The flexibility of the employment market – a necessity for Romania

Just like Romania, other states employ criteria to establish the dependence or independence of the activities, but most of these countries also come with the solution of regulating the status of „dependent self employed” – DSE, which is not one of an employee, but lies at the border between employee and „self employed”, as a result a type of “hybrid”. France, Germany, Italy have defined and regulated „dependent self employed” in various ways. Austria defined 3 categories of dependent self employed.

In Romania, according to an European study of 2013, consisting of 126 pages, dedicated to the analysis of dependent self employed persons, we have the most inflexible work contract market. As such, we have only half of the percentage of part-time employees compared to Europe, and just 1.5% temporary employees from an average of 14% in the EU (probably the ones during the trial period, after which the contract can be terminated practically just from the initiative of the employee).

On this basis was developed the self employed category, which exceeded by 3.5% the European average of 14.4%. It was a useful compensation and required for the economy, the engine of development and a source of future employers.

By deciding to eliminate the exception the dependent self employed category was practically destroyed. This will lead to a turmoil on the market, the despair of those that can not find an employer right away – because we understand the short time interval allowed for the transition from a DSE to the employee is very short, and then comes the “re-qualification”.

We must say that this is not about the taxation level. We understand that negotiations are undertaken to increase them and create a ceiling of 3 average wages for CAS and CASS, which would lead to a significant contribution for the state budget. It regards the retaining of an independence status agreed between the provider and the beneficiary when seeking the freedom from the troubles of a “job description” and the transfer of the professional responsibility and the “risks of the job” to the provider.


Ec. Anca Vlad

Prime vice president CNPR