- Overview: Moldova
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Moldova
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 contracts
The individual labour contract is concluded, as a rule, on an indefinite term. The individual labour contract can be made on 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.
The individual labour contract can be made on fixed terms according to paragraph only for the performance of work, having a temporary character, in the following cases:
- for the period of performing the labour responsibilities of the employee, whose individual labour contract is suspended, except for the cases when the employee is on strike;
- for the period of performing some temporary work with the duration up to two months, and also in the cases of seasonal work, when by virtue of natural conditions the work can be done only during the certain period of the year;
- with the persons transferred temporarily to work outside of the Republic of Moldova;
- for the period of probation and vocational training of the worker at another enterprise;
- with the persons studying at institutions with day time forms of training;
- with the persons, who have retired on pension age, for a term up to two years;
- with scientific workers from institutions engaged in scientific research and development, pedagogical workers and rectors of higher educational institutions, and also with directors of colleges – on the basis of the results of the competition, which has been conducted according the legislation in force;
- for the period of electing the worker for a certain term on an elective position in the central and local bodies of public authority, and also in trade-union bodies, bodies of patronage, other noncommercial organizations, economic companies and societies;
- with heads (managers) of the enterprises, their assistants and accountants general of the enterprises;
- for the period of performance by the unemployed of paid public work in the way established by the Government;
- for the period of performing a certain work;
- with creative workers from the field of art and culture;
- with workers of religious associations; and also
- in other cases stipulated by the current legislation.
# Minimum (Statutory) Employment Rules and Regulations in Moldova
# Hours of work:
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 it can not exceed 35 hours per week.
For invalids 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
# Probation period:
With the purpose of checking the professional abilities of the employee, at the conclusion of the individual labour 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.
The clause regarding the probation period should be stipulated in the individual labour contract. If there is no such clause in the contract, it is considered that the worker has been hired without the probation period.
During the probation period the worker benefits from all the rights and performs the responsibilities, stipulated in the labour legislation, the regulations of the enterprise, collective and the individual labour contracts.
During the term of the individual labour contract there can be only one probation period.
# Annual leave:
The right to annual paid holiday is guaranteed to all employees. The right to annual paid holiday cannot be a subject to concessions, refusal or restriction. Any agreement about full or partial refusal of this right is void.
Any employee, working on the basis of an individual labour contract has the right to an annual paid holiday. All employees have the right to an annual paid holiday, with duration of not less than 28 calendar days without taking into account 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.
# Parental leave:
Women employees and women apprentices, and also the wives in the care of the employees, are granted maternity holidays, including prenatal holiday with a duration of 70 calendar days and postnatal holiday with a duration of 56 calendar days (in cases of the complicated births or births of two or more children – 70 calendar days), with payment. Persons after the maternity holiday, under their written application, are granted a partially paid holiday on child care, until the child reaches the age of three. The grant is paid for this period from the budget of the state social insurance.
The partial paid holiday on childcare can be used in full size or partially at any time, until the child reaches the age of three years. This holiday is included in the seniority, including the work experience, and in the insurance experience. Partially paid holiday on childcare can be also used by the father of the child, grandmother, grandfather or other relative, who takes care of the child.
# Sick leave:
Paid medical holiday is given to all employees and apprentices, on the basis of the medical certificate (document), given according to the legislation in force. Procedure of establishing, calculating and paying the grants in connection with the medical holiday from the budget of the state social insurance, is stipulated by the current legislation.
Overtime work is considered the work performed over the normal duration of working hours stipulated by the Labour Code.
Overtime work is decided by the employer without the consent of the worker:
- to perform work with a view of the country defence, prevention of industrial accidents or elimination of consequences of industrial accidents or natural calamity;
- to perform work on elimination of unforeseen situations, that might prevent the normal functioning of water and electricity supply services, post services, communication and information services, means of communication and public transport and fuel-distributive installations.
# State minimum salary:
The Moldova minimum wage is 1900 Moldovan lei a month ($96) for for private sector workers and $1000 lei per month ($50) for public sector workers.. Moldova’s minimum wage was last changed in May 2015.
# Employee dismissal:
The individual labour contract can be stopped:
- on circumstances, not dependent on the will of the parties;
- on the initiative of one of the parties.
In all cases the day of the termination of the individual labour contract is considered the last working day of the employee.
In case of the termination of the fixed individual labour contract in connections with the expiration of the term of its action, the employee should be informed in written form about it, by the employer, not less than 10 working days before the expiration.
The fixed individual labour contract can be stopped ahead of schedule only under the agreement of the parties, made out in written form, in cases and the order, stipulated by the contract. The fixed individual labour contract concluded with the employee for the period of performing his labour responsibilities, and whose individual labour contract is suspended.
A stop on the day of the employee’s returning to work. If at expiration of the individual labour contract none of the parties has demanded its termination and the labour relations actually proceed, the contract is considered prolonged for an indefinite term.
The employee has the right to resign -to terminate the individual labour contract on his own initiative, having informed the employer in a written application, 14 calendar days before that. In case of the employee’s resignation in connection with his leaving on pension, establishment of the group of physical inability, holiday on child nursing, transfer to an educational institution, moving to another district, infringement by the employer of the individual and-or collective labour contract and the labour legislation in force, the employer is obliged to accept resignation in the term, specified in the application
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.