GILS Employment Law: Moldova

MOLDOVA

(1) Maternity and Family Leave Rights

1.1. How long is the duration of maternity leave?

Maternity leave in Moldova typically includes a pre-natal period of 70 calendar days before the expected date of birth and a postnatal period of 56 days (70 days in the case of complicated childbirth or multiple births), making a total of 126-140 days. The leave is fully paid, funded through the social insurance system.

1.2. What are the rights of a parent when returning to work after parental leave?

After parental leave, employees in Moldova generally have the right to return to their previous job or to an equivalent position with no less favorable conditions and pay. This is to ensure job security for those who have taken time off to care for their newborn.

1.3. Do fathers possess the right to take paternity leave? 

Fathers in Moldova are entitled to paternity leave. The specifics of this leave, such as duration and pay, may vary, but it's aimed at allowing fathers to be involved in the early care and bonding with their newborn child.

1.4. Are there any additional parental leave rights that employers must adhere to?

Beyond the basic maternity and paternity leave, there might be provisions for additional parental leave rights in Moldova, such as extended unpaid leave for child care until the child reaches a certain age. These rights are designed to provide parents with the flexibility to balance their work and family responsibilities.

1.5. Do employees have the right to flexible working arrangements if they are responsible for dependents? 

Employees with dependents may have the right to request flexible working arrangements in Moldova, such as part-time work, flexible hours, or the ability to work from home. These arrangements aim to help employees manage their work and caregiving responsibilities more effectively.

(2) Termination of Employment

2.1. Is it mandatory for employers to provide notice of termination of employment? How is the notice duration determined?

In Moldova, it is typically mandatory for employers to provide notice of termination of employment. The duration of the notice period usually depends on the type of employment contract and the reasons for termination. For example, notice periods can vary from a few days to several months, often based on the employee's tenure and the contractual agreements.

2.2. Can employers enforce "garden leave" during the notice period, where the employee remains employed but does not have to attend work?

"Garden leave" practices, where an employee remains on the payroll but does not have to attend work during the notice period, can be enforced in Moldova if stipulated in the employment contract or agreed upon by both parties at the time of termination.

2.3. What safeguards do employees have against dismissal? Under what circumstances is an employee considered to be dismissed? Is consent from a third party necessary before dismissal by an employer?

Employees are protected against unfair dismissal through labor laws in Moldova. Dismissal is considered unlawful if it lacks a valid reason related to the employee's capacity or conduct or is based on operational requirements of the enterprise that are not justified. The consent of a third party before dismissal may be necessary in cases involving protected categories of employees, such as union representatives.

2.4. Are there specific employee categories enjoying special protection against dismissal?

Certain categories of employees, such as pregnant women, parents on maternity or paternity leave, and union representatives, enjoy special protection against dismissal. These protections are designed to prevent discrimination and ensure job security for vulnerable workers.

2.5. Under what circumstances is an employer justified in dismissing employees: 1) due to individual reasons; 2) business-related grounds? Do employees receive compensation upon dismissal, and if so, how is it calculated?

Employers can dismiss employees due to individual reasons (e.g., misconduct, incompetence) or for business-related grounds (e.g., redundancy, operational requirements). Compensation upon dismissal varies; for redundancies, it often includes severance pay, the calculation of which may be based on the employee's tenure and salary.

2.6. Are there particular protocols that employers must adhere to regarding individual dismissals? 

Specific protocols must be followed for individual dismissals, including providing a written notice, stating the reasons for dismissal, and respecting the notice period. Failure to adhere to these protocols can lead to the dismissal being considered unfair or illegal.

2.7. What claims can an employee pursue if they are dismissed? What remedies are available for a successful claim?

Dismissed employees can pursue claims for unfair dismissal. Remedies for a successful claim might include reinstatement, compensation for lost wages, or both. The specific remedies available depend on the circumstances of the dismissal and the findings of the court or labor tribunal.

2.8. Can employers resolve claims before or after they are initiated?

Employers and employees are encouraged to resolve claims through negotiation or mediation before initiating formal legal proceedings. Settlements can also occur after a claim is initiated but before a final judgment is made.

2.9. Does an employer bear additional obligations when dismissing multiple employees simultaneously?

When dismissing multiple employees simultaneously, employers have additional obligations, such as consulting with employee representatives and possibly notifying and obtaining approval from labor authorities. The aim is to ensure that the process is conducted fairly and that alternatives to dismissal, such as retraining or redeployment, are considered.

2.10. How can employees enforce their rights regarding mass dismissals, and what are the consequences if an employer fails to comply with its obligations? 

Employees can enforce their rights through labor courts or tribunals. The consequences for employers failing to comply with mass dismissal obligations can include financial penalties, compensation payments to affected employees, and the invalidity of the dismissals.

(3) Data Protection and Employee Privacy 

3.1. How does the employment relationship get impacted by employee data protection rights? Is the transfer of employee data across borders unrestricted for employers?

Employee data protection rights significantly impact the employment relationship in Moldova. Employers must ensure the protection of personal data in accordance with local data protection laws, which include obtaining consent for the collection and processing of personal data, ensuring the data is used only for legitimate purposes, and implementing adequate security measures. The transfer of employee data across borders is not unrestricted. It must comply with Moldova's data protection regulations, which generally require that the receiving country ensures an adequate level of data protection. This might involve specific safeguards or agreements, like standard contractual clauses, especially if the transfer is to countries not recognized as having adequate protections.

3.2. Are employees entitled to obtain copies of any personal information held by their employer?

Employees in Moldova are entitled to obtain copies of their personal information held by their employer. This right allows employees to request access to their personal data to verify its accuracy and the lawfulness of its processing, reflecting principles found in comprehensive data protection frameworks.

3.3. Do employers have the authority to conduct preemployment checks on prospective employees (such as criminal record checks)?

Emp mediation, can also affect the overall timeline. loyers have the authority to conduct pre-employment checks, including criminal record checks, under certain conditions. These checks must be relevant and necessary for the job in question, and the employer must have a legal basis for conducting them. Typically, such checks are justified for positions that require high levels of trust and integrity or are involved in the security sector.

3.4. Do employers have the right to monitor employee emails, phone calls, or use of company computer systems?

Employers do have the right to monitor employee emails, phone calls, or use of company computer systems, but this monitoring is subject to strict conditions. Monitoring must be proportionate, respect the employees' privacy rights, and be justified by legitimate business interests. Employers are also required to inform employees in advance about the nature and extent of monitoring.

3.5. Can employers control an employee's use of social media both inside and outside the workplace?

Employers can control an employee's use of social media in relation to the workplace or in ways that might affect the company's reputation. However, such control must balance the company's interests with the employees' rights to privacy and freedom of expression. Policies regarding social media use should be clearly communicated, reasonable, and non-discriminatory.

(4) Court Practice and Procedure

4.1. Which courts or tribunals hold jurisdiction over employment-related complaints, and what is their composition?

Employment-related complaints in Moldova are typically handled by courts that specialize in civil law, including cases pertaining to labor disputes. These courts can be part of the general judiciary system but are designated to hear labor disputes due to their specific nature. The composition of these courts can include a single judge or a panel of judges, depending on the complexity and significance of the case. Additionally, there might be specialized labor tribunals or sections within courts that deal exclusively with employment issues, though this can vary based on the country's legal structure.

4.2. What procedures govern employment-related complaints? Is conciliation obligatory before proceeding with a complaint, and is there a fee for employees to submit a claim? 

The procedures governing employment-related complaints generally start with a mandatory pre-trial stage, such as conciliation or mediation. This stage aims to resolve disputes outside of court, saving time and resources for both parties. Conciliation might be obligatory before proceeding with a formal complaint in court. Regarding fees, there might be a nominal fee for submitting a claim to court, designed to cover administrative costs, but this fee can sometimes be waived for employees under certain conditions, such as financial hardship or the nature of the claim.

4.3. What is the typical duration for resolving employment-related complaints? 

The duration for resolving employment-related complaints can vary significantly depending on the complexity of the case, the efficiency of the judiciary, and the workload of the courts. Typically, it could take several months to over a year from the filing of the complaint to the final decision. The preliminary stages, such as conciliation or mediation, can also affect the overall timeline.

4.4. Is it possible to appeal against a decision at the first instance, and if so, how long does such an appeal usually take? 

It is possible to appeal against a decision at the first instance. Appeals are usually heard by a higher court or an appellate body designated for reviewing decisions in employment disputes. The duration of the appeal process can again vary widely but often takes several months to complete. The appeal process allows for the review of legal and procedural aspects of the first-instance decision to ensure fairness and adherence to the law.

(5) Work Permits 

5.1. What are the restrictions or limitations placed on individuals holding a work permit in terms of job duties, employer changes, or duration of stay? 

• Job Duties: Work permits are often issued for specific positions or sectors, limiting the holder to work only in the job for which the permit was granted.
• Employer Changes: Changing employers typically requires applying for a new work permit, as the original permit is usually tied to the employer who sponsored the application.
• Duration of Stay: The duration of the work permit often dictates the length of stay allowed in Moldova, and this can range from a few months to several years, with possibilities for renewal depending on the type of work and other factors.

5.2. What are the requirements for obtaining a work permit? 

Common requirements might include: 

• a valid job offer from a Moldovan employer;
• proof of qualifications and experience relevant to the job;
• a clean criminal record, both in the applicant's home country and internationally;
• medical insurance and proof of accommodation in Moldova;
• payment of the relevant application fee.

5.3. Are there any recent changes or updates to work permit regulations or policies that individuals or employers should be aware of? 

Work permit regulations and policies can be subject to changes based on economic needs, migration trends, and policy revisions. It's crucial for both individuals and employers to check with the Moldovan Ministry of Labor and Social Protection or its equivalent for the latest updates on work permit regulations.

5.4. Are there specific industries or occupations that have different requirements or exemptions for obtaining a work permit? 

Certain industries or occupations may have different requirements or exemptions for obtaining a work permit. For example, highly skilled professionals, researchers, or those in sectors experiencing labor shortages might benefit from simplified procedures or exemptions. Conversely, sectors with ample local labor may have more stringent requirements.

5.5. What is the ratio of foreign and local labor? 

The ratio of foreign to local labor is typically regulated to protect local employment while allowing for the necessary influx of foreign workers in sectors experiencing shortages. Specific ratios or quotas can depend on the industry and the current labor market situation in Moldova. These quotas or ratios are part of the government's effort to balance the labor market needs with the protection of local workers.

(6) Tax

6.1. What are the legal obligations and requirements regarding the individual income tax paid by employers? 

• Withholding Tax: Employers are required to withhold individual income tax from their employees' salaries at the source. This means that when salaries are paid, the employer calculates and deducts the appropriate amount of income tax before transferring the net salary to the employee.
• Payment to Tax Authorities: The withheld tax must be paid to the national tax authorities by the employer within the prescribed deadlines, which are typically monthly.
• Tax Declarations: Employers are also obliged to file regular tax declarations detailing the amounts of income paid to employees and the taxes withheld.
• Annual Reconciliation: At the end of the tax year, employers might need to perform an annual reconciliation to ensure that the correct amounts of tax have been withheld and paid for each employee.
• Providing Tax Certificates: Employers usually have to provide employees with an annual summary of their earnings and the taxes withheld, which is needed for the employees’ personal tax filings.

6.2. What is the percentage of withholding tax? 

The percentage of withholding tax on individual income in Moldova can vary based on the employee's income level and the tax brackets established by the Moldovan tax code. Moldova has historically used a progressive tax system, where the tax rate increases with higher income brackets. However, there might also be a flat tax rate for certain types of income or specific conditions under tax reforms. 

To provide accurate and current information regarding the percentage of withholding tax, it’s important to consult the latest updates from Moldova's tax authorities or legal resources. Tax rates and brackets can change due to tax reforms or adjustments in fiscal policy, affecting how much tax employers need to withhold from employee salaries.

 

Author:

Igor Popa.