Hiring guide in Moldova

What should I know about hiring in Moldova?

When hiring employees in Moldova, it is essential to follow all applicable labour laws. These laws set the standards for how long employees can work, how much they can be paid when they can take time off, and what other perks they can receive. 

In addition, large penalties may be imposed for non-compliance with these laws. Employers in Moldova are bound by the LCRM and any sector-specific regulations that may apply to their hiring practices, such as foreign workers or workers with disabilities. 

Companies in Moldova need to be aware of their responsibilities under anti-discrimination laws that forbid bias based on factors like a person’s race, ethnicity, gender, religion, or disability. 

Employers must ensure their workers’ safety on the job in accordance with health and safety laws. Workers should be provided with safety training and not be forced to perform dangerous tasks.

Why is Moldova a good choice for finding remote employees?

Moldova should be on your list of potential locations if you’re looking to hire remote workers. The country has a highly educated workforce, with over half of the population completing tertiary education. 

An outcome of this is a labour force that is not only technically proficient but also very open to learning new skills and ways of doing things. Businesses in Moldova benefit greatly from the country’s low tax rates; since this is the case, it’s a great place to start a company or take an existing one to the next level. 

Moldova is an excellent option for companies exploring Eastern European locations. A highly educated and flexible labour force, favourable tax policies, a low cost of living, a convenient location, and first-rate infrastructure are just a few advantages this country offers.

How can Native Teams help you hire in Moldova?

The hiring process in Moldova can be complicated and time-consuming. That’s where the assistance of Native Teams comes in handy. Native Teams’ local experts have a deep understanding of the Moldovan culture and know what candidates would be a good fit for your company. Moreover, with our Employer of Record services, we can assist you in the hiring, onboarding, and employment management of your team members, as well as maintaining compliance with Moldovan labour regulations.

Hire your first Moldovian employee with Native Teams.

Legal requirements for hiring in Moldova

The following are the most important legal requirements for hiring team members from Moldova:

Legal framework

The legal framework that governs employee-employer relationships in Moldova relies on the country’s Labour Code, which is a comprehensive document that regulates employment contracts, employee rights, employer obligations, and workspace conditions. 

Under Moldovan law, employment relationships must be formalised through a written contract, which must include essential details like job description, working hours, remuneration, and similar. The Labour Code mandates that the contract be signed by both parties to ensure that both the employer and the employee are fully aware of their rights and obligations.

Types of employment contracts

According to Moldova’s Labour Code, employment contracts in the country are designed to accommodate different types of work arrangements and durations, ensuring that the terms of employment are clear, legally binding, and enforceable. 

The most common types of employment contracts in Moldova are indefinite-term contracts, fixed-term contracts, and temporary employment contracts.

Indefinite-term contracts are considered to be the default type, as they’re most commonly used. This contract is open-ended, meaning it doesn’t have a predetermined end date. These contracts offer the highest level of job security, as they can only be terminated for reasons defined by law while also offering full employee benefits and rights.

Fixed-term contracts are used for temporary employment relationships or until the completion of a particular task. Such contracts are permitted only where the nature of work justifies a limited duration. The maximum duration of a fixed-term contract can’t exceed 60 months (five years), after which it automatically converts to an indefinite-term contract unless otherwise agreed upon or terminated. 

Temporary employment contracts are also recognised under the Moldovan labour law. These contracts are typically used for short-term engagements, including casual or seasonal work, internships, or emergency tasks. They’re more flexible than fixed-term contracts but provide less job security, as they can be terminated easily by either party.

Content of an employment contract

Employment contracts in Moldova are designed to establish the terms and conditions of the relationship between the employer and the employee. The Moldovan Labour Code governs employment contracts by setting out specific content requirements, including the mandatory elements.

At a minimum, an employment contract in Moldova must include the full identification details of both parties, the job title and description, the date of employment, and the duration of the contract in the case of a fixed-term contract. Additionally, contracts must specify the place of work, working hours, salary, probationary period, and other essential elements.

 Download a free employment contract in Moldova through Native Teams.

Oral, written, or electronic employment contracts

In Moldova, the legal framework governing employment contracts specifies that these agreements can be concluded orally, in writing, or electronically. However, the preferred and the most secure method is the written contract, as it provides clear evidence of the terms agreed upon by both parties.

Oral contracts are legally recognised in certain circumstances but are more challenging to enforce due to the lack of documented proof of the terms.

Finally, electronic contracts in Moldova are increasingly common due to the digital age. However, they must adhere to specific legal standards, such as electronic signatures, to ensure they are legally binding.

Working hours

The standard working time in Moldova is 40 hours per week, typically distributed over five days, with a daily working time of eight hours. However, employment contracts must explicitly state the agreed-upon working hours, whether they adhere to the standard 40-hour week or involve alternative arrangements such as reduced hours, part-time work, or flexible schedules.

Night work

Night work in Moldova is defined as any work performed between 22:00 and 06:00. The duration of the night work shift must generally be reduced by one hour, meaning that a standard eight-hour shift during the day would be reduced to seven hours if performed by night.

Employers are required to provide medical examinations at their expense for employees who have performed at least 120 hours of night work within a six-month period. Additionally, the Moldovan Labour Code prohibits night work for certain vulnerable groups, such as employees under 18 years of age, pregnant women, and women with children under the age of three.

Breaks and types of leaves

Rest time and leave in Moldova are structured to protect employees’ rights with specific provisions for breaks, daily and weekly rest, and types of leave.

Under the Labour Code, employees are entitled to a meal break of at least 30 minutes during their working hours. Meal breaks are generally not considered part of the working time unless specified otherwise by the collective labour contract or internal regulations. 

The Labour Code also mandates a minimum duration for daily rest, specifying that the break between the end of one working day and the start of the next can’t be less than twice the duration of the daily working time. 

Regarding weekly rest, employees are entitled to two consecutive days off, typically Saturday and Sunday.

Annual leave

In Moldova, annual leave is a fundamental right guaranteed to all employees, and this right is non-negotiable and can’t be waived or limited in any form. 

The duration of the annual leave is a minimum of 28 calendar days, excluding public holidays. The duration may vary for certain sectors, such as education, healthcare, or public services, where specific laws may stipulate a different length. The annual leave is fully paid, and the payment, known as leave indemnity, must be calculated based on the employee’s average wage and paid at least three days before the leave starts.

The entitlement to annual leave accrues after the employee completes six months of service in the first year. However, there are exceptions for certain categories, such as women before maternity leave, minors, and other categories. The annual leave can be divided into parts, but at least one part must be a minimum of 14 days long.

Public holidays

Public holidays in Moldova are legally mandated non-working days, which are protected under the Moldovan Labour Code. Employers are required to grant these days off with full pay, ensuring that the employee’s average wage is maintained during these periods.

Some of the recognised public holidays in Moldova include New Year’s Day, Christmas, International Women’s Day, Easter, Victory Day, Republic Day, and Limba Noastră.

Salary

The Labour Code of Moldova outlines the key provisions governing salary, including its definition, minimum guarantees, structure, payment methods, and deductions.

Wages in Moldova are defined as any monetary compensation paid by the employer to the employee based on individual labour contracts. This includes the main wage, additional wages such as bonuses, and other compensation related to the employment relationship. 

The state plays an active role in wage regulation and sets forth minimum wage guarantees, state-determined wage tariffs, and compensation increments. Moreover, the Moldovan government has established a minimum guaranteed wage, which represents the lowest permissible compensation for unskilled workers. This wage is non-negotiable and must be respected by all employers.

To calculate the salary and taxes in Moldova, click here.

Sick leave

Sick leave provisions in Moldova are governed by the country’s Labour Code. Under these regulations, employees are entitled to sick leave payments based on the length of insurance coverage they have and the nature of their illness. If the insurance length is up to five years, the indemnity is 60% of the calculation basis; for insurance coverage between five and eight years, the indemnity rate is 70%; and for coverage exceeding eight years, it’s 100%. 

During the first five days of sick leave, the employer is responsible for covering the payment. From the sixth day onwards, the payment is covered by the social security system.

Maternity/paternity leave

In Moldova, maternity and paternity leave entitlements are clearly defined in the Labour Code and related social insurance laws, outlining specific durations and financial support.

Maternity leave in Moldova includes a prenatal period of 70 calendar days and a postnatal period of 56 calendar days. The financial support during this period is known as indemnity of maternity and is available from the 30th week of pregnancy, covering a total of 126 calendar days. The indemnity is calculated at 100% of the average earnings used to determine the calculation basis. 

Currently, Moldova does not provide specific paternity leave. However, the Labour Code includes provisions for parental leave, which is available to mothers and, in certain situations, to fathers or other relatives who care for the child.

Methods of employment termination

Employment contracts in Moldova can be terminated under several circumstances, which are independent of the will of the parties involved. Such circumstances include the death of either party, the declaration of their death or disappearance by judicial instance, or the withdrawal of the enterprise’s operating license by the authorities. Employment contracts may also end if the employee is deprived of the right to hold specific positions or engage in certain activities. 

When it comes to fixed-term and temporary employment contracts, they naturally terminate upon the expiration of the specified term.

Finally, force-majeure circumstances, if confirmed appropriately, can also lead to termination due to the impossibility of continuing labour relations.

Ordinary dismissal by the employer

In Moldova, ordinary dismissal by the employer can occur under several circumstances specified by the Labour Code. Some of the reasons can be unsatisfactory performance during the trial period, liquidation of the unit, reduction of staffing levels, and the employee’s health condition. Additionally, employers may dismiss employees for insufficient qualifications or skills, business reorganisation or relocation, and similar circumstances.

Notice period and challenging the dismissal

The Labour Code of Moldova mandates a specific notice period that employers must adhere to when terminating employment contracts. 

For terminations related to the liquidation of the enterprise, cessation of the employer’s activity or a reduction in workforce, employers must provide at least two months’ notice. 

For dismissals due to the employee’s inability to perform their job for health reasons or insufficient qualifications, a shorter notice period of at least one month is required. 

In cases where an employee’s conduct violates their labour responsibilities, the notice period requirements may be waived. 

It’s important to note that employers must ensure that any dismissal for cause is properly documented and sustained to avoid legal disputes and ensure compliance with labour laws.

Rights and obligations of unemployed individuals

Unemployed individuals in Moldova are entitled to specific rights and must adhere to obligations under the country’s legal framework. Hence, unemployed individuals have the right to social protection, including unemployment benefits, access to employment services, and participation in vocational training programmes. This guarantees that individuals without work can maintain a basic standard of living while they seek new employment.

The eligibility for these rights typically requires registration with the National Employment Agency, which serves as the central authority for managing unemployment support. The eligibility criteria include having worked for a minimum period as stipulated by law and having contributed to the social security system. 

The amount and duration of unemployment benefits are calculated based on the individual’s previous earnings and the length of their employment.

Severance pay

Severance pay in Moldova is regulated to provide financial support to employees upon termination of their employment. 

For the first month following the dismissal, the severance allowance is calculated based on an average weekly salary for each full year worked at the unit, up to a maximum of six monthly average salaries, but not less than one average monthly salary.

In the second and third months, if the dismissed employee is not placed in new employment, they are entitled to an additional severance payment equal to the average monthly salary for each month.

In the case of liquidation of the unit, the severance pay for all three months can be settled in full at the date of dismissal, subject to written agreement between the parties. Additionally, severance pay of an average salary of two weeks can be provided in situations where the employee is terminated due to health reasons or insufficient qualifications. This payment also applies when the employee is reinstalled to their position following a court decision or if they refuses to relocate with the unit.

Probationary period

According to the Moldovan Labour Code, the probationary period can last up to six months for individual labour contracts. During this time, only one probation period is permitted per individual labour contract. 

For fixed-term contracts, the length of the probation period depends on the duration of the contract. For contracts ranging from three to six months, the probationary period can be a maximum of 15 calendar days. However, for contracts extending beyond six months, the probation period can be up to 30 calendar days.

If the employee’s performance during the probationary period is deemed unsatisfactory, the employer can terminate the employment relationship before the probationary period expires, with a notice period of two weeks.

Intellectual property rights

The Moldovan Labour Code, in conjunction with the Law on Copyright and Related Rights, establishes a framework for intellectual property rights in the workplace.

Generally, any intellectual property created by an employee within the scope of their employment duties is considered the property of the employer unless otherwise stipulated in the employment contract.

However, it’s common practice for employment contracts to include specific clauses that detail the obligations and rights of both parties. These clauses stipulate that any inventions, designs, or works created by the employee during their employment belong to the employer, particularly when developed using the employer’s resources or within the scope of the employee’s responsibilities. 

However, if the employment contract is silent on this matter, the default legal rule grants ownership to the employer. Employees may negotiate exceptions or additional compensation for intellectual property created outside their regular duties or using their resources.

Employee data privacy

Under Moldovan labour law, employers have a legal obligation to protect the personal data of their employees. Such laws outline the requirements for the collection, processing, and storage of employee data. 

Employers must only collect data that is necessary for the employment relationship, and this data must be processed in accordance with legal principles, such as transparency, purpose limitation, and data minimisation. Personal data includes any information that can identify an individual, such as names, addresses, identification numbers, and employment history.

Employment contracts play an important role in defining the scope and limits of data processing. Hence, employers must inform employees about their rights concerning their data, while employees must provide informed consent for the data processing.

Prohibition of competition

The Moldovan Labour Code allows employers to include non-compete clauses in employment contracts to restrict the employee’s ability to engage in competitive activities both during and after their employment. 

Such clauses are designed to protect the employer’s legitimate business interests, such as trade secrets, client relationships, and confidential information, by preventing employees from using this knowledge to benefit a competitor or start their own competing business. 

For a non-compete clause to be legally binding in Moldova, it must be explicitly stated in the employment contract of a separate agreement signed by both parties. The clause should define the competitive activities, the duration, and the geographical area where the restriction applies. 

Additionally, employers may be required to provide financial compensation to employees for agreeing to post-employment non-compete restrictions.

Remote working policy

The Moldovan Labour Code provides a framework for remote working, which is often formalised through a written agreement between the employer and the employee. The agreement must detail the specific terms under which remote work will be performed, including working hours, location, and the responsibilities of both parties.

Employers must ensure that remote work doesn’t adversely affect the employee’s rights or working conditions, including maintaining the same salary and access to professional development opportunities as on-site employees. 

The Labour Code mandates that the employee’s consent is required for remote work, and the terms must be mutually agreed upon without coercion.

Responsibilities within a remote work arrangement

The Moldovan Labour Code outlines frameworks for remote working while also emphasising that both employers and employees have distinct responsibilities to maintain a functional and lawful working relationship. 

For employers, the primary responsibility is to ensure that the terms of remote work are clearly defined in a written agreement, specifying working hours, expectations, and resources to be provided. Employers must also provide the necessary tools and resources, such as computers, software, secure internet access, and others.

Employees’ primary responsibility is adhering to the terms set out in the remote work agreement, including maintaining the agreed-upon working hours, meeting performance expectations, and safeguarding company data. The employee must also ensure a safe remote working environment and adhere to any health and safety guidelines provided by the employer.

Health and safety at home

In Moldova, health and safety obligations extend to the home work environment in remote work arrangements, with specific duties for both parties.

Employers must ensure that the home workspace of remote employees meets basic health and safety standards similar to those required in a traditional office setting. Employers must also provide adequate training on health and safety issues that are specific to remote work, such as the correct setup of a home office to prevent strain and injury.

Employees, on the other hand, must adhere to the health and safety guidelines provided by their employer. This includes arranging their workspace to minimise risks, using equipment correctly, and reporting any health and safety concerns to their employer.

What are the advantages of hiring employees from Moldova vs other countries?

Hiring team members from Moldova offers a number of compelling advantages for businesses that want to expand their workforce.

Firstly, Moldova has a highly educated labour pool, with many young professionals skilled in sectors like IT, engineering, finance, and multilingual customer service. Moldovan professionals are also fluent in multiple languages, such as Romanian, Russian, English, and increasingly other European languages, making them ideal candidates for international companies.

The cost of hiring in Moldova is generally lower than in many Western European countries, allowing companies to achieve high-quality work at more competitive rates. The country’s proximity to the EU, combined with a strong work ethic and adaptability to different business practices, makes Moldovan employees a very effective choice for remote working arrangements.

Finally, Moldovans are often praised for their dedication and flexibility, which can have a significant contribution to a company’s global growth and efficiency.

Why use Native Teams for hiring in Moldova?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.