Global HR Compliance in Moldova

Do you have Ukrainian workers who are planning to flee to Moldova to escape the Russian conflict? Or have your employees already left Ukraine and arrived in Moldova?

Acumen International can help companies like yours, including IT, to compliantly employ your Ukrainian talent in Moldova within days. Acumen’s global PEO and Payroll solution helps you to legally relocate your Ukrainian personnel to Moldova so you can enjoy uninterrupted workflow with employees you know and trust. Our solution enables us to arrange for global payroll, and to open bank accounts for your employees. We can also provide your talent with laptops, mobile phones, and other tools they need to perform their jobs.

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Moldova Guide below will help you understand the nuances of labor legislation in the country.

Companies hire international workforce for various reasons but in most cases they are:

• entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
• hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Moldova, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Moldova and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.

We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Moldova.

See the guide below for a general overview of labor rules and regulations in Moldova or contact us if you need to employ workers in Moldova or would like to get more details.

Hiring and Firing Workforce in Moldova Guide

# Employment Agreements

Permanent employment contracts

The individual labour contract is concluded, as a rule, on an indefinite term. The individual labour contract can be made on a fixed-term, which does not exceed five years, according to requirements of the present code. If the term is not specified in the individual labour contract, then the contract is considered to be concluded for an indeterminate term.

Fixed-term contracts

А fixed-term contract should not exceed five years. The individual labour contract can be made on fixed terms only for the performance of work, having a temporary character, in the following cases:

• issuing an order (decision, disposition) legally motivated about the liquidation of the enterprise or the reduction of the number of workers or staff;
• issuing an order (decision, disposition) about the notice of the liquidation of the enterprise or reduction of the number of employees or staff, which is made two months prior to the liquidation or reduction. In case of reduction of the number of workers or staff of the enterprise, are informed only the persons, whose workplaces are reduced;
• offers to the employee simultaneously with the notice on dismissal in connections with reduction of the number of employees or staff of the enterprise, another workplace at the enterprise;
• reducing first of all the vacant workplaces;
• cancellation of the individual labour contract first of all with the employees, working part-time;
• granting to the employee, subject to dismissal, one working day a week with preservation of the average wages, for searching another job;
• presenting to the employment agency the information regarding the employees subject to dismissal, two months before the dismissal;
• addressing the trade-union body for obtaining the consent to the dismissal of employees, as established by the present code;
• informing the trade-union bodies of the enterprise and the corresponding branch, not less than three months before the reorganization or liquidation of the enterprises, and conducting with them negotiations regarding the observance of the rights and interests of the employees.

In case of not issuing the order (decision, disposition) about the dismissal of the employee, after a two-months term after the preliminary notice, this procedure cannot be repeated during one calendar year. In the two-months term are not included the periods of the employee’s annual paid holiday, educational holiday, and sick leave.

#Notice period

The employer is obliged to inform (notify) the employee by order (decision, disposition) on receipt, about the intention to terminate the individual labour contract made on a fixed or indefinite term, in the following terms:

• not less than two months before it — in case of dismissal in connection with the liquidation of the enterprise or the termination of the activity of the employer- the physical person, reduction of number workers or staff;
• not less than one month before it — in case of dismissal as a result of establishing the fact of a discrepancy of the worker of the position or to perform work because of his state of health according to the medical conclusion or due to the insufficient qualification, confirmed with the decision of attestation commission.

During the notice period, the employee is given not less than one free day per week with the preservation of average wage payments for searching another job.

#Severance payment

Employees dismissed from the enterprise in connection with its liquidation or the discontinuance of the activity of the employer — the physical person, or reduction of the number of workers or staff, is guaranteed:

• payment of the severance pay at the rate of the average weekly wage payments for every year worked at the given enterprise, but it should not be less than one average monthly wages;
• preservation of the average monthly wages for the period of looking for another job, but no more than three months, including the severance pay. For the third month, the average wages are kept provided that, the employee in a fortnight term after the dismissal has applied to the employment agency, has been enlisted as unemployed and has not been employed, confirmed by the corresponding certificate.

Severance pay in the size of the average fortnight wages, is paid to the employee at the termination of the individual labour contract in connection with:

• ascertainment of the fact of the discrepancy of the employee for the position or carried out work, because of his state of health, according to a medical conclusion or because of insufficient qualification confirmed by the decision of the attestation commission;
• restoration to the workplace, according to the judicial decision of the employee, who performed the given work before;
• refusal of the employee to be transferred to another district in connection with moving to this district of the enterprise item.

#Employee Benefits and Contributions

Mandatory benefits required by law to be provided by an employer: annual leave, sick leave, public holidays entitlement, maternity, paternity and parental leave, mandatory pay of employer pension.

#Probationary period

Should be specified in labor contract. To check the professional abilities of the employee, at the conclusion of the individual labor contract, there can be established a probation period for about three months, and for officials — up to six months. While employing unqualified workers the probation period is established as an exception and cannot exceed 15 calendar days. In the probation period are not included the period of being on a sick leave and other periods, when the worker was absent from work for valid reasons, documentary confirmed.

#Overtime

On-demand of the employer, the employees can perform overtime work not more than 120 hours within one calendar year. In unusual cases, the duration of overtime work can be increased with the consent of the representatives of employees till 240 hours within one calendar year. In cases when the employer requests the performance of overtime work, he is obliged to provide the employees with normal working conditions, including occupational and health safety. Engagement in overtime work is carried out on the basis of order (decision, disposition) of the employer, which is brought to the notice of employees under a signature. Engagement in overtime work is not admitted for employees under the age of eighteen, pregnant women, women who are on postnatal holiday, women having children under the age of three, and also persons for whom such work is contra-indicated, according to the medical conclusion

#Work hours

The normal duration of working hours of employees from enterprises cannot exceed 40 hours per week. For separate categories of employees, depending on age, state of health, working conditions, and other circumstances, in conformity with the current legislation and the individual labour contract, the reduced duration of working hours is established. The reduced week duration of working hours makes:

• 24 hours — for employees between the age of fifteen to sixteen;
• 35 hours — for employees between the age of sixteen to eighteen;
• 35 hours — for the employees performing work in harmful conditions, according to the list authorized by the Government

For separate categories of employees, whose work demands increased intellectual and psycho-emotional efforts, the duration of working hours is established by the Government and cannot exceed 35 hours per week. For people with disabilities of the I and II groups (not having the right to high privileges) is established the reduced duration of working hours — 30 hours per week.

#Anuual leave

All employees have the right to an annual paid holiday, with a duration of not less than 28 calendar days without considering the non-working holidays. Employees of separate branches of the national economy (education, health service, public service, etc.) through the organic law can be grunted annual paid holiday with a different duration. Paid holiday for the first year of work is given to the employee after six months of his continuous work at the enterprise. Holiday for the next year’s work can be given to employees, on the basis of a written application, at any time of the year in conformity with the schedule of holidays. The annual paid holiday can be given completely or under the written application of the employee, it can be divided into two parts, one of which should be not less than 14 calendar days. The schedule of annual paid holidays on the following year is made by the employer, as agreed with the employees’ representatives, not less than two weeks before the end of each calendar year.

#Sick leave

Employees are eligible for paid sick leave if they present a medical certificate. State social insurance pays for sick leave. The first five calendar days are paid at the expense of the employer. Starting from the sixth day, the allowance is paid from the state social insurance budget. If an employee goes to sick leave several times, then the employer pays no more than 15 days for the whole year. After 15 days, the benefit is issued from social insurance funds.

#Parental leave

Female employees are generally entitled to maternity leaves of 70 calendar days before the birth and 56 calendar days after. Employees are also generally eligible for a partially paid holiday until the child reaches the age of three. The duration of the holiday is dependent on the employee’s seniority, position, and insurance. Both maternity leave and the partially paid holiday are paid for out of the social insurance fund. Female employees with two or more children under the age of 14 are entitled to four additional days of paid annual leave.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Moldova by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.