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Collective labour agreement Date: 2009-03-18

The collective labor agreement at national level for the period 2007-2010 no. 2895/2006

1. Overview

The new collective labor agreement at national level for the period 2007-2010 no. 2895/2006 regulates issues concerning the working time, the employment protection, the remuneration and the holidays.

2. Legislative Framework

The collective labor agreement at national level for the period 2007-2010 no. 2895/2006 was adopted on 20.12.2006 and came into force on 29.01.2007.

3. Working Time

As far as the working time is concerned, it should be taken into consideration that the normal working time is still of 8 hours / day or 40 hours / week, whereas the off-time work will be considered as overtime. Furthermore, the maximum legal working time is limited to 48 hours / week, including the overtime. Nevertheless, the working time can exceptionally exceed 8hours/day, respectively 48 hours/week (including overtime), provided that, within a compensation period of 3 months, the average number of the working hours does not exceed 48 hours / week. Overtime will be compensated with remunerated free time within the next 30 days from the completion of the overtime.

4. Remuneration

According to the new collective labor agreement, the minimum gross wage amounts to RON 440,--.

The minimum coefficients for the hierarchization of the qualified and not qualified personnel are also established. The not qualified employees receive the coefficient 1, corresponding to the minimum gross wage of RON 440, and the qualified employees receive the coefficient 1.2. The administrative personnel holding functions that require high school and post-high school studies, receives a coefficient between 1.2 und 1.25. The qualified personnel holding functions which require a master school, as well as the qualified personnel holding functions which require short-term university studies, receive approximately RON 660, corresponding to the coefficients 1.3, respectively 1.5. The personnel holding functions which require university studies will receive the coefficient 2, namely RON 880.

The employees going into retirement due to age limit will receive a compensation amounting to at least two basic wages with the value from the retirement month. According to the precedent collective labor agreement, this compensation amounted to at least one basic wage.

The new collective labor agreement stipulates also that, during the holiday, the employees will receive a compensation amounting to the average sum of the remunerations for the three months prior to the month when the holiday was granted, multiplied by the number of the holiday days.

5. Termination by the Employer

In case of the termination of the labor agreement by the employer due to significant or repeated infringements against the work discipline, before any termination formalities are carried out by the employer, a so-called „preliminary investigation procedure“ shall be performed, by which the commission appointed by the employer submits a written notification to the employee at the latest 5 days before the investigation procedure is performed. The notification shall include the object, the date and the location of the discussion to be held by the employee with the members of the commission. After completion of the investigation procedure the employer has to issue a decision based on the commission’s proposals.

In case of the termination of the labor agreement by the employer due to professional inappropriateness for the held position, the employer has to perform, like in the above mentioned case, a so-called „preliminary evaluation procedure“. In this respect, the commission appointed by the employer to carry out the evaluation procedure shall submit a written notification to the employee. The notification shall include the object, the date, the location as well as the way of examination. The notification shall be submitted to the employee at the latest 15 days before the evaluation procedure is performed. As a consequence of the evaluation procedure, the employer shall submit a termination decision to the employee.

It is also to be mentioned that in case of termination due to non-personal reasons, the employer undertakes to grant to the employee a compensation amounting to at least one monthly wage, in addition to the present compensation rights.

Rusandra Sandu, Attorney-at-Law

Andreea Suciu, Attorney-at-Law

S.P.R.L. Radnóczy & Menzer NÖRR STIEFENHOFER LUTZ

Attorneys – Tax Advisers – Auditors

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