This GMS Flash Alert reports on a recently published Romanian Ordinance that gives multinational companies the right to second third-country nationals for a longer period (up to three years) and simplifies the immigration process around residence permits for foreigners.
A new Ordinance issued by the Romanian government has introduced a new type of work authorisation for intra-corporate/company transfer (ICT) workers. It also allows foreigners who hold temporary resident permits and have permanent work contracts to sign a part-time contract with another Romanian employer without obtaining a work authorisation. The Ordinance’s provisions took effect from 3 September 2016, with some exceptions.
The changes bring Romania’s legislation into line with EU Directive 2014/36/EU1 on the conditions for entry and stay of third-country nationals who take up jobs as seasonal workers, as well as with Directive 2014/66/EU2 on the conditions for entry and stay of third-country nationals in the context of a transfer within the same company.
In general, the new rules introduce greater clarity and flexibility concerning the hiring and deployment of foreign workers in Romania, as well as their roles, obligations, and mobility.
The new provisions give multinational companies the right to second third-country nationals for a longer period (up to three years). The immigration process has been simplified as foreigners can obtain a residence permit valid for up to three years, instead of one year under the standard assignment procedure. The Ordinance also gives the right to companies to second foreigners to occupy management positions. (The old legislation only allowed them to hold positions requiring a special qualification.)
This should facilitate the mobility of such workers, and make it easier for employers to deploy ICT workers more readily to meet their business and talent acquisition objectives and cut through the usual red tape relating to such workers.
Ordinance no.25 (24 August 2016) to amend certain immigration laws was published in the Official Journal of Romania (Monitorul Oficial al Romaniei) on 31 August 2016.2 It transposes Directive 2014/66/EU into Romanian legislation. The new Ordinance amends Ordinance no.25/2014 on the employment and secondment of foreigners to Romania and Government Emergency Ordinance no.194/2002 on the regulations for foreigners in Romania.
The new rules enable foreign ICT workers to be seconded for:
ICT workers from other European Union (EU) countries may now obtain a work authorisation for secondments of up to 90 days within a six-month period (short-term mobility) or for more than 90 days (long-term mobility).
The new rules also allow foreigners who hold a temporary residence permit as a permanent worker (i.e., with a local employment contract), to conclude a part-time contract with another Romanian employer without needing a work authorisation.
The new provisions took effect from 3 September 2016, with the exception of the section on penalties (civil and criminal offences) which will enter into force 30 days after publication in the Official Journal of Romania. However, as the quota of work authorisations set by the Romanian government for 2016 does not mention this new type of work authorisation for ICT workers, we believe that most of the changes are likely to take effect only from the beginning of 2017.
For additional information or assistance, please contact your local GMS or People Services professional* or one of the following professionals with the KPMG International member firm in Romania:
Partner, Head of People Services
Tel. +40 372 377 782
Manager, Immigration Services
Tel.+40 372 377 800
Manager, Immigration Services
Tel. +40 372 377 800
* Please note the KPMG International member firm in the United States does not provide immigration services.
The information contained in this newsletter was submitted by the KPMG International member firm in Romania.
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