment.
In case of prolongation of the secondment, the registration in Revisal of the new end date shall take place at the latest on the day preceding the initial termination date.
Other obligations of the employer
The employer is also obliged to complete and submit the monthly salary tax declaration (D112), as well as the tax form D205.
Also, if it is the case of a secondment on the territory of another Member State of the European Union, we recommend checking the obligation to apply for the A1 certificate.
The employer to whom the employee is seconded has only the obligation to draw up a time sheet of the employee, and send it to the original employer, so they can correctly prepare the payroll each month.
Recommendations
We recommend concluding a written secondment decision with the employee documenting at least the following aspects:
- Reason for secondment;
- The initial period for which the secondment is decided, with the possibility of extension, if applicable;
- Which company pays the salary rights;
- The rights that the employee will benefit from, such as the secondment allowance, accommodation conditions, etc.
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