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Employer of Record (EOR) in Romania

VERDICT: The Best Romania EOR in 2024 is Deel. Deel stands apart from other Romania EOR companies with its full-stack HR platform, supporting companies with all aspects of hiring and payroll in Romania. 

Key Takeaways

  • A Romania Employer of Record (EOR) enables international companies to hire in Romania quickly and more cost-effectively than setting up a local entity. 
  • On average, hiring through a Romania EOR takes two weeks, compared to 3 to 6 months to establish a local entity.
  • Romania EORs benefit most companies expanding into Romania, as they save money and time and ensure full compliance with Romania tax and labor laws
  • Our picks for the Best Romania EORs in 2024 are Deel, Horizons, Xpandium, Bradford Jacobs and Remofirst.  

A Romania Employer of Record (EOR) solution is an international HR service that enables global companies to hire employees in Romania without setting up their own subsidiary. Read on to find out how you can benefit from a Romania EOR solution and who the top Romania EORs are in 2024. 

What is a Romania Employer of Record?

A Romania Employer of Record (EoR) is a company that hires and onboards employees in Romania on behalf of international client companies. They are usually used where the client company has no legal entity or physical presence in Romania, and doesn’t generally conduct business in Romania. 

The EOR is responsible for managing employment contracts, ensuring compliance with local labor laws, processing payroll, handling tax issues, and providing other HR services. While the EOR becomes the legal employer, the day-to-day management and work directions remain with the client company.

A Romania EOR is similar to a Romania Professional Employer Organization (PEO) solution. 

Top 5 Romania EOR Companies

  1. Deel: With its cutting-edge HR tech platform, Deel has streamlined the process of international hiring, making it an attractive EoR for companies eyeing the Romanian market. With its extensive integrations and range of HR services (including payroll and contractor support), Deel is an excellent choice for companies seeking a full Romania hiring solution. 
  2. Horizons: Horizons has years of experience in the Romanian market and offers an extensive range of professional services in addition to its EOR solution. They can handle work visas in Romania, take care of recruitment, and ensure contractors are onboarded in full compliance with the law. 
  3. Xpandium: Xpandium are Romania hiring experts, with multi-lingual support on the ground, and operating through their own subsidiaries. This means that you deal only with Xpandium instead of getting stuck with middlemen. 
  4. Bradford Jacobs: This EoR is known for its expertise in European markets, offering in-depth guidance and services to navigate the Romanian labor market.
  5. Remofirst: Remofirst offers strong localized support, making it a good choice for companies that need a hands-on approach in Romania.

How Does a Romania Employer of Record Work?

Romania Employers of Record handle the legal and administrative responsibilities associated with employment in Romania, allowing foreign companies to focus on their operational goals. 

When a company contracts an EOR, they hand over the administrative, HR, and legal employment responsibilities to the EOR. The EOR then hires the required staff in its name on behalf of the company. The hired employees sign a contract with the EOR but carry out tasks set by the client company. This arrangement ensures that the foreign company complies with Romanian labor laws and employment regulations without establishing a legal entity in Romania.

What Are the Benefits of a Romania Employer of Record?

Several advantages come with using a Romanian EOR:

  1. Compliance: EORs are experts in Romanian employment law and handle all employment-related compliance matters.
  2. Efficiency: EORs streamline HR processes, making it faster and easier for foreign companies to hire in Romania.
  3. Cost-effective: Setting up a legal entity in a foreign country can be costly and time-consuming. EORs eliminate this need.
  4. Risk Mitigation: The EOR absorbs many employment-related risks, providing a safer route for companies to expand into Romania.

What Are the Disadvantages of a Romania Employer of Record?

Despite the many benefits, there can be potential drawbacks to using a Romanian EOR:

  1. Less Control: While the client company directs daily work, they may have less control over HR processes and administrative matters.
  2. Dependence: Companies might become reliant on the EOR for their operations in Romania, which could be problematic if issues arise with the EOR.
  3. Hidden Costs: Some EORs might have additional costs not covered in the initial agreement.

Hire in Romania with an EOR Solution

With its reputation for highly skilled staff (especially in tech and software engineering), Romania is a common choice for international hiring. For global companies looking to hire in Romania, an Employer of Record (EOR) solution is usually much more cost-effective than direct hiring. 

For companies looking for a Romania EOR partner, we strongly recommend Deel, Horizons, Xpandium, Bradford Jacobs, and Remofirst

FAQs

No, it's not mandatory. However, without a registered entity in Romania, it's difficult to hire compliantly. An EOR provides an easy solution to this problem.

The timeline varies depending on the EOR and the specifics of the role. Generally, the process can take a few days to a few weeks. It's faster than setting up a legal entity, which can take several months.

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