Romania
Is there any existing legal requirement to report on any gender pay gap?
Romania has recently transposed the CSRD Directive, introducing the obligation for certain companies to engage in sustainability reporting, specifically to disclose information on the risks and opportunities arising from social and environmental issues and the impact of their activities on people and the environment.
Subject to meeting the criteria (see Q2 below), and after a case-by-case assessment, certain private companies should include a sustainability report within the director’s report (which is submitted alongside with annual financial statements of the company). The sustainability report should provide (among other) references with respect to basic salary and remuneration for women and men.
If so, what are the requirement triggers?
Applicable private companies which meet at least two of the following criteria (i) total assets more than RON 17,500,000 (EUR 3,946,953); (ii) net turnover more than RON 35,000,000 (EUR 7,893,906); (iii) an average number of more than 50 employees during the envisaged financial year.
If the above criteria are met, an assessment should be made on a case-by-case basis to establish if the said private company should prepare the sustainability report, as this is drafted only if relevant by reference to the company (depending on the type of entity and relevant activity).
Additionally, the Romanian subsidiary (under certain conditions) of a parent company may be exempted from this obligation if the parent company’s consolidated report makes reference to said Romanian subsidiary.
What frequency of reporting is required?
Annually. For applicable companies, this obligation will take effect as of 2026. The report will be submitted and drafted by reference to the data for the financial year 2025, but the reporting itself is made in the following financial year.
Is the report required to be published externally?
The director’s report is submitted to financial authorities. The information is corroborated and a summary is made publicly available.
Is there a sanction for non-compliance with the duty to report?
The legislation does not provide a fine per se for not observing the sustainability report obligation. The legislation establishes fines by reference to submitting and drafting the director’s report, up to EUR 1,000.
Has Romania yet fully transposed the requirements of the Pay Transparency Directive? If yes, what was the implementation date and what is the name of the legislation?
No. There is a plan, at national level, comprising the Directives that are going to be transposed in 2024 in Romanian legislation. The Pay Transparency Directive is captured within the plan, however there is not yet any available information on the transposing calendar for the Directive. The transposing would be analysed by the Ministry of Family, Youth and Equal Opportunities and by the Labour and Social Solidarity Ministry.
If the Pay Transparency Directive has not yet been transposed, what steps have been taken towards implementation?
It is anticipated that transposition of the Directive will entail amending art. 163 of the Romanian Labor Code, which currently provides that salary information must remain confidential at the employer level, except for trade unions and employee representatives, who may access this information strictly in relation to their interests and direct dealings with the employer. No draft law has yet been published.
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