Dismissal for Reorganization Under Romanian Labour Law

Legal framework

Under Article 65 of the Romanian Labour Code, dismissal for reasons unrelated to the employee is permitted only where the position is abolished as a result of a real and serious cause, unrelated to the employee's conduct or aptitude.

Actual abolition of the position

An abolition is genuine only where the post disappears from the employer's structure and its duties cease. Where the same duties are taken over by colleagues in identical roles, the reorganisation may be deemed purely formal, a frequent ground for annulment.

Employer prerogative and judicial review

Although the employer may reorganise its activity, this prerogative is not discretionary. Courts retain jurisdiction to verify the measure's legality and confirm the abolition is real.

Selection criteria and legal risk

Where several similar positions exist, selection of the dismissed employee must rest on objective, verifiable and transparent criteria. Reliance on formal factors alone, such as seniority, risks the measure being treated as connected to the employee personally.

When reorganisation becomes unlawful dismissal

Reorganisation is unlawful where it serves to remove an inconvenient employee or disguise a subjective decision. The court may then find the cause invoked lacks the required real and serious character.

Remedies available to the employee

The employee may challenge the decision. The court examines whether the reorganisation is genuine, the abolition effective, and the criteria lawful. If annulled, the court may order reinstatement and back pay between dismissal and reinstatement.

Conclusion

Reorganisation cannot mask an unlawful dismissal. The abolition must be real, and the criteria objective and verifiable. Failing these, the dismissal is liable to be annulled.