Can I work or hire without an employment contract?
No: working without an individual employment contract is "off-the-books" work and is heavily sanctioned. Undeclared work means activity performed by an employee for and under an employer's authority without respecting the rules on concluding the individual employment contract. Under art. 260 of the Labour Code, taking on one or more people without a contract is a contravention. From 1 January 2026, fines have risen: up to 40,000 lei per person (double the previous amount), with a cumulative cap of up to 1 million lei. Note the nuance: court practice has established that simply performing an occasional activity, without the defining elements of an employment relationship (subordination, continuity, set pay), can't automatically be turned into undeclared work. In short: as an employer, conclude the contract before work starts; as a worker, don't accept working off the books.
📋 The rules
- Individual employment contract before work starts
- Taking on work without a contract: a contravention (art. 260)
- From 2026: fine up to 40,000 lei/person
- Cumulative cap: up to 1 million lei
- Key elements of work: subordination, continuity, pay
🔓 Exceptions
- Strictly occasional activity, without subordination/continuity: not automatically off-the-books
- Day labourers: special regime, under the day-labour law
- Lawful collaborations (PFA, civil contract) correctly classified: allowed
⚠️ Penalties & fines
For the employer, taking on a person without a contract is fined, from 2026, up to 40,000 lei per person, with a cumulative cap of up to 1 million lei. Besides the fine, the employer owes taxes and contributions retroactively and can face other consequences (suspension of activity in some cases). For the worker, off-the-books work means a lack of rights: no length of service, no health and pension insurance, no protection on dismissal or accident. To stay compliant: as an employer, conclude the contract and submit it to REGES/Revisal before the first day of work; as a worker, ask for a written contract before starting and check you're officially registered.
📎 Official sources
- Labour Code (Law 53/2003) · art. 260 →
- Labour Inspectorate · undeclared work →
- Law 52/2011 on day-labour work →
❓ Frequently asked
What does "off-the-books" work mean?
Undeclared, or "off-the-books", work is activity performed by an employee for and under an employer's authority, without respecting the rules on concluding the individual employment contract. In practice, the person works without a written contract, unregistered officially, which deprives them of the rights and protections the law provides.
What fine do I risk hiring without a contract?
From 1 January 2026, fines rose: taking on a person without a contract is fined up to 40,000 lei per person (double the previous amount), with a cumulative cap of up to 1 million lei. To this are added the taxes and contributions the employer owes retroactively.
Is any occasional activity undeclared work?
No. Court practice has established that simply performing an occasional activity, without the defining elements of an employment relationship — subordination, continuity, set pay — can't automatically be turned into undeclared work. The authorities must prove a genuine employment relationship exists.
What does the worker lose working off the books?
Off-the-books work means a lack of rights: no length of service, no health and pension insurance, no protection on dismissal or in case of a work accident. In practice, you're left without all the guarantees a lawfully concluded individual employment contract gives you.
How do I make sure I'm lawfully employed?
Ask for a written individual employment contract before the first day of work and check you're officially registered. The employer must conclude the contract and submit it to the REGES system (formerly Revisal) before the activity starts. Without these formalities, the work is considered undeclared.
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