Moldova Employment & Payroll Guide: Employment Laws, Payroll & Taxes

Key Law Terms Overview in Moldova

Labour Code

 

CODE No. 154
of 28-03-2003
LABOUR CODE OF THE REPUBLIC OF MOLDOVA

Parliament adopts this Code.

T i t l e I GENERAL PROVISIONS

Chapter I INTRODUCTORY PROVISIONS

Article 1. Key concepts
For the purposes of this Code, the following concepts are defined:

unit – an enterprise, institution, or organization with the status of a legal entity, regardless of the type of ownership, legal form of organization, departmental subordination, or sectoral affiliation;

employer – a legal entity (unit) or a natural person who employs workers based on an individual employment contract concluded in accordance with the provisions of this Code;

transferor – a natural or legal person who, in the process of restructuring the unit, changing its ownership type or owner, resulting in a change of employer, loses the status of employer in relation to the unit or part thereof;

transferee – a natural or legal person who, in the process of restructuring the unit, changing its ownership type or owner, resulting in a change of employer, acquires the status of employer in relation to the unit or part thereof;

employee – a natural person (male or female) who performs work according to a specific specialty, qualification, or function, in exchange for remuneration, based on an individual employment contract;

employee representatives – a trade union body that generally operates within the unit in accordance with the applicable legislation and trade union statutes, or, in the absence thereof, other representatives elected by the unit’s employees in the manner established by this Code (Article 21);

pregnant woman – any woman who informs the employer in writing about her physiological condition of pregnancy and attaches a medical certificate issued by the general practitioner or specialist doctor certifying this condition;

woman who recently gave birth – any woman who has resumed work after the expiry of postnatal leave and requests, in writing, the protection measures provided by law, attaching a medical certificate issued by the general practitioner, but no later than six months after the date of childbirth;

breastfeeding woman – any woman who, upon resuming work after postnatal leave, breastfeeds her child and informs the employer in writing thereof;

young specialist – a graduate of a higher education, specialized secondary, or vocational secondary institution within the first three years after graduation;

sexual harassment – any physical, verbal, non-verbal behavior, or other actions of a sexual nature that create an intimidating, hostile, degrading, humiliating, or offensive environment, with the purpose or effect of violating a person’s dignity;

dignity at work – a comfortable psycho-emotional climate in employment relations that excludes any form of verbal or non-verbal behavior by the employer or other employees that may harm the moral and psychological integrity of the employee;

written form – information (certificate, document, contract, etc.) presented in letters, numbers, graphic signs on paper or in electronic format; handwritten inscription on paper; information transmitted by fax or other communication means, including electronic means, that allow reading the information;

confirmation of receipt/notification – receipt/notification is considered confirmed after fulfilling at least one of the following conditions, whichever occurs first:

a) the notification is handed to the recipient;
b) the notification is delivered to the postal address indicated by the recipient for this purpose or, in its absence, to the recipient’s legal entity headquarters or the recipient’s natural person domicile;
c) the notification is sent by electronic mail or other individual communication means when it can be accessed by the recipient, including according to the rules on sending and receiving electronic documents established by legislation;
d) the notification is made available to the recipient in any other way at a location and in a manner that reasonably enables the recipient to access it without delay;

remuneration – financial compensation that includes the base salary (tariff salary, function salary) as well as all bonuses, increments, awards, and other incentive and compensatory payments granted to the employee by the employer under the individual employment contract for the work performed;

wage level – gross annual remuneration and gross hourly remuneration;

gender pay gap – the difference between the average remuneration levels of female and male employees, expressed as a percentage of the average remuneration level of male employees;

equal work – work performed within the same functions, under the same educational, professional, and training requirements, skills (abilities), effort, responsibility, activity performed, nature of tasks involved, and working conditions;

work of equal value – work performed in different functions or positions but considered of equal value based on the same educational, professional, and training requirements, skills (abilities), effort, responsibility, activity performed, nature of tasks involved, and working conditions;

shift work – work at a unit organized in such a way that employees succeed one another at the same workplaces according to a specific work regime, including through rotation, and which may be continuous or discontinuous;

light work – work which, by the nature of its tasks and the specific conditions in which it is performed, does not endanger the safety, health, or development of persons aged 15 to 16, nor their education and professional training;

flexible work arrangements – work schedules that allow employees to adapt their working hours, including through remote work, home-based work, flexible work schedules, part-time work, or compressed workweeks.

Article 2. Regulation of employment relations and other directly related relations
(1) This Code regulates all individual and collective employment relations, the control of compliance with employment law regulations, labour jurisdiction, as well as other relations directly related to employment relations.
(2) This Code also applies to employment relations regulated by organic laws and other normative acts.
(3) If a court establishes that a civil contract in fact governs employment relations between an employee and an employer, the provisions of labour legislation will apply to such relations.

Article 3. Scope of the Code
The provisions of this Code apply to:

a) employees who are citizens of the Republic of Moldova, employed under an individual employment contract, including those with continuous professional training or professional qualification contracts, who perform work in the Republic of Moldova;
b) employees who are foreign citizens or stateless persons, employed under an individual employment contract, who perform work for an employer operating in the Republic of Moldova;
c) employees who are citizens of the Republic of Moldova working at Moldovan diplomatic missions abroad;
d) employers who are natural or legal persons in the public, private, or mixed sector that employ workers;
e) employees working in the apparatus of public associations, religious organizations, trade unions, employer organizations, foundations, political parties, and other non-commercial organizations that employ workers.

Article 4. Labour legislation and other normative acts containing labour law rules
Employment relations and other relations directly related thereto are regulated by the Constitution of the Republic of Moldova, this Code, other laws, and other normative acts containing labour law rules, namely:

a) decisions of Parliament;
b) decrees of the President of the Republic of Moldova;
c) decisions and orders of the Government;
d) acts concerning labour issued by the Ministry of Labour and Social Protection and other specialized central authorities, within the powers delegated by the Government;
e) acts of local public authorities;
f) normative acts at the unit level;
g) collective agreements and collective conventions; as well as
h) treaties, agreements, conventions, and other international acts to which the Republic of Moldova is a party.

Chapter II

BASIC PRINCIPLES

Article 5. The Basic Principles of Regulating Employment Relationships and Other Directly Related Relationships

The basic principles of regulating employment relationships and other directly related relationships, which derive from the norms of international law and those of the Constitution of the Republic of Moldova, are as follows:

a) freedom of work, including the right to freely choose or accept work, the right to dispose of one’s working capacity, the right to choose a profession and occupation;

b) prohibition of forced (compulsory) labor, discrimination on any grounds, and sexual harassment in the field of employment relationships;

c) protection against unemployment and provision of assistance in job placement;

d) ensuring the right of every employee to fair working conditions, including working conditions that meet safety and health requirements, and the right to rest, including regulation of working hours, granting of annual leave, daily rest breaks, days off, and public holidays;

e) equality in rights and opportunities for employees;

f) guaranteeing the right of every employee to timely and full payment of fair wages that ensure a decent living for the employee and their family;

f1) equal pay for equal work or work of equal value;

g) ensuring equality for employees, without any discrimination, in career advancement, taking into account work productivity, qualifications, and seniority in the profession, as well as in vocational training, retraining, and professional development;

h) ensuring the right of employees and employers to associate for the protection of their rights and interests, including the right of employees to join trade unions and be members of trade unions, and the right of employers to join employers’ organizations and be members of such organizations;

i) ensuring the right of employees to participate in the management of the enterprise in the forms provided by law;

j) combining state regulation and contractual regulation of employment relationships and other directly related relationships;

k) the obligation of the employer to fully compensate for material and moral loss caused to the employee in connection with the performance of work duties;

l) establishing state guarantees for ensuring the rights of employees and employers, as well as exercising control over their observance;

m) ensuring the right of every employee to defend their labor rights and freedoms, including by appealing to supervisory and control bodies, labor jurisdiction bodies;

n) ensuring the right to resolve individual labor disputes and collective labor disputes, as well as the right to strike, in the manner established by this Code and other normative acts;

o) the obligation of the parties to collective and individual employment contracts to respect contractual terms, including the employer’s right to demand that the employee fulfill work obligations and demonstrate a responsible attitude towards the employer’s property, and, respectively, the employee’s right to demand that the employer fulfill obligations towards employees, comply with labor legislation, and other acts containing labor law norms;

p) ensuring the right of trade unions to exercise public control over compliance with labor legislation;

r) ensuring the right of employees to protect their honor, dignity, and professional reputation during their employment;

s) guaranteeing the right to mandatory social and medical insurance for employees.

Article 6. Non-Restriction of the Right to Work and Freedom of Work

(1) Freedom of work is guaranteed by the Constitution of the Republic of Moldova.

(2) Every person is free to choose their place of work, profession, trade, or activity.

(3) No one, throughout their life, may be forced to work or not work in a specific workplace or profession, whatever they may be.

(4) Any legal act concluded in violation of the provisions of paragraphs (1), (2), and (3) is null and void.

Article 7. Prohibition of Forced (Compulsory) Labor

(1) Forced (compulsory) labor is prohibited.

(2) Forced (compulsory) labor means any work or service exacted from a person under threat or without their consent.

(3) The use of forced (compulsory) labor in any form is prohibited, namely:

a) as a means of political or educational influence or as a punishment for holding or expressing political opinions or beliefs contrary to the existing political, social, or economic system;

b) as a method of mobilizing and using labor for economic purposes;

c) as a means of maintaining labor discipline;

d) as a punishment for participating in a strike;

e) as a means of discrimination based on social, national, religious, or racial criteria.

(4) The following are considered forced (compulsory) labor:

a) violation of the established terms of payment of wages or partial payment thereof;

b) the employer’s requirement for the employee to fulfill work obligations in the absence of collective or individual protection systems or when the performance of the required work may endanger the life or health of the employee.

(5) The following will not be considered forced (compulsory) labor:

a) military service or activities carried out in lieu thereof by those who, according to the law, do not perform compulsory military service;

b) work performed by a convicted person under normal conditions during the period of detention or conditional early release from punishment;

c) services imposed in situations of disaster or other danger, as well as those that are part of normal civil obligations established by law.

Article 71. Prohibition of Undeclared Work

(1) Undeclared work is prohibited.

(2) Undeclared work means any work performed by an individual for and under the authority of an employer without complying with the provisions of this Code regarding the conclusion of an individual employment contract.

Article 8. Prohibition of Discrimination in the Field of Work

(1) The principle of equality in rights for all employees applies in employment relationships. Any direct or indirect discrimination against an employee on grounds of sex, age, race, skin color, ethnicity, religion, political opinion, social origin, domicile, disability, HIV/AIDS status, trade union membership or activity, or other grounds unrelated to their professional qualities is prohibited.

(2) The establishment of distinctions, exceptions, preferences, or rights for employees, which are determined by the specific requirements of a job, established by current legislation, or by the special care of the state for persons requiring enhanced social and legal protection, will not constitute discrimination.

Article 9. Basic Rights and Obligations of the Employee

(1) An employee is entitled:

a) to conclude, modify, suspend, and terminate the individual employment contract in the manner established by this Code;

b) to work in accordance with the terms of the individual employment contract;

c) to a workplace under the conditions provided by state standards on the organization, safety, and health at work, the collective labor agreement, and collective agreements;

d) to timely and full payment of wages corresponding to their qualifications, the complexity, quantity, and quality of the work performed;

d1) to obtain, upon request, information on remuneration levels, broken down by gender, for categories of employees performing equal work or work of equal value;

e) to rest, ensured by establishing normal working hours, reducing working hours for certain professions and categories of employees, granting days off and public holidays, and paid annual leave;

f) to full and truthful information, prior to employment or transfer to another position, regarding working conditions, particularly regarding remuneration conditions, including the salary for the position or the tariff salary, supplements, bonuses, and material assistance (if these are part of the unit’s remuneration system), the frequency of payments, and the criteria used to determine salary levels;

f1) to be informed and consulted on the economic situation of the unit, safety and health at work, and other matters related to the functioning of the unit, in accordance with the provisions of this Code;

g) to address the employer, employers’ organizations, trade unions, central and local public administration bodies, and labor jurisdiction bodies;

h) to vocational training, retraining, and professional development, in accordance with this Code and other normative acts;

i) to freely associate in trade unions, including the right to establish trade union organizations and join them to protect their labor rights, freedoms, and legitimate interests;

j) to participate in the management of the unit, in accordance with this Code and the collective labor agreement;

k) to engage in collective bargaining and conclude collective labor agreements and collective agreements, through their representatives, and to be informed about the implementation of such agreements;

l) to defend their labor rights, freedoms, and legitimate interests by methods not prohibited by law;

m) to resolve individual labor disputes and collective labor disputes, including the right to strike, in the manner established by this Code and other normative acts;

n) to compensation for material and moral loss caused in connection with the performance of work duties, in the manner established by this Code and other normative acts;

o) to mandatory social and medical insurance, as provided by current legislation.

(11) Employees may not waive the rights recognized by this Code. Any agreement aimed at the employee waiving their labor rights or limiting them is null and void.

(2) An employee is required:

a) to conscientiously fulfill the work duties stipulated in the individual employment contract;

b) to meet the established work standards;

c) to comply with the requirements of the internal regulations of the unit, if developed and approved by the employer, and to always carry the nominal access permit to the workplace issued by the employer;

d) to respect labor discipline;

d1) to demonstrate non-discriminatory behavior towards other employees and the employer;

d2) to respect the right to dignity at work of other employees;

e) to comply with safety and health requirements at work;

f) to demonstrate a responsible attitude towards the employer’s property and that of other employees;

g) to immediately inform the employer or direct supervisor of any situation that poses a danger to human life and health or to the integrity of the employer’s property;

g1) to immediately inform the employer or direct supervisor of the inability to report to work and to present, within 5 working days after resuming work, documents justifying the absence;

h) to pay mandatory state social insurance contributions and mandatory medical insurance premiums in the established manner;

i) to fulfill other obligations provided by current legislation, the collective labor agreement, and collective agreements.

Article 10. Rights and Obligations of the Employer

(1) An employer is entitled:

a) to conclude, modify, suspend, and terminate individual employment contracts with employees in the manner and under the conditions established by this Code and other normative acts;

b) to require employees to fulfill their work duties and demonstrate a responsible attitude towards the employer’s property;

c) to incentivize employees for efficient and conscientious work;

c1) to provide employees with children under the age of 3 with childcare services;

d) to hold employees accountable for disciplinary and material liability in the manner established by this Code and other normative acts;

e) to issue normative acts at the unit level;

f) to establish employers’ organizations to represent and protect their interests and to join them.

(2) An employer is required:

a) to comply with laws and other normative acts, the provisions of the collective labor agreement, and collective agreements;

b) to respect the terms of individual employment contracts;

b1) to approve and/or modify the unit’s staffing tables under the conditions established by this Code;

c) – repealed;

d) to provide employees with the work stipulated in the individual employment contract;

e) to ensure working conditions for employees that meet safety and health requirements;

f) to provide employees with equipment, tools, technical documentation, and other means necessary to fulfill their work duties;

f1) to ensure equal opportunities and treatment for all persons in employment according to their profession, vocational guidance and training, and career advancement, without any discrimination;

f2) to apply the same criteria for evaluating work quality, imposing sanctions, and dismissing employees;

f3) to take measures to prevent and combat discrimination on any grounds, sexual harassment, and victimization in the workplace;

f4) to ensure equal conditions for women and men to balance work and family obligations;

f5) – repealed;

f6) to ensure respect for the dignity of employees at work;

g) to ensure equal pay for equal work or work of equal value;

h) to pay wages in full within the deadlines established by this Code, the collective labor agreement, and individual employment contracts;

i) to engage in collective bargaining and conclude collective labor agreements, providing employee representatives with complete and truthful information necessary for this purpose, as well as the information necessary for monitoring the implementation of the agreement;

j) to inform and consult employees on the economic situation of the unit, safety and health at work, and other matters related to the functioning of the unit, in accordance with the provisions of this Code;

k) to timely comply with the instructions of state supervisory and control bodies and to pay fines imposed for violations of legislative acts and other normative acts containing labor law provisions;

l) to examine complaints from employees and their representatives regarding violations of legislative acts and other normative acts containing labor law provisions, to take measures to eliminate them, and to inform the relevant persons within the deadlines established by law;

m) to create conditions for employee participation in the management of the unit in the manner established by this Code and other normative acts;

n) to provide employees with the necessary social and sanitary conditions for fulfilling their work duties;

o) to ensure mandatory social and medical insurance for employees in the manner provided by current legislation;

p) to compensate for material and moral loss caused to employees in connection with the performance of work duties, in the manner established by this Code and other normative acts;

r) to fulfill other obligations established by this Code, other normative acts, collective agreements, the collective labor agreement, and individual employment contracts.

Articolul 11. Regulation by law and contract of employment relationships

(1) The minimum level of labour rights and guarantees for employees is established by this Code and other normative acts containing labour law provisions.

(2) Individual employment contracts, collective agreements, and collective conventions may establish for employees additional labour rights and guarantees beyond those provided by this Code and other normative acts.

Articolul 12. Nullity of clauses in individual employment contracts, collective agreements, and collective conventions or legal acts issued by public administration authorities that worsen employees’ situation

Clauses in individual employment contracts, collective agreements, and collective conventions or legal acts issued by the public administration authorities mentioned in Article 4 (d) and (e), which worsen employees’ situation compared to labour legislation, are null and void and produce no legal effects.

Articolul 13. Priority of treaties, conventions, agreements, and other international acts

If treaties, conventions, agreements, or other international acts to which the Republic of Moldova is a party establish provisions different from those contained in this Code, international regulations will take precedence.

Articolul 14. Calculation of time limits provided for by this Code

(1) The running of the time limits on which this Code bases the commencement or termination of employment relationships begins on the day immediately following that on which the emergence or termination of labour rights and obligations was determined.

(2) Time limits calculated in years, months, or weeks expire on the corresponding date of the last year, month, or week. Time limits calculated in weeks or calendar days include non-working days.

(3) If the time limit calculated in months expires in a month that has a greater or lesser number of days than the month in which the time limit began to run, the expiration date will be considered the last day of the month in which the time limit expires.

(4) If the last day of the time limit falls on a non-working day, the expiration date will be considered the first working day immediately following.

Title II SOCIAL PARTNERSHIP IN THE LABOUR SPHERE

Chapter I GENERAL PROVISIONS

Articolul 15. Definition of social partnership

Social partnership represents a system of relations established between employees (employees’ representatives), employers (employers’ representatives), and the respective public authorities in the process of determining and realising the social and economic rights and interests of the parties.

Articolul 16. Parties to the social partnership

(1) The parties to the social partnership at the enterprise level are employees and employers, represented by their authorised representatives in the established manner.

(2) The parties to the social partnership at the national, sectoral, and territorial levels are trade unions, employers’ associations, and the respective public authorities, represented by their authorised representatives in the established manner.

(3) Public authorities are a party to the social partnership in cases where they act as employers or as their representatives authorised by law or by employers.

Articolul 17. Fundamental principles of social partnership

The fundamental principles of social partnership are:

a) legality;
b) equality of the parties;
c) parity in the representation of the parties;
d) powers of the parties’ representatives;
e) mutual interest of the parties in participating in contractual relations;
f) compliance by the parties with the norms of the applicable legislation;
g) mutual trust between the parties;
h) assessment of the real possibilities for fulfilling the commitments assumed by the parties;
i) priority of conciliation methods and procedures and the mandatory conduct of consultations between the parties on matters concerning labour and social policies;
j) refraining from unilateral actions that violate agreements (collective agreements and collective conventions) and mutual notification of the parties about changes in circumstances;
k) decision-making and taking actions within the limits of the rules and procedures agreed upon by the parties;
l) mandatory execution of collective agreements, collective conventions, and other agreements;
m) monitoring compliance with collective agreements and collective conventions;
n) liability of the parties for non-compliance with assumed commitments;
o) state support for the development of social partnership.

Articolul 18. Social partnership system

The social partnership system includes the following levels:

a) national – establishes the foundations for regulating socio-economic and labour relations in the Republic of Moldova;
b) sectoral – establishes the foundations for regulating labour and social relations in a specific sector(s) of the national economy;
c) territorial – establishes the foundations for regulating labour and social relations in administrative-territorial units of the second level and municipalities;
d) enterprise – establishes the specific reciprocal obligations between employees and the employer in the labour and social sphere.

Articolul 19. Forms of social partnership

Social partnership is implemented through:

a) collective negotiations on the drafting and conclusion of collective agreements and collective conventions on a bi- or tripartite basis, through the representatives of the social partnership parties;
b) participation in the examination of draft normative acts and proposals concerning socio-economic reforms, improvement of labour legislation, and ensuring civic conciliation;
c) reciprocal consultations (negotiations) on matters related to the regulation of labour relations and directly related relations;
d) employee (or their representatives’) participation in the management of the enterprise;
e) participation of the representatives of the social partnership parties in the process of extrajudicial resolution of collective labour disputes (conciliation procedure).

CHAPTER IV COLLECTIVE BARGAINING

Article 26. Conduct of collective bargaining

(1) Representatives of employees and employers have the right to initiate and participate in collective bargaining for drafting, concluding, modifying, or supplementing the collective labor agreement or collective agreements.

(2) Representatives of the parties who receive a written proposal to initiate collective bargaining are required to commence negotiations within 7 calendar days from the date of notification.

Article 27. Manner of conducting collective bargaining

(1) Participants in collective bargaining are free to choose the issues that will be subject to regulation in collective labor agreements and collective agreements.

(2) In enterprises where some employees are not trade union members, they are entitled, pursuant to Article 21(1), to authorize the trade union body to represent their interests in negotiations.

(3) In enterprises where no trade unions are established, employees’ interests are expressed, pursuant to Article 21(2), by their elected representatives.

(4) The right to participate in collective bargaining and to sign collective agreements on behalf of employees at the national, sectoral, or territorial level belongs to the relevant trade unions (trade union associations). If multiple trade union bodies exist at the national, sectoral, territorial, or enterprise level, a single representative body will be created to conduct collective bargaining, draft the collective agreement, and conclude it. The representative body is constituted based on the principle of proportional representation of trade union bodies, depending on the number of trade union members. In the absence of an agreement on forming a single representative body for organizing collective bargaining, the right to conduct negotiations will belong to the trade union (trade union association) with the largest number of members.

(41) The right to participate in collective bargaining and to sign collective agreements on behalf of employers at the national, sectoral, or territorial level belongs to the relevant employers’ organizations. If multiple employers’ organizations exist at the national, sectoral, or territorial level, a single representative body will be created to conduct collective bargaining, draft the collective agreement, and conclude it. The representative body is constituted based on the principle of proportional representation of employers’ organizations, depending on the number of their members. In the absence of an agreement on forming a single representative body for organizing collective bargaining, the right to conduct negotiations will belong to the employers’ organization with the largest number of members.

(5) – repealed.

(6) The parties are required to exchange necessary information for conducting collective bargaining no later than 2 weeks from the moment of request.

(7) Participants in collective bargaining and other persons involved in the negotiations are obligated not to disclose received information if it constitutes a state or commercial secret. Persons who disclose such information will be subject to disciplinary, material, administrative, civil, or criminal liability, as prescribed by applicable legislation.

(8) The deadlines, venue, and manner of conducting collective bargaining will be determined by the representatives of the participating parties.

Article 28. Settlement of disputes

If, during collective bargaining, a coordinated decision is not reached on all or some of the issues discussed, a record of the existing disputes will be drawn up. The settlement of disputes arising during collective bargaining for the conclusion, modification, or supplementation of the collective labor agreement or collective agreement will take place in accordance with this Code.

Article 29. Guarantees and compensations for participants in collective bargaining

(1) Persons participating in collective bargaining, drafting the collective labor agreement or collective agreement will be released from their main job, with retention of their average salary, for a period agreed upon by the parties, but not exceeding 3 months.

(2) All expenses related to participation in collective bargaining will be compensated in accordance with applicable legislation, the collective labor agreement, or the collective agreement. The work of experts, specialists, and mediators will be remunerated by the inviting party unless otherwise stipulated by the collective labor agreement or collective agreement.

(3) During collective bargaining, employee representatives participating in negotiations may not be subject to disciplinary sanctions, transferred to another job, or dismissed without prior consultation with the trade union bodies that authorized them.

CHAPTER V

COLLECTIVE LABOR AGREEMENTS

AND COLLECTIVE AGREEMENTS

Article 30. Collective labor agreement

(1) The collective labor agreement is the legal act that regulates labor relations and other social relations within the enterprise, concluded in written form between employees and the employer through their representatives.

(2) The collective labor agreement may be concluded for the enterprise as a whole as well as for its branches and representative offices.

(3) When concluding a collective labor agreement within a branch or representative office of the enterprise, the head of the respective subdivision, authorized for this purpose by the employer, will be a party to the agreement.

Article 31. Content and structure of the collective labor agreement

(1) The content and structure of the collective labor agreement are determined by the parties.

(2) The collective labor agreement may include mutual commitments of employees and the employer regarding:

a) forms, systems, and amounts of remuneration;

b) payment of allowances and compensations;

c) the mechanism for regulating remuneration, considering the inflation rate and the achievement of the economic indicators provided for in the collective labor agreement;

d) working time and rest time, as well as matters related to the manner of granting and duration of leave;

e) improvement of working conditions and labor protection for employees, including women, young people, and persons with disabilities;

f) safeguarding employees’ interests in case of enterprise privatization and the housing fund under its balance sheet;

g) ecological safety and health protection of employees in the production process;

h) guarantees and benefits for employees combining work with studies;

i) health recovery, rest for employees and their family members;

i1) prohibition of discrimination on any grounds and sexual harassment, measures for their prevention and elimination;

j) monitoring compliance with the provisions of the collective labor agreement, the procedure for its amendment and supplementation;

k) ensuring normal working conditions for employees’ representatives;

l) liability of the parties;

m) waiver of strike action in case of compliance with the provisions of the collective labor agreement; and

n) other commitments determined by the parties.

(3) Depending on the employer’s economic and financial situation, the collective labor agreement may provide for benefits and advantages for employees, as well as working conditions more favorable than those stipulated by the applicable legislation and collective agreements.

(4) The collective labor agreement may also include normative clauses, provided they do not contradict applicable legislation.

Article 32. Drafting and conclusion of the collective labor agreement

(1) The draft collective labor agreement will be developed by the parties in accordance with this Code and other normative acts.

(2) If, within 3 months from the start of negotiations, no agreement is reached on certain provisions of the draft collective labor agreement, the parties will be required to sign the contract only for the agreed clauses while simultaneously drafting a record of the outstanding disputes.

(3) Unresolved disputes will be subject to further collective bargaining or will be resolved in accordance with this Code and other normative acts.

Article 33. Effect of the collective labor agreement

(1) The collective labor agreement enters into force upon signing by the parties or on the date specified in the agreement. One copy of the collective labor agreement will be submitted by one of the signatory parties to the territorial labor inspection within 7 calendar days from the date of its conclusion.

(11) The duration of the collective labor agreement is determined by the parties and cannot be less than one year.

(2) The collective labor agreement remains in effect even in the event of a change in the name of the enterprise or the termination of the individual employment contract of the enterprise’s manager.

(3) In the case of the reorganization of the enterprise through merger (consolidation and absorption), division (splitting and separation), transformation, or liquidation, the collective labor agreement continues to have effect throughout the reorganization or liquidation process.

(4) In the event of a change in the type of ownership of the enterprise or its owner, the collective labor agreement continues to be effective until its expiration or the entry into force of another collective labor agreement.

(5) In case of reorganization, change in the type of ownership of the enterprise, or change of its owner, either party may propose to the other party to conclude a new collective labor agreement or to extend the previous agreement.

(51) If insolvency proceedings are initiated against the enterprise, the collective labor agreement concluded before the initiation of such proceedings remains in effect for its entire validity period. The modification, supplementation, or conclusion of a new collective labor agreement in an enterprise undergoing insolvency proceedings may only be carried out by mutual agreement of the parties.

(6) – repealed.

(7) The collective labor agreement concluded for the enterprise as a whole applies to the employees of the enterprise, its branches, and its representative offices, provided that their representatives were authorized to participate in collective bargaining, draft, and conclude the collective labor agreement on their behalf.

Article 34. Amendment and supplementation of the collective labor agreement

(1) The amendment and supplementation of the collective labor agreement will be carried out in the manner prescribed by this Code for its conclusion.

(2) Any amendment or supplementation of the collective labor agreement must be communicated to the enterprise’s employees by the employer within 5 working days from its implementation, through:

a) an announcement sent via email or another communication method accessible to each employee; and/or

b) a public announcement posted on the enterprise’s website, if applicable; and/or

c) a public announcement displayed on an information board with general access at the enterprise’s headquarters, including at each of its branches or representative offices.

Article 35. Collective agreement

(1) The collective agreement is a legal act that establishes the general principles for regulating labor relations and socio-economic relations directly related thereto, concluded by the authorized representatives of employees and employers at the national, territorial, and sectoral levels, within their respective competencies.

(2) The collective agreement may include provisions concerning:

a) remuneration of labor;

b) working conditions and labor protection;

c) work and rest regime;

d) development of social partnership;

e) other matters determined by the parties.

Article 36. Content and structure of the collective agreement

The content and structure of the collective agreement will be established by mutual agreement of the representatives of the parties, who are free to determine the issues to be negotiated and included in the agreement.

Article 37. Drafting and conclusion of the collective agreement

(1) The draft collective agreement will be developed through collective bargaining.

(2) The negotiation, conclusion, and modification of the provisions of the collective agreement at the respective level, including those involving budgetary allocations, will generally be carried out by the parties before the preparation of the respective budget proposal for the financial year corresponding to the duration of the agreement.

(3) The procedure and deadlines for drafting and concluding the collective agreement will be determined by the social partnership body at the corresponding level.

(4) Unresolved disputes will be subject to further collective bargaining or will be resolved in accordance with this Code and other normative acts.

(5) The collective agreement will be signed by the representatives of the parties.

Article 38. Effect of the collective agreement

(1) The collective agreement concluded at the national level (General Agreement) enters into force on the date of its publication in the Official Gazette of the Republic of Moldova.
(2) Sectoral and territorial collective agreements enter into force at the time of signing by the parties or on the date established in the agreement. A copy of the sectoral or territorial collective agreement will be sent by one of the signatory parties, within 7 calendar days from the date of conclusion, to the Ministry of Labour and Social Protection.
(3) The term of the collective agreement is established by the parties and may not be less than one year.
(4) If employees fall simultaneously under the scope of multiple collective agreements, the more favourable provisions will prevail.
(5) The collective agreement applies to employees and employers who have empowered their representatives to participate in collective bargaining, to draft and conclude the collective agreement on their behalf, to public authorities within the limits of the commitments undertaken, as well as to employees and employers who have adhered to the agreement after its conclusion.
(6) The collective agreement applies to all employers who are members of the employers’ association that concluded the agreement. Termination of membership in the employers’ association does not release the employer from the obligation to comply with the provisions of the agreement concluded during the period of its membership. An employer who has joined the employers’ association during the validity of the collective agreement is required to comply with the provisions of the respective agreement.
(7) The manner of publication of sectoral and territorial collective agreements, as well as of the amendments and additions thereto, will be determined by the parties.

Article 39. Amendment and supplementation of the collective agreement

The amendment and supplementation of the collective agreement will take place in accordance with the procedure established by this Code for the conclusion of the agreement.

Article 40. – repealed.

Article 41. Supervision of the implementation of the collective labour agreement and the collective agreement

(1) Supervision of the implementation of the collective labour agreement and the collective agreement is carried out by the social partnership parties, through their representatives, and by the State Labour Inspectorate, in accordance with the legislation in force.
(2) When conducting such supervision, the representatives of the parties are obliged to exchange the necessary information for this purpose.

Chapter VI Employees’ participation in the management of the undertaking

Article 42. Employees’ right to participate in the management of the undertaking and forms of participation

(1) The right of employees to participate in the management of the undertaking, either directly or through their representative bodies, and the forms of participation in this process are regulated by this Code and other normative acts, by the founding documents of the undertaking, and by the collective labour agreement.
(2) Employees’ participation in the management of the undertaking may be carried out through:
a) participation in the drafting of normative acts at the undertaking level in the socio-economic field;
a1) participation in the approval of normative acts at the undertaking level in the cases provided for by this Code and other legislative or normative acts;
b) informing and consulting employees regarding the matters referred to in Article 421;
c) cooperation with the employer within the framework of social partnership;
d) – repealed.

Article 421. Informing and consulting employees

(1) In order to ensure the employees’ right to participate in the management of the undertaking as provided for in Article 42, the employer is required to inform and consult them on relevant matters related to their activity within the undertaking.
(2) The obligation to inform concerns:
a) the recent development and the likely evolution of the undertaking’s activities and economic situation;
b) the situation, structure, and likely evolution of employment within the undertaking, as well as any planned anticipatory measures, especially when jobs are at risk;
c) decisions that may result in significant changes in work organisation or contractual relations, including those related to collective redundancies or a change of ownership of the undertaking;
d) the situation concerning occupational safety and health at the undertaking, as well as any measures that may affect their assurance, including the planning and introduction of new technologies, the selection of work and protective equipment, the training of employees on occupational safety and health, etc.;
e) the average remuneration per category of employees or positions, broken down by gender.
(3) The information will be provided in writing to the employees’ representatives, containing relevant, complete, and accurate data regarding the subjects listed in paragraph (2), in due time, to allow the employees’ representatives to prepare, if necessary, for consultation.
(4) The information will be provided whenever necessary due to the circumstances that have arisen, as well as periodically, at the intervals provided for in the collective labour agreement. Periodic information on the subjects referred to in paragraph (2) will not be provided less than once a year, no later than in the first semester of the following financial year.
(5) If specific measures concerning employees are planned, the information will be provided at least 30 calendar days before the implementation of the respective measures. In the event of the liquidation of the undertaking or a reduction in the number or structure of personnel, employees will be informed of this at least 30 calendar days before the initiation of the procedures provided for in Article 88.
(6) If there is no trade union or elected representatives within the undertaking, the information referred to in paragraph (2) will be communicated to employees through:
a) a notice sent by email or another communication means accessible to each employee; and/or
b) a public notice published on the undertaking’s website, as applicable; and/or
c) a public notice displayed on an information board with general access at the undertaking’s headquarters and at each of its branches or representative offices.
(7) Consultation will take place:
a) within meetings with employer representatives of a level relevant to the subject discussed;
b) based on the information transmitted under paragraph (3) and the opinion that employees’ representatives are entitled to express in this context;
c) with a view to reaching a consensus on the subjects mentioned in paragraph (2)(b)–(d) that fall under the employer’s competence.

During the consultation process, employees’ representatives have the right to meet with the employer and to receive a reasoned response to any opinion they may express. If specific measures concerning employees are planned, the consultation will be conducted in such a way as to allow the employees’ representatives the possibility to negotiate and reach an agreement with the employer before the planned measures are implemented.

In all cases provided for by this Code, where the employer is required to consult employees/employees’ representatives before making a decision that affects employees’ rights and interests, the employer will notify the trade union body/employees’ representatives and request their advisory opinion in writing.

The deadline for submitting the opinion is 10 working days from the date of receipt of the notification.

If the opinion is not submitted within the indicated period, it will be presumed that the advisory opinion has been communicated by the respective body/employees’ representatives.
(8) If a committee for occupational safety and health has been established within the undertaking in accordance with the provisions of the Occupational Safety and Health Law No. 186/2008, the information and consultation on the matters mentioned in paragraph (2)(d) of this Article will take place within this committee.
(9) Employees’ representatives, as well as any expert assisting them, will not disclose to employees or third parties any information that, in the legitimate interest of the undertaking, has been provided to them as confidential, following the signing of a written confidentiality commitment.

This restriction applies regardless of where the respective representatives or third parties are, even after the expiry of their mandate. Likewise, employees will not disclose confidential information received in the same manner from the employer. Failure to comply with confidentiality obligations will result in liability for damages caused by the responsible persons.
(10) By way of derogation from paragraphs (1)–(8), the employer is not obliged to disclose information or conduct consultations if such actions may result in the disclosure of a state secret or a trade secret. The employer’s refusal to provide information or conduct consultations on the subjects mentioned in paragraph (2) may be challenged in court.
(11) When informing and consulting employees regarding the reorganisation of the undertaking, the change of its type of ownership, or its owner, the specific provisions of Article 1971 will be taken into account.
(12) Collective agreements and/or collective labour contracts may establish any procedures for information and consultation, provided that they do not reduce employees’ rights in relation to the provisions of this Code.

Chapter VII
LIABILITY OF THE SOCIAL PARTNERS

Article 43. Liability for evading participation in collective negotiations and for refusal to provide information necessary for conducting collective negotiations and monitoring the execution of the collective agreement and the collective convention
(1) Representatives of the parties who evade participation in collective negotiations for the conclusion, amendment, or supplementation of the collective agreement or collective convention, or who refuse to sign the negotiated collective agreement or collective convention, will be held liable in accordance with the applicable legislation.

(2) Persons responsible for failing to provide the information necessary for conducting collective negotiations and monitoring the execution of the collective agreement or collective convention, as well as those responsible for providing incomplete or false information, will be held liable in accordance with the applicable legislation.

Article 44. Liability for violation or non-performance of the collective agreement or collective convention
Persons responsible for violating or failing to fulfill the provisions of the collective agreement or collective convention will be held liable in accordance with the applicable legislation.

TITLE III
INDIVIDUAL EMPLOYMENT CONTRACT

Chapter I
GENERAL PROVISIONS

Article 45. Definition of the individual employment contract
The individual employment contract is an agreement between the employee and the employer, whereby the employee undertakes to perform work in a specific profession, qualification, or position and to comply with the internal regulations of the undertaking, if drafted and approved by the employer, while the employer undertakes to provide the working conditions prescribed by this code, other legal acts containing labor law norms, the collective agreement, and to pay the salary in full and on time.

Article 46. Parties to the individual employment contract
(1) The parties to the individual employment contract are the employee and the employer.

(2) A natural person acquires working capacity upon reaching the age of 16.

(3) A natural person may conclude an individual employment contract at the age of 15, with the written consent of their parents or legal representatives, for performing light work. The specific conditions for performing light work will be established by the Government.

[Article 46(3) as amended by LP46 of 14.03.24, MO103/18.03.24, Article 163; effective from 18.10.24]

(4) The employment of persons under the age of 15, as well as the employment of persons deprived by a court of the right to hold certain positions or engage in certain activities, in the respective positions or activities, is prohibited.

(5) As an employer, a party to the individual employment contract may be any natural or legal person, regardless of the type of ownership and legal form of organization, who employs salaried labor.

(6) A legal entity employer may conclude individual employment contracts from the moment it acquires legal personality.

(7) A natural person employer may conclude individual employment contracts from the moment they acquire full legal capacity.

(8) It is prohibited to conclude an individual employment contract for the purpose of performing illegal or immoral work or activities.

(9) Citizens of the Republic of Moldova, foreign nationals, and stateless persons may be parties to an individual employment contract, except in cases provided by applicable legislation.

Article 47. Employment guarantees
(1) Unjustified refusal of employment is prohibited.

(2) Any direct or indirect restriction of rights or the granting of direct or indirect advantages in concluding an individual employment contract based on sex, race, ethnicity, religion, domicile, political opinion, or social origin is prohibited.

(3) The employer’s refusal to hire will be made in writing, indicating the data specified in Article 49(1)(b), and may be challenged in court.

Article 48. Information on working conditions
(1) Before hiring or transferring to a new position, the employer is required, in writing and in due time, to inform the person to be hired or transferred about the working conditions in the proposed position, providing the information specified in Article 49(1), as well as information on the notice periods to be observed by the employer and the employee in case of termination of employment. The obligation to inform the selected candidate or employee in case of transfer is deemed fulfilled by the employer at the time of signing the contract or the additional agreement to the individual employment contract.

(2) Upon hiring, the employee will be provided, in addition, with applicable collective agreements, the collective labor agreement, the internal regulations of the undertaking, if drafted and approved by the employer, as well as information on occupational safety and health requirements relevant to their activity.

(3) If the employee is to perform work abroad, the employer is required to provide, in due time, all the information specified in Article 49(1) and, additionally, information on:

a) the duration of work abroad, indicating the country;
b) the currency in which the work will be remunerated, as well as the method of payment;
c) compensation and benefits in cash and/or in kind related to working abroad;
d) specific insurance conditions;
e) accommodation conditions;
f) travel arrangements for departure and return.

(4) When employing foreign nationals in the Republic of Moldova, the provisions of labor migration legislation, as well as relevant provisions of international treaties to which the Republic of Moldova is a party, will also be taken into account.

Article 49. Content of the individual employment contract
(1) The content of the individual employment contract is determined by the agreement of the parties, taking into account the provisions of the applicable legislation, and includes:

a) the employee’s full name;
b) the employer’s identification details;
c) the duration of the contract;
d) the date on which the contract takes effect;
d1) the specialization, profession, qualification, or position;
e) the job duties;
f) the specific risks associated with the position;
f1) the title of the work to be performed (in the case of an individual employment contract for the duration of a specific task – Articles 312–316);
g) the employee’s rights and obligations;
h) the employer’s rights and obligations;
i) the remuneration conditions, including the salary for the position or the tariff-based salary, allowances, bonuses, and material benefits (if they are part of the employer’s remuneration system), forms and methods of salary payments, as well as the frequency of payment;
j) compensations and allowances, including those for work performed under difficult, harmful, and/or hazardous conditions;
k) the workplace. If the workplace is not fixed, it will be stated that the employee may have different workplaces, and the employer’s legal address or, as applicable, the employer’s domicile will be indicated;
l) the working and rest regime, including the duration of the employee’s working day and working week;
m) the probation period, if applicable;
n) the duration of the annual leave and the conditions for its granting;
o) – repealed;
p) social security conditions;
r) medical insurance conditions;
s) specific clauses (Article 51), if applicable.

(2) The individual employment contract may contain other provisions that do not contradict the applicable legislation.

(3) It is prohibited to establish, through the individual employment contract, conditions for the employee that are below the minimum standards provided by applicable normative acts, collective agreements, and the collective labor contract.

(4) – repealed;
(5) – repealed.

Article 50. Prohibition of requiring work not stipulated in the individual employment contract
The employer is not entitled to require the employee to perform work that is not stipulated in the individual employment contract, except in cases provided by this code.

Article 51. Specific clauses of the individual employment contract
(1) In addition to the general clauses provided for in Article 49, the parties may negotiate and include specific clauses in the individual employment contract, such as:

a) the mobility clause;
b) the confidentiality clause;
c) clauses regarding the reimbursement of transport expenses, compensation for utility services, and the provision of housing;
d) other clauses that do not contradict the applicable legislation.

(2) In exchange for compliance with certain clauses provided in paragraph (1), the employee may be entitled to a specific allowance and/or other rights, as stipulated in the individual employment contract. In case of non-compliance with these clauses, the employee may lose the granted rights and, if applicable, be required to compensate the employer for the loss caused.

Article 52. Mobility clause
The mobility clause allows the employer to assign work that does not require a fixed workplace within the same undertaking.

Articolul 53. Confidentiality clause

(1) Through the confidentiality clause, the parties agree that, throughout the duration of the individual employment contract and for no more than two years after its termination, they will not disclose data or information of which they became aware during the performance of the individual employment contract, under the conditions established by the internal regulations of the undertaking, if such regulations are developed and approved by the employer, by the collective or individual employment contract.

(2) Failure to comply with the confidentiality clause will result in the liable party being required to compensate for the loss caused.

Article 531. Non-compete clause

(1) The parties may negotiate a non-compete clause whereby the employee undertakes, after the termination of the individual employment contract, not to perform, in their own interest or in the interest of a third party, an activity that competes with the one carried out for their employer, for the period negotiated by the parties, but not exceeding one year. During this period, the employer will pay the employee a monthly indemnity, the amount of which will be negotiated between the employee and the employer, but will not be less than 50% of the employee’s average monthly salary.

(2) A non-compete clause that entirely prohibits the employee from exercising their profession (as per their diplomas) will be considered null. The non-compete clause must expressly indicate the geographical area of the administrative-territorial units for which it applies, the activities to which it pertains, the period of its effects, the amount of the monthly non-compete indemnity, as well as the terms and method of payment.

(3) In the event of a breach of the non-compete clause, the employee will be required to reimburse the indemnity received and compensate the employer for the loss caused.

(4) Unless otherwise stipulated by the parties in the non-compete clause, the employer may unilaterally terminate the clause with prior notice and payment of three monthly indemnities. The termination notice will only take effect for the future.

(5) Unless otherwise stipulated by the parties in the non-compete clause, the employee may terminate the clause by providing written notice in case the employer delays the payment of the indemnity by at least one month.

(6) This article will not affect the provisions concerning the non-compete obligation of the administrator of a legal entity, as established by the Civil Code.

Article 54. Duration of the individual employment contract

(1) As a rule, the individual employment contract is concluded for an indefinite period.

(2) The individual employment contract may also be concluded for a fixed term not exceeding five years, under the conditions provided by this Code. The legal basis for concluding a fixed-term individual employment contract will be specified in the contract.

(3) If the duration of the individual employment contract is not stipulated, the contract will be considered as concluded for an indefinite period.

(4) The conclusion of fixed-term individual employment contracts with the purpose of avoiding the granting of rights and guarantees provided for employees hired for an indefinite period is prohibited.

(5) A fixed-term individual employment contract concluded in the absence of a legal basis, as determined by the State Labour Inspectorate, will be considered as concluded for an indefinite period.

Article 55. Fixed-term individual employment contract

(1) The individual employment contract may be concluded for a fixed term, in accordance with Article 54(2), in the following cases:

a) for the period of fulfilling the work duties of an employee whose individual employment contract is suspended (except in cases where they are on strike), or for the period during which they are on one of the leaves provided for in Articles 112, 120, 123, 124, 126, 178, 299, and 300, or for the period during which they are absent for other reasons;

b) for the period of performing temporary work of up to two months;

b1) for the period of performing seasonal work, which, due to climatic conditions, can only be carried out during a specific time of the year;

c) with persons seconded to work abroad;

c1) with foreign nationals employed in the labour market of the Republic of Moldova, except for foreigners with a permanent or temporary residence permit for family reunification;

c2) with refugees employed in the labour market of the Republic of Moldova for the period of carrying out temporary or permanent work;

d) for the period of an internship or professional training of an employee at another undertaking;

e) with persons studying at full-time educational institutions;

f) with retired persons, in accordance with the applicable legislation, due to age limit or length of service (or who have acquired the right to a pension due to age limit or length of service) and are not employed – for a period of up to two years, which may be extended upon expiry under the conditions of Article 54(2) and Article 68(1) and (2)(a);

g) with research fellows in research and development institutions, with teaching staff and rectors of higher education institutions, as well as with the heads of preschool, primary, secondary general, special complementary, artistic, sports, vocational, and specialised secondary education institutions, based on the results of a competition conducted in accordance with the applicable legislation;

h) upon the election of employees, for a fixed period, to elective positions in central and local public authorities, as well as in trade union, employer, other non-commercial organisations, and commercial companies;

i) with the heads of undertakings, their deputies, and chief accountants of undertakings;

j) – repealed;

k) for the period of performing a specific work;

k1) for the period of implementing an investment project or a technical and financial assistance programme;

k2) for performing work related to an increase in the volume of production or services provided, whose temporary nature (up to one year) can be justified by the employer;

k3) with persons employed at undertakings established for a fixed period;

l) with creative workers in the fields of arts and culture;

m) with employees of religious associations;

m1) with employees working in the field of information and communication technology;

n) in other cases provided by the applicable legislation.

(2) In the cases listed in paragraph (1)(c1), (c2), (e), (g), (i), (l), and (m), the conclusion of a fixed-term individual employment contract or the extension of an existing contract for a fixed term will only be permitted when establishing a permanent employment relationship is not possible due to objective reasons (such as the availability of full-time students only during holiday periods, the existence of organic laws allowing or prescribing the employment of certain employees for a fixed term, etc.). These reasons, along with the legal basis for limiting the duration of the employment relationship, must be specified in the contract or in an additional agreement thereto.

(3) Between the same parties, no more than three consecutive fixed-term individual employment contracts may be concluded, except in the cases provided for in paragraph (1)(a), (b), (c1), and (h), which cumulatively will not exceed 60 months.

(4) Fixed-term individual employment contracts will be considered consecutive if the interval between them is less than three months.

Article 551. Guarantees for Employees Hired on a Fixed-Term Basis

(1) Less favorable treatment of employees hired on a fixed-term basis compared to permanent employees performing equivalent work at the same unit will not be permitted if such treatment is based exclusively on the duration of the employment relationship and lacks an objective justification.

(2) The prohibition set out in paragraph (1) will apply at least to:

a) the length of service required for occupying certain positions;
b) training opportunities;
c) the possibility of securing a permanent position within the unit.

(3) To ensure equal access to employment, the length of service required for occupying a position will be the same for both employees hired on an indefinite basis and those hired on a fixed-term basis.

(4) In order to improve professional skills, career development, and job mobility of employees hired on a fixed-term basis, the employer will facilitate their access to appropriate vocational training opportunities in accordance with the provisions of this Code (Title VIII).

(5) The employer will inform employees hired on a fixed-term basis about vacancies within the unit within 5 working days of their occurrence so that such employees may apply for permanent positions on equal terms with other employees. Information on vacancies will be communicated to employees and their representatives at the unit level by means of:

a) an announcement sent via email or another communication method accessible to all employees; and/or
b) a public announcement posted on the unit’s website, where applicable; and/or
c) a public announcement displayed on an information board with general access at the unit’s headquarters, including at each of its branches or representative offices.

Chapter II
CONCLUSION AND PERFORMANCE OF THE INDIVIDUAL EMPLOYMENT CONTRACT

Article 56. Conclusion of the Individual Employment Contract

(1) The individual employment contract will be concluded based on negotiations between the employee and the employer. The conclusion of the individual employment contract may be preceded by specific circumstances (such as passing a competitive examination, election to a position, etc.).

(2) An employee has the right to conclude individual employment contracts simultaneously with multiple employers (concurrent employment) unless such employment is prohibited by applicable legislation.

(3) The individual employment contract will be signed by the parties:

a) either with a handwritten signature – in two copies, one of which is handed to the employee and the other kept by the employer;
b) or with a qualified advanced electronic signature – if the parties to the individual employment contract have agreed to conclude it through the exchange of electronic documents.

Article 57. Documents to Be Presented Upon Conclusion of the Individual Employment Contract

(1) When concluding an individual employment contract, the person being employed will present the following documents to the employer:

a) identity card or another identity document;
b) – repealed;
c) – repealed;
d) diploma, qualification certificate confirming specialized training – for professions requiring specific knowledge or skills;
e) medical certificate, in cases provided by applicable legislation;
f) a declaration on own responsibility stating that, during previous employment, they have not violated the provisions of Article 6(2) of Law No. 325 of 23 December 2013 on institutional integrity assessment, except in cases where the person is entering the labor market for the first time.

(2) Employers are prohibited from requesting any documents from job applicants other than those specified in paragraph (1) or in other legislative acts.

Article 58. Form and Commencement of the Individual Employment Contract

(1) The individual employment contract will be concluded in written form. An individual employment contract concluded before the entry into force of this Code may be formalized in written form only with the agreement of both parties. The employer’s proposal to formalize the individual employment contract in written form will be communicated to the employee in a manner that allows for confirmation of receipt/notification, either by signature or by another method, through an order (instruction, decision, resolution) issued by the employer. The employee’s proposal to formalize the individual employment contract in written form will be communicated to the employer by submitting and registering a written request. A motivated refusal by either party to formalize the individual employment contract in written form will be communicated to the other party in writing within 5 working days.

(2) The individual employment contract will take effect from the date of its signing, unless otherwise provided by the contract.

(3) If the individual employment contract has not been formalized in written form, it will be deemed concluded for an indefinite period and will take effect from the day the employee was admitted to work by the employer or by another responsible person within the unit authorized to hire personnel. If the employee proves that they have been admitted to work, the employer will be obliged to subsequently formalize the individual employment contract in written form.

(4) In the case of employment without the appropriate written form, the employer will also be obliged to formalize the individual employment contract in accordance with the provisions of this Code, based on the inspection report issued by the labor inspector.

Article 59. – repealed.

Article 60. Probation Period

(1) To assess the employee’s professional skills, a probation period of up to 6 months may be established upon conclusion of the individual employment contract. For unskilled workers, the probation period will be established as an exception and may not exceed 30 calendar days.

(2) The probation period will not include any time during which the employee is on medical leave or other justified absences confirmed by official documents.

(3) The probation period clause must be stipulated in the individual employment contract. In the absence of such a clause, the employee will be considered hired without a probation period.

(4) During the probation period, the employee will be entitled to all rights and will fulfill all obligations provided for by labor legislation, the unit’s internal regulations (if drafted and approved by the employer), the collective agreement, and the individual employment contract.

(5) Only one probation period may be established for the duration of the individual employment contract.

Article 61. Probation Period for Employees Hired Under a Fixed-Term Individual Employment Contract

Employees hired under a fixed-term individual employment contract may be subject to a probation period not exceeding:

a) 15 calendar days for an individual employment contract with a duration between 3 and 6 months;
b) 30 calendar days for an individual employment contract with a duration exceeding 6 months.

Article 62. Prohibition of the Probation Period

The application of a probation period is prohibited in the case of concluding an individual employment contract with:

a) – repealed;
b) persons under the age of 18;
c) persons hired through a competition, under special laws, unless otherwise provided;
d) persons transferred from one unit to another;
e) pregnant women;
f) – repealed;
g) persons elected to elective positions;
h) persons hired under an individual employment contract with a duration of up to 3 months;
i) – excluded.

Article 63. Outcome of the Probation Period

(1) If, during the probation period, the individual employment contract has not been terminated on the grounds provided by this Code, the contract will continue, and its subsequent termination will take place on general grounds.

(2) If the result of the probation period is unsatisfactory, this will be recorded in the order (instruction, decision, resolution) on the employee’s dismissal, issued by the employer before the expiration of the probation period, without the payment of severance compensation. The employer is not required to justify the decision regarding the unsatisfactory outcome of the probation period. The employee has the right to challenge the dismissal in court.

Article 64. – repealed.

Article 65. Formalization of Employment Documents

(1) Based on the individual employment contract negotiated and signed by the parties, the employer may issue an order (instruction, decision, resolution) on employment.

(2) If the employer has issued an order (instruction, decision, resolution) on employment, it will be communicated to the employee, either by signature or by another method allowing confirmation of receipt/notification, within 3 working days from the date of signing the individual employment contract by the parties. At the written request of the employee, the employer is required to provide them with a certified copy of the order (instruction, decision, resolution) within 3 working days.

Article 66. – repealed.

Article 67. Certificate on Employment and Salary

The employer is required to issue, free of charge, an employment certificate to the employee within 3 working days upon their written request, indicating the specialty, qualification, position, duration of employment, and salary amount.

Chapter III

AMENDMENT OF THE INDIVIDUAL EMPLOYMENT CONTRACT

Article 68. Amendment of the Individual Employment Contract

(1) The individual employment contract may be amended through a supplementary agreement signed by the parties, including by using a qualified advanced electronic signature. The supplementary agreement is an integral part of the individual employment contract.

(2) Any modification or addition affecting at least one of the clauses provided for in Article 49 paragraph (1) will be considered an amendment to the individual employment contract.

(3) – repealed.

Article 69. Temporary Change of Workplace

(1) By derogation from the provisions of Article 68 paragraph (1), the employee’s workplace may be temporarily changed by the employer without amending the individual employment contract in the case of a business trip or secondment in accordance with Articles 70 and 71.

(2) During the business trip or secondment to another workplace, the employee retains their position, average salary, and other rights provided for in the collective and individual employment contracts.

Article 70. Sending on a Business Trip

An employee may be sent on a business trip for a period of no more than 60 calendar days, in the manner and under the conditions provided for in Articles 174-176. This period may be extended for up to one calendar year only with the written consent of the employee.

Article 71. Secondment

(1) Secondment may only be ordered with the written consent of the employee for a period of no more than one year and is carried out under a separate fixed-term individual employment contract.

(2) If necessary, the period of secondment may be extended, by agreement of the parties, for a further period of no more than one year.

(3) For certain categories of employees (Article 302), secondment may be ordered for a period longer than that specified in paragraph (1).

(4) A seconded employee is entitled to reimbursement of transportation and accommodation expenses, as well as a special allowance in accordance with current legislation, the collective agreement, and/or the individual employment contract.

(5) The nature of the work may also be modified through secondment, but only with the written consent of the employee.

Article 72. Remuneration in Case of Secondment

(1) Remuneration, in the case of secondment, will be paid by the unit where the employee will work. If this unit is unable to pay, the obligation to remunerate the work performed falls on the unit that ordered the secondment, with the right of recourse against the unit where the employee was seconded.

(2) If, at the new workplace, the remuneration conditions or rest periods differ from those enjoyed by the employee at the unit that ordered the secondment, the more favorable conditions will apply to the employee.

Article 73. Temporary Change of Workplace and Nature of Work

(1) In the event of a situation provided for in Article 104 paragraph (2) letters a) and b), the employer may temporarily change, for a period of no more than one month, the workplace and nature of the employee’s work without the employee’s consent and without making the respective changes to the individual employment contract.

(2) In the event of the employee’s inability to perform work at the workplace organized by the employer and for the purpose of protecting the employee’s safety and health during exceptional situations related to the declaration of a state of emergency, siege, war, or a public health emergency, the employer, depending on the nature of the employee’s work, may order, by a motivated order (directive, decision, resolution), the temporary change of the employee’s workplace to work from home or remotely, without making the respective changes to the individual employment contract. The order (directive, decision, resolution) will be communicated to the employee in a timely manner, including through electronic means.

Article 74. Transfer to Another Job

(1) The transfer of an employee to another permanent job within the same unit, with the amendment of the individual employment contract in accordance with Article 68, as well as hiring by transfer to a permanent job at another unit or transfer to another locality together with the unit, will only be permitted with the written consent of the parties.

(2) An employee who, according to the medical document (certificate/certification/act, etc.) issued by the competent medical authority (institution), requires lighter work will be transferred, with their written consent, to another job that is not contraindicated for them. If the employee refuses this transfer, the individual employment contract will be terminated in accordance with the provisions of Article 86 paragraph (1) letter x). If a suitable job is not available, the individual employment contract will be terminated under Article 86 paragraph (1) letter d).

(21) With the written consent of the parties, based on the order issued by the employer, the employee may be temporarily transferred to another job within the same unit for a period of up to one month, with the possibility of extending this period to one year.

(22) In the case of a transfer under the conditions of paragraph (21), the employer will retain the employee’s position held prior to the transfer.

(3) In the case of a transfer under the conditions of paragraphs (1), (2), and (21), the parties will make the necessary amendments to the individual employment contract in accordance with Article 68, based on the order (directive, decision, resolution) issued by the employer, which will be communicated to the employee, under signature or by another method that allows confirmation of receipt/notification, within 3 working days.

(4) – repealed.

Chapter IV

SUSPENSION OF THE INDIVIDUAL EMPLOYMENT CONTRACT

Article 75. General Provisions

(1) Suspension of the individual employment contract may occur in circumstances beyond the control of the parties, by mutual agreement of the parties, or at the initiative of one of the parties.

(2) Suspension of the individual employment contract entails the suspension of the employee’s work performance and the employer’s payment of salary rights (salary, allowances, other payments).

(3) Throughout the suspension of the individual employment contract, the rights and obligations of the parties, except for those provided for in paragraph (2), will continue to exist unless otherwise provided by current normative acts, collective agreements, the collective labor agreement, and the individual employment contract.

(4) Suspension of the individual employment contract and resumption of work, except for the cases provided for in Article 76 letters a), b), and d) and Article 78 paragraph (1) letters d1) and e), will be done by the employer’s order (directive, decision, resolution), which will be communicated to the employee, under signature or by another method that allows confirmation of receipt/notification, no later than the date of suspension of the individual employment contract or resumption of work.

Articolul 76. Suspension of the individual employment contract in circumstances beyond the parties’ control

The individual employment contract will be suspended in circumstances beyond the parties’ control in the event of:

a) maternity leave;

b) illness or injury;

c) – excluded;

d) imposition of quarantine, based on the medical leave certificate issued to the employee in accordance with the legislation;

e) conscription into military service, into short-term military service, or into civil service;

f) force majeure, confirmed in the established manner, which does not require the termination of the employment relationship;

g) referral to court of the criminal case concerning the commission by the employee of an offence incompatible with the work performed, until the court decision becomes final;

h) failure, due to the employee’s fault, to undergo the required medical examination within the prescribed period;

i) detection, based on a medical document (certificate/attestation/act, etc.) issued by the competent medical authority (institution), of contraindications preventing the performance of the work specified in the individual employment contract;

j) request of control or law enforcement bodies, in accordance with the applicable legislation;

k) reporting to work in a state of alcohol intoxication or under the influence of narcotic or toxic substances, as established by a certificate issued by the competent medical institution or by the report of a commission composed of an equal number of representatives of the employer and the employees;

l) participation in a strike, declared in accordance with this code;

m) temporary establishment of a degree of disability as a result of an occupational accident or a work-related disease; as well as

n) other cases provided by the applicable legislation.

Articolul 761. Work activity during maternity leave

(1) During maternity leave, by way of derogation from Article 76(a), the employee has the right to continue or resume work based on a written request, accompanied by a medical opinion on her health condition, issued by the healthcare institution where she is registered, and with the employer’s consent. The period during which the employee continues or resumes work during prenatal leave will not exceed 36 weeks of pregnancy, as determined by the order (instruction, decision, resolution) issued by the employer upon receipt of the employee’s request.

(2) At the written request of the employee who carries out work activity during maternity leave, submitted before the expiry of the period provided in paragraph (1) of this article, the individual employment contract will be suspended by order (instruction, decision, resolution) of the employer from the date of the request, with the subsequent application of the conditions set out in Article 76(a).

Articolul 77. Suspension of the individual employment contract by mutual agreement

The individual employment contract will be suspended by mutual agreement of the parties, expressed in writing, in the event of:

a) granting of unpaid leave for a period longer than one month;

b) participation in a professional training or internship course requiring absence from work for a period longer than 60 calendar days;

c) technical unemployment;

d) care of a sick child under the age of 10;

e) – repealed;

e1) secondment;

f) other cases provided by the applicable legislation.

Articolul 78. Suspension of the individual employment contract at the initiative of one of the parties

(1) The individual employment contract will be suspended at the initiative of the employee in the event of:

a) leave for childcare up to the age of 4;

b) leave for caring for a sick family member for up to two years, based on a medical certificate;

b1) leave for the care of a child with disabilities for up to two years;

b2) unpaid leave for the care of a person residing in the same household as the employee for a period of up to 5 working days in a calendar year;

c) participation in a professional training course outside the unit, in accordance with Article 214(3);

d) holding an elective position in public authorities, trade union bodies, or employer organizations;

d1) non-payment or partial payment, for at least two consecutive months, of the salary or other mandatory payments;

e) unsatisfactory working conditions from an occupational safety perspective; as well as

f) other reasons provided by legislation.

(2) The individual employment contract may be suspended at the initiative of the employer:

a) during an internal investigation, conducted in accordance with this code;

a1) for the period of the employee’s absence from work for up to 30 days if the employer has not been informed of the reason for the absence;

b) – excluded;

c) other cases provided by legislation.

(3) In the cases provided in paragraph (1)(d1) and (e), the employee will notify the employer in writing of the date of suspension of the individual employment contract.

(4) The employer is not entitled to hire other employees to replace those whose individual employment contracts have been suspended under the grounds set out in paragraph (1)(d1) and (e).

(5) In cases of suspension of the individual employment contract under the grounds set out in paragraph (1)(d1) and (e), the employee is required to resume work within a maximum of 3 working days from the moment of:

a) elimination of the life or health hazard;

b) payment of salary, other mandatory payments, or notification of the transfer of such payments to the bank card.

Articolul 781. Granting of leave to employees in the event of the suspension of in-person educational activities

(1) In the event of the suspension, under exceptional circumstances, of in-person educational activities in educational institutions, along with the implementation of special measures by the competent authorities to ensure the security, protection of life, and health of the population, leave will be granted to one of the parents or the guardian for the supervision of children for the entire duration of the suspension of in-person educational activities, with the employer’s consent, and with payment of an allowance equal to at least 50% of the employee’s basic salary.

(2) The provisions of paragraph (1) will apply to:

a) parents or guardians of children under the age of 12 enrolled in an educational institution;

b) parents or guardians of children with disabilities enrolled in an educational institution.

(3) Leave will be granted upon written request by one of the parents or the guardian, accompanied by a sworn declaration signed by both parents, except in the case of single-parent families, or by the guardian who will supervise the child during the specified period.

(4) In families with multiple children who meet the requirements set out in this article, only one parent will be entitled to the leave.

(5) If, following verification, it is found that both parents have simultaneously benefited from the leave, the possibility of further receiving the allowance provided under this article will be revoked.

(6) The allowance provided under this article will be paid by the employer. In certain cases, the allowance may be fully or partially covered by the state budget, as determined by the Government.

Articolul 79. Resolution of disputes related to the suspension of the individual employment contract

Disputes related to the suspension of the individual employment contract will be resolved in accordance with Articles 354–356.

Articolul 80. Technical unemployment

(1) Technical unemployment refers to the temporary impossibility of continuing activity by the employer, the unit, or an internal subdivision thereof:

a) for objective economic reasons;

b) as a result of the declaration of a state of emergency, siege, or war;

c) as a result of restrictions imposed during a public health emergency.

(2) The duration of technical unemployment established under paragraph (1)(a) may not exceed 4 months in a calendar year.

(3) During technical unemployment, employees will remain at the employer’s disposal, and the employer may order the resumption of activity at any time.

(4) During the period of technical unemployment, employees will receive a monthly allowance of no less than 50% of their basic salary, except in cases of suspension of the individual employment contract under Article 77(c).

(4¹) In the event of technical unemployment established under paragraph (1)(b) and (c), the allowance may be fully or partially covered by the state budget, as determined by the Government.

(4²) If the technical unemployment allowance is paid from the state budget, the positions occupied by the employees for whom these allowances were paid may not be reduced for a period at least equal to the duration of technical unemployment for which the allowances were paid, except in cases of insolvency.

(5) The manner in which employees fulfill their obligation to remain at the employer’s disposal, as well as the exact amount of the allowance received during technical unemployment, will be determined by the employer’s order (instruction, decision, resolution), by the collective labor contract, and by collective agreements.

Articolul 801. Work stoppage

(1) Work stoppage refers to the temporary impossibility of continuing production activity by the unit, an internal subdivision(s) thereof, an employee, or a group of employees and may occur:

a) due to reasons beyond the employer’s or employee’s control;

b) due to the employer’s fault;

c) due to the employee’s fault.

(2) Remuneration for work stoppage due to reasons beyond the employer’s or employee’s control, except for the period of technical unemployment (Article 80), will be at least 2/3 of the basic salary per unit of time established for the employee, but not less than the minimum wage per unit of time established by the applicable legislation, for each hour of work stoppage.

(3) In the event of work stoppage caused by the employer’s fault, except for the period of technical unemployment (Article 80), the employer will be required to compensate the employee for the unpaid salary.

(4) An employee responsible for causing the work stoppage will not be remunerated for the hours of stoppage.

(5) The procedure for recording work stoppages and the exact amount of remuneration will be determined, as appropriate, in the collective and/or individual employment contract or in the unit’s internal regulations, if drafted and approved by the employer.

Chapter V TERMINATION OF THE INDIVIDUAL EMPLOYMENT CONTRACT

Article 81. Grounds for termination of the individual employment contract

(1) The individual employment contract may terminate:

a) in circumstances beyond the control of the parties (Articles 82, 305, and 310);

a¹) by written agreement of the parties (Article 821);

b) at the initiative of one of the parties (Articles 85 and 86).

(2) In all cases mentioned in paragraph (1), the termination date of the individual employment contract will be considered the employee’s last working day.

(3) The individual employment contract will terminate based on the employer’s order (instruction, decision, resolution), which will be communicated to the employee either in writing, with acknowledgment of receipt, or by any other means that confirms notification, no later than the date of dismissal, except in cases where the employee is not working on the day of dismissal (unauthorized absence, imprisonment, etc.). The employer’s order (instruction, decision, resolution) regarding the termination of the individual employment contract must refer to the corresponding article, paragraph, point, and letter of the law.

Article 82. Termination of the individual employment contract in circumstances beyond the control of the parties

The individual employment contract will terminate in circumstances beyond the control of the parties in the event of:

a) the employee’s death, a court ruling declaring the employee deceased or missing without a trace;

b) the employer’s death (if a natural person), a court ruling declaring the employer deceased or missing without a trace;

c) a court ruling declaring the contract null and void—effective from the date the ruling becomes final, except in the cases provided for in Article 84(3);

d) the revocation of the unit’s activity authorization (license) by the competent authorities—effective from the date of revocation;

d¹) the revocation of the employee’s authorization (license), permit, or other document granting the right to practice a specific profession, trade, or perform a certain type of work—effective from the date of revocation;

e) the imposition of a criminal penalty on the employee, through a court ruling, which prevents the employee from continuing work at the unit—effective from the date the court ruling becomes final;

f) the expiration of a fixed-term individual employment contract—effective on the date specified in the contract, except where the employment relationship continues in practice and neither party has requested its termination, as well as in the case provided for in Article 83(3);

g) the completion of the work specified in the fixed-term individual employment contract concluded for the duration of a specific task;

h) the end of the season, in the case of a fixed-term individual employment contract for seasonal work;

i) the attainment of the age of 65 by the head of a state-owned, including municipal, unit or a unit with a majority state shareholding;

j) force majeure, duly confirmed, which makes it impossible to continue the employment relationship;

j¹) the reinstatement of the previous holder of the position, by court decision, if the transfer of the employee to another job in accordance with this code is not possible;

k) other grounds provided for in Articles 305 and 310.

Note:
Persons dismissed under letter (i) may be re-employed on a fixed-term basis under Article 55(f), in any position other than that of the head of a state-owned, including municipal, unit or a unit with a majority state shareholding.

Article 821. Termination of the individual employment contract by written agreement of the parties

The individual employment contract may terminate at any time by written agreement of the parties.

Article 83. Termination of a fixed-term individual employment contract

(3) A fixed-term individual employment contract concluded for the period covering the duties of an employee whose individual employment contract is suspended or who is on the corresponding leave (Article 55(a)) will terminate on the day the respective employee returns to work.

(1) – repealed.

(2) – repealed.

(4) If, upon the expiration of the fixed-term individual employment contract, neither party requests its termination and the employment relationship continues in practice, the contract will be considered extended for an indefinite period.

(5) A fixed-term individual employment contract may terminate before the agreed term in the cases provided for in Articles 82, 821, 85, and 86.

Article 84. Nullity of the individual employment contract

(1) Failure to comply with any of the conditions established by this Code for concluding the individual employment contract will result in its nullity.

(2) The declaration of nullity of the individual employment contract will produce effects for the future.

(3) The nullity of the individual employment contract may be remedied by fulfilling the corresponding conditions imposed by this Code.

(4) If a clause of the individual employment contract is null because it establishes rights for the employee below the limits imposed by legislation, collective agreements, or the collective labour contract, it will be automatically replaced by the applicable minimum legal, conventional, or contractual provisions.

(5) The nullity of the individual employment contract will be established by a court ruling.

(6) An employee who has performed work under an individual employment contract declared null will be entitled to remuneration for the work performed.

Article 85. Resignation

(1) The employee is entitled to resign—terminate the individual employment contract, except as provided in paragraph (41), on their own initiative, by notifying the employer in writing at least 14 calendar days in advance. The mentioned period will start on the day following the registration of the resignation request.

(2) In case of an employee’s resignation due to retirement, determination of disability, childcare leave, enrolment in an educational institution, relocation to another locality, childcare up to the age of 14 or for a child with disabilities, election to an elective office, employment through a competition at another unit, or the employer’s violation of the individual and/or collective labour contract or of labour legislation in force, the employer will be obliged to accept the resignation within the reduced period indicated in the submitted and registered request, to which the relevant supporting document will be attached.

(3) After the expiry of the periods indicated in paragraphs (1), (2), and (41), the employee is entitled to cease work, and the employer will be obliged to fully pay the employee’s due salary entitlements within the deadlines set out in Article 143 and to issue the documents related to the employee’s activity in the unit.

(31) The individual employment contract may be terminated by written agreement of the parties before the expiry of the periods indicated in paragraphs (1), (2), and (41).

(4) Within 7 calendar days from the date of submission of the resignation request, the employee is entitled to withdraw the request or to submit a new request cancelling the first one. In this case, the employer may only dismiss the employee if, prior to the withdrawal (cancellation) of the submitted request, an individual employment contract has been concluded with another employee under the conditions of this Code.

(41) The head of the unit (branch or representative office), their deputies, and the chief accountant is entitled to resign by notifying the employer in writing at least one month in advance.

(5) If, after the expiry of the periods indicated in paragraphs (1), (2), and (41), the employee has not actually been dismissed and continues to work without reaffirming in writing the intention to terminate the individual employment contract, dismissal will not be permitted.

Article 86. Dismissal

(1) Dismissal—the termination of the individual employment contract at the initiative of the employer, whether for an indefinite or fixed term—will be permitted on the following grounds:

a) unsatisfactory performance during the probation period (Article 63(2));

b) liquidation of the unit or cessation of activity of the employer as a natural person;

c) reduction of the number of staff positions in the unit;

d) determination that the employee is unfit for the position held or the work performed due to health reasons, based on a medical document (certificate, attestation, report, etc.) issued by the competent medical authority (institution);

e) repeated failure to meet individual performance indicators over the course of a year. Dismissal may only be ordered after the prior evaluation of the employee according to the assessment procedure established by the applicable collective agreement, collective labour contract, or, in their absence, the unit’s internal regulations, if developed and approved by the employer in compliance with the general provisions of this law, provided that the employer has given the employee appropriate instructions, issued a written warning, and allowed the employee a reasonable period for improvement;

f) change of ownership of the unit (applicable to the head of the unit, their deputies, and the chief accountant);

g) repeated breaches of work obligations over a year, if the employee has previously been subject to disciplinary sanctions;

h) absence from work without valid reasons for at least 4 consecutive hours (excluding the lunch break) during the working day for employees with a daily working time of at least 8 hours per day, or for at least half of the daily working time for employees with a daily working time shorter or longer than 8 hours per day;

i) reporting to work under the influence of alcohol, narcotic, or toxic substances, as established under Article 76(k);

j) commission of a contravention or criminal offence against the unit’s assets, as established by a court ruling or an act issued by the competent authority responsible for imposing contravention sanctions;

k) culpable actions by an employee who directly manages cash or material assets or has access to the employer’s information systems (information collection and management systems) or those administered by the employer, if such actions justify a loss of trust in the employee;

k1) violation of the obligation set out in Article 7(2)(a) of Law No. 325 of 23 December 2013 on the assessment of institutional integrity;

l) repeated serious breaches of the educational institution’s statute over a year by a teaching staff member (Article 301);

m) commission of an immoral act by an employee performing educational functions, incompatible with the position held;

n) application, even once, of physical or psychological violence by a teaching staff member against students (Article 301);

o) signing by the head of the unit (branch, subdivision), their deputies, or the chief accountant of an unfounded legal act causing pecuniary loss to the unit;

p) serious breach, even once, of work obligations;

r) submission of false documents by the employee to the employer upon conclusion of the individual employment contract (Article 57(1)), as duly confirmed;

s) conclusion, for employees working concurrently, of an individual employment contract with another person who will exercise the same profession, speciality, or function as a primary job (Article 273);

t) – repealed;

u) transfer of the employee to another unit with the consent of the transferred employee and both employers;

v) refusal of the employee to continue working due to a change of ownership of the unit, its reorganisation, or its transfer under the subordination of another authority;

x) refusal of the employee to be transferred to another position for health reasons, as evidenced by a medical certificate (Article 74(2));

y) refusal of the employee to be relocated to another locality due to the transfer of the unit to that locality (Article 74(1)); as well as

y1) the employee holding the status of a retiree for age limit;

z) other grounds provided by this Code and other legislative acts.

Note: Employees dismissed under letter (y1) may be employed on a fixed-term basis under Article 55(f).

(2) Dismissal of an employee will not be permitted during their medical leave, annual leave, study leave, maternity leave, paternity leave, partially paid childcare leave up to the age of 3, unpaid additional childcare leave for a child aged 3 to 4, leave for the care of a sick family member, leave for the care of a child with disabilities, the period of performing state or public duties, or the period of secondment, except in cases of liquidation of the unit.

Article 87. Procedure for Requesting the Consultative Opinion of the Trade Union Body in Case of Dismissal

(1) When dismissing employees who are trade union members, the employer will request in advance the consultative opinion of the trade union body within the unit by notifying the respective body.

(2) When dismissing persons elected to trade union bodies who have not been released from their primary workplace, the employer will request in advance the consultative opinion of the trade union body of which the respective persons are members, through a notification justifying the intention.

(3) When dismissing the leaders of the primary trade union organization (trade union organizers) who have not been released from their primary workplace, the employer will request in advance the consultative opinion of the hierarchically superior trade union body, through a notification justifying the intention.

(4) The trade union bodies indicated in paragraphs (1)–(3) will submit their opinion within 10 working days from the date of receipt of the notification.

Article 88. Procedure for Dismissal in Case of Liquidation of the Unit, Reduction in Staff Numbers or Positions

(1) An employer is entitled to dismiss employees of the unit due to its liquidation or due to a reduction in staff numbers or positions (Article 86(1)(b) and (c)) only if:

a) a legally or economically justified order (instruction, decision, resolution) is issued regarding the liquidation of the unit or the reduction in staff numbers or positions;

b) an order (instruction, decision, resolution) is issued regarding the giving of an advance notice to the concerned employees at least 2 months before the liquidation of the unit or the reduction in staff numbers or positions provided the notice is signed by the employee or there is another confirmation as receipt/notification. In case of staff number or position reductions, only the employees whose jobs are to be eliminated are to be notified;

c) at the time the giving of the advance notice regarding the reduction in staff numbers or positions, the employer must offer in writing an alternative position within the same unit to the notified employee (provided such a position exists in the unit and the notified employee meets the necessary requirements to fill it);

d) vacant positions will be eliminated first;

e) individual employment contracts will be terminated first with employees hired concurrently;

f) the dismissed employee will be granted one paid working day per week to seek new employment, with retention of its average salary;

g) the employer will submit, in the prescribed manner, information on the employees to be dismissed to the employment agency at least 2 months prior to dismissal;

h) the employer will request the consultative opinion of the trade union body (or organizer) regarding the dismissal of the respective employee;

i) – repealed.

(2) If, after the expiration of the 2-month notice period, no order (instruction, decision, resolution) for the employee’s dismissal has been issued, this procedure may not be repeated within the same calendar year. The notice period will not include the employee’s annual leave, study leave, or medical leave.

(3) A reduced position may not be reinstated in the unit’s staff structure during the calendar year in which the dismissal of the employee occupying that position occurred.

(4) In the event of unit liquidation, the employer will be required to comply with the dismissal procedure set out in paragraph (1)(a), (b), (f), (g), and (i).

Article 881. Procedure for Dismissal Due to Transfer to Another Unit

(1) The employer is entitled to dismiss employees due to their transfer to another unit (Article 86(1)(u)) only if:

a) a written request is received from another employer requesting the dismissal by transfer of a specific employee, indicating the position being offered at the new unit;

b) – repealed;

c) the written consent of the employee for dismissal is obtained;

d) on the day of termination, the employer will pay the dismissed employee all amounts due (salary, compensation for unused leave, etc.).

(2) Before providing written consent for dismissal, the employee may request an employment offer from the new employer, which will include all the terms of the future individual employment contract.

(3) The employment offer will be provided to the employee in writing and will remain irrevocable for the period specified therein.

(4) The refusal to hire a dismissed employee due to their transfer to another unit will be prohibited if the transfer was agreed upon by the employee and both employers.

Article 89. Reinstatement to the Workplace

(1) An employee who has been unlawfully transferred to another job or dismissed from service may be reinstated to their workplace through direct negotiations with the employer, and in the event of a dispute, by a court decision.

(2) When examining an individual labor dispute, the court will require the employer to prove the legality and provide the grounds for the transfer or dismissal of the employee. In the case of a challenge by a union member employee regarding the dismissal order, the court will request the advisory opinion of the trade union body (organizer) regarding the dismissal of the respective employee.

(3) Immediately after the court decision on the employee’s reinstatement to the workplace is issued, the employer is required to issue a reinstatement order, which will be communicated to the employee, under signature or by another method that allows confirmation of receipt/notification, within 3 working days from the date of issuance.

Article 90. Liability of the Employer for Unlawful Transfer or Dismissal

(1) In the case of reinstatement to the workplace of an employee who has been unlawfully transferred or dismissed from service, the employer is required to compensate for the loss caused to the employee.

(2) The employer’s compensation for the loss caused to the employee consists of:

a) mandatory payment of compensation for the entire period of forced absence from work in an amount not exceeding 12 average monthly salaries of the employee in the case of unlawful transfer or dismissal;

b) reimbursement of additional expenses related to challenging the transfer or dismissal (consultation of specialists, court costs, etc.);

c) compensation for moral loss caused to the employee.

(3) The amount of compensation for moral loss will be determined by the court, taking into account the assessment of the employer’s actions, but it will not be less than one average monthly salary of the employee.

(4) Instead of reinstatement to the workplace, the parties may conclude a settlement agreement, and in the event of a dispute, the court may, with the employee’s consent, order the employer to pay the employee an additional compensation to the amounts indicated in paragraph (2) in an amount of at least 3 average monthly salaries of the employee.

Chapter VI

PROTECTION OF EMPLOYEE PERSONAL DATA

Article 91. General Requirements for the Processing of Employee Personal Data and Guarantees Regarding Their Protection

In order to ensure the rights and freedoms of individuals and citizens, in the process of processing employee personal data, the employer and its representatives are obliged to comply with the following requirements:

a) the processing of employee personal data may only be carried out for the purpose of fulfilling the provisions of current legislation, providing employment assistance, training and career advancement, ensuring the personal safety of the employee, monitoring the volume and quality of work performed, and ensuring the integrity of the unit’s assets;

b) when determining the volume and content of employee personal data to be processed, the employer must be guided by current legislation;

c) all personal data must be obtained from the employee or from the source indicated by the employee;

d) the employer is not entitled to obtain and process data regarding the political and religious beliefs of the employee, as well as their private life. In cases provided by law, the employer may request and process data about the employee’s private life only with the employee’s written consent;

e) the employer is not entitled to obtain and process data regarding the employee’s membership in trade unions, public and religious associations, political parties, and other socio-political organizations, except in cases provided by law;

f) when making a decision that affects the interests of the employee, the employer is not entitled to rely on the employee’s personal data obtained solely through automated or electronic processing;

g) the protection of employee personal data against illegal use or loss is ensured at the employer’s expense;

h) employees and their representatives must be familiarized, under signature or by another method that allows confirmation of receipt/notification, with documents regarding the processing and storage of employee personal data within the unit and must be informed of their rights and obligations in this area;

i) employees must not waive their rights regarding the storage and protection of personal data;

j) employers, employees, and their representatives must jointly develop measures to protect employee personal data.

Article 92. Transmission of Employee Personal Data

When transmitting employee personal data, the employer must comply with the following requirements:

a) not to disclose employee personal data to third parties without the employee’s written consent, except in cases where this is necessary to prevent a danger to the life or health of the employee, as well as in cases provided by law;

b) not to disclose employee personal data for commercial purposes without the employee’s written consent;

c) to inform the recipients of employee personal data that such data may only be used for the purposes for which they were disclosed and to require the recipients to confirm in writing their compliance with this rule. Recipients of employee personal data are obliged to maintain confidentiality, except in cases provided by law;

d) to allow access to employee personal data only to authorized persons, who, in turn, are entitled to request only the personal data necessary for the performance of specific duties;

e) not to request information regarding the employee’s health status, except for data related to the employee’s ability to perform their work duties;

f) to transmit employee personal data to employee representatives in the manner provided by this Code and to limit this information only to the personal data necessary for the performance of their duties by the respective representatives.

Article 93. Employee rights regarding the protection of their personal data stored by the employer

For the purpose of ensuring the protection of their personal data stored by the employer, the employee has the right:

a) to receive full information about their personal data and the manner in which it is processed;

b) to have free and unrestricted access to their personal data, including the right to obtain a copy of any legal document containing their personal data, except in cases provided for by the applicable legislation;

c) to designate representatives for the protection of their personal data;

d) to access medical information concerning them, including through a medical professional of their choice;

e) to request the deletion or correction of incorrect and/or incomplete personal data, as well as of data processed in violation of the requirements of this code. If the employer refuses to delete or correct the incorrect personal data, the employee has the right to notify the employer in writing of their reasoned objection;

f) to challenge before a court any illegal actions or inactions of the employer related to the collection, storage, processing, and protection of the employee’s personal data.

Article 94. Liability for violating the rules regarding the collection, storage, processing, and protection of the employee’s personal data

Persons responsible for violating the rules regarding the collection, storage, processing, and protection of the employee’s personal data will be held liable in accordance with the applicable legislation.

Title IV

WORKING TIME AND REST TIME

Chapter I

WORKING TIME

Article 95. Concept of working time. Normal duration of working time

(1) Working time represents the time that the employee, in accordance with the internal regulations of the unit, if developed and approved by the employer, as well as with the individual and collective employment contracts, uses to fulfill their work obligations.

(2) The normal duration of employees’ working time in units will not exceed 40 hours per week.

(3) In exceptional situations related to the declaration of a state of emergency, siege, and war, or the declaration of a public health emergency, the competent authorities responsible for managing the respective state may establish a different working time duration for certain categories of employees.

Article 96. Reduced working time

(1) For certain categories of employees, depending on age, health condition, working conditions, and other circumstances, in accordance with the applicable legislation and the individual employment contract, a reduced working time will be established.

(2) The reduced weekly working time is as follows:

a) 24 hours for employees aged 15 to 16 years;

b) 35 hours for employees aged 16 to 18 years;

c) 35 hours for employees working under harmful conditions, as per the nomenclature approved by the Government.

(3) For certain categories of employees whose work involves increased intellectual and psycho-emotional effort, the working time will be established by the Government and will not exceed 35 hours per week.

(4) For persons with severe and accentuated disabilities (if they do not benefit from greater concessions), a reduced working time of 30 hours per week is established, without reducing salary rights and other rights provided by the applicable legislation.

Article 97. Part-time working time (fractional working time)

(1) The employer may employ employees on a part-time basis, with the specific duration of part-time working time recorded in the individual employment contract, in accordance with the provisions of Article 49 paragraph (1) letter l).

(2) Part-time working time may also be established after the conclusion of the individual employment contract, with the agreement of both parties. At the request of a pregnant woman, an employee who has children under the age of 10 or children with disabilities (including those under their guardianship), or an employee who cares for a sick family member, in accordance with a medical certificate, the employer is required to establish a part-time working day or week for them.

(3) Part-time work is remunerated proportionally to the hours worked or based on the volume of work performed.

Article 971. Guarantees for employees with part-time working hours

(1) Employees with part-time working hours will not be treated less favorably than full-time employees performing equivalent work at the same unit if such treatment is based solely on the daily or weekly working time duration and lacks objective justification.

(2) In the context of paragraph (1), working under part-time conditions does not limit the employee’s rights concerning the calculation of length of service, contribution period (except as provided by law), duration of annual leave, or any other labor rights.

(3) The employer will:

a) take measures to facilitate access to part-time work at all levels within the unit, including qualified and managerial positions;

b) ensure, in accordance with the provisions of Title VIII, access for part-time employees to vocational training that enhances their professional opportunities and mobility;

c) consider requests from employees to transfer from full-time to part-time work and vice versa or to increase their working hours if such an opportunity arises.

(4) To facilitate the transfers provided for in paragraph (3), the employer will inform employees of full-time and part-time vacancies within the unit within 5 working days from the date the vacancies arise. Information on vacancies will be communicated to employees and their representatives at the unit level through:

a) an announcement sent via email or another communication method accessible to each employee; and/or

b) a public announcement posted on the unit’s website, if applicable; and/or

c) a public notice displayed on an information board with general access at the unit’s headquarters and at each of its branches or representative offices.

Article 972. Reduced work regime

(1) The employer may establish a reduced work regime, distributing working hours within the week at the unit level, for at least 25% of the employees within the unit:

a) unilaterally, in case of a state of emergency, siege, or war, or in case of a public health emergency;

b) with the written consent of the affected employees, in case of adverse economic conditions, supply difficulties with raw materials or energy, exceptional weather conditions, transformation, restructuring, or modernization of the enterprise, or other exceptional circumstances, as determined by the Government.

(2) The reduced work regime may be established for a period of up to 3 consecutive months but not exceeding 5 months per year.

(3) In the case of applying the provisions of paragraph (1) letter b), the employer is required to request the consultative opinion of employee representatives regarding the establishment of the reduced work regime at least 5 working days before submitting the request for assistance for employees under a reduced work regime.

(4) The working time duration stipulated in the employee’s individual employment contract may be reduced under the conditions of this article by up to 50%, with the employee’s work being remunerated proportionally to the hours worked.

(5) Employees for whom a reduced work regime has been established, in accordance with this article, will benefit from assistance as determined by the Government.

(6) During the period of the reduced work regime established under this article, it is prohibited to hire employees to perform similar work to that performed by employees whose working time has been reduced.

(7) The employer will establish the reduced work regime after the decision to grant assistance to employees whose working time has been reduced has been adopted.

(8) The provisions of this article will not apply to the following categories of employers:

a) budget-funded institutions;

b) employers whose activity is suspended, undergoing insolvency, or liquidation proceedings;

c) employers who, at the date of submitting the request for assistance for employees under a reduced work regime, have outstanding debts to the national public budget exceeding the amount established by the Government.

(9) The provisions of this article will not apply to employees who:

a) perform additional work within the same unit or at another unit;

b) have not completed at least 6 months of contribution period in the public social security system within the last 24 calendar months preceding the date of registration of the request for assistance for employees under a reduced work regime;

c) are employed under part-time working hours.

(10) The request for a reduced work regime will not be admitted if a strike is declared at the unit level.

Article 973. Exemption of employees from work duties during the electoral period
(1) During the organization and conduct of elections under electoral legislation, an employee may request exemption from work duties based on a written request and a decision of the electoral authority. The exemption period will not exceed the term specified in the respective decision. During this period, the employee’s tasks and responsibilities at their permanent workplace will be fully or partially reduced.
(2) The exemption mentioned in paragraph (1) will be carried out in accordance with the Electoral Code, Law No. 158/2008 on public office and the status of public servants, and this Code.
(3) During the exemption period for organizing and conducting elections, employees in the public sector will retain their status, position, and salary at their permanent workplace. Employees in the private sector will be granted the same guarantees, except for salary payments, which will be determined by the employer’s order (instruction, decision, or resolution).
(4) The provisions of this article will not apply to employees on a probationary period or those employed for a fixed term of less than six months.
(5) During the exemption period, the employer may not require the employee to perform overtime, night work, or work on rest days and public holidays.

Article 98. Distribution of working time within the week
(1) The standard distribution of working time within the week is uniform, consisting of 8 hours per day, 5 days a week, with two rest days.
(2) In workplaces where, due to the nature of the work, a 5-day workweek is impractical, a 6-day workweek with one rest day may be established as an exception. This must be stipulated in the collective labor contract and/or the internal regulations of the unit, if drafted and approved by the employer.
(3) Working time may also be distributed within a compressed workweek of 4 or 4.5 days, provided that the total weekly working hours do not exceed the legal maximum set in Article 95(2). Employers implementing a compressed workweek must comply with special provisions regarding daily working hours for women and young workers.
(4) The type of workweek, work schedule—including shift duration, start and end times, breaks, and alternation of workdays and rest days—will be established in the unit’s internal regulations, if drafted and approved by the employer, and in the collective and/or individual employment contracts.

Article 99. Global working time recordkeeping
(1) A global working time recordkeeping system may be implemented in workplaces, provided that total working hours do not exceed the legal limits established by this Code. In such cases, the accounting period will not exceed one year, and the daily working time (shift duration) will not exceed 12 hours.
(2) The method of applying global working time recordkeeping will be determined by the unit’s internal regulations, if drafted and approved by the employer, and by the collective labor contract, taking into account restrictions for certain professions as stipulated by national and industry-level collective agreements, current legislation, and international agreements to which the Republic of Moldova is a party.

Article 100. Daily working hours
(1) The standard daily working time is 8 hours.
(2) For employees under 16 years of age, the daily working time will not exceed 5 hours.
(3) For employees aged 16 to 18 and employees working in hazardous conditions, the daily working time will not exceed 7 hours.
(4) For persons with disabilities, daily working hours will be determined based on a medical certificate, within the standard daily working time limits.
(5) The maximum daily working time will not exceed 10 hours within the normal 40-hour workweek.
(6) For certain types of work, workplaces, or professions, a 12-hour daily working schedule followed by a rest period of at least 24 hours may be established by a collective agreement.
(7) – repealed.
(8) In jobs where the nature of the work requires it, the workday may be split, as stipulated by law, provided that the total working hours do not exceed the standard daily working time.
(9) – repealed.

Article 1001. Flexible Work Arrangements

(1) Flexible work arrangements are established by agreement between the employee and the employer, at the request of either party, both at the time of hiring and after the conclusion of the individual employment contract, for a fixed or indefinite duration.

(2) Flexible work arrangements will be stipulated in the individual employment contract or in an additional agreement to the individual employment contract.

(3) Working under flexible work arrangements does not limit the employee’s rights and guarantees regarding the calculation of length of service, annual leave duration, or other employment-related rights provided for in this Code.

(4) An employee may request a reasonable adjustment of their work schedule no more than once every six months, in writing, through a request that must include the following information: the date of submission, the requested flexible work arrangement, and the date the schedule change is to take effect.

(5) Within 30 days of receiving a request for a reasonable adjustment of the work schedule, the employer will provide a response with justifications for their decision.

(6) When reviewing a request for a reasonable adjustment of the work schedule, the employer may consider the following factors to determine whether the requested flexible work arrangement is feasible:
a) Associated costs;
b) The ability to reorganize work among existing staff;
c) The ability to recruit additional personnel;
d) Impact on quality;
e) Impact on employee performance;
f) Effect on the employer’s ability to meet customer demand.

(7) If an employee working under a flexible work arrangement is on a business trip, they will be subject to the work schedule established at the host unit.

(8) Flexible work arrangements will be applied without prejudice to the provisions of Article 100.

Article 101. Shift Work

(1) Shift work, meaning work performed in two, three, or four shifts, applies when the nature of the institution’s activity or the duration of the production process exceeds the allowable working day, as well as to improve equipment utilization and increase production or service volume.

(1¹) Depending on the nature of the activity, for state security bodies and internal affairs bodies, the daily shift duration will be set by administrative order, ensuring compliance with rest periods between shifts. The daily shift duration may not exceed 24 hours.

(2) In shift work conditions, each group of employees works within the limits of the established schedule.

(3) The shift work schedule is approved by the employer after consulting employee representatives, taking into account the nature of the work.

(4) Working two consecutive shifts is prohibited.

(5) The shift work schedule must be communicated to employees at least 14 days before its implementation.

(6) The break between shifts may not be shorter than twice the duration of the preceding shift.

Article 102. Working Hours on the Eve of Non-Working Holidays

(1) The working day (shift) on the eve of a non-working holiday will be reduced by at least one hour for all employees, except those whose working hours have already been reduced under Article 96 or who work part-time under Article 97.

(2) If the working day on the eve of a non-working holiday is moved to another day, the reduced working time will remain unchanged.

(3) The specific reduction in working hours on the eve of a non-working holiday, as provided in paragraph (1), will be established in the collective labor contract, the internal regulations of the unit (if drafted and approved by the employer), or in an order (instruction, decision, resolution) issued by the employer following prior consultation with employee representatives.

(4) In units with continuous workflow and certain uninterrupted work activities where reducing working hours on the eve of a non-working holiday is not possible, any hours that cannot be reduced will be considered overtime.

Article 103. Night Work

(1) Night work is defined as work performed between 10:00 PM and 6:00 AM.

(2) The duration of night work (shifts) will be reduced by one hour.

(3) The reduction in night work (shift) duration does not apply to employees with reduced working hours or to employees hired specifically for night work, unless otherwise provided in the collective labor contract.

(3¹) Employees who are to be permanently assigned to night work must undergo a medical examination at the employer’s expense before the transfer.

(4) Any employee who performs at least 120 hours of night work within six months will undergo a medical examination at the employer’s expense.

(5) Employees under 18 years of age and individuals for whom night work is medically contraindicated will not be permitted to work at night.

(5¹) Pregnant women, women who have recently given birth, and breastfeeding women may work at night only upon their own request, based on a written application accompanied by a medical certificate confirming their health status, issued by the medical institution where they are registered, and with the employer’s agreement. The right to night work under this provision must be exercised in strict compliance with Law No. 186/2008 on Occupational Safety and Health.

(6) Employees with severe or significant disabilities, one of the parents (guardian, curator) of a child under four years old or a child with disabilities, employees combining child-care leave under Articles 126 and 127(2) with work, and employees caring for a sick family member based on a medical certificate may work at night only with their written consent. The employer is also obliged to inform these employees in writing of their right to refuse night work.

(7) Employees for whom night work is medically contraindicated must be transferred to a daytime position for which they are qualified, in accordance with Article 74.

(7¹) Pregnant women, women who have recently given birth, and breastfeeding women performing night work will be transferred, upon request, based on a written application, to a daytime position for which they are qualified.

Article 104. Overtime Work

(1) Overtime work is considered work performed beyond the normal working hours provided for in Article 95(2), Article 96(2)-(4), Article 98(3), and Article 99(1). During a state of emergency, siege, war, or public health emergency, the competent authorities managing the respective situation may order certain categories of employees to perform overtime work beyond the limits set by this Code, as well as establish the conditions for its performance.

(2) The employer may require overtime work without the employee’s consent in the following cases:

a) to carry out work necessary for national defense, to prevent a production breakdown, or to eliminate the consequences of a production breakdown or natural disaster;
b) to carry out work necessary to eliminate situations that could endanger the proper functioning of water and electricity supply services, sewerage, postal services, telecommunications and IT systems, transport infrastructure and public transport, fuel distribution facilities, and healthcare institutions.

(3) The employer may require overtime work with the employee’s written consent in the following cases:

a) to complete ongoing work that, due to an unforeseen delay caused by technical conditions of the production process, could not be completed within normal working hours, and its interruption could lead to the deterioration or destruction of the employer’s or owner’s property, municipal, or state assets;
b) to carry out temporary repair and restoration work on devices and installations if their malfunction could result in an indefinite work stoppage affecting multiple employees;
c) to perform work required by circumstances that could cause deterioration or destruction of the unit’s assets, including raw materials, materials, or products;
d) to continue work in case of a shift worker’s absence if the work cannot be interrupted. In such cases, the employer is required to take urgent measures to replace the absent employee.

(4) Overtime work in cases other than those provided in paragraphs (2) and (3) is permitted with the written consent of the employee and employee representatives.

(5) At the employer’s request, employees may perform overtime work up to a limit of 240 hours per calendar year.

(5¹) The maximum working time of employees, including overtime, may not exceed 48 hours per week. As an exception, working hours, including overtime, may exceed 48 hours per week, provided that the average working hours calculated over a 4-month reference period do not exceed 48 hours per week.

(6) If requesting overtime work, the employer is required to provide employees with normal working conditions, including occupational health and safety conditions.

(7) Overtime work is assigned based on a reasoned order (instruction, decision, resolution) issued by the employer, which must be communicated to the concerned employees either by signature or through another means that allows confirmation of receipt/notification.

(8) The collective or individual employment contract may provide for the possibility of compensating overtime hours with paid time off, with the written agreement of both parties. In this case, time off must be granted within 30 days of performing the overtime work.

(8¹) The employee may express their consent or refusal to perform overtime work in writing (on paper or in electronic format) using an advanced electronic signature, before being effectively assigned to overtime work.

Article 105. Overtime Work Restrictions

(1) Employees under the age of 18, pregnant women, and persons for whom overtime work is medically contraindicated cannot be required to perform overtime work.

(2) Employees with severe or pronounced disabilities, a parent (guardian, curator) of a child under 4 years old or a child with disabilities, employees combining childcare leave under Articles 126 and 127(2) with work, and employees caring for a sick family member based on a medical certificate may perform overtime work only with their written consent. Additionally, the employer is required to inform these employees in writing about their right to refuse overtime work.

(3) Overtime work cannot result in a daily working time exceeding 12 hours.

Article 106. Recording of Working Time

The employer is required to keep records of the actual working time performed by each employee, including overtime, work performed on rest days, and work performed on public holidays, according to the model approved by national-level collective agreements or to maintain records of daily working hours performed by each employee, under conditions agreed upon in writing with the employees, depending on their specific activity.

Chapter II

REST PERIODS

Article 107. Meal Break and Daily Rest

(1) During the daily working schedule, the employee must be granted a meal break of at least 30 minutes.

(2) The duration of the meal break and the time at which it is granted will be established in the internal regulations of the unit, in the collective labour agreement, or in the individual employment contract. Meal breaks, except as provided in the internal regulations of the unit (if drafted and approved by the employer), in the collective labour agreement, or in the individual employment contract, will not be included in working time.

(3) In continuous-flow units, the employer is required to provide employees with conditions for taking their meals while on duty at the workplace.

(4) The duration of daily rest, between the end of the working day and the beginning of the next working day, may not be less than 11 consecutive hours.

Article 108. Breaks for Child Feeding

(1) One of the parents (or the guardian) of a child under the age of 3 is entitled to additional breaks for child feeding, in addition to the meal break.

(2) The additional breaks will be granted at least once every 3 hours, each break lasting a minimum of 30 minutes. If the employee has two or more children under the age of 3, the break duration will be at least one hour.

(3) Breaks for child feeding are included in working time and are paid based on the average salary.

(4) If the employer provides special rooms within the unit for child feeding, these must meet the hygiene conditions required by the applicable sanitary regulations.

Article 109. Weekly Rest

(1) Weekly rest is granted for two consecutive days, usually on Saturday and Sunday.

(2) If granting simultaneous rest days to all employees of the unit on Saturday and Sunday would harm the public interest or compromise the unit’s normal functioning, the weekly rest may be granted on other days, as determined by the collective labour agreement or the internal regulations of the unit (if drafted and approved by the employer), provided that one of the rest days is Sunday.

(3) In units where, due to the nature of the work, weekly rest cannot be granted on Sunday, employees will be entitled to two rest days during the week and an additional salary allowance established by the collective or individual employment contract.

(4) The uninterrupted weekly rest period will not be less than 42 hours, except in cases where the working week consists of six days.

Article 110. Work on Rest Days

(1) Work on rest days is prohibited.

(2) By way of exception from paragraph (1), employees may be required to work on rest days in the manner and under the conditions set out in Article 104(2) and (3).

(3) Employees under the age of 18 may not be required to work on rest days.

(3¹) Pregnant women may perform work on rest days only at their own initiative, based on a written request accompanied by a medical certificate regarding their health condition, issued by the healthcare institution where they are registered. The right to work on rest days under this paragraph will be exercised in strict compliance with the Occupational Safety and Health Law No. 186/2008.

(4) Employees with severe or pronounced disabilities, one of the parents (or the guardian or curator) of a child under the age of 4 or a child with disabilities, employees combining childcare leave under Articles 126 and 127(2) with work, and employees caring for a sick family member based on a medical certificate may work on rest days only with their written consent. Additionally, the employer is required to inform these employees in writing of their right to refuse work on rest days.

Article 111. Non-Working Public Holidays

(1) In the Republic of Moldova, non-working public holidays are:

a) January 1 – New Year;

b) January 7 and 8 – Birth of Jesus Christ (Old-Style Christmas);

c) March 8 – International Women’s Day;

d) The first and second day of Easter according to the ecclesiastical calendar;

e) The Monday following Easter (Memorial Easter – Paștele Blajinilor);

f) May 1 – International Workers’ Solidarity Day;

g) May 9 – Victory Day and the Commemoration of Fallen Heroes for the Independence of the Motherland;

g¹) May 9 – Europe Day;

g²) June 1 – International Children’s Day;

h) August 27 – Independence Day;

i) August 31 – “Romanian Language Day”;

i¹) December 25 – Birth of Jesus Christ (New-Style Christmas);

j) The feast day of the patron saint of the local church, declared as such by the decision of the local council of the municipality, town, commune, or village.

(1¹) Employees remunerated on a piecework basis or by unit of time (hour or day) will receive their average salary for the non-working public holidays listed in paragraph (1), provided that these holidays do not coincide with weekly rest days.

If the non-working public holidays coincide with weekly rest days, the average salary for these days is not paid.

(2) Work is permitted on non-working public holidays in units where operations cannot be interrupted due to technical and production conditions (continuous-flow units), for activities required to serve the public, as well as for urgent repair and loading/unloading work.

(3) Employees under the age of 18 may not be required to work on non-working public holidays.

(3¹) Pregnant women may work on non-working public holidays only at their own initiative, based on a written request accompanied by a medical certificate regarding their health condition, issued by the healthcare institution where they are registered. The right to work on non-working public holidays under this paragraph will be exercised in strict compliance with the Occupational Safety and Health Law No. 186/2008.

(4) Employees with severe or pronounced disabilities, one of the parents (or the guardian or curator) of a child under the age of 4 or a child with disabilities, employees combining childcare leave under Articles 126 and 127(2) with work, and employees caring for a sick family member based on a medical certificate may work on non-working public holidays only with their written consent. Additionally, the employer is required to inform these employees in writing of their right to refuse work on non-working public holidays.

(5) To optimize the use of rest days and non-working public holidays by employees, the head of the unit, after consulting employee representatives, may transfer rest days (or working days) to other days. For public authorities and institutions, the right to transfer rest days (or working days) to other days, including by modifying the daily working time, belongs to the Government. Employees who were not in an employment relationship with the unit on the declared rest day, employees whose individual employment contracts were suspended on that date, as well as employees who were on sick leave, maternity leave, partially paid childcare leave until the age of 3, unpaid additional childcare leave for children aged 3 to 4, annual leave, unpaid leave, or study leave, are not required to report to work on the declared working day.

(6) – repealed.

Chapter III

ANNUAL LEAVE

Article 112. Annual Leave

(1) The right to paid annual leave is guaranteed for all employees.

(2) The right to annual leave may not be assigned, waived, or restricted. Any agreement whereby this right is waived, in whole or in part, is null and void.

(3) Every employee working under an individual employment contract is entitled to annual leave.

Article 113. Duration of Annual Leave

(1) All employees will be granted paid annual leave of at least 28 calendar days, excluding non-working public holidays.

(2) For employees in certain sectors of the national economy (education, healthcare, public service, etc.), a different duration of annual leave (calculated in calendar days) may be established by an organic law.

Article 113¹. Work Year for Which Annual Leave Is Granted

(1) The work year for which annual leave is granted consists of 12 calendar months from the employee’s hiring date.

(2) The calculation of seniority included in a work year will be performed in accordance with Article 114.

Article 114. Calculation of length of service entitling to annual leave

(1) The length of service entitling to annual leave includes:

a) the time during which the employee has actually worked;

b) the time during which the employee has not actually worked but has retained their job (position) and their full or partial average salary;

c) the period of forced absence from work in the event of unlawful dismissal or unlawful transfer to another job and subsequent reinstatement at the workplace;

d) the time during which the employee has not actually worked but has retained their job (position) and has received various payments from the state social insurance budget, except for the partially paid leave for childcare until the age of 3;

d1) the period of unpaid leave for the care of a person residing in the same household as the employee;

e) other periods of time provided for in collective agreements, the collective or individual employment contract, the internal regulations of the unit, if developed and approved by the employer.

(2) Unless otherwise provided for in collective agreements, the collective or individual employment contract, the length of service entitling to annual leave does not include:

a) the time of unexcused absence from work;

b) the period of parental leave for childcare until the age of 4;

c) the period of unpaid leave exceeding 14 calendar days;

d) the period of suspension of the individual employment contract, except in cases provided for in Article 76 (a)-(d) and Article 77 (b).

Article 1141. – repealed.

Article 115. Procedure for granting annual leave

(1) Annual leave for the first year of work is granted to employees after the expiration of 6 months of work at the respective unit.

(2) Before the expiration of 6 months of work at the unit, annual leave for the first year of work is granted, upon a written request, to the following categories of employees:

a) women, before maternity leave or immediately after it;

b) employees under the age of 18;

c) other employees, in accordance with the applicable legislation.

(21) Annual leave for the first year of work may also be granted to the employee before the expiration of 6 months of work at the unit.

(3) Employees transferred from one unit to another may be granted annual leave before the expiration of 6 months of work after the transfer.

(4) Annual leave for subsequent years of work is granted to the employee, upon a written request, according to the established schedule. Upon the employee’s written request, annual leave may also be granted outside the established schedule.

(5) Annual leave may be granted in full or, upon the employee’s written request, may be divided into parts, one of which must have a duration of at least 14 calendar days.

(6) Annual leave is granted to the employee based on an order (instruction, decision, resolution) issued by the employer.

Article 116. Scheduling of annual leave

(1) Annual leave for the following year may be scheduled by the employer in agreement with employee representatives by the end of each calendar year.

(2) When scheduling annual leave, both the wishes of employees and the need to ensure the proper functioning of the unit are taken into account.

(21) The period and duration of scheduled annual leave may be modified at the employee’s request, with the employer’s consent, considering the functioning of the unit and its needs.

(3) Employees whose spouses are on maternity leave are granted annual leave at the same time as their spouses, upon a written request.

(4) Employees under the age of 18, parents with 2 or more children under the age of 16, or a child with disabilities, and single parents with a child under the age of 16 are granted annual leave during the summer period or, upon a written request, at any other time of the year.

(5) – repealed.

(6) The scheduling of annual leave, approved in accordance with the conditions provided in paragraphs (1) and (2), is communicated to employees, either in writing with acknowledgment of receipt or through another means allowing confirmation of receipt/notification, within 10 working days from the date of approval.

Article 117. Leave allowance
(1) For the period of annual leave, the employee will be entitled to a leave allowance which may not be less than the average salary for the respective period.
(2) The method of calculating the leave allowance will be established by the Government.
(3) The leave allowance will be paid by the employer at least 3 calendar days before the start of the leave or on a date agreed by the parties, but no later than the date of payment of the salary for the month in which the respective leave was granted.
(4) In the event of the employee’s death, the allowance due to them, including for unused leave, will be paid in full to the spouse, adult children, or parents of the deceased, and in the absence of such persons – to other heirs, in accordance with the applicable legislation.

Article 118. Annual granting of leave Exceptional cases of postponement
(1) Annual leave will be granted each year in accordance with the schedule provided for in Article 116. The employer will take the necessary measures to ensure that employees take their annual leave within each calendar year.
(2) Annual leave may be postponed or extended in the event of the employee being on medical leave, performing a state duty, or in other cases provided for by law.
(3) In exceptional cases, where granting the full annual leave to the employee in the current work year may negatively affect the proper functioning of the undertaking, a part of the leave may be postponed to the following work year, with the written consent of the employee and the written agreement of employee representatives. In such cases, at least 14 calendar days of annual leave will be granted in the current work year, with the remaining part to be granted by the end of the following year.
(4) It is prohibited to deny annual leave for two consecutive years, as well as to deny annual leave each year to employees under the age of 18 and to employees entitled to additional leave due to work in harmful conditions.
(41) If an employee, for justified reasons confirmed by documentary evidence, is unable to take their annual leave in the corresponding calendar year, the employer will be obliged, with the employee’s consent, to grant them the unused leave within two years, starting from the year following the one in which the right to annual leave was granted.

At the end of each calendar year, the employer will inform the employee, in writing on paper or in electronic form, about the number of unused/accumulated annual leave days, their expiration date, and will arrange for the use of the unused/accumulated annual leave days by the employee, in accordance with the schedule mutually agreed upon. An unjustified refusal by the employee to use the accumulated/unused annual leave days according to the agreed schedule will be void.
(5) The replacement of unused annual leave with monetary compensation is not allowed, except in the case of termination of the individual employment contract of the employee who has not used their leave, in accordance with paragraph (41).
(6) The duration of medical leave, maternity leave, and study leave will not be included in the duration of annual leave. In the case of total or partial overlap of the leave with one of the aforementioned types of leave, based on a written request from the employee, unused annual leave, in full or in part, will be postponed for the period agreed upon by the written agreement of the parties or extended by the number of days indicated in the document issued in accordance with the established procedure regarding the granting of the corresponding leave within the same calendar year.

Article 119. Compensation for unused annual leave
(1) In case of suspension (Article 76, letter e) and m), Article 77, letter d) and e), and Article 78, paragraph (1) letter a) and d)) or termination of the individual employment contract, the employee is entitled to compensation for all unused annual leave.
(2) Upon written request, the employee may use their annual leave for one work year, with the suspension or subsequent termination of the individual employment contract, receiving compensation for the remaining unused leave.
(3) During the validity of the individual employment contract, unused leave may be attached to annual leave or taken separately (either fully or fractionally, in accordance with Article 115, paragraph (5)) by the employee during periods established by the written agreement of the parties.

Article 120. Unpaid leave
(1) For family reasons and other justified reasons, upon a written request, the employee may be granted, with the employer’s consent, unpaid leave of up to 120 calendar days, for which an order (disposition, decision, resolution) will be issued.
(2) One of the parents who have two or more children under the age of 14 (or a child with disabilities), or unmarried single parents with a child of the same age, will be granted, annually, upon written request, unpaid leave of at least 14 calendar days. This leave may be attached to annual leave or taken separately (either fully or divided) during periods mutually agreed upon with the employer.

Article 121. Additional annual leave
(1) Employees working in harmful conditions, persons with severe visual impairments, and young people up to 18 years old are entitled to additional annual paid leave of at least 4 calendar days.
(2) For employees working in harmful conditions, the specific duration of additional annual paid leave is established through the collective labor agreement, based on the relevant nomenclature approved by the Government.
(3) Employees in certain sectors of the national economy (industry, transport, construction, etc.) are granted additional paid annual leave for length of service within the unit and for shift work, in accordance with applicable legislation.
(4) One of the parents who have two or more children up to the age of 14 (or a child with disabilities) is entitled, upon written request, to additional annual paid leave of 4 calendar days.
(5) Collective agreements, collective or individual labor contracts may also specify other categories of employees entitled to additional annual paid leave, as well as other longer durations of leave than those specified in paragraphs (1), (3), and (4).
(6) Additional annual leave will be attached to the basic annual leave.

Article 122. Recall from leave
(1) The employee may be recalled from annual leave by the employer’s order (disposition, decision, resolution), only with the written consent of the employee and only for unforeseen service situations that require the employee’s presence in the unit. In such cases, the employee is not required to repay the allowance for unused leave days.
(2) The employee’s remuneration for work performed during the recall from annual leave is done on general terms.
(3) In the case of a recall, the employee must take the remaining days of annual leave after the end of the relevant situation or on another date established by the mutual agreement of the parties within the same calendar year. If the remaining leave days are not used for any reason within the same calendar year, the employee is entitled to use them during the following calendar year.
(4) The employee’s use of the remaining part of the annual leave is carried out based on the employer’s order (disposition, decision, resolution).
(5) The employee’s refusal to use the remaining part of the annual leave is void (Article 9, paragraph (11) and Article 112, paragraph (2)).

Chapter IV
SOCIAL LEAVES

Article 123. Medical leave
(1) Paid medical leave is granted to all employees and apprentices based on the medical certificate issued according to applicable legislation.
(2) The method of determining, calculating, and paying allowances from the state social insurance budget in relation to medical leave is provided by applicable legislation.

Article 1231. Unpaid leave for the care of a person living in the same household with the employee
(1) Unpaid leave for the care of a person living in the same household with the employee is granted based on a written request, for a duration of up to 5 working days within a calendar year.
(2) The employee must attach the following documents to the request:
a) a copy of the identity document of the person for whose care the leave is requested;
b) the employee’s affidavit stating that the person for whose care the leave is requested lives in the same household with the employee;
c) a medical certificate of the person for whose care the leave is requested, issued by a medical institution.

Article 124. Maternity leave and partial paid leave for child care
(1) Female employees and apprentices, as well as wives dependent on employees, are entitled to maternity leave, which includes prenatal leave of 70 calendar days (in the case of pregnancies with 3 or more fetuses – 112 calendar days) and postnatal leave of 56 calendar days (in the case of complicated births or births of two or more children – 70 calendar days), with allowances paid during this period in the manner provided by Article 123, paragraph (2).
(2) After the maternity leave expires, the insured persons mentioned in paragraph (1) are entitled, upon written request, to partial paid leave for child care until the child reaches the age of 3 years, with allowances from the state social insurance budget. Partial paid child care leave until the child reaches the age of 3 years is granted, optionally, to one of the parents, one of the grandparents, another relative directly caring for the child, or the guardian.
(3) Partial paid child care leave may be used alternately by both parents in fractions, according to each one’s availability, provided the fractions do not overlap. This leave counts towards work experience, including special work experience, and contribution period.
(4) In the case of requesting partial paid child care leave in fractions, the leave is granted within 30 days from the date of submission of the request, for the period specified in the request. A copy of the child’s birth certificate must be attached to the request.
(5) Partial paid leave for the care of children born from a multiple pregnancy (twins, triplets, etc.) is granted, upon written request, to both parents or other insured persons specified in paragraph (2).
(6) The employee has the right to return from partial paid child care leave before the expiration of the period established in the request mentioned in paragraph (2) or (4), by notifying the employer through a written request at least 15 working days in advance. This term may be reduced by mutual written agreement of the parties.

Article 1241. Paternity leave
(1) Paternity leave is granted under the conditions specified in this article to ensure the father’s effective participation in the care of the newborn or adopted child.
(2) The father of the newborn child is entitled to paternity leave of up to 15 calendar days. The father of the adopted child is entitled to paternity leave of up to 15 calendar days as per paragraph (22).
(21) Paternity leave may be granted in full or divided into up to 3 fractions during the first 12 months from the child’s birth. One fraction of leave represents at least 5 calendar days. The employee benefits from paternity leave based on a request submitted at least 5 days before each fraction of leave, unless the periods for the fractions have been previously established with the employer.
(22) In the case of fathers who have adopted children, paternity leave is granted upon written request during the first 12 months from the date of adoption approval. The request must include a copy of the court ruling regarding the adoption approval and a copy of the child’s birth certificate. If the father has benefited from paid leave as provided by Article 127, paragraph (2) letter a), the father who has adopted is not entitled to paternity leave.
(3) Paternity leave is granted based on a written request, during the first 12 months from the child’s birth. The request must include a copy of the child’s birth certificate.
(31) In the case of total or partial overlap of paternity leave with medical leave, upon the employee’s written request, any unused part of paternity leave, either in full or partially, is extended.
(4) During paternity leave, the employee receives a paternity allowance that cannot be less than the average monthly income for the relevant period, which is paid from the state social insurance budget.
(5) The employer is required to encourage employees to take paternity leave.
(6) Cases in which the employer creates situations that disadvantage employees taking paternity leave are considered discrimination by the employer and are sanctioned according to the law.

Article 125. Attachments of annual leave to maternity leave and child care leave
(1) The woman, based on a written request, is granted annual leave before maternity leave, as provided in Article 124, paragraph (1), or immediately after it, or after the end of child care leave.
(2) The persons mentioned in Article 124, paragraph (4) are granted annual leave, based on a written request, after the end of child care leave.
(3) Employees who have adopted newborn children or have taken them under guardianship can use, based on a written request, annual leave after the completion of any leave granted under Article 127.
(4) Annual leave, according to paragraphs (1)-(3), is granted to employees regardless of their length of service in the respective unit.

Article 126. Additional unpaid leave for the care of a child aged 3 to 4 years
(1) In addition to maternity leave and partial paid leave for child care until the age of 3 years, the woman, as well as the persons mentioned in Article 124, paragraph (2), are granted, based on a written request, additional unpaid leave for the care of a child aged 3 to 4 years, with job retention (or position). If the previous job (position) is unavailable, the persons mentioned are granted another equivalent job (position).
(2) Upon a written request, during the additional unpaid leave for child care, the woman or the persons mentioned in Article 124, paragraph (2) may work on a part-time basis or from home.
(3) The period of additional unpaid leave is included in the length of service, including special work experience, if the individual labor contract has not been suspended according to Article 78, paragraph (1), letter a).
(4) The period of additional unpaid leave is not included in the length of service that entitles the employee to the next annual paid leave, nor in the contribution period as required by law.
(5) The employee may return from additional unpaid leave for child care before the term established in the request indicated in paragraph (2), by notifying the employer, through a written request, 15 working days in advance. This term may be reduced by mutual written agreement of the parties.

Article 127. Leave for employees who have adopted children or placed them under guardianship/curatorship
(1) The employee who intends to adopt a child is granted, upon request, partial paid leave for a period of 60 to 90 days, during the period of placing the adoptable child in the adoptive family’s care, to allow the child to adapt to the adopter and to assess their compatibility. The leave may be used alternately by both spouses, in fractions, provided that the fractions do not overlap. This leave counts towards work experience, including special work experience, and contribution period.
(2) The employee who has adopted a child or placed a child under guardianship/curatorship is entitled, upon written request, to the following types of leave:
a) paid leave for up to 90 calendar days, starting from the day of adoption approval or issuance of the child’s placement order in guardianship/curatorship service. The leave may be used alternately by both spouses, in fractions, provided that the fractions do not overlap. This leave counts towards work experience, including special work experience, and contribution period;
b) partial paid leave for the care of the child until the age of 3 years, lasting at least 6 months, if the child was under 3 years old at the time of adoption approval or the issuance of the child’s placement order in guardianship/curatorship service;
c) partial paid leave for the care of the child, lasting up to 6 months, if the child was over 3 years old at the time of adoption approval or the issuance of the child’s placement order in guardianship/curatorship service.
(3) The employee who has adopted a child or placed a child under guardianship/curatorship cannot benefit from multiple leaves concurrently and is entitled to request the types of leave provided in paragraph (2) as follows:
a) within 30 days from the adoption approval or issuance of the child’s placement order in guardianship/curatorship service, the employee is entitled to request one of the leaves provided in paragraph (2);
b) if the paid leave provided in paragraph (2) letter a) has been used, the employee is entitled to request the leave provided in paragraph (2) letter b) or c), depending on the child’s age at the time of adoption approval or the issuance of the child’s placement order in guardianship/curatorship service.
(4) In the case of the leave provided in paragraph (2) letter a), the initial choice made by the employee cannot be changed.

Title V
WAGES AND WORK NORMS
Chapter I
GENERAL PROVISIONS

Article 128. Salary
(1) Salary represents any reward or earnings measured in money, paid to the employee by the employer based on the individual labor contract, for work performed or to be performed.
(2) In setting and paying the salary, no discrimination is allowed based on sex, age, disability, social origin, family status, ethnicity, race, nationality, political opinions, or religious beliefs, union membership or activity.
(21) The employer is required to ensure equal pay for male and female employees for equal work or work of equal value.
(22) To assess whether employees perform work of equal value, the employer will consider work-related aspects such as:
a) level of responsibility;
b) qualification level and experience;
c) effort and nature of tasks involved;
d) working conditions.
(23) Employers of medium and large enterprises are required to periodically inform, but no less than once a year (at the latest in the first semester of the year following the management year), employees and/or their representatives about the gender pay gap by employee category and function.
(24) The employer must provide employees, in an easily accessible manner, information on the criteria used for the evaluation and classification system of functions to determine salary levels applied in the unit.
(3) Salary is confidential and guaranteed.

Article 129. State guarantees in the field of wages
State guarantees in the field of wages include the minimum wage set by the state, the reference value for calculating the basic salaries of employees in the public sector, as well as compensatory allowances and bonuses guaranteed by the state and regulated by applicable legislation.

Article 130. Structure of the salary, conditions, and salary systems
(1) Salary includes the base salary (tariff salary, position salary), additional salary (allowances and bonuses to the base salary), and other incentive and compensatory payments.
(2) The remuneration of the employee’s work depends on the demand and supply of labor on the labor market, the quantity, quality, and complexity of the work, the working conditions, the professional qualities of the employee, the effort and responsibilities of the employee, the nature and results of the work, and/or the economic results of the unit’s activity.
(3) Work is compensated per unit of time or according to an agreement, both in the tariff system and in non-tariff salary systems.
(4) Depending on the specifics of the activity and the concrete economic conditions, units in the real sector apply, for salary organization, the tariff system and/or non-tariff salary systems.
(5) The choice of the salary system within the unit is made by the employer after consulting with employee representatives.
(6) Regardless of the salary system applied, the employer must use a job evaluation and classification system within the unit to determine salary levels.

Chapter II
MINIMUM GUARANTEED SALARY

Article 131. Minimum salary
(1) Every employee has the right to a guaranteed minimum salary.
(2) The minimum salary represents the minimum amount of remuneration assessed in national currency, set by the state for simple, unqualified work, below which the employer is not allowed to pay for the work norm performed by the employee per month or per hour.
(3) The minimum salary does not include allowances, bonuses, incentive and compensatory payments.
(4) The amount of the minimum salary is mandatory for all employers, legal or natural persons employing salaried labor, regardless of ownership type or legal organization form. This amount cannot be reduced either through a collective labor agreement or an individual labor contract.
(5) The minimum salary is guaranteed to employees only if they fulfill their work obligations (norms) during the working hours established by the legislation in force.

Article 132. Method of determining and reviewing the minimum salary
(1) The monthly minimum salary and hourly minimum salary, calculated based on the monthly work norm, are established by Government decision after consulting employer associations and trade unions.
(2) The amount of the minimum salary is determined and reviewed depending on the concrete economic conditions, the level of the average salary in the national economy, the forecasted inflation rate, and other socio-economic factors.

Article 133. Increasing the real content level of the salary
(1) The increase in the real content level of the salary is ensured by indexing the salary in relation to the increase in consumer prices for goods and services.
(2) The guaranteed minimum salary is indexed annually based on the evolution of the consumer price index, in accordance with the legislation in force.

Article 134. – repealed.

Chapter III
METHOD OF DETERMINING AND PAYING SALARY

Article 135. Method of determining salaries
(1) The salary system, upon which employee salaries are determined, is established by law or other normative acts, in accordance with the legal organizational form of the unit, its financing method, and the nature of its activity.
(2) The forms and conditions of salary payment, as well as the amount of salaries in units with financial autonomy, are established through collective or, where applicable, individual negotiations between the employer and the employees or their representatives, depending on the financial capabilities of the employers, and are fixed in collective and individual labor contracts.
(3) The system and conditions for the remuneration of employees in the public sector are established by law.
(4) The base salary, method, and conditions of salary for unit managers are determined by the individuals or bodies authorized to appoint these managers and are fixed in the individual labor contracts concluded with them.
(5) For employees paid with fixed position salaries, their position salary (base salary) is not modified in the case of non-working public holidays during the month.

Article 136. Tariff salary system
(1) The tariff salary system includes tariff grids, tariff salaries, position salary grids, and tariff qualification guidelines.
(2) The pricing of jobs and the allocation of qualification categories (classes) to workers and specialists are carried out in accordance with the tariff qualification guidelines for professions or specialties and positions.
(3) The main and mandatory component of the tariff system is the tariff salary for category I of qualification (salary category) within the tariff grid, which serves as the basis for determining the tariff salaries and specific position salaries in collective and individual labor contracts. The tariff salary for category I of qualification in the real sector is determined at the industry and unit levels, in accordance with the Salary Law no. 847/2002.
(4) – repealed.
(5) – repealed.

Article 1361. Non-tariff salary systems
(1) Non-tariff salary systems represent methods of differentiating salaries depending on individual and/or collective performance and the position held by the employee.
(2) The criteria and standards for evaluating the individual professional performance of the employee are established by the employer, in negotiation with employee representatives. The evaluation of the individual professional performance of the employee is carried out by the employer.
(3) The non-tariff salary system is established in the collective labor contract at the unit level or in another normative act at the unit level.
(4) The determination of the salary amount for each employee within non-tariff salary systems is made by the employer. The minimum salary set by the state serves as the minimum limit and guarantee.

Article 137. Incentive payments
(1) The employer has the right to establish various incentive systems, bonuses, and allowances to the base salary, and other incentive payments after consulting with employee representatives. These systems may also be established through the collective labor contract.
(2) The method and conditions for applying incentive and compensatory payments in public sector units are established by law and other normative acts.

Article 138. Reward based on the results of annual activity
(1) In addition to the payments provided by the salary systems, an employee reward may be established based on the results of annual activity, using the fund generated from the profit obtained by the unit.
(2) The regulation regarding the payment method for the reward based on the results of annual activity is approved by the employer, in agreement with the employee representatives.

Article 139. Remuneration for work performed under unfavorable conditions
(1) For work performed under unfavorable conditions, employees are granted compensation allowances of equal size for all employees, regardless of qualification, working under equal conditions in the respective unit.
(2) The specific amount of compensation allowances for work performed under unfavorable conditions is determined based on the severity and harmfulness, within the limits negotiated by the social partners and approved by the national and industry-level collective agreements.
(3) Lists of jobs and workplaces with heavy and particularly heavy conditions, harmful and particularly harmful, are approved by the Government after consulting with employers and trade unions.

Article 1391. Remuneration for work performed under conditions of increased health risk
(1) For work performed under conditions of increased health risk during a state of emergency, siege, or war, or during a public health emergency, employees may receive a compensation allowance for work performed under conditions of increased health risk.
(2) The compensation allowance for work performed under conditions of increased health risk is set at up to 100 percent of the base salary per unit of time (hour or day), depending on the volume of work and the employee’s professional training level, for each hour or day of work performed under conditions of increased health risk.
(3) The categories of employees involved in performing work under conditions of increased health risk during a state of emergency, siege, or war, or during a public health emergency, are established by the Commission for Exceptional Situations of the Republic of Moldova or, as applicable, by the National Extraordinary Public Health Commission.

Article 140. Introduction of new remuneration conditions and modification of existing ones
(1) Salary reductions stipulated in individual labor contracts, collective labor contracts, and/or collective agreements are not allowed before the expiration of one year from the date of their establishment.
(2) The introduction of new remuneration conditions or modifications to existing ones is allowed only in compliance with the provisions of Article 68 paragraph (1).

Article 141. Forms of salary payment
(1) The salary is paid in national currency. In the case of an employee working abroad, the salary can be paid in the currency specified in the individual labor contract.
(2) In the individual labor contract, the parties may agree on the amount of salary in foreign currency, with payment in national currency at an exchange rate of the Moldovan leu agreed upon by the parties, which cannot be lower than the official exchange rate set by the National Bank of Moldova.
(3) Salary payment can be made either in cash or by transfer to the employee’s account opened with a payment service provider, with the payment service fees covered by the employer.
(4) Payment of salary in kind is prohibited.

Article 142. Deadlines, periodicity, and place of salary payment
(1) The salary is paid periodically, directly to the employee or to a person authorized by the employee, based on an authenticated power of attorney, at the employee’s workplace, or transferred to their account opened with a payment service provider, on the working days established in the collective or individual labor contract, but:
a) no less than twice a month for employees paid on a time-unit or piece-rate basis;
b) no less than once a month for employees paid on a monthly salary basis.
(2) The employer is required to inform the employee about the salary amount, the form of remuneration, the method of salary calculation, the periodicity and place of payment, deductions, other salary-related conditions, and changes to them.
(3) When paying the salary, the employer is required to inform the employee in writing about the components of the salary owed for that period, the amount and reasons for any deductions, the total amount to be received, and to ensure that the respective entries are made in the accounting records.
(4) Payment for work performed occasionally, lasting less than 2 weeks, is made immediately after completion of the work.
(5) In the case of the employee’s death, the salary and other payments owed are paid in full to the spouse, adult children, or parents of the deceased, and in their absence, to other heirs, in accordance with the current legislation.

Article 143. Payment deadlines in case of termination of the individual labor contract
(1) If the amounts owed to the employee by the unit are not contested, payments are made:
a) in case of termination of the individual labor contract with an employee who continues to work until the day of dismissal – on the day of dismissal;
b) in case of termination of the individual labor contract with an employee who does not work until the day of dismissal (sick leave, unjustified absence, imprisonment, etc.) – no later than the day immediately following the day the dismissed employee requested payment;
c) in case of termination of the individual labor contract by resignation, before the expiration of the deadlines specified in Article 85, paragraphs (1), (2), and (41) – on the day of dismissal or on the date agreed by the parties, but no later than the payment date of the salary for the month in which the individual labor contract was terminated.
(2) If the amount of money owed to the employee is contested upon dismissal, the employer is required, in any case, to pay the uncontested sum within the deadlines specified in paragraph (1).

Article 144. Priority of salary payment
(1) Salary payments are made by the employer with priority over other payments, including in cases of the unit’s insolvency.
(2) Funds for employee remuneration are guaranteed by the employer’s income and assets.
(3) Employers take measures to protect their employees against the risk of non-payment of amounts owed in connection with the execution of the individual labor contract or as a result of its termination.
(4) In the case of the unit’s insolvency, compensation payments, guaranteed to employees and calculated (recalculated) on the date of their payment, must be paid in an amount not lower than the minimum wage established according to the current legislation.

Article 145. Compensation for losses caused by late salary payments
(1) Compensation for losses caused by late salary payments is made through mandatory full indexation of the salary amount if the withholding constitutes at least one calendar month from the date set for the salary payment.
(2) Compensation referred to in paragraph (1) is made separately for each month, by increasing the salary according to the inflation coefficient calculated in the established manner.
(3) – repealed.
(4) The method for calculating the compensation for the loss of part of the salary due to late payment deadlines is established by the Government, in agreement with employers and trade unions.

Article 146. Liability for late salary payments
(1) In cases where the unit’s current and settlement accounts contain the required funds, and the necessary documents for receiving money for salary payments have been submitted on time, but the banks fail to provide cash to customers, they must pay a penalty of 0.2 percent of the amount due for each day of delay, from their own funds.
(2) Persons responsible in banks, public authorities, and units who are guilty of late salary payments are subject to material, disciplinary, administrative, and criminal liability under the law.

Article 147. Prohibition of limiting the employee’s freedom to dispose of earned funds
The employee is prohibited from being restricted in their free disposal of earned funds, except in cases provided by the current legislation.

Article 148. Deductions from salary
(1) Deductions from salary may only be made in the cases provided for by this Code and other normative acts.
(2) Deductions from salary to pay debts owed by the employee to the employer may be made based on the employer’s order (disposition, decision, resolution):
a) for the repayment of salary advances;
b) for the refund of amounts paid in excess due to calculation errors;
c) to cover unspent and unreturned advances for business trips or relocations to another locality, or for household needs, if the employee does not contest the basis or amount of the deductions;
d) for the repair of pecuniary loss caused to the unit by the employee’s fault (Article 338);
e) – repealed.
(3) In the cases specified in paragraph (2), the employer has the right to issue the order (disposition, decision, resolution) for the deduction within no more than one month from the expiration date of the advance repayment or debt payment deadline, from the date the incorrect calculation payment was made, or from the date the pecuniary loss was identified. If this deadline is missed or the employee contests the basis or amount of the deduction, the dispute will be examined by the court at the request of the employer or employee (Articles 349-355).
(4) In case of the employee’s release before the expiration of the year of employment, during which the employee already took leave, the employer may deduct from the salary the amount paid for the uncovered days of leave. This deduction is not made if the employee has ceased or suspended activity on the grounds specified in Article 76 letter (e), Article 78 paragraph (1) letter (d), Article 82 letter (a) and (i), Article 86 paragraph (1) letters (b)-(e) and (u), in the case of retirement, or enrollment in an educational institution as per Article 85 paragraph (2), as well as in other cases provided by the collective or individual labor contract or by the written agreement of the parties.
(5) Salary paid in excess to the employee by the employer (including in case of incorrect application of the current legislation) cannot be garnished, except in cases of calculation errors.

Article 149. Limitation of the Amount of Deductions from Salary

(1) For each salary payment, the total amount of deductions cannot exceed 20 percent, and in cases provided for by applicable legislation, 50 percent of the salary due to the employee.

(2) In case of deduction from salary based on several enforceable acts, the employee will retain, in any case, 50 percent of their salary.

(3) The limitations provided in paragraphs (1) and (2) do not apply to deductions from salary in case of alimony claims for minor children. In this case, the amount deducted cannot exceed 70 percent of the salary that is due to be paid to the employee.

(4) If the amount obtained through salary garnishment is insufficient to satisfy all creditor claims, the amount is distributed among the creditors as provided by applicable legislation.

Article 150. Prohibition of Deductions from Certain Payments Due to the Employee

Deductions are not allowed from severance pay, compensation payments, and other payments that, under the Enforcement Code of the Republic of Moldova, cannot be garnished.

Article 151. – repealed.

Chapter IV

REMUNERATION FOR SPECIAL WORKING CONDITIONS

Article 152. Remuneration of Work for Employees Under 18 and Other Categories of Employees with Reduced Daily Working Hours

(1) In the case of time-based remuneration, employees under the age of 18 are paid taking into account the reduced daily working hours.

(2) Work performed by minor employees working on a piece-rate basis is remunerated based on the piece-rate for work established for adult employees.

(3) Work performed by students from secondary general and technical vocational institutions, who have not reached the age of 18, outside their study time, is remunerated proportionally to the time worked or on a piece-rate basis.

(4) In cases provided in paragraphs (1)-(3), the employer may establish, from their own funds, a bonus to the hourly wage for the time by which the minor employees’ daily working hours are reduced compared to the daily working hours of adult employees.

(5) Remuneration for work performed by other categories of employees for whom, according to Article 96, reduced working hours are established, is carried out under the wage conditions established by the Government.

Article 153. Remuneration for Work in the Case of Performing Tasks of Various Qualifications

(1) In performing tasks of different qualification categories, work performed by time-based remunerated employees is paid according to the higher qualification work.

(2) Work performed by employees paid on a piece-rate basis is remunerated according to the rates for the work performed. In cases where, due to production specifics, employees working on a piece-rate basis are required to perform tasks rated at a lower level compared to the qualifications granted to them, the employer is required to pay them the difference between the qualification categories.

(3) The provision regarding the payment of the difference between qualification categories, as mentioned in paragraph (2), does not apply when, due to production specifics, performing tasks of various qualifications is part of the employee’s permanent obligations.

Article 154. Remuneration of Instructors and Apprentices

The method and conditions for the remuneration of instructors and apprentices are established by the Government.

Article 155. Remuneration of Accumulators

(1) The remuneration of accumulators is carried out for the actual work performed or the actual time worked.

(2) The amount of the tariff salary or the salary of the position for accumulators, as well as the amount of bonuses, allowances, supplements, and other rewards determined by the remuneration conditions, are established in the collective or individual labor contract and cannot exceed the amounts provided for other employees in the respective unit.

Article 156. Remuneration for Work in Case of Accumulating Professions (Positions) and Performing the Duties of Temporarily Absent Employees

(1) Employees who, in addition to their basic work stipulated in the individual labor contract, perform additional work in another profession (position) or fulfill the duties of a temporarily absent employee in the same unit, without being exempted from their basic work (within the limits of the normal daily working time established by this code), will receive a bonus for accumulating professions (positions) or for fulfilling the duties of a temporarily absent employee.

(2) The amount of the bonus for accumulating professions (positions) is established by the parties of the individual labor contract but cannot be less than 50 percent of the tariff salary (position salary) of the accumulated profession (position). The payment of the bonus for accumulating professions (positions) is made without restrictions, within the limits of funds allocated for labor remuneration.

(3) The specific amount of the bonus for fulfilling the duties of a temporarily absent employee is established depending on the actual volume of work performed, but cannot exceed 100 percent of the tariff salary or position salary of the absent employee. If the duties of the temporarily absent employee are performed by several employees, the amount of the bonus is established in proportion to the volume of work performed by each of them, within the limits of the salary of the absent employee.

Article 157. Remuneration for Overtime Work

(1) In the case of time-based remuneration (with a tariff salary or position salary), overtime work (Article 104), for the first two hours, is remunerated at least at 1.5 times the basic salary established for the employee per unit of time, and for the subsequent hours – at least at double the salary.

(2) In the case of remuneration for work on a piece-rate basis with the application of the tariff salary system, overtime work is paid with an addition of at least 50 percent of the tariff salary of the employee of the respective category, remunerated on a time-based basis, for the first two hours, and at least 100 percent of this tariff salary for the subsequent hours; with the application of non-tariff salary systems, it is 50 percent for the first two hours and, respectively, 100 percent of the minimum established salary per unit of time for the subsequent hours.

(21) – repealed.

(22) For overtime work performed in accordance with Article 104, paragraph (8), the employee receives the regular pay established per unit of time and a number of free hours, remunerated according to the base salary, equal to the number of overtime hours worked.

(3) – repealed.

Article 158. Compensation for Work Performed on Rest Days and Non-Working Holidays

(1) Provided that the average salary is paid for the employees specified in Article 111, paragraph (11), work performed on rest days and non-working holidays is remunerated as follows:

a) employees working on a piece-rate basis – at least double the piece-rate;

b) employees whose work is remunerated based on hourly or daily tariffs – at least double the hourly or daily salary;

c) employees whose work is remunerated with a monthly salary – at least the equivalent of a unit of time salary or one day’s remuneration above the salary if the work on the rest day or non-working holiday was performed within the monthly working time norm, and at least double the unit of time salary or one day’s remuneration above the salary if the work was performed beyond the monthly norm.

(2) Upon written request from the employee who worked on a rest day or non-working holiday, the employer may grant them another day off, which will not be paid.

(3) The method of remuneration for work performed on rest days and non-working holidays by professional athletes, creative workers in theaters, circuses, film organizations, theatrical and concert organizations, as well as other persons involved in the creation and/or performance of works of art, may be established in collective agreements, in the collective or individual labor contract.

Article 159. Remuneration for Night Work

For work performed during the night shift, an additional payment of at least 0.5 times the employee’s basic salary per unit of time is established.

Article 160. Employer’s Right to Establish Stimulation and Compensation Payments

The employer has the right to increase the bonuses, allowances, and rewards provided in Articles 138, 156, 157, 158 above the minimum level established by current legislation, as well as to establish other incentive and compensation payments within the employer’s own (allocated) resources, provided for these purposes in the collective labor contract, in another normative act at the unit level, or in the expenditure budget for maintaining the unit funded from the budget.

Article 161. Method of Remuneration in Case of Failure to Meet Production Standards

(1) In the case of failure to meet production standards due to the employer’s fault, the remuneration is based on the actual work performed by the employee, but not less than the employee’s average salary calculated for the same period.

(2) In the case of failure to meet production standards without fault of the employee or the employer, the employee is paid at least 2/3 of their basic salary.

(3) In the case of failure to meet production standards due to the employee’s fault, remuneration is made according to the work performed.

Article 162. Method of Remuneration in Case of Scrap Production

(1) Scrap produced without the employee’s fault is remunerated in the same way as good articles.

(2) Total scrap due to the employee’s fault is not remunerated.

(3) Partial scrap due to the employee’s fault is remunerated depending on the degree of utility of the product, according to reduced tariffs.

(4) The reduced tariffs mentioned in paragraph (3) are established in the collective labor contract or another normative act at the unit level.

Article 163. Method of Remuneration in Case of Acquisition of New Production Processes

For the period of mastering new production processes, employees are guaranteed to maintain their average salary.

Article 164. Maintenance of Salary in Case of Transfer to a Lower-Paid Permanent Job

If an employee is transferred to a lower-paid permanent job within the same unit or to another locality along with the unit, in accordance with Article 74, paragraph (1), their average salary from the previous job is maintained for one month from the date of transfer, subject to the prior observance of the provisions of Article 68.

Article 165. Average Salary

(1) The average salary includes all salary rights from which, according to the current legislation, the mandatory state social insurance contributions are calculated, excluding one-off payments.

(2) The average salary is guaranteed to employees in cases provided for by the current legislation, collective contracts, and/or individual labor contracts.

(3) The method of calculating the employee’s average salary is uniform and is established by the Government.

Article 1651. Material Assistance

The employer has the right to grant annual material assistance to employees in the manner and under the conditions provided by the collective labor contract, other normative acts at the unit level, and/or the applicable legislative acts. Material assistance may be granted to the employee, upon written request, at any time of the year or added to the holiday allowance (Article 117).

Chapter V

WORK NORMS

Article 166. Guarantees in the Field of Work Norming

Employees are guaranteed:

a) methodological support from the state in organizing work norming;

b) the application of work norming systems established by the employer together with the employee representatives and stipulated in the collective labor contract or another normative act at the unit level.

Article 167. Work Norms

(1) Work norms refer to production, time, service, and personnel norms set by the employer for employees in accordance with the achieved level of technique and technology, the organization of production and work, in such a way as to match the specific conditions of the unit and not lead to employee overstrain.

(2) In conditions of collective forms of work organization and remuneration, combined and complex norms can also be applied.

(3) Work norms can be revised as new or improved techniques and technologies are implemented, or organizational or other measures are taken to ensure increased labor productivity, as well as in the case of using outdated physical and moral equipment.

(4) Achieving a high level of production by a particular employee or a specific team by independently applying new work methods and advanced experience, and by improving workstations with their own forces, does not constitute grounds for revising work norms.

Article 168. Development, Approval, Replacement, and Revision of Unified and Standard Work Norms

(1) For certain homogeneous works, unified and standard (intersectoral, sectoral, professional, etc.) work norms may be developed and established. Standard work norms are developed by central public administration authorities in agreement with the respective employers’ associations and trade unions and are approved in the manner established by the Government.

(2) The replacement and revision of unified and standard norms are carried out by the authorities that approved them.

Article 169. Introduction, Replacement, and Revision of Work Norms

(1) If the work norms no longer meet the conditions for which they were approved or do not ensure the full occupation of the normal work time, they may be revised or replaced.

(2) The procedure for revising or replacing work norms, as well as the specific situations in which it may be applied, is established by collective labor contracts, other normative acts at the unit level, and/or collective agreements.

(3) Employees must be notified in writing about the introduction of new work norms, under signature or by another method that allows confirmation of receipt/notification, at least 2 months in advance.

Article 170. Establishment of Work Remuneration Rates in Accordance

(1) For work remunerated in accordance, the rates are established starting from the categories of work, tariff salaries (function salaries), and the applicable production norms (time norms).

(2) The rate for work paid according to the agreement is established by dividing the hourly (daily) tariff salary corresponding to the category of work performed by the production norm per hour (per day). The rate for work paid according to the agreement may also be established by multiplying the hourly (daily) tariff salary corresponding to the category of work performed by the time norm in hours or days.

Article 171. Provision of Normal Working Conditions for the Fulfillment of Production Norms (Service Norms)

The employer is required to permanently provide the technical and organizational conditions that were the basis for the development of work norms and to create the necessary working conditions for the fulfillment of production norms (service norms). These conditions are:

a) the proper condition of machines, machine-tools, and devices;

b) timely provision of technical documentation;

c) appropriate quality of materials and tools necessary for performing the work, as well as timely provision of them;

d) timely supply of the production process with electricity, gas, and other energy sources;

e) ensuring labor protection and production safety.

Title VI

GUARANTEES AND COMPENSATIONS

Chapter I

GENERAL PROVISIONS

Article 172. The Concepts of Guarantee and Compensation

(1) Guarantee refers to the means, methods, and conditions through which the rights granted to employees in the field of labor relations and other related social relations are ensured.

(2) Compensation refers to monetary rights established for the purpose of reimbursing expenses incurred by employees in connection with the performance of their work obligations and other obligations provided by the applicable legislation.

Article 173. Cases of Granting Guarantees and Compensation

In addition to the general guarantees and compensations provided by this code (guarantees upon hiring, transfer, in the field of remuneration, etc.), employees are granted guarantees and compensations in the case of:

a) travel for work purposes;

b) transfer to work in another locality;

c) combining work with studies;

d) termination of the individual labor contract; and

e) other cases provided by this code and other normative acts.

Chapter II

GUARANTEES AND COMPENSATIONS IN CASE OF TRAVEL FOR WORK PURPOSES AND TRANSFER TO ANOTHER LOCALITY

Article 174. Travel for Work Purposes

(1) Travel for work purposes means the delegation of the employee, in accordance with the employer’s order (instruction, decision, resolution), for a specified period, to perform work obligations outside the permanent workplace.

(2) Business trips of employees whose permanent activity is mobile or itinerant, as well as the performance of prospecting, geodetic, and topographic work on-site, are not considered travel for work purposes if the employer provides the necessary transportation.

Article 175. Guarantees in Case of Travel for Work Purposes

Employees assigned to travel for work purposes are guaranteed the maintenance of their job (position) and average salary, as well as compensation for expenses related to the travel for work purposes.

Article 176. Compensation of Expenses Related to Travel for Work Purposes

(1) In the case of travel for work purposes, the employer is required to compensate the employee for:

a) round-trip travel expenses;

b) accommodation expenses;

c) per diem;

d) other travel-related expenses.

(2) The procedure and amount of compensation for expenses related to travel for work purposes are approved by the Government. Units with financial autonomy may establish higher amounts of these compensations in the collective labor contract.

Article 177. Compensation of Expenses in Case of Transfer to Work in Another Locality

(1) Upon transferring the employee, based on a prior written agreement with the employer, to work in another locality, the employer is required to compensate the employee for:

a) expenses related to the relocation of the employee and their family members to another locality (except when the employer provides transportation for the individuals and their belongings);

b) expenses for settling in the new place of residence.

(2) The specific amounts of compensation for the expenses specified in paragraph (1) are determined by the agreement of the parties to the individual labor contract, but may not be less than those established by the Government.

Chapter III

GUARANTEES AND COMPENSATIONS FOR EMPLOYEES COMBINING WORK WITH STUDIES

Article 178. Guarantees and Compensations for Employees Combining Work with Studies in Higher Education and Vocational Education Institutions

(1) Employees sent by the employer to accredited study programs in accordance with the law within vocational technical education, bachelor’s degree higher education, or master’s degree higher education with reduced attendance are granted reduced working hours, additional leave, with full or partial maintenance of the average salary, and other benefits, as established by the Government.

(11) Employees who, on their own initiative, enrolled in accredited study programs in accordance with the law within vocational technical education, bachelor’s degree higher education, or master’s degree higher education with reduced attendance are granted certain guarantees and compensations as provided by the collective or individual labor contract.

(2) The collective labor contract, other normative acts at the unit level, and collective agreements for the employees mentioned in paragraph (1) may provide additional benefits funded by the unit.

Article 179. Guarantees and Compensations for Employees Combining Work with Studies in Doctoral and Postdoctoral Programs

(1) Employees studying in doctoral and postdoctoral programs in higher education institutions or organizations in the fields of research and innovation, accredited according to the law, are granted guarantees and compensations as specified in the collective or individual labor contract.

(2) The employer and employee representatives may provide, in the collective labor contract or another normative act at the unit level, additional guarantees and compensations funded by the unit, over and above those established by the applicable legal acts.

Article 180. – repealed.

Article 181. Guarantees and Compensations for Employees Combining Work with Studies in Secondary Education Institutions

Employees studying in secondary general education institutions are granted reduced working hours, additional leave with full or partial maintenance of the average salary, as appropriate, and other guarantees and compensations as established by the Government.

Article 182. Procedure for Granting Guarantees and Compensations to Employees Combining Work with Studies

(1) Employees combining work with studies are granted guarantees and compensations upon obtaining, for the first time, the respective level of studies.

(2) The additional leave granted to employees combining work with studies, according to a written agreement between the employer and the employee, may be combined with annual vacation leave.

(3) Employees studying at an educational institution for a second or third specialization (profession) may be granted certain guarantees and compensations as provided by the collective or individual labor contract.

Chapter IV

GUARANTEES AND COMPENSATIONS FOR EMPLOYEES IN CONNECTION WITH THE TERMINATION OF THE INDIVIDUAL LABOR CONTRACT

Article 183. Preferential Right to Retain Employment in Case of Reduction in the Number of Employees or Positions

(1) In the case of a reduction in the number of employees or positions, the preferential right to remain employed is granted to employees with higher qualifications and labor productivity.

(2) In the case of equal qualifications and labor productivity, the preferential right to remain employed is granted to:

a) employees with family obligations, supporting two or more persons and/or a person with disabilities;

b) employees whose family members do not have independent income;

c) employees with longer work experience in the respective unit;

d) employees who have suffered a work accident or contracted an occupational disease in the respective unit;

e) employees who are upgrading their qualifications in higher education and vocational technical institutions without leaving their job;

f) persons with disabilities due to war and family members of fallen or missing military personnel;

g) participants in military actions for the defense of the territorial integrity and independence of the Republic of Moldova;

h) inventors;

i) persons who became ill or suffered from radiation-induced illnesses due to the Chernobyl disaster;

j) persons with disabilities where a causal relationship is established between the disability and the Chernobyl nuclear accident, participants in the liquidation of the Chernobyl disaster consequences in the exclusion zone in 1986-1990;

k) employees with multiple incentives for success at work and no disciplinary sanctions (art.211);

l) employees who have no more than 5 years left until they reach the age pension.

(3) When some of the persons mentioned in paragraph (2) meet several of the criteria listed, the preferential right to remain employed applies to those who meet more criteria compared to others. In case of equality of the number of criteria, the preferential right belongs to the person with greater work experience in the respective unit.

Article 184. Guarantees in Case of Termination of the Individual Labor Contract

(1) The employer is required to notify the employee, in writing (order, decision, decree), under signature or by another method that allows confirmation of receipt of the order by each employee concerned, of their intention to terminate the individual labor contract, whether for a fixed or indefinite term, within the following timeframes:

a) 2 months in advance – in the case of dismissal due to the liquidation of the unit or cessation of the activity of the employer as a natural person, reduction in the number of employees or positions at the unit (art.86 para.(1) letters b) and c));

b) 1 month in advance – in the case of dismissal due to the repeated unsatisfactory performance over a year, in accordance with the evaluation procedure implemented by the employer under art. 86 para. (1) letter e);

c) 14 calendar days in advance – in the case of dismissal due to the employee having the status of a pensioner for age limit (art. 86 para. (1) letter y1) and art. 301 para. (1) letter c)).

(2) During the periods specified in paragraph (1), the employee is granted at least one working day per week, with maintenance of the average salary, for job searching.

(3) In case of termination of the individual labor contract due to the employee’s failure to fulfill their work obligations (art.86 para.(1) letters g)-k), m), o)-r)), prior notice is not required.

Article 185. Guarantees in Case of Termination of the Individual Labor Contract Due to Change of Ownership of the Unit

(1) In the event of a change in ownership of the unit, the new owner, within a maximum of 3 months from the date of the transfer of ownership rights under art.86 para.(1) letter f), has the right to terminate the individual labor contracts concluded with the unit manager, their deputies, and the chief accountant.

(2) The new owner will provide severance compensation to the persons dismissed under paragraph (1), if stipulated in the individual labor contract.

Article 1851. Guarantees in Case of Collective Dismissals

(1) Collective dismissals are dismissals made by the employer for one or more reasons not attributable to the employee, if, within a 30-day period, the number of dismissals is:

a) at least 10 in units with between 20 and 99 employees;

b) at least 10% of the number of employees in units with between 100 and 299 employees;

c) at least 30 in units with 300 or more employees.

(2) In determining the actual number of employees dismissed collectively, according to paragraph (1), the employees whose individual labor contracts have been terminated at the employer’s initiative for one or more reasons not attributable to the employee (as provided in art. 86 para. (1) letter z)) are also considered, provided there are at least 5 dismissals.

(3) If measures involving collective dismissals are planned within the unit, at least 3 months in advance (including the notification period specified in para. (7)), the employer is required to notify the employee representatives within the unit and the employment agency about this and to initiate consultations with the employee representatives to reach an agreement.

(4) To allow employee representatives to make constructive proposals, at least 5 working days before initiating the consultations, the employer is required to provide them, in writing, with all available relevant information regarding:

a) the reasons for the planned dismissals;

b) the number and categories of employees who will be dismissed;

c) the number and categories of employees employed within the unit;

d) the period in which the dismissals will take place;

e) the criteria for selecting employees to be dismissed, as provided by law, collective agreements, or collective labor contracts;

f) the method of calculating any severance payments related to the dismissal, as provided in the collective labor contract or regulatory acts at the unit level, except for those provided by current legislation.

(5) The consultations last until an agreement is reached, but in any case, no longer than 30 calendar days from the moment the employee representatives are informed about the planned collective dismissals.

(6) If no agreement is reached and the employer’s unilateral decision is to continue the collective dismissal process, this decision is communicated, by notification, to the employee representatives and the employment agency. The notification to the employment agency will include at least the elements provided in para. (4) letters a)–e), as well as any relevant information regarding the planned dismissals and consultations with employee representatives. The notification obligation concerns each individual dismissal within the framework of the collective dismissals.

(7) The prior notice, under signature or by another method that allows confirmation of receipt, of the employees regarding the collective dismissals is carried out 2 months in advance, in accordance with the dismissal procedures established in art. 88.

(8) The employment agency uses the period prior to the dismissals to seek solutions to the issues raised by these dismissals and to provide assistance, together with the employer and employee representatives, for placing employees to be dismissed into employment, presenting employment and retraining opportunities.

Article 186. Severance Pay

(1) Employees dismissed due to the liquidation of the unit or the cessation of the activity of the employer as a natural person (art. 86 para. (1) letter b)), or due to the reduction in the number of employees or positions in the unit (art. 86 para. (1) letter c)) are guaranteed:

a) for the first month, the payment of severance pay equal to the sum of a weekly average salary for each full year worked in the respective unit, but not more than six monthly average salaries and not less than one monthly average salary. If the unit is the legal successor of a previously reorganized unit and the individual labor contract with the employees concerned was not previously terminated (art. 81), all years of service will be considered. If the dismissed employee worked in the unit under an individual labor contract for several periods, only the years fully worked from the conclusion of the last individual labor contract will be counted;

b) for the second month, the payment of severance pay equal to the monthly average salary if the dismissed person has not been placed into employment;

c) for the third month, the payment of severance pay equal to the monthly average salary, if the dismissed person has not been placed into employment;

d) in the case of the liquidation of the unit, by mutual written agreement of the parties, full payment of all severance amounts within all 3 months at the time of dismissal.

Note.

In the case of placement into employment during the months specified in letter b) and c), the severance pay will be provided for the period up until the employment date.

(2) Severance pay equal to the amount of a two-week average salary is paid to employees upon termination of the individual labor contract in connection with:

a) the finding that the employee is unfit for the position held or the work performed due to health reasons, in accordance with the relevant medical certificate, or due to insufficient qualifications confirmed by the certification commission’s decision (art. 86 para. (1) letters d) and e));

b) the reinstatement of the employee to their job, according to a court decision, who had previously performed that work (art. 82 letter j1));

c) the refusal of the employee to be transferred to another location due to the transfer of the unit to that location (art. 86 para. (1) letter y)).

(3) Employees whose individual labor contract was suspended due to conscription for mandatory military service, reduced term military service, or civil service (art. 76 letter e)) or who resigned due to the employer’s violation of the individual or collective labor contract (art. 85 para. (2)) are entitled to the severance pay provided in para. (2).

(4) Severance pay is made at the previous workplace.

(5) The collective or individual labor contract may provide for other cases of severance pay, higher amounts of severance pay, and longer severance pay periods.

Chapter V

OTHER GUARANTEES AND COMPENSATIONS

Article 187. Guarantees for Employees Elected to Elective Positions

An employee whose individual labor contract was suspended due to their election to an elective position, according to current legislation (art. 78 para. (1) letter d)), is guaranteed, after completing their mandate in that position, the return to their previous job (position), and if that is unavailable – to another equivalent job (position) at the same or, with the employee’s consent, at a different unit.

Article 188. Guarantees During the Fulfillment of State or Public Obligations

(1) During the fulfillment of state or public obligations, if, according to current legislation, these are performed during working hours, employees are guaranteed the retention of their job (position) and average salary according to para. (2).

(2) Employees are guaranteed the retention of their average salary during the fulfillment of the following state or public obligations:

a) appearance, upon summons, before criminal prosecution authorities, prosecutors, or the court as a witness, injured party, expert, specialist, translator, or procedural assistant;

b) participation as members of voluntary fire brigades in extinguishing a fire or dealing with an emergency; as well as

c) in the case of fulfilling other state or public obligations stipulated by current legislation.

Article 1881. Guarantees for Employees Working in Electoral Bodies

(1) During their activity in electoral bodies, employees may request to be relieved of their main job in the conditions of art. 973 of this code and the Electoral Code.

(2) The employer, regardless of the legal form of organization, is required to allow employees to engage in activities within electoral bodies, including participating in meetings of these bodies if they take place during working hours, in accordance with this code and the Electoral Code. The decisions establishing and confirming the composition of the bodies, as well as, when applicable, those regarding the relief of employees, serve as the basis for conducting activities in electoral bodies.

(3) Employees relieved of their job duties, as well as those not relieved but participating in meetings and electoral procedures held by the electoral bodies to which they belong, during working hours, are guaranteed the retention of their job (position) and full or partial salary at the workplace.

(4) Employees working in electoral bodies are entitled to one day off, generally immediately following the election day, with the retention of their average salary at the workplace.

(5) During the activity within electoral bodies, employment relationships (service) cannot be terminated or modified (suspended) except at the initiative or with the consent of the employee, except for the termination of employment (service) under circumstances beyond the control of the parties.

(6) Employees working as electoral officials benefit from other guarantees established by this code, electoral legislation, and tax legislation.

Article 189. Guarantees and Compensations for Employees Called for Military Service

Employees called for compulsory military service, reduced-term military service, civil service, as well as those called for military training camps, benefit from the guarantees and compensations provided by current legislation.

Article 190. Guarantees for Employees who Donate Blood

(1) The employer is required to allow, without any hindrance, employees who donate blood to present themselves at medical institutions on the day of blood donation or blood derivatives for therapeutic use, ensuring that donors retain their average salary and are provided with transportation if necessary.

(2) Employees who donate blood are granted a day off immediately following the donation day, with the retention of their average salary. If blood or blood derivatives are donated on the day before the rest day(s), the donor employee is entitled to a day off with retained average salary, which will be granted immediately after the rest day(s).

(3) If blood or blood derivatives are donated during annual leave, on rest days, or on non-working holidays, the employer is required to grant the donor employee another paid day off, which, with the written consent of the employee, can be added to the annual leave.

Article 1901. Guarantees and Compensations for Employees Implementing Special Measures for Ensuring Population Safety, Life, and Health Protection

(1) In case of a state of emergency, siege, war, or public health emergency, employers will grant employees days off, with the retention of their average salary, in accordance with the measures established by the Government to ensure security, life, and health protection of the population.

(2) The Government will establish compensations, from the state budget, for employers who apply the provisions of para. (1).

Article 191. Guarantees and Compensations for Employees who are Inventors and Rationalizers

An employee who is the author of an invention or rationalization proposal benefits from the guarantees and compensations provided by current legislation, the collective contract, and/or the individual labor contract.

Article 192. Compensation for the Wear and Tear of Employee-Owned Goods

(1) An employee who uses, with the consent or knowledge of the employer and in the employer’s interest, personal goods is paid compensation for the use and wear of transportation means, tools, equipment, and other materials and technical means that belong to the employee, and their related expenses are reimbursed.

(2) The amount and method of compensation payment are determined by the written agreement of the parties to the individual labor contract.

Article 193. Guarantees for Employees Required to Undergo Medical Examinations

During the medical examinations, employees who, according to the provisions of this code or other regulations, are required to undergo these examinations will retain their average salary at the workplace.

Article 194. Guarantees Related to Medical Leave

In the case of granting medical leave to an employee, the employer is required to pay the employee an allowance in accordance with art. 123 para. (2).

Article 195. Guarantees and Compensations for Employees Undertaking Vocational Training at the Employer’s Initiative

(1) Employees undertaking vocational training at the employer’s initiative, with suspension from work, will retain their position (job) and average salary, and will be granted other guarantees and compensations as provided by current legislation.

(2) Employees undertaking vocational training at the employer’s initiative, with suspension from work, in another locality, will be compensated for travel expenses in the manner and under the conditions provided for employees sent on business trips.

Article 196. Guarantees and Compensations in the Case of Workplace Accidents and Occupational Diseases

(1) In the event of health injury or death of the employee due to a workplace accident or occupational disease, the employee will be compensated for the salary (income) not earned, as well as for additional expenses related to medical, social, and professional rehabilitation resulting from the health injury, or the family of the deceased will be compensated for funeral-related expenses.

(2) The amount and conditions for granting the guarantees and compensations provided in para. (1) are established by current legislation.

Article 197. Guarantees in the Field of State Social Insurance

Employees are subject to state social insurance and benefit from all guarantees, compensations, and other payments provided by the state social insurance system according to current legislation.

Article 1971. Guarantees in the Case of Unit Reorganization, Change of Property Type, or Ownership

(1) In the event of unit reorganization, change of property type, or change of ownership, the assignee takes over all rights and obligations existing as of the date of the event arising from individual labor contracts and collective labor contracts in force.

(2) Unit reorganization, change of property type, or change of ownership does not, by itself, constitute grounds for termination of the individual labor contract (with the exceptions provided in art. 86 para. (1) lit. f)). However, dismissal of employees may occur in such cases as a result of a reduction in the number of staff or headcount in the unit.

(3) In the event of unit reorganization, change of property type, or change of ownership, the employees’ right to information and consultation must be respected. At least 30 calendar days before the initiation of the reorganization procedure, change of property type, or change of ownership, the current employer must inform in writing the employees’ representatives about:

a) the proposed date of initiating the reorganization procedure, change of property type, or change of ownership;

b) the reasons for the reorganization, change of property type, or change of ownership;

c) the legal, economic, and social consequences of the reorganization, change of property type, or change of ownership for employees;

d) the measures planned for employees.

(4) The assignee is required to provide the employees’ representatives with the information mentioned in para. (3) lit. a)–d) at least 30 calendar days before the actual occurrence of the reorganization, change of property type, or change of ownership.

(5) If there is neither a union nor elected representatives within the unit, the information indicated in para. (3) must be communicated to employees via:

a) a notice sent by email or other communication means that can be accessed by each employee; and/or

b) a public notice posted on the unit’s website, as appropriate; and/or

c) a public notice displayed on an information board accessible to the general public at the unit’s headquarters and at each of its branches or representations.

(6) If the assignor and/or assignee plan to undertake any measures regarding their employees, these must be consulted with the employees’ representatives in accordance with the provisions of art. 421.

(7) If, during the process of reorganization, change of property type, or change of ownership, reductions in the number of employees or headcount are planned, the provisions of art. 88 will also apply.

Article 1972. Guarantees in the Case of Periodic Medical Examinations

During the period of periodic medical examinations, employees will retain their position (job) and average salary.

Title VII

INTERNAL REGULATIONS OF THE UNIT.

WORK DISCIPLINE

Chapter I

INTERNAL REGULATIONS

Article 198. General Provisions

(1) The internal regulations of the unit are an optional legal act that, at the employer’s decision, can be developed for the unit, with consultation of the employees’ representatives, and is approved by the employer’s order (disposition, decision, resolution). Employers who voluntarily approve internal regulations for their units will apply the relevant provisions of this code accordingly.

(2) The internal regulations of the unit cannot contain provisions that contradict the current legislation, clauses of collective agreements, and the collective labor contract.

(3) The internal regulations of the unit cannot establish limitations on the individual or collective rights of employees.

Article 199. Content of the Internal Regulations of the Unit

(1) If the employer develops and approves the internal regulations of the unit according to art. 198, it must contain the following provisions:

a) health and safety at work within the unit;

b) adherence to the principle of non-discrimination, ensuring measures for the prevention and combating of sexual harassment and any other forms of violation of dignity at work;

c) the rights, obligations, and responsibilities of the employer and employees;

d) work discipline within the unit;

e) disciplinary offenses and sanctions applicable according to current legislation;

f) the disciplinary procedure;

g) work and rest regime.

(2) The internal regulations of the unit may also include other provisions regarding labor relations within the unit.

(3) The internal regulations of the unit will be communicated to employees, either by signature or by another method that allows confirmation of receipt/notification by the employer, and will produce legal effects for them from the date of notification.

(4) The employer must familiarize employees with the content of the internal regulations of the unit within 10 working days from the date of approval of the regulations.

(5) The method of familiarizing each employee with the content of the internal regulations of the unit will be directly specified in the text of the regulations.

(6) The internal regulations must be posted in all structural subdivisions of the unit.

(7) Any modification or completion of the internal regulations of the unit will be carried out in compliance with the provisions of art. 198 and communicated to employees within the term and in the manner specified in para. (4) and (5).

Article 200. Statutes and Disciplinary Regulations

In certain sectors of the national economy, specific categories of employees are subject to statutes and disciplinary regulations approved by the Government.

Chapter II

WORK DISCIPLINE

Article 201. Work Discipline

Work discipline represents the obligation of all employees to adhere to behavior rules established in accordance with this code, other normative acts, collective agreements, collective and individual labor contracts, as well as normative acts at the unit level, including the internal regulations of the unit, if developed and approved by the employer.

Article 202. Ensuring Work Discipline

Work discipline is ensured within the unit by the employer’s creation of the necessary economic, social, legal, and organizational conditions for performing high-productivity work, by fostering a conscious attitude towards work, by applying incentives and rewards for conscientious work, as well as sanctions in the case of disciplinary offenses.

Article 203. Incentives

(1) For work successes, the employer may apply incentives in the form of:

a) acknowledgments;

b) one-time bonuses on anniversaries, professional holidays, and non-working holidays, as well as on other occasions;

c) valuable gifts;

d) honorary diplomas.

(2) The internal regulations of the unit, if developed and approved by the employer, statutes, and disciplinary regulations may also provide for other forms of employee incentives.

(3) For outstanding work successes, merits towards society and the state, employees may be nominated for state honors (orders, medals, honorary titles), and they may be awarded state prizes.

Article 204. Application of Incentives

(1) Incentives are applied by the employer after consulting with the employees’ representatives.

(2) Incentives are recorded in an order (disposition, decision, resolution) and communicated to the workforce.

Article 205. Advantages and Facilities Granted to Employees Who Fulfill Their Work Obligations Conscientiously and Efficiently

Employees who conscientiously and efficiently fulfill their work obligations are granted, as a priority, advantages and facilities in the social-cultural, housing, and living areas (tickets to health-resort institutions, rest houses, etc.). These employees also have the right to priority promotion.

Article 206. Disciplinary Sanctions

(1) For violations of work discipline, the employer has the right to apply the following disciplinary sanctions:

a) warning;

b) reprimand;

c) severe reprimand;

d) dismissal (on the grounds provided in art. 86 para. (1) lit. g)-r)).

(2) The current legislation may provide for other disciplinary sanctions for certain categories of employees.

(3) The imposition of fines and other pecuniary sanctions for violations of work discipline is prohibited.

(4) For the same disciplinary offense, only one sanction may be applied.

(5) When applying the disciplinary sanction, the employer must consider the seriousness of the disciplinary offense committed and other objective circumstances.

Article 207. Authorities Competent to Apply Disciplinary Sanctions

(1) The disciplinary sanction is applied by the body that has the right to hire (elect, confirm, or appoint to a position) the respective employee.

(2) Employees who are liable for disciplinary offenses according to statutes or disciplinary regulations and other normative acts may also have disciplinary sanctions applied by the hierarchical superior bodies mentioned in para. (1).

(3) Employees holding elective positions can be dismissed (art. 206 para. (1) lit. d)) only by the decision of the body that elected them and only for legal reasons.

Article 208. Application of Disciplinary Sanctions

(1) Before applying the disciplinary sanction, the employer is required to request a written explanation from the employee regarding the committed act. The explanation regarding the committed act may be presented by the employee within 5 working days from the date of the request. Refusal to provide the required explanation is recorded in a report signed by a representative of the employer and a representative of the employees.

(2) Depending on the severity of the act committed by the employee, the employer has the right to organize a service investigation, which cannot exceed one month. During the investigation, the employee has the right to explain their attitude and to present to the person conducting the investigation all evidence and justifications they deem necessary.

Article 209. Deadlines for the Application of Disciplinary Sanctions

(1) The disciplinary sanction is usually applied immediately after the disciplinary offense is identified, but no later than one month from the date of identification, excluding the period during which the employee is on annual leave, study leave, or medical leave.

(2) The disciplinary sanction cannot be applied after the expiration of 6 months from the day the disciplinary offense was committed, and after a review or audit of economic-financial activities – after 2 years from the date of commission. The period of criminal proceedings is not included in these deadlines.

Article 210. Application of the Disciplinary Sanction

(1) The disciplinary sanction is applied by order (disposition, decision, resolution), which must obligatorily indicate:

a) the factual and legal grounds for applying the sanction;

b) the term within which the sanction may be contested;

c) the body where the sanction can be contested.

(2) The order (disposition, decision, resolution) for sanctioning, except for the disciplinary sanction in the form of dismissal in accordance with art. 206 para. (1) lit. d) which is applied in accordance with art. 81 para. (3), is communicated to the employee, under signature or by another method allowing confirmation of receipt/notification, within no more than 5 working days from the date of issuance, and if the employee works in a branch, representation, or other decentralized service located in another locality – within no more than 15 working days, and has effect from the date of communication. The refusal of the employee to confirm the receipt of the order by signature is recorded in a report signed by a representative of the employer and a representative of the employees.

(3) The order (disposition, decision, resolution) for sanctioning may be contested by the employee in court according to art. 355.

Article 211. Validity Period and Effects of Disciplinary Sanctions

(1) The validity period of the disciplinary sanction cannot exceed one year from the date of application. If during this period the employee is not subject to a new disciplinary sanction, the disciplinary sanction is considered not to have been applied.

(2) The employer who applied the disciplinary sanction has the right to revoke it within one year on their own initiative, at the employee’s request, at the request of the employees’ representatives, or of the employee’s immediate supervisor.

(3) During the validity period of the disciplinary sanction, the sanctioned employee cannot receive incentives provided in art. 203.

Article 2111. Serious Breach of Work Obligations

The following actions of the employee are considered a serious breach of work obligations:

a) receiving and releasing goods, as well as financial means, without completing the corresponding documents;

b) providing services through the use of their position in exchange for remuneration, a service, or other benefits;

c) using collected funds for personal purposes;

d) using the employer’s goods and those under the employer’s management (fixed assets owned, leased, or provided on loan) for personal purposes without the employer’s written consent;

e) failure to comply with confidentiality clauses;

f) breaching the health and safety requirements at work, as confirmed in writing by the unit’s management, the designated worker, the internal or external protection and prevention service, or the State Labor Inspectorate, if this breach resulted in severe consequences (work accident, damage) or created a real and imminent danger of such consequences occurring;

g) refusing to undergo a medical examination, if it is mandatory, and the employee was informed in writing by the employer about the obligation to undergo the medical examination;

h) causing pecuniary loss whose value exceeds five average monthly wages on the forecasted national economy.

Chapter III

EVALUATION OF THE INDIVIDUAL PERFORMANCE OF THE EMPLOYEE

Article 2112. Scope of Individual Performance Evaluation

(1) The periodic evaluation of the individual performance of the employee is the procedure through which the level of achievement of individual performance indicators is determined, aimed at assessing the results obtained, identifying professional development needs, and making decisions regarding the employee’s career. It applies to categories of personnel subject to evaluation, in accordance with the employer’s decision.

(2) The stages and procedures of the individual performance evaluation are specified in the individual performance evaluation regulation.

(3) Issuance of the order establishing the evaluation period, informing the employee, and approving the list of evaluators are within the employer’s responsibility.

Article 2113. Individual Performance Indicators

(1) The individual performance indicators are established by the employer, after consulting the employee, and are communicated to the employee in writing.

(2) The individual performance indicators are established no more frequently than once every 3 months and should be reasonably close to those formulated for other employees holding similar positions with the same level of experience and professional training. The indicators must meet the following requirements:

a) they must be specific to the employee’s duties, as stated in the individual employment contract;

b) they must be measurable – having a concrete form of achievement;

c) they must reflect the deadlines for completion;

d) they must be achievable – capable of being met within the designated deadlines and with the allocated resources.

Article 2114. Individual Performance Evaluation of the Employee

(1) The individual performance evaluation of the employee consists of comparing the results of their activity with the established individual performance indicators and assigning a performance rating.

(2) The individual performance evaluation procedure will provide at least 3 distinct performance ratings, correlated with the level of achievement of the individual performance indicators, in accordance with the grid established in the individual performance evaluation regulation.

(3) The rating “unsatisfactory” is assigned to the minimum level of achievement of the individual performance indicators, in accordance with the provisions of the individual performance evaluation regulation.

(4) The individual performance evaluation is a periodic procedure, with the frequency of its implementation being established in the individual performance evaluation regulation. The evaluation will take place no more frequently than once every 3 months, and the total duration of the evaluation procedure will not exceed one month from the initiation of the procedure until the results are communicated to the employee.

(5) The employee is informed in writing about the initiation of the evaluation procedure at least 5 days in advance.

(6) The individual performance evaluation of the employee is carried out by their direct supervisor or by an evaluation committee established for this purpose by the employer.

(7) The employee has the right to provide explanations regarding the achievement of the established individual performance indicators.

Article 2115. Results of the Individual Performance Evaluation and Contesting the Results

(1) The results of the individual performance evaluation, including the assigned rating and the justification for it, are communicated to the employee in writing and can be contested by the employee to the employer within 5 working days from the moment the results are communicated.

(2) The employer examines the contestation within 10 working days from the receipt of the contestation and informs the employee, in writing, of the decision regarding the contestation. If the employee disagrees with the employer’s decision, they may contest the decision in court within 30 days from the date the employer presents their written decision regarding the contestation.

(3) The results of the individual performance evaluation are taken into consideration by the employer when making decisions regarding promotion, dismissal, training needs, and financial or non-financial incentives for the employee.

Title VIII Vocational Training

Chapter I General Provisions

Article 212. Key concepts

(1) Vocational training means any training process whereby an employee acquires a qualification, certified by a certificate or diploma issued under the conditions provided by law.

(2) Continuous vocational training means any training process whereby an employee, already holding a qualification or a profession, enhances their professional knowledge by deepening their expertise in a specific field of their core specialty or by acquiring new methods or procedures applied within that specialty.

(3) Technical training means any training system through which an employee learns the methods for applying technical and technological means in the work process.

Article 213. Employer’s rights and obligations in the field of vocational training

(1) The employer is required to create the necessary conditions and facilitate vocational and technical training for employees undergoing on-the-job training, improving their skills, or studying in educational institutions without interruption of work.

(2) Within each legal entity, the employer, together with employee representatives, prepares and annually approves vocational training plans.

(3) The conditions, modalities, and duration of vocational training, the rights and obligations of the parties, as well as the amount of financial resources allocated for this purpose (at least 2 percent of the unit’s payroll fund), are established in the collective labor agreement or collective agreement.

(4) If an employee’s participation in vocational training courses or internships is initiated by the employer, all related costs will be borne by the employer.

(5) If an employee is temporarily removed from work for a short period for vocational training, their individual employment contract remains in force, with the maintenance of their average salary. If this period exceeds 60 calendar days, the employee’s individual employment contract is suspended, and they receive an allowance paid by the employer in accordance with the provisions of the collective labor agreement.

Article 214. Employees’ rights and obligations in the field of vocational training

(1) The employee has the right to vocational training, including the acquisition of a new profession or specialty. This right may be exercised through the conclusion, in written form, of vocational training contracts (Articles 215, 216(3) and (4)), supplementary to the individual employment contract.

(2) – repealed.

(3) If the employee initiates participation in a form of vocational training with temporary removal from work, organized outside the unit, the employer will examine the employee’s written request together with employee representatives.

(4) Within 15 calendar days from the date of registration of the request, the employer will decide under what conditions the employee may participate in a form of vocational training as provided in paragraph (3) and whether the employer will cover the cost in full or in part.

Chapter II Vocational Qualification Contract

Article 215. Vocational qualification contract

(1) The vocational qualification contract is a special contract, supplementary to the individual employment contract, concluded in written form, under which the employee undertakes to attend a vocational training course organized by the employer to obtain a professional qualification.

(2) Vocational training at the unit level under the vocational qualification contract is carried out by an instructor or training master, appointed by the employer from among qualified employees with professional experience and authorized in accordance with the law.

Chapter III Apprenticeship Contract and Continuous Vocational Training Contract

Article 216. Apprenticeship contract and continuous vocational training contract

(1) The employer has the right to conclude an apprenticeship contract with a person seeking employment who does not have a professional qualification.

(2) The apprenticeship contract, concluded in written form, is a civil law contract and is governed by the Civil Code and other normative acts.

(3) The employer has the right to conclude a continuous vocational training contract with any employee of the unit.

(4) The continuous vocational training contract is concluded in written form, constitutes an addendum to the individual employment contract, and is governed by labor legislation and other normative acts containing labor law provisions.

Article 217. Content of the apprenticeship contract and the continuous vocational training contract

(1) The apprenticeship contract and the continuous vocational training contract will include:

a) the names or designations of the parties;
b) the profession, specialty, and qualification to be obtained by the apprentice or employee;
c) the employer’s obligations regarding the training conditions stipulated in the contract;
d) the term of the contract;
e) the obligation of the person to complete the vocational training course and to work in accordance with the profession, specialty, or qualification obtained for the period stipulated in the respective contract;
f) the conditions for remuneration during the apprenticeship or continuous vocational training period;
g) the conditions for covering (reimbursing) the costs borne by the parties (or one party) during the apprenticeship or continuous vocational training period in case of the employee’s resignation (Articles 85, 86(1)(g)-r)) before the expiration of the period provided by the contract under letter e).

(2) The apprenticeship contract and the continuous vocational training contract may include other clauses determined by the parties, provided they do not contravene the applicable legislation.

Article 218. Duration of apprenticeship and continuous vocational training

(1) The duration of apprenticeship or continuous vocational training must not exceed, within a week, the working time established by this Code for the respective age and profession in the execution of corresponding tasks.

(2) The time required for the apprentice to participate in theoretical activities related to vocational training is included in working time.

(3) Employees engaged in continuous vocational training within the unit may be temporarily exempted from the work stipulated in their individual employment contract or may work under part-time conditions or a flexible work schedule, with the employer’s written consent.

(4) For employees engaged in continuous vocational training, the following are prohibited:

a) work performed under difficult, harmful, and/or hazardous conditions;
b) overtime work;
c) night work;
d) assignments unrelated to vocational training.

(5) The term of the apprenticeship contract, as well as that of the continuous vocational training contract, begins on the date specified in the contract and is extended by the duration of medical leave and in other cases provided by the contract.

Article 219. Application of labor legislation during apprenticeship and continuous vocational training

(1) Labor legislation, including legislation on labor protection, applies to apprentices and employees who have concluded a continuous vocational training contract.

(2) Provisions of apprenticeship contracts and continuous vocational training contracts that contradict the applicable legislation, the provisions of collective agreements, or collective labor contracts will be deemed null and unenforceable.

(3) The employer will ensure, through appropriate supervision carried out jointly with employee representatives, the effectiveness of the apprenticeship system and any other staff training system, as well as their adequate protection.

Article 220. Termination of the continuous vocational training contract

The continuous vocational training contract may terminate on the grounds provided by this Code for the termination of the individual employment contract or on other grounds provided by applicable legislation.

Article 221. Termination (dissolution) of the apprenticeship contract

The apprenticeship contract terminates (is dissolved) on the grounds provided by the Civil Code.

Title IX Occupational Safety and Health

Chapter I General Provisions

Article 222. State policy on occupational safety and health

(1) The main directions of the state policy on occupational safety and health are:

a) ensuring the priority of life, physical integrity, and health of employees;
b) issuing and enforcing normative acts on occupational safety and health;
c) coordinating activities in the field of occupational safety and health and environmental protection;
d) state supervision and control over compliance with normative acts on occupational safety and health;
e) supporting public oversight of compliance with employees’ rights and legitimate interests in occupational safety and health;
f) investigating, recording, and reporting work accidents and occupational diseases;
g) protecting the legitimate interests of employees affected by work accidents and occupational diseases, as well as those of their family members, through mandatory social insurance against work accidents and occupational diseases;
h) promoting advanced experience in the field of occupational safety and health;
i) participation of public authorities in the implementation of occupational safety and health measures;
j) training and education in occupational safety and health;
k) organizing state statistical records on working conditions, work accidents, occupational diseases, and their material consequences;
l) ensuring the operation of a unified information system in the field of occupational safety and health;
m) international cooperation in the field of occupational safety and health;
n) contributing to the creation of safe working conditions, the development and use of safe equipment and technologies, and the production of personal and collective protective equipment for employees;
o) regulating the provision of employees with personal and collective protective equipment, sanitary and social facilities, and preventive medical means at the employer’s expense.

(2) The state policy on occupational safety and health is developed and reviewed in consultation with employers’ organizations and trade unions, considering the evolution of international regulations in this field and technological progress.

(3) The implementation of the state policy on occupational safety and health is ensured through coordinated actions by central and local public authorities, employers’ organizations, trade unions, employers, and employee representatives.

Article 223. Coordination of occupational safety and health

The Ministry of Labor and Social Protection coordinates occupational safety and health in the Republic of Moldova.

Chapter II Organization of Occupational Safety and Health. Ensuring Employees’ Right to Work That Meets Occupational Safety and Health Requirements

Article 224. Organization of occupational safety and health

The organization of occupational safety and health is carried out in accordance with the Occupational Safety and Health Law.

Article 225. Ensuring employees’ right to work that meets occupational safety and health requirements

(1) The state guarantees employees the protection of their right to work that meets occupational safety and health requirements.

(2) The working conditions stipulated in the individual employment contract must comply with occupational safety and health requirements.

(3) If state control bodies suspend work activities stipulated in the individual employment contract due to violations of occupational safety and health requirements without the employee’s fault, the employee retains their job (position) and average salary.

(4) If an employee refuses to perform work due to a danger to their life or health, the employer is required to assign the employee to other work corresponding to their level of professional training until the danger is eliminated, maintaining their previous salary.

(5) If assigning other work is not possible, the employee’s downtime until the danger to their life or health is eliminated is paid by the employer in accordance with Article 163(1).

(6) If the employer fails to provide the employee with personal and collective protective equipment in accordance with occupational safety and health requirements, the employer may not require the employee to perform work duties and must pay for the downtime caused by this failure in accordance with paragraph (5).

(7) The employee’s refusal to perform work in case of a danger to their life or health due to non-compliance with occupational safety and health requirements or to perform work under difficult, harmful, and/or hazardous conditions not stipulated in the individual employment contract does not constitute a disciplinary offense.

(8) If an employee’s health is harmed while performing their work duties, the loss will be compensated in accordance with the applicable legislation.

Title X

SPECIFIC REGULATIONS

FOR CERTAIN CATEGORIES OF EMPLOYEES

Chapter I

GENERAL PROVISIONS

Article 245. Specific regulations of labor

The specific regulations of labor represent a set of norms that specify the application of general labor regulations to certain categories of employees or establish additional rules for these categories in the mentioned field.

Article 246. Categories of employees to whom

specific labor regulations apply

The specific regulations of labor for women, persons with family obligations, employees under 18 years of age, unit managers, persons working under multiple employment contracts, as well as other categories of employees, are established by this Code and other normative acts.

Chapter II

LABOR OF WOMEN, PERSONS WITH FAMILY

OBLIGATIONS, AND OTHER PERSONS

Article 247. Employment guarantees for pregnant women

and persons with children under

4 years of age

(1) Refusal of employment or reduction of salary due to pregnancy or the existence of children under 4 years of age is prohibited. Refusal to hire a pregnant woman or a person with a child under 4 years of age for other reasons must be justified, with the employer informing the concerned person in writing within 5 calendar days from the date of registration of the employment application. The refusal of employment may be challenged in court.

(2) – repealed.

Article 248. Prohibited work for certain categories of women

The employment of pregnant women, women who have recently given birth, and breastfeeding women in underground work in mines, as well as in any other activities that pose risks to their safety or health or may have repercussions on pregnancy or breastfeeding, is prohibited, in accordance with the minimum requirements approved by the Government.

Article 249. Restrictions on work-related travel

(1) Work-related travel is not permitted for persons for whom such travel is contraindicated according to a medical certificate.

(2) Persons with severe and pronounced disabilities, pregnant women, single parents with children under 14 years of age, employees with children under 4 years of age or children with disabilities, persons combining childcare leave, as provided in Articles 126 and 127(2), with work, as well as employees caring for a sick family member based on a medical certificate, may be sent on work-related travel only with their written consent. The employer is also required to inform these employees in writing about their right to refuse work-related travel.

Article 250. Transfer to another job for certain categories of women

(1) If, as a result of an occupational risk assessment in accordance with the Occupational Safety and Health Law, the work performed by a pregnant woman, a woman who recently gave birth, or a breastfeeding woman is found to pose risks to her safety or health or may have repercussions on pregnancy or breastfeeding, the employer will take the necessary measures to exclude the influence of risk factors on the mentioned persons by temporarily modifying working conditions.

(2) If modifying working conditions as provided in paragraph (1) is not possible for objective reasons, the pregnant woman, the woman who recently gave birth, or the breastfeeding woman will be assigned to another job to avoid exposure to the identified risk factors. During the period of work at the new workplace, she will retain her average salary from the previous workplace.

(3) The provisions of paragraphs (1) and (2) also apply in cases where pregnancy or breastfeeding occurs during the performance of work involving exposure to risk factors, provided that the employer is properly informed.

(4) Pregnant women, women who have recently given birth, and breastfeeding women will be exempted from night work and assigned to day work while retaining their average salary from the previous workplace.

(5) Until the issue of assigning another job in accordance with paragraphs (2)–(4) is resolved, or if changing the workplace is not possible for objective reasons, pregnant women, women who have recently given birth, and breastfeeding women will be exempted from work duties while retaining their average salary for the days they are unable to work due to this reason.

(6) Without prejudice to the provisions of paragraphs (1)–(5), women with children under 3 years of age who are unable to fulfill their work obligations will be transferred, as provided by this Code, to another workplace while retaining their average salary from the previous workplace until their children reach the age of 3.

Article 251. Prohibition of dismissal of pregnant women and employees caring for children under 4 years of age

The dismissal of pregnant women, women with children under 4 years of age, and persons on childcare leave as provided in Articles 124, 126, and 127 is prohibited, except in the cases specified in Article 86(1)(b), (g)–(k).

Article 252. Guarantees for persons caring for children deprived of maternal care

The guarantees and rights granted to women with children under 4 years of age and other persons on childcare leave, as provided in Articles 124, 126, and 127 (restrictions on night work, overtime work, work on rest days, and work-related travel, the granting of additional leave, the establishment of a privileged work regime, and other guarantees and facilities established by labor legislation), will also apply, beyond the relatives mentioned in Article 124(4), to other persons who actually care for children deprived of maternal care (in cases of maternal death, loss of parental rights, prolonged hospitalization, or other situations), as well as to guardians (curators) of minors.

Article 2521. Guarantees for persons raising a child with disabilities

One of the parents (guardian, curator) raising a child with disabilities will be granted, upon written request, an additional day off per month, with retention of the average salary at the employer’s expense.

Article 2522. Childcare services for children under 3 years of age

To ensure the reconciliation of professional and family life, the employer may provide employees with childcare services for children under 3 years of age, in accordance with the regulatory framework approved by the Government.

Chapter III LABOR OF PERSONS UNDER 18 YEARS OF AGE

Article 253. Medical examinations for employees under 18 years of age

(1) Employees under 18 years of age may be employed only after undergoing a preventive medical examination. Subsequently, until they reach the age of 18, they will undergo a mandatory annual medical examination.

(2) The costs of medical examinations will be covered by the employer.

Article 254. Work norms for employees under 18 years of age

(1) The work norms for employees under 18 years of age will be established based on general labor standards, proportionally adjusted to the reduced working time applicable to such employees.

(2) For employees under 18 years of age who are employed after graduating from general secondary or vocational technical education institutions, the employer will establish reduced work norms in accordance with the applicable legislation, collective agreements, and the collective labor contract.

Article 255. Prohibited work for employees under 18 years of age

(1) The employment of persons under 18 years of age in jobs involving heavy, harmful, and/or hazardous working conditions, underground work, or work that may harm their health or moral integrity (such as gambling, working in nightclubs, and the production, transportation, and sale of alcoholic beverages, tobacco products, narcotic and toxic substances) is prohibited. The manual lifting and transportation of loads exceeding the maximum limits established for minors is also prohibited.

(2) The list of jobs with heavy, harmful, and/or hazardous working conditions in which the employment of persons under 18 years of age is prohibited, as well as the maximum permissible workload for manual lifting and transportation of weights by such persons, will be approved by the Government after consultation with employers’ and workers’ organizations.

Article 256. Prohibition of work-related travel for employees under 18 years of age

Employees under 18 years of age will not be sent on work-related travel, except for employees in audiovisual institutions, theaters, circuses, cinematographic, theatrical, and concert organizations, as well as professional athletes.

Article 257. Additional guarantees against dismissal for employees under 18 years of age

The dismissal of employees under 18 years of age, except in the case of the liquidation of the company, will be permitted only with the written consent of the territorial employment agency, while complying with the general dismissal conditions set forth in this Code.

Chapter IV LABOR OF UNIT MANAGERS AND MEMBERS OF COLLEGIAL BODIES

Article 258. General provisions

(1) The provisions of this chapter apply to managers of all units, except when the manager (employer) is also the owner of the unit.

(2) A unit manager is a natural person who, in accordance with the applicable legislation or the unit’s founding documents, exercises managerial functions in the respective unit while also performing the duties of the executive body.

Article 259. Legal basis for regulating the labor of the unit manager

The rights and obligations of the unit manager in employment relations are regulated by this Code, other normative acts, the unit’s founding documents, and the individual employment contract.

Article 260. Conclusion of the individual employment contract with the unit manager

(1) The individual employment contract with the unit manager is concluded for the duration specified in the unit’s founding documents or for a term agreed upon in the contract by the parties.

(2) The applicable legislation or the unit’s founding documents may establish special procedures preceding the conclusion of the individual employment contract with the unit manager (such as organizing a competition, election, or appointment to the position).

Article 261. Holding multiple jobs by the manager of a state, including municipal unit, or a unit with majority state capital

(1) The manager of a state, including municipal unit, or a unit with majority state capital may not hold another job concurrently at another unit or hold multiple positions within the unit they manage, except as provided by the applicable legislation.

(2) The manager of a state, including municipal unit, or a unit with majority state capital may not be a member of bodies that exercise oversight and control over the unit they manage.

Article 262. Material liability of the unit manager

(1) The unit manager bears full material liability for direct and actual loss caused to the unit, in accordance with this Code and other normative acts.

(2) In cases provided by the applicable legislation, the unit manager will compensate for the loss caused to the unit as a result of their culpable action or inaction. The calculation of such loss will be carried out in accordance with the provisions of the Civil Code.

Article 263. Additional grounds for terminating the individual employment contract of the unit manager

In addition to the grounds for termination of the individual employment contract provided by this Code and other normative acts, the individual employment contract of the unit manager may be terminated in case of:

a) dismissal of the manager of a debtor unit in accordance with insolvency legislation;

b) issuance by the competent body or the unit’s owner of a legally grounded order (directive, decision, resolution) for early termination of the individual employment contract; as well as

c) other cases provided by the individual employment contract.

Article 264. Compensation in connection with the termination of the individual employment contract of the unit manager

In case of termination of the individual employment contract of the unit manager based on an order (directive, decision, resolution) issued by the competent body or the unit’s owner (Article 263(b)), in the absence of culpable actions or inactions, the manager will be given written notice one month in advance and will be paid compensation for early termination of the individual employment contract, in an amount of at least three average monthly salaries. The specific amount of compensation will be established in the individual employment contract.

Article 265. Resignation of the unit manager

The unit manager has the right to resign before the expiration of the individual employment contract in cases stipulated by the contract, by notifying the employer in writing one month in advance.

Article 266. Other specific regulations for the labor of unit managers and members of collegial bodies

The applicable legislation and/or the unit’s founding documents may provide for other specific regulations regarding the labor of unit managers, as well as specific regulations concerning the labor of members of the unit’s collegial executive body, who operate under an individual employment contract.

Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.

Section I General provisions

Article 1. The relations regulated by this code

(1) This code establishes the general principles of the taxation in the Republic of Moldova, legal status of taxpayers, the State Tax Administration and other participants of the relations regulated by the tax legislation, the principles of determination of the taxation object and accounting of the income and deductible expenses, procedure and conditions of accountability for violations of the tax legislation, and also procedure for appeal of actions of the State Tax Administration and its officials.

(2) This code governs the relations connected with execution of the tax liabilities on the national taxes (duties) and charges and also the general principles of determination and collection of the local taxes and charges are established.

(3) the Concepts and provisions provided by this code are applied only within tax and related other relations.

Article 2. Taxation system of the Republic of Moldova

The taxation system of the Republic of Moldova represents set of the taxes (duties) and charges, the principles, forms and methods of their establishment, change and cancellation, and also measures for ensuring their payment provided by this code.

Article 3. Tax legislation

(1) the Tax legislation consists of of this Code and other regulations adopted according to it.

(2) the Regulations adopted by the Government, the Ministry of Finance, the State Tax Administration and Customs Service under the Ministry of Finance, other central industry bodies of public management, and also local authorities of public management on the basis and in pursuance of of this Code shall not contradict its provisions or to go beyond its limits.

(3) In case of contradictions between the regulations specified in part (2), and provisions of this Code apply code provisions.

(3-1) In case of project development legislative and the regulations in the field of the taxation regulating business activity, the Government draws up the statement of the analysis of consequences of regulation. According to the legislative initiatives provided by deputies the statement of the analysis of consequences of regulation is drawn up by the Government in the course of coordination according to the methodology approved by it.

(4) the Taxation is performed based on of this Code and other regulations adopted according to it, officially published and existing for the term established for tax payment (duties) and charges.

(4-1) Tax procedure are applied in time and in the place of application if the law does not provide other.

(5) Interpretation (explanation) of provisions of this Code and other regulations adopted according to it gives the body which accepted them if in the specified act other is not established. Any interpretation (explanation) is subject to official publication.

Article 4. International agreements

(1) If the international treaty regulating the taxation or containing the regulations regulating the taxation, one of the parties of which is the Republic of Moldova, other rules and provisions are established, than those which are provided by the tax legislation are applied rules and provisions of the international treaty.

(2) part Provisions (1) are not applied in cases when the resident of the state with which the international treaty is signed is used for receipt of tax benefits by other person, not being resident of the state with which the international treaty is signed, and not having the right to tax benefits.

(3) Norma and the procedure according to which the Republic of Moldova provides/receives the mutual administrative aid in the tax matters according to international treaties, one of the parties of which is the Republic of Moldova, affirm the Government.

Article 5. General concepts

The following concepts are applied to the taxation purposes without change of the legal status of legal entities and physical persons provided by the current legislation:

1) Person – any physical person or legal entity.

2) the Taxpayer, the subject of the taxation – person who according to the tax legislation shall estimate and/or pay any tax (duty), collection, the corresponding penalty fee and penalty to the budget; person who according to the tax legislation shall hold or levy from other face and pay the specified payments to the budget.

3) Physical person:

a) citizen of the Republic of Moldova, foreign citizen, stateless person;

b) organizational form with the status of physical person according to the legislation, including the individual entrepreneur, peasant farm if this code does not provide other.

4) the Legal entity – any economic partnership or society, cooperative, the company, organization, fund, association, including created with participation of the foreign person, and other organizations, except for divisions of the listed organizations which do not have the isolated property, and also organizational forms with the status of physical person according to the legislation.

5) Resident:

a) any physical person which corresponds to one of the following requirements:

i) has the permanent residence in the Republic of Moldova, including:

– being on treatment or on vacation, either on study, or in business trip abroad;

– being the official of the Republic of Moldova who is located on duty abroad;

i-i) is in the Republic of Moldova at least 183 days within tax year;

b) any legal entity or organizational form with the status of physical person which activities will be organized or controlled in the Republic of Moldova or the main place of implementation of activities of which is the Republic of Moldova.

6) Nonresident:

a) any physical person which is not resident according to the subitem and) Item 5) or, though conforms to requirements of the subitem and) Item 5), stays in the Republic of Moldova:

– as person having the diplomatic or consular status or as the member of the family of such person;

– as the employee of the international organization created on the basis of the international treaty, one of the parties of which is the Republic of Moldova, or as the member of the family of such employee;

– on treatment, or on vacation, or on study if it is the single purpose of stay of physical person in the Republic of Moldova;

– only for following from one foreign state in other foreign state through the territory of the Republic of Moldova (transit following);

b) any legal entity or organizational form with the status of physical person which are not meeting the requirements of the subitem b) Item 5).

7) the Individual entrepreneur – the physical person registered in accordance with the established procedure, performing business activity without formation of legal entity.

8) Peasant farm – the agricultural enterprise having the status of physical person and formed according to the legislation.

9) ceased to be valid according to the Law of the Republic of Moldova of 16.12.2016 No. 281

10) the Shareholder – any person who is the owner of one or more shares of joint-stock company.

11) the Unitholder – any person owning share of the capital of the legal entity.

12) the Affiliated person – the member of the family of the taxpayer or person who controls the taxpayer is controlled by the taxpayer or is together with him under control of the third party. For the purposes of this Item:

a) the family of the taxpayer includes: to the spouse (spouse) of the taxpayer; parents of the taxpayer; children of the taxpayer and their spouses; grandfather and grandmother of the taxpayer; grandsons of the taxpayer and their spouses; brothers and sisters of the taxpayer and their spouses; great-grandfather and great-grandmother of the taxpayer; great-grandsons of the taxpayer and their spouses; brothers and sisters of parents of the taxpayer and their spouses; nephews of the taxpayer and their spouses; brothers and sisters of the grandfather and grandmother of the taxpayer and their spouses; children of the brother and sister of parents of the taxpayer and their spouses; children of nephews of the taxpayer and their spouses; and also the listed persons from the spouse (spouse) of the taxpayer;

b) control is understood as ownership (directly or through one or more affiliated persons) by 50 and more percent of the capital or voting powers of person. At the same time the physical person is considered as person owning all shares in the capital belonging directly or indirectly to members of his family.

13) Business entity – any person performing business activity.

14) Non-profit organization – the legal entity who is not pursuing commercialization as the purpose of the activities and not using any part of property or the income for benefit of any organization member, the founder or the individual.

15) Permanent mission – the permanent place of activities through which the nonresident fully or partially performs business activity in the Republic of Moldova is direct or through the agent with the dependent status, including:

a) management place, division, office, factory, plant, workshop, and also mine, oil or gas well, pit or any other place of production of natural resources or cultivation of crops;

b) the building site, construction, assembly or assembly object or the related activities for technical supervision, servicing and operation of the equipment only if such platform, object or activities proceed during the period exceeding six months;

c) sales of goods from the warehouses located in the territory of the Republic of Moldova and belonging to the nonresident or leased by it;

d) rendering other services, conducting other activities during the period exceeding three months except for qualified in Item 15-1) and also works on the employment contract (agreement) and independent professional activity;

e) implementation in the Republic of Moldova any activities answering at least to one of the signs provided in subitems and) – d), through the agent with the dependent status or content by this agent in the Republic of Moldova of inventories of goods or products from which it delivers goods or products on behalf of the nonresident.

For the purposes of of this Code permanent mission of the physical person – the nonresident the permanent base is considered.

15-1) In departure from Item provisions 15) the permanent mission does not assume implementation by the nonresident of the Republic of Moldova of types of activity of preparatory, auxiliary or other nature in the absence of the criteria of permanent mission listed in Item 15). Treat types of activity of preparatory, auxiliary or other nature, in particular:

a) use of constructions only for the purposes of storage or goods demonstration or products belonging to the nonresident;

b) stock keeping of the goods or products belonging to the nonresident only for the purposes of storage or demonstration;

c) stock keeping of the goods or products belonging to the nonresident only for the purposes of conversion by other person;

d) content of the permanent place of activities only for the purposes of purchase of goods by the nonresident;

e) content of the permanent place of activities is exclusive for the purpose of collection and/or distribution of information, marketing, advertizing or market research of goods (services) realized by the nonresident if such activities are not the main (regular) activities of the nonresident;

f) content of the permanent place of activities for the purposes of agreement signature by person on behalf of the nonresident if agreement signature happens according to detailed written instructions of the nonresident;

g) implementation of the activities provided by the subitem b) Item 15), no more than within six months.

16) Business activity, business – any kind of activities of person according to the legislation, except for from work on the employment contract (agreement) which is performed for the purpose of income acquisition or implementation of which irrespective of the purpose of activities results the income.

17) Services – the material and non-material consumer and production services including cession of property in lease, assignment of rights on use of any goods; construction, repair, research, developmental and other work.

18) the Agreement of financial leasing – any agreement of leasing answering at least to one of the following conditions:

a) the risks and benefits connected with the property right to the thing which is leasing subject are transferred to the leasing recipient at the time of the conclusion of the agreement of leasing;

b) the amount of leasing payments constitutes at least 90 percent of original cost of the leased thing;

c) the agreement of leasing directly provides transfer upon termination of the duration of the agreement to the leasing recipient of the property right to the thing which is leasing subject;

d) the term of leasing exceeds 75 percent of term of useful service of the thing which is leasing subject.

For the purpose of the taxation in case of financial leasing the leasing recipient is considered as the owner of the property received in leasing.

19) the Agreement of operational leasing – any agreement of leasing which is not corresponding to any of terms of the contract of financial leasing;

20) ceased to be valid;

21) the Market – the system of the economic relations developing in production process, addresses and distributions of goods, rendering services, and also cash flow of which freedom of subjects in the choice of buyers and sellers, determination of the prices, forming and use of resource sources is characteristic.

22) the Wholesale market – type of the market on which goods, services, as a rule, are implemented by one persons to other persons performing business activity, using further goods, services in production process or realizing them in the market of retail trade.

23) the Market of retail trade – type of the market on which goods, services are implemented to the population for final consumption.

24) Ceased to be valid.

25) Ceased to be valid.

26) Market price, market value – the price of goods, service which developed in case of interaction of the demand and supply in the wholesale market of identical goods, services, and in the absence of identical goods, services – as a result of the bargains concluded in the corresponding wholesale market between persons who are not participants of common property or affiliated persons. Transactions between participants of common property or affiliated persons can be taken into account only provided that their interdependence did not affect results of such transactions.

Sources of information on market prices of the moment of the conclusion of the transaction are recognized:

a) information of state bodies of statistics and the bodies regulating pricing; and in case of its absence

b) the information on market prices published in printing editions or which is brought to the attention of the public by mass media; and in case of its absence

c) the official and/or published information on stock exchange quotations (the taken place transactions) on the next to the location (residence) of the seller (buyer) to the exchange, and in the absence of transactions at the specified exchange or in case of realization (acquisition) at other exchange – information on stock exchange quotations at this other exchange, and also information on quotations on government securities and obligations.

The taxpayer has the right to provide to the State Tax Administration information from other sources on market prices at the time of transfer of goods, services, and the State Tax Administration has the right to use the provided information in the presence of the bases for recognition of its reliable.

26-1) Internal cost – the actual cost of the goods imported on the territory or exported from the territory of the Republic of Moldova, which is not including expenses on transportation, insurance, and also loading expenses, unloading and overload of goods.

27) Discount – price discount of goods, service, foreign currency and other financial assets.

28) the Fiscal code – the personal identification taxpayer number appropriated according to the procedure, established by this code. Are recognized fiscal codes and do not require assignment in the procedure provided by this code:

a) the state identification number assigned by the structure given the right of state registration, and specified in the decision on registration of the legal entities and individual entrepreneurs who are subject to state registration according to provisions of the Law on state registration of legal entities and individual entrepreneurs No. 220-XVI of October 19, 2007;

b) the state identification number assigned by the structure given the right of state registration, and specified in the registration certificate of the legal entities who are subject to state registration according to provisions of the Law on non-profit organizations No. 86/2020;

c) personal code (IDNP) assigned according to the regulatory base competent authority for the physical person – to the citizen of the Republic of Moldova. In the absence of personal code (IDNP) – series and number (without gaps) passports, and for not having passport – series and number (without gaps) the certificate of birth or other identification document;

d) series and passport number of the physical person – the citizen of the Republic of Moldova who does not have the identity certificate, and for not having both passports – series and certificate number about the birth or other identification document;

e) personal code (IDNP) assigned according to the regulatory base competent authority for physical person – to the foreign citizen or the stateless person, and in the absence of personal code – series and number (without gaps) passports of country of source of the corresponding person valid for the moment of assignment of fiscal code by the State Tax Administration. In case of change of data the State Tax Administration adjusts them in the information system.

29) Division – the structural unit of the company, organization or organization (representation, department, department, shop, warehouse, etc.) located outside their main location which performs some functions of the company, organization or organization. The exception is constituted by electronic devices (like the terminal of cash payment, the cash-in terminal, the foreign exchange device, the ATM, and also others, having special and identifiable application programs), including places for placement of these devices.

30) the Subdivision code – number assigned by the State Tax Administration to division of the taxpayer according to the procedure, established by the State Tax Administration. Process of assignment of number by the State Tax Administration is based on the analysis of the statement and copies of the documents confirming creation of the divisions provided by taxpayers. Submission of other documents by taxpayers or issue of documents (certificates, permissions, confirmations, etc.) by the State Tax Administration is not required.

31) Ceased to be valid according to the Law of the Republic of Moldova of 26.10.2012 No. 235

32) the Bad debt – accounts receivable, impossible to repayment in cases:

a) liquidations of business entity without legal successor;

b) lack of property at the physical person or legal entity performing business activity and announced by insolvent;

c) absence or insufficiency at the physical person which is not performing business activity and peasant farm or the individual entrepreneur within two years from the date of emergence of debt of property which could be collected on account of repayment of this debt;

d) the death of the physical person and lack of other faces obliged to fulfill its obligations under the law;

e) impossibility to search for the physical person, including members of peasant farm or the individual entrepreneur who was disposed from the permanent residence during the term of limitation period established by the civil legislation;

f) availability of the relevant act of degree of jurisdiction or the legal executive (the decision, determination or other document provided by the current legislation) according to whom debt collection is impossible;

g) it is long in the amount up to 2000 lei which prescriptive limit expired.

The debt is recognized hopeless the cases stated above, except for the subitem g), only in the presence of the relevant document confirming approach of this or that circumstance of involvement in certain legal form according to the legislation.

33) the Tax benefit – tax amount (duties) or the collection which is not brought in the budget in the forms established in Item g) parts (9) Article 6.

34) the Agent with the dependent status – any person, which based on the contract with the nonresident:

a) represents the interests of the nonresident in the Republic of Moldova;

b) acts in the Republic of Moldova on behalf of this nonresident;

c) has and, as a rule, uses in the Republic of Moldova powers on the conclusion of agreements or coordination of their essential conditions on behalf of the nonresident, creating at the same time consequence in law for this nonresident.

35) the Agent with the independent status – any person which is not meeting the requirements of Item 34).

36) Professional services – independent scientific, literary, artistic, educational, teaching activities, independent activities of engineers, architects, auditors and accountants, and also any other independent activities performed according to the legislation. Provisions of this Item do not extend to persons specified in Items 36-2) and 36-3).

36-1) Independent activities – the business activity performed in individual procedure by physical resident person without registration of form of business from which the income results.

36-2) Professional activity in the sphere of justice – the permanent activities of the lawyer, lawyer-trainee, public notary, legal executive, the authorized managing director performed within the forms of the organization of activities provided by the law, mediator, the court expert in bureau of judicial examination.

36-3) Professional activity in the field of health care – independent implementation of professional profession of a physician in one of the forms of the organization of professional activity provided by the Law on health protection No. 411/1995.

37) Ceased to be valid according to the Law of the Republic of Moldova of 23.12.2011 No. 267

38) the Advertizing campaign – sales promotion method by the organizations of the tenders, games, lotteries which are publicly announced and carried out during the limited period with delivery of gifts, prizes, prizes and also the organization of these actions by bodies of the public power and public organizations with other, than sales promotion, the purpose;

39) the Large taxpayer – the taxpayer determined according to the selection criteria of large taxpayers developed by the State Tax Administration, and included in the List of business entities – large taxpayers.

40) the Control and cash equipment – the control and cash equipment with fiscal memory, other information systems, including the electronic devices (like the terminal of cash payment, the foreign exchange device, and also others, having special and identifiable application programs) with functions of the control and cash equipment intended for registration of cash transactions (cash payments), storages, listings, enciphering and transfer on the server of the State Tax Administration of financial and reporting information providing protection of working algorithms and the registered data from unauthorized changes.

40-1) The payment instrument – the personalized means (payment card, the mobile phone, etc.) and/or any series of the procedures (technical – PIN codes, TAN codes, other types of codes, the login/password, etc. or functional – the credit translation, direct debiting) approved between the user of payment services and the payment service provider and used by the user of payment services for initiation of the payment order.

40-2) The terminal of cash payment – the automated device allowing the payment service provider to receive and/or issue cash intended for implementation of payment service by the user of payment services and working in the autonomous mode without physical presence (participation) of the other person except the user of payment services who places and/or receives cash.

41) Tax year – calendar year which begins on January 1 and comes to the end on December 31.

42) the Certificate on assignment of fiscal code – the document confirming capture on tax accounting. The certificate on assignment of fiscal code is granted according to the procedure, established by this code, except for taxpayers for whom fiscal code is the code assigned according to subitems a), b), c), d) and e) Item 28).

44) Samples of goods – any unit, representing goods type, manner of provision and which quantity, for goods of the same type, do not allow its use for the purpose of, orders for goods of this kind, other than obtaining.

45) the Provisional individual tax solution – the administrative act published by the State Tax Administration for the purpose of the permission of the statement of physical person and the legal entity performing business activity concerning application of the tax legislation to specific future certain situations and/or transactions.

46) the Main housing – housing which meets in total the following conditions:

a) at least three years consist in property of the taxpayer;

b) constitutes the place of residence/stay of the taxpayer within the last three years until alienation including if the place of residence/stay is cancelled no more than in 90 calendar days prior to date of alienation.

47) the Long-term program of stimulation (stock option plan) – the program initiated within the legal entity or his affiliated legal entities, approved by general meeting of unitholders/shareholders which to his workers and/or managing directors having resident status in understanding of this Code is granted the right to acquisition on preferential price or non-paid receipt of certain quantity of shares (shares) issued by the specified legal entity, but no more than 25 percent of the authorized capital, concerning all participants of the program. For qualification of the program as stock option plan the appropriate program shall cover at least three years from the moment of provision of the right and until its realization (purchases/receipts of shares (shares).

48) Pai (share) – any share or other share in the authorized capital of the legal entity.

Article 6. Taxes (duties) and charges and their types

(1) the Tax (duty) the obligatory payment having non-paid nature and which is not connected with making by authorized body or its official of certain and specific actions in advantage or concerning the taxpayer who paid it is recognized.

(2) Collection the obligatory payment having non-paid nature and not being tax (duty) is recognized.

(3) Other payments made within the relations regulated by the non-tax legislation do not belong to the category of the obligatory payments which are referred to as with taxes (duties) and charges.

(4) In the Republic of Moldova the national and local taxes (duties) and charges are levied.

(5) enter system of the national taxes (duties) and charges:

a) income tax;

b) value added tax;

c) excises;

d) private tax;

e) customs duty;

f) road charges;

g) property levy;

h) the single tax from residents of information and technological parks.

(6) enter system of the local taxes and charges:

a) non-personal tax;

a-1) private tax;

b) charges for natural resources;

c) collection on improvement of the territories;

d) collection for the organization of auctions and lotteries within administrative and territorial unit;

e) collection for advertizing;

f) collection for use of local symbolics;

g) collection for objects of trade and/or objects for rendering services;

h) market collection;

i) collection for temporary residence;

j) resort collection;

k) collection for provision of services on motor transportation of passengers along municipal, city and rural (municipal) routes;

l) collection for the parking of motor transport;

m) ceased to be valid;

 n) ceased to be valid according to the Law of the Republic of Moldova of 23.12.2011 No. 267

 o) ceased to be valid according to the Law of the Republic of Moldova of 27.12.2012 No. 324

p) collection for the parking;

q) ceased to be valid according to the Law of the Republic of Moldova of 27.03.2014 No. 47

r) collection on sanitary cleaning;

s) collection for advertizing devices.

(7) the Relations connected with all listed in parts (5) and (6) taxes (duties) and charges, are regulated by this code and other regulations adopted according to it.

(8) Taxes (duties) and charges listed in parts (5) and (6), are based on the following principles:

a) taxation neutrality – providing by means of the tax legislation of equal conditions for investors, the local and foreign capital;

b) reliability of the taxation – content of the clear legal regulations which are not allowing any interpretation, the clarity and accuracy of terms, methods and amounts of payment for each taxpayer allowing them is easy to trace impact of the decisions relating to financial management on their tax burden;

c) tax justice – identical interpretation of the physical persons and legal entities performing activities in identical conditions to provide equality of the tax liabilities;

d) tax stability – implementation of any changes and amendments of provisions of the tax legislation is direct by introduction of amendments and amendments to this code;

e) efficiency of the taxation – collection with the minimum costs of the taxes (duties) and charges, most acceptable for taxpayers.

(9) In case of establishment of taxes (duties) and charges the following elements are determined:

a) the taxation object – taxable matter;

b) the subject of the taxation (taxpayer) – person specified in Item 2) of Article 5;

c) source of the tax discharge (duty) or collection – source from which the tax (duty) or collection is paid;

d) taxation unit – the unit of measure expressing taxation object size;

e) rate (rates) of the taxation – the single amount of tax (duty) or collection in the ratio with the taxation object;

f) payment due date of tax (duty) or collection – the period during which the taxpayer shall pay tax (duty) or collection, in the form of interval of time or the fixed day of payment;

g) tax benefits – elements which are considered in case of taxation object assessment, determination of the amount of tax (duty) or collection, and also in case of their collection, in type:

– partial or full relief from tax (duty) or collection;

– partial or full relief from tax payment (duties) or charges;

– decrease in rate of taxes (duties) or charges;

– reduction of the taxation object;

– tax deferral (duties) or charges;

– payments by installments of repayment of the tax liability.

The releases provided by Articles 33, 34 and 35, reduced VAT rate and exemption of the VAT tax benefits do not reckon with the deduction right.

(10) Taxes (duties) and charges levied according to this code and other regulations adopted according to it are one of sources of the income of the government budget and local budgets. Depending on property accessory the private tax is paid to the government budget or to the budget of administrative territorial unit. The income tax from physical persons is the regulating profitable source of the budget system. For autonomous territorial education with special legal status the regulating profitable sources of the budget system are also income tax from legal entities (collected in the territory of autonomous territorial education), the value added tax (regarding the value added tax on the goods and services delivered by business entities of autonomous education) and excises on the excise goods (products) made in the territory of this education.

(11) Voided

Article 7. Establishment, change and cancellation of the national and local taxes (duties) and charges

(1) the National and local taxes (duties) and charges are established, change or cancelled only by introduction of amendments and amendments to this code.

(1-1) Voided.

(2) Establishment new, in addition to provided by this code, or cancellation of the operating national and local taxes (duties) and charges, and also change of the operating taxes (duties) and charges regarding determination of subjects of the taxation, tax base, change of rates and application of privileges within tax (calendar) year are allowed only along with entering of corresponding changes into the government budget and local budgets.

(3) Voided according to the Law of the Republic of Moldova of 27.03.2014 No. 47

(4) Decisions of bodies of public management of municipiums, the cities, villages (communes), and also other administrative-territorial educations created according to the legislation on enforcement, on introduction within the competence of changes into rates, procedure and payment due dates and about application of privileges are accepted within tax year along with entering of corresponding changes into local budgets.

(5) in pursuance of part provisions (articles 6 the taxpayers having divisions and/or the taxation objects estimate 10) and settle by payment the tax liabilities connected with the divisions/taxation objects in the place of their stay (except for the value added tax, excises and charges intended for transfer in road fund, the income tax established according to Chapter 7-1 of the Section II, and the single tax from residents of information and technological parks).

(6) the Divisions located in administrative and territorial units which budget is not component of the national public budget pay taxes and fees to the local budget in the main location of the company, organization, organization.

Article 8. Rights and obligations of the taxpayer

(1) the Taxpayer has the right:

a) free of charge to receive from the State Tax Administration and service on collection of the local taxes and charges information on the operating taxes (duties) and charges and regulations regulating procedure and conditions of their payment;

b) expect the correct relation from the bodies performing powers on tax administration and their officials;

c) represent in the bodies performing powers on tax administration, the interests independently or through the representative;

d) direct annually percentage share in the amount of 2 percent of the income tax amount, transferred annually into the budget, to receivers of percentage assignment according to Article 15-2 on condition of lack of debts on the income tax for the previous tax periods;

e) receive delay, payment by installments, tax offsettings according to the procedure and on the conditions established by this code;

request and receive e-1) from the State Tax Administration the provisional individual tax solution according to the procedure and on the conditions established by this code;

f) represent to the bodies performing powers on tax administration, and their officials of the explanation on calculation and tax payment (duties) and charges;

g) appeal in accordance with the established procedure the law of the decision, action or failure to act of the bodies performing powers on tax administration and their officials;

h) have other rights established by the tax legislation.

i) receive the tax benefits provided by the tax legislation for tax period in which it satisfies all established conditions;

(2) the Taxpayer shall:

a) observe procedure for state registration (re-registration) and implementation of business activity;

b) get registered in division of the State Tax Administration in the location determined by constituent (registration) documents and receive the certificate on assignment of fiscal code. This provision is not applied to persons for whom fiscal code is the state identification number, except for taxpayers for whom fiscal code is the code assigned according to subitems a), b)c)d) and e) Item 28) of Article 5. The taxpayers registered by the bodies given the right of state registration are registered in the relevant division of the State Tax Administration according to information provided by these bodies;                   

c) keep financial accounting in forms and according to the procedure, established by the legislation, constitute and represent to the State Tax Administration and service on collection of the local taxes and charges stipulated by the legislation tax statements and information, to ensure safety of documents of financial accounting according to requirements of the legislation, to perform acceptance of cash by means of the control and cash equipment, observing the provisions approved by the Government, including the List of types of activity which specifics allow to perform acceptance of cash without use of the control and cash equipment;

d) to authentically declare data on income gained from any kind of business activity and on other taxation objects;

e) according to part provisions (5) Article 7 timely and in full to pay assessed taxes (duties) and charges to the budget, providing the proper accuracy and reliability of the submitted tax reports;

f) when conducting checks of observance of the tax legislation on the first demand of or at most within one working day from the date of completion of operating tax control to represent to officials of the bodies performing powers on tax administration the accounting documents, tax reports and other documents and data connected with implementation of business activity, calculation and tax payment (duties), charges and other obligatory payments in the budget and with provision of privileges to resolve access to electronic system of financial accounting in case of conducting computer accounting;

f-1) in case of requesting of the provisional individual tax solution to represent to the State Tax Administration according to its first requirement reliable information, documents, explanations and/or corroborating evidences of activities, circumstances and/or future transactions;

g) provide when conducting checks of observance of the tax legislation easy access of officials of the bodies performing powers on tax administration to production, storage, trade and other facilities and places (except the rooms used only under housing) for their inspection for the purpose of determination of accuracy of the data of accounting documents, reports, tax declarations, calculations and accomplishment of obligations to the budget;

h) be present when conducting checks of observance of the tax legislation, sign the act of results of check, give oral and written explanations;

i) in case of wrong calculation or the wrong determination by the State Tax Administration of the amount of any tax, penalty fee, percent or penalty to prove it documentary;

j) carry out the decisions of the bodies performing powers on tax administration made by results of checks and other bodies equipped with control functions with observance of requirements of the tax legislation;

constitute and represent to j-1) the file of the transfer prices;

j-2) follow the rules provided by Chapter 11-2 of the Section V;

k) fulfill other duties established by the tax legislation.

(3) in case of absence of the director of its obligation, provided by subitems f) and g) parts (2), are carried out by others official and responsible persons of the subject of the taxation within the powers.

Article 9. Tax administration

Tax administration means activities of the authorized state bodies responsible for complete and timely ensuring receipt in budgets of all levels of taxes (duties) and charges, penalty fee and penalties, and also their actions for criminal prosecution in the presence of the circumstances testimonial of the facts of tax offenses. Actions for tax administration are applied to the subjects specified in Item d) parts (1) Articles 162, only in the cases which are specially provided by this code.

Article 10. Activities of the bodies performing powers on tax administration

(1) the Organization of activities and activities of the bodies performing powers on tax administration are regulated according to the legislation of the Republic of Moldova and international treaties, one of the parties of which is the Republic of Moldova.

(2) Organa, the performing powers on tax administration and their officials, inadequate the fulfilling duties, bear responsibility according to the legislation.

Article 11. Protection of the rights and interests of the taxpayer

(1) Protection of the rights and interests of the taxpayer is performed in the judicial or other procedure provided by this code and other acts of the legislation. All doubts arising in case of application of the tax legislation shall be interpreted for benefit of the taxpayer.

(2) the Damage caused to the taxpayer by the bodies performing powers on tax administration and their officials owing to improper execution of the obligations by them is subject to compensation according to the legislation.

(3) the State Tax Administration prepares materials for return to the taxpayer of the amount of overpayment and added on this interest amount (including the means which are mistakenly charged-off from the taxpayer according to orders of the State Tax Administration) in accordance with the established procedure.

Section II Income tax

Chapter 1 General provisions

Article 12. Concepts

For the purposes of this Section the following concepts are applied:

1) the Royalty (periodical payments) – the payments of any kind received as compensation for use or transfer of right to use of any copyright and/or the related rights, including to the literary work, art or science including movies and movies or records for television or broadcasting, any patent for the invention, the trademark, the drawing or model, the plan, the computer program, confidential formula or process, for use or transfer of right to use of information concerning industrial, commercial or scientific experience.

For the purposes of this concept do not constitute royalty:

a) ceased to be valid according to the Law of the Republic of Moldova of 15.12.2017 No. 288

b) payments in case of acquisition of the software intended only for work of this software including installation, implementation, storage, settings or updating;

c) payments in case of complete acquisition of copyright of the software or the limited right of its copying only for the purpose of its use by the user or for the purpose of its sale within the agreement of distribution;

d) payments for receipt of the diffusion rights of product or service without provision of the right of reproduction;

e) payments for access to companions by lease of transponders or for use of cables or pipelines for transportation of energy, gas or oil if the client is not the owner of transponders, cables, pipes, optical fibers or similar technologies;

f) payments for use of services of electronic communications in agreements on roaming, radio frequencies, electronic communications between operators.

2) Annuities – regular payments of insurance sums, pensions or benefits.

3) the Dividend – income gained from distribution (issue) of net profit between shareholders (unitholders) as a result of the ownership of shares (shares, shares) in the authorized capital performed on the conditions established by the law, the constituent act (charter), the decision of general shareholder meeting (unitholders), the decision of the single shareholder (unitholder) and/or the decision of council of society, except for income gained in cases of complete liquidation of business entity.

4) the Taxable income – gross income, including the privileges provided by the employer, received by the taxpayer from all sources in certain tax period, minus the deductions and releases relating to this income to which the taxpayer has the right according to the tax legislation.

4-1) The estimated income – the income, certain (received) by application of indirect methods and sources in the course of tax audits, including owing to organization of tax posts.

5) the Investment revenue – income gained from capital investments and investments in financial assets if participation of the taxpayer in the organization of such activities is not regular, permanent and considerable.

6) the Financial income – income gained in the form of royalty (periodical payments), annuities from property leasing, property employment, usufruct, on exchange currency difference, from gratuitously the arrived assets, other income gained as a result of financial activities if participation of the taxpayer in the organization of such activities is not regular, permanent and considerable.

7) Percentage charges, the income in type of percent – any income gained from debt obligation of any sort (irrespective of method of its registration), including the income from money deposits, income gained on the basis of the agreement of financial leasing and in particular income, gained from government securities, debt obligations or bonds including discounts, discounts, awards and prizes relating to such securities, obligations and bonds.

8) The option – the condition providing option.

9) the Futures transaction – transaction type at stock or commodity exchange.

10) Distribution – the payments performed by business entity to one or more owners having the right to such payments.

11) the Deduction – the amount subtracted from gross income of the taxpayer when calculating the taxable income according to provisions of the tax legislation.

12) Release – the amount subtracted from gross income of the taxpayer when calculating the leviable income according to Articles 33, 34 and 35.

13) Offsetting – the amount withheld and/or previously paid to which the taxpayer has the right to reduce tax amount.

14) the Prize – the gross income gained from gamblings, lotteries and advertizing campaigns both in cash and in non-cash form. The prize received through networks of electronic communications represents the total amount withdrawn from the game account. For the purpose of application of this concept the prize from gamblings in casino, in gaming machines, in bet on sports competitions / actions represents documentary confirmed positive difference between the amount of prize and the amount of rates. In other cases the prize represents the total amount of prize.

15) Percentage assignment – process within which taxpayers direct percentage share in the amount of 2 percent of the income tax amount, transferred annually into the budget, to receivers of percentage assignment according to Article 15-2;

16) Liquidating payments – the payments in cash and/or non-cash form transferred to participants/shareholders/members/founders in case of asset allocation of the liquidated subject after satisfaction of requirements of creditors.

Article 12-1. Tax period on the income tax

(1) the tax period on the income tax is understood as calendar year upon termination of which the taxable income is determined and the tax amount which is subject to payment is estimated.

(2) For the newly created companies tax period the period from the date of registration of the company before the termination of calendar year is considered.

(3) For the business entity who made the decision on liquidation within calendar year, the tax period is considered:

a) the period from the beginning of calendar year before date of creation of the pro liquidation balance sheet;

b) the period from the beginning of calendar year before approval date of the final liquidation balance sheet.

(For the reorganized companies tax period the period from the beginning of calendar year before date of exception of the company of the State register is considered 3-1).

(For the business entities who received resident status of the information and technological park within tax year, tax period the period since the beginning of calendar year until the end of calendar month in which the park resident status is received is considered 3-2).

(For business entities at whom within tax year the resident status of the information and technological park responds tax period the period from the first day of the month following after month in which the park resident status, before the termination of calendar year is withdrawn is considered 3-3).

(4) In departure from part provisions (1) for business entities who according to provisions of the Law on financial accounting have the right to apply the accounting period, other than calendar year, the tax period on the income tax corresponds to the accounting period for preparation and submission of financial statements. In this case the tax period is constituted by any 12 consecutive months.

(5) the Tax period specified in part (4), changes further only if the accounting period for preparation and submission of financial statements is changed according to provisions of the Law on financial accounting.

(6) Before application of new tax period according to part provisions (4) or (5) the business entity shall:

a) inform the State Tax Administration and submit it the documents connected with change of tax period in the procedure established by it;

b) apply the transition tax period and rules established in Chapter 7-2 of this Section.

Article 13. Subjects of the taxation

(1) Subjects of the taxation are:

a) the legal and physical resident persons of the Republic of Moldova performing the business activity, faces rendering professional services, and also the faces performing professional activity in the sector of justice and in the field of health care which during tax period gain income from any sources which are in the Republic of Moldova and also the income from any sources which are outside the Republic of Moldova;

b) physical resident persons – citizens of the Republic of Moldova who do not perform business activity and during tax period gain the taxable incomes from any sources which are in the Republic of Moldova and from any sources which are outside the Republic of Moldova for their activities in the Republic of Moldova;

b-1) the physical resident persons performing independent activities and during tax period gaining income from any sources which are in the Republic of Moldova and from any sources which are outside the Republic of Moldova for their activities in the Republic of Moldova;

c) physical resident persons – citizens of the Republic of Moldova who do not perform business activity also gain investment and financial income from any sources which are outside the Republic of Moldova;

d) physical resident persons – the foreign citizens and persons without citizenship performing activities in the territory of the Republic of Moldova and gaining income from any sources which are in the Republic of Moldova and from any sources which are outside the Republic of Moldova for their activities in the Republic of Moldova, except for investment and financial income from any sources which are outside the Republic of Moldova;

e) physical nonresident persons who do not perform business activity in the territory of the Republic of Moldova and during tax period gain income according to Chapter 11 of this Section.

(2) Subjects of the taxation shall declare the gross income gained from all sources.

Article 14. Taxation object

(1) the Taxation object is:

a) the income from all sources which are in the Republic of Moldova, and also from any sources which are outside the Republic of Moldova, received by the legal and physical resident persons of the Republic of Moldova performing business activity, persons rendering professional services and also persons performing professional activity in the sector of justice and in the field of health care minus deductions and releases to which they have the right;

b) the income from all sources which are in the Republic of Moldova, including the privileges provided by the employer, and also from any sources which are outside the Republic of Moldova, for activities in the Republic of Moldova, received by physical resident persons – the citizens of the Republic of Moldova who are not performing business activity minus deductions and releases to which they have the right;

b-1) the income from all sources which are in the Republic of Moldova, and also from any sources which are outside the Republic of Moldova, for activities in the Republic of Moldova, received by the physical resident persons performing independent activities;

c) the investment and financial income from any sources which are outside the Republic of Moldova received by physical resident persons – the citizens of the Republic of Moldova who are not performing business activity;

d) the income from all sources which are in the Republic of Moldova, and from any sources which are outside the Republic of Moldova, for activities in the Republic of Moldova, except for investment and financial income from any sources which are outside the Republic of Moldova, received by physical resident persons – the foreign citizens and stateless persons performing activities in the territory of the Republic of Moldova;

e) income gained in the Republic of Moldova by the physical nonresident persons who are not performing business activity in the territory of the Republic of Moldova.

(1-1) It is excluded;

(1-2) It is excluded;

(2) Sources of the income are determined in Chapters 2 and 11.

(3) In departure from provisions of parts (1) and (2) this Article the taxation object on the prizes and the income specified in Chapters 10-1, 10-2 and 10-3, Article 88-1 and parts (3)(3-1)(3-3)(3-4), (3-5) and (3-6) Articles 90-1, and also according to the income specified in part (2) Article 14-1, this prize and/or the income is only.

Article 14-1. The special rules applied to residents of information and technological parks and their workers

(The Managing resident subjects of information and technological parks to whom the tax regime set in Chapter 1 of the Section X is applied have no 1) obyazatelst in on tax on entrepreneurial income (operating activiies) according to this Section as this tax is included in the single tax regulated by Chapter 1 of the Section X.

(2) Payments for compensation to workers or in their advantage, made by residents of information and technological parks based on the labor law and regulations containing regulations of labor right do not assume the additional income tax liabilities, levied from these payments according to this Section as this tax is included in the single tax regulated by Chapter 1 of the Section X.

(If within tax year the taxpayer applies 3) as the tax regime set in this Section and the specific mode of the taxation set in Chapter 1 of the Section X the taxable income is determined as difference between the amount of the gross income gained during application of the tax regime set in this Section and the size admissible to deduction according to this Section of the expenses incurred during application of the tax regime set in this Section taking into account the features specified in Article 27-1.

Article 15. Tax rates

Total amount of the income tax is determined:

a) for the physical persons, individual entrepreneurs and persons performing professional activity in the sphere of justice and in the field of health care – in the amount of 12 percent of annual leviable earnings;

a-1) for persons performing odd unskilled works (time-workers) – in the amount of 12 percent of the leviable income, without application of the releases provided in Chapter 4 of the Section II;

b) for legal entities – in the amount of 12 percent of the leviable income.

c) for peasant farms – in the amount of 7 percent of the leviable income.

d) for business entities whose income was determined according to Articles 225 and 225-1, – in the amount of 15 percent from excess of the estimated income over the gross income registered in financial accounting by business entity.

Article 15-1. Procedure for determination of the tax liabilities

Determination of the tax liabilities according to provisions of this Section is performed according to the procedure, established by the Government.

Article 15-2. Percentage assignment

(1) the Taxpayer – physical resident person, not having debt on the income tax for the previous tax periods having the right to deduct percentage share in the amount of 2 percent of the income tax amount, transferred annually into the budget, to the receivers specified in part (4).

(2) Percentage assignment is performed since January 1 the year following after tax year for which percentage assignment, before limiting date of term of submission of the declaration on the income tax in the procedure established by the Government is made.

(3) Receivers of percentage assignment are:

a) the public associations, private funds and organizations registered in the Republic of Moldova, performing socially useful activities according to the Law on non-profit organizations No. 86/2020, on condition of implementation of activities by them within at least one year to registration request in the list specified in part (4), and lack of debts to the national public budget for the previous tax periods;

b) the religious cults and their components registered in the Republic of Moldova, performing public moral, cultural or charity, on condition of implementation of activities within at least one year to registration request in the list specified in part (4), and lack of debts to the national public budget for the previous tax periods.

(4) the List of the receivers having the right of participation in percentage assignment is established annually by the Agency of the state services and is published on its official web page till December 31 of year for which assignment, in the procedure established by the Government is made.

(5) the Financial resources received according to the procedure of percentage assignment are used for the purposes established by the current legislation.

(6) the Mechanism of percentage assignment and transfer of percentage allocations to receivers, and also control of use of these amounts is established by the Government.

(7) Receivers of percentage assignment bear responsibility according to the law for non-presentation of reports on use of the amounts received according to the procedure of percentage assignment and for use of these amounts not to destination. The amounts which are not reflected in reports and used not for designated purpose are compensated in the budget.

Article 16. Tax offsettings

The taxpayer has the right to offsetting of the amount withheld and/or previously paid according to provisions of Chapters 12, of 13, 14 and 15 these Sections, except for Articles 90-1 and 91.

Article 17. Income assessment, the owner who remained after death

The income caused by property of the dead is considered as the income of the heir after acceptance of inheritance by him.

Chapter 2 Structure of the income

Article 18. Income sources, taxable

Join in gross income:

a) income from implementation of business activity or professional or other similar activity;

b) income from activities of partnerships gained by members of partnerships and income gained by shareholders/owners of shares (shares) issued by the organizations of collective investment;

c) payment for the performed work and the rendered services (including the salary), the privileges provided by the employer, the fees, commission charges, awards and other similar types of remunerations;

d) income from property leasing;

e) the capital gain determined in part (7) Article 40;

f) It is excluded

f) the income connected with not used reserves according to part (16) Article 24;

f-1) the amount of reduction of discounts for losses on assets and contingent obligations as a result of improvement of their quality during tax period;

f-2) the amount of decrease in the reserves intended for covering of possible losses from non-return of loans, leasing payments and percent accompanying improvement of quality and/or their return during tax period;

g) income gained in the form of percentage charges;

h) royalty (periodical payments);

i) the annuities including received on the basis of international treaties, one of the parties of which is the Republic of Moldova; the insurance sums and compensations received according to insurance contracts and the joint insurances and not used according to Article 22. Exception are stipulated in Item a) Article 20;

j) the income from debt default business entity, except as specified, when insolvency of the taxpayer is the reason of formation of debt;

k) the state grants, awards and prizes which are not determined specially as not taxable in the laws establishing these payments;

l) ceased to be valid;

m)  No. 267 is excluded according to the Law of the Republic of Moldova of 23.12.2011

n) income gained according to the legislation owing to payment of penalty in the form of compensation of the uncollected income, and also owing to deduction or return of deposit;

o) other income which is not specified in the stated above subitems and not being free according to the tax legislation.

Article 19. The privileges provided by the employer

Treat the taxable privileges provided by the employer:

a) the payments performed by the employer for the purpose of compensation of personal expenses of the worker, and also payment for benefit of the worker, performed to other persons, except for payments in the budget of the national social insurance, the payments specified in parts (19) and (24) Articles 24, not exceeding the limit set by the Government, and the payments specified in Articles (19-3), (20) and (26) Articles 24, not exceeding limit, stipulated in Clause 24;;

and-1) the cost of coupons on food in part in what it exceeds the deductible nominal value provided by part (1) article 4 of the Law on coupons on food No. 166/2017;

a-2) ceased to be valid;

a-3) ceased to be valid;

the payment a-4) corresponding to the incurred and certain freight charges and food of students trainees and/or pupils over the set limit according to the procedure, established by the Government;

b) the cancelled amount of debt of the worker before the employer;

c) the surcharges performed by the employer to any payment of the worker for housing provided by the employer;

d) the percentage charges received proceeding from positive difference between the weighted average interest rate applied to the new loans granted to physical persons for the term of more than five years, Moldova established by National Bank in November of the year preceding accounting tax year and the interest rate added on the loans granted by the employer to the worker. Provisions of this Item are not applied to the loans granted by banks and non-bank credit institutions to the workers under general conditions on which they grant the loans to third physical persons. For the purposes of this Article “general terms” are understood as the conditions accepted by banks and non-bank credit institutions concerning loan granting to at least than one third physical person for the same financial product which they offer workers;

e) costs of the employer on provision of property to the worker for use for personal reasons:

– if the property is property of the employer – its costs determined by each object provided for use in the amount of 0,0373 of percent of the cost not depreciable for tax purposes for each day of use since month in which object was provided for use to the worker, at the same time the corresponding cost remains invariable during the entire period of use of object;

– if the property is not property of the employer – its costs for receipt of property use right for each day of use;

f) Ceased to be valid according to the Law of the Republic of Moldova of 23.12.2011 No. 267.

Article 20. Income sources, not taxable

The gross income does not join the following income types:

a) annuities in the form of benefits of social insurance from the budget of the national social insurance and benefits of the public assistance from the government budget provided by the current legislation, including received on the basis of international treaties, one of the parties of which is the Republic of Moldova; the insurance sums and compensations received according to insurance contracts and joint insurances except received in case of forced property exchange according to Article 22;

b) compensations and the lump-sum allowances received according to the legislation in connection with accident or occupational disease by workers or their legitimate heirs;

c) payments, and also other types of compensations due to illness, injury or on other case of temporary disability, performed according to agreements on health care insurance;

with 1) the payments made by the employer, in the amount of, not exceeding 2500 lei a month on each child of the worker, on the organization of alternative services for care of children or on the payments performed for benefit of the worker for the purpose of compensation of costs for alternative services in care of children under three years;

with 2) gifts in natural form, including the vouchers provided to workers whose annual amount counting on one worker does not exceed in total 10% of the average monthly salary on the economy predicted and approved by the Government for the corresponding year;

d) compensation to workers of the expenses relating to accomplishment of job responsibilities: for the Office of the President of the Republic of Moldova, Parliament and its Device, Government office – in the limits and procedure established respectively by the President of the Republic of Moldova, Parliament and the Government. Compensation to employees of business entities of the expenses connected with accomplishment of service duties, in the limits provided by regulations, and according to the procedure, established by the Government. Compensation to workers of the expenses connected with accomplishment of service duties, in case of excess of the limits provided for accommodation set by the Government;

d-1) expense recovery and the compensation payments connected with accomplishment of service duties by the military personnel, faces of the commanding and ordinary structure of bodies of national defense and law enforcement agencies, the state security agencies and public order at the expense of means of the government budget namely:

– compensation of transportation expenses on journey there and back the customs employees fulfilling the service duties in the settlements other than the place of their accommodation;

– compensation of transportation expenses on journey of the military personnel, faces of the commanding and ordinary structure of bodies of national defense, state security and public order and members of their families, transportation of their personal property in connection with transfer on service, execution of service and dismissal in reserve (in resignation), including the transportation expenses connected with journey on sanatorium treatment, the venue of compulsory leave, and also shipping charges of the military personnel of conscription service and the reservists called on military charges or on mobilization;

– new start allowance;

– lump-sum allowance on initial acquisition;

– the lump-sum allowance paid to graduates of military educational institutions and higher educational institution with the status of special connection;

– monetary compensation of expenses on hiring of housing;

– monetary compensation on acquisition or construction of housing;

– the monetary compensation equivalent to regulations of providing with food and ware allowance, in the amount of, established by the Government;

the amount d-2) received by physical persons and legal entities in compensation of the caused damage or/and the uncollected income in connection with carrying out archaeological researches on the parcels of land which are in property or in ownership of these persons;

the amount d-3) received by physical persons and legal entities in compensation of the damage caused to them as a result of illegal actions (failure to act) or owing to spontaneous or technogenic catastrophes, cataclysms, epidemics, epizooty;

the amount d-4) received by owners or owners of the property confiscated for the benefit of society, for the period requisitions according to the legislation;

d-5) the cash compensation provided from the government budget to beneficiaries of the state program “First house” in the procedure established by the Government;

d-6) the expenses specified in parts (19), (19-1,), (19-3), (19-4), (20), (24) and (26) Articles 24, not exceeding the limit set by the Government or this code;

d-7) the annual monetary compensations provided to pedagogical personnel of public educational institutions in the procedure established by the Government;

d-8) the benefits provided to physical persons by National employment agency of the population for assistance to employment of the unemployed according to article 41 of the Law on assistance of employment of the population and insurance on unemployment No. 105/2018, monthly allowances, provided to the youth for the first time employed in industries, strategically important for the Republic of Moldova, in the amount of, procedure and according to the types of activity from the Qualifier of types of economic activity of Moldova established by the Government;

the amount d-9) received by physical persons or legal entities as compensation of damage for the property expropriated for the socially useful purposes;

d-10) the benefit for increase in access to quality education provided by the Code about education in the size and procedure established by the Government;

d-11) expense recovery by the government employee, to persons holding responsible state positions, and also the health and pharmaceutical workers working in public medical and sanitary organizations, fulfilling the service duties in the settlements other than the place of their accommodation, on the drive there and back and/or expenses on hiring of housing in the amount of and procedure, established by the Government;

e) the grants to the pupils, students and persons who are getting post-university education or undergoing post-university specialization in the state and private educational institutions according to the legislation on education established by these educational institutions and also the grants provided by charitable organizations, except for payments of teaching or research activities, the lump-sum allowances paid to the young specialists employed in the rural zone according to distribution;

f) alimony and child allowances;

g) ceased to be valid according to the Law of the Republic of Moldova of 12.04.2015 No. 71

h) address compensations to needy, socially vulnerable segments of the population, and also the benefits of social insurance paid not in the form of annuities;

i) the property received by physical persons – citizens of the Republic of Moldova according to the procedure of donation or inheritance, except for the donations performed according to part (31) Article 90-1;

i-1) the property received by orphanages of family type as donation;

j) the income from non-paid receipt of property, including money, according to the decision of the Government or authorized bodies of local public authority;

k) It is excluded

l) benefits received from charitable organizations – funds and public associations according to provisions of charters of these organizations and the legislation;

m) investments in the capital of business entity and fees for covering of financial losses and equalization of negative net assets, stipulated in Article 55;

n) the income of the diplomatic and other equated to them representations, the organizations of foreign states, the international organizations and their personnel, stipulated in Article 54;

o) the amounts received by the donor from State Healthcare Institutions;

about-1) Ceased to be valid according to the Law of the Republic of Moldova of 23.12.2011 No. 267

p) It is excluded

p-1) prizes in lotteries and/or sports bets in part in what the size of each prize does not exceed one percent of the personal release established in part (1) Articles 33, except for of the prizes received through networks of electronic communications;

p-2) prizes in advertizing campaigns in part in what the size of each prize does not exceed the amount of the personal release established in part (1) Article 33;

q) the money paid in the form of lump-sum allowance or compensation of damage to separate categories of government employees or to their families according to the legislation;

r) the financial support received by physical persons from reserve funds of the Government, bodies of local public authority, fund of social support of the population, and also from means of labor unions according to the provisions providing rendering such help. In case of the financial support provided from means of labor unions, the free limit constitutes the average monthly salary on economy predicted and annually approved by the Government on each worker for year, except for the help provided in case of death and/or disease of the worker or his relatives and cousins-in-laws of the first degree;

s) the financial aid received by athletes and trainers from the International Olympic Committee the awards got by athletes, trainers and technical workers at the international sports competitions, sports grants and the benefits provided to the national teams to teams for preparation and participation in official international competitions;

t) the financial aid received by National Olympic and sports committee, national professional sports federations from the International Olympic Committee, professional European and international sports federations and other international sports organizations;

u) national award of the Republic of Moldova in the field of literature, arts, architecture, science and technology, and also the awards to pupils and their teachers paid in the sizes established by the existing regulations, for the outstanding results achieved at the district, city, municipal, zone, republican, regional and international Olympic Games and tenders;

 u-1) ceased to be valid according to the Law of the Republic of Moldova of 23.04.2020 No. 60

 v) ceased to be valid according to the Law of the Republic of Moldova of 23.12.2011 No. 267

w) remuneration to members of farms (families) for participation in the selective examinations conducted by statistical bodies.

x) income of physical persons gained from activities based on the entrepreneurial patent;

y) income gained by physical persons, except for individual entrepreneurs and peasant farms from delivery of returnable tare, waste and remaining balance of paper and cardboard, rubber, plastic, glass (cullet), the fulfilled electric accumulators transferred separately or as components of waste of the electric or electronic equipment;

y-1) income gained by physical persons, except for individual entrepreneurs and peasant farms from sales of products of crop production and gardening in the natural form and products of livestock production in the natural form, live and lethal weight to other physical person, except for individual entrepreneurs and peasant farms;

y-2) income gained by physical persons, except for individual entrepreneurs and peasant farms from delivery of genuine milk;

y-3) income gained by physical resident persons (citizens of the Republic of Moldova and stateless persons) from alienation of the main housing and from alienation of the car which was in property of the taxpayer at least three years before date of alienation, except for the vehicles having historical or ethnographic value;;

z) income gained as a result of use of tax benefits.

 z-1) Ceased to be valid according to the Law of the Republic of Moldova of 23.12.2011 No. 267

z-2) the money received from special funds and/or the financial resources received in the form of grants according to the programs approved by the Government, used according to their appointment;

z-3) of compensation of moral damage;

z-4) income gained from debt write-off before the national public budget;

z-5) cash allowance of the military personnel of conscription service, pupils and cadets (students) of military educational institutions and higher educational institution with the status of special connection;

z-6) income gained owing to compensation of material damage in part in which the provided compensation does not exceed the caused material damage;

z-7) payment of the guaranteed deposits from Fund of guaranteeing deposits in bank system according to the Law on guaranteeing deposits in banks No. 160/2023;

 z-8) Ceased to be valid since 01.01.2013 according to the Law of the Republic of Moldova of 11.07.2012 No. 178

z-9) income from revaluation of fixed assets and other assets and recovery of losses from their impairment;

z-10) the dividends paid to physical resident persons for tax periods till January 1, 2008.

z-11) the income in the form of royalty of physical persons at the age of 60 years and more in the field of literature, art and science;

z-12) income of legal entities gained as a result of use of external financial sources within the international projects and grants connected with development of education and scientific research;

z-13) income gained by non-profit organizations, religious cults and their components according to the law according to the procedure of percentage assignment;

z-14) income gained in the form of the remuneration paid for the work performed during the selective period including in the election day, to the employee of the selective sphere working in county electoral councils, local electoral bureaus and offices of these councils and bureau who are not exempted from execution of service duties or are not involved;

z-15) the payments made by receivers of works on food and transportation of time-workers, in the size established by the Government;

z-16) compensation paid for the account of Fund of compensation to investors according to the Law on the capital market No. 171/2012;

z-17) the income from write-off or expense recovery, the income from reducing or write-off of reserves according to which deductions for tax purposes were not made;

z-18) the payments made by the employer for testing of workers for the purpose of detection of the SARS-CoV-2 virus and for vaccination of workers from SARS-CoV-2;

z-19) the dividends received by legal resident persons from other legal resident persons, except for dividends from the retained earnings got in tax periods of 2008-2011 inclusive;

z 20) the income of physical resident persons gained in the form of capital gain or percent, connected with the government securities and/or bonds issued by bodies of local public authority;

z 21) income gained from sale of electrical energy by physical resident persons who make energy from renewable sources and to which the netaccounting mechanism / netto-fakturirovaniya according to the Law on promotion of energy use from renewable sources No. 10/2016 is used;

z 22) the rights granted within stock options plan, at the time of their provision in accordance with the terms, established by the Government;

z 23) income gained by the system operator and/or heat power unit owing to non-paid obtaining:

– lines and power plants according to the Law on the electric power No. 107/2016;

– gas installations according to the Natural Gas Act No. 108/2016;

– thermal networks and/or heat power installations according to the Law on heat energy and promotion of cogeneration No. 92/2014.

Article 21. The special rules relating to the income

(1) Income gained not in cash is estimated by each subject of the taxation and constitutes average price of delivery of goods and/or rendering similar services in the month preceding month in which income not in cash was gained. If in the month preceding month in which income not in cash was gained deliveries of goods were not performed and/or services were not rendered, income gained not in cash cannot be less than cost of the goods and/or services delivered and/or rendered for current month.

(2) In case of receipt of annuity part of any annuity included in annual earnings is subtracted when calculating the leviable income. The deduction is equal to the sum granted by the taxpayer on the facultative pension fund and not subtracted from its gross income according to part (2) Articles 66, and also the amount of the insurance premiums brought by the taxpayer – physical person according to insurance contracts and joint insurances, divided on the number of years of expected payments (from the moment of the beginning of payment of annuities).

(3) When implementing foreign currency transactions:

1) In case of calculation of the leviable income the gross income and other receipts, and also the incurred costs in foreign currency are converted into national currency on the official rate of Moldovan leu operating on the date of transaction making.

2) Any debt – both the taxpayer, and to the taxpayer whose amount is expressed in foreign currency except for of the advance payments which are provided/received for acquisition/delivery of assets and services is recalculated on the official rate of Moldovan leu established the last day of tax period.

2-1) If transaction is performed in foreign currency to which the National Bank of Moldova does not quote Moldovan leu, then conversion of currency is carried out in two steps. In the beginning the foreign currency is converted in other foreign currency to which the National Bank of Moldova quotes Moldovan leu. The direct course ratio of these foreign currencies is for this purpose used. The amount received thus in other foreign currency is converted into national currency on the official rate of Moldovan leu.

3) Any the income or loss as a result of recalculation of debt according to Item 2) are considered as income gained or the loss formed in the last day of tax period.

3-1) Transaction date date of reflection on the account statement in bank and/or the payment account, and in other cases – the date specified in source documents according to the method of financial accounting based on provisions of National accounting standards and IFRS is considered.

3-2) If during the time which passed from the date of transaction before settlement date on the arisen debt, the official rate of Moldovan leu changed, there is exchange currency difference. If payment of the amount is made in the same period of tax year in which the transaction is made, the exchange currency difference between the amount which is originally reflected in financial accounting, and settlement amount represents profit or loss of the current year.

3-3) If calculations for the formed debt are not made in the same period of tax year in which the transaction was made, it is revaluated by the taxpayer on the official rate of Moldovan leu the last day of tax year for which the tax declaration is submitted, and the arisen currency difference is considered as profit or loss of the same tax year. Irrespective of possible fluctuations of the official rate of Moldovan leu in the future, for reflection of financial position of the taxpayer for date of creation of balance of the account in foreign currency are reflected in the equivalent amounts in national currency on the official rate of Moldovan leu to foreign currency operating for the corresponding day. As a result of it the difference between the amount specified in accounting records and the amount in which the transaction is reflected in financial accounting during this period or in which it was reflected previous tax year is considered as profit or loss.

(4) the Physical person which is not performing business activity is considered as person who gained income in the amount of the amount of the presented money in part in what total amount exceeds the income during tax period in which donation was performed. Provisions of this part do not extend to persons performing donation to persons who are relatives, cousins-in-laws of the first degree, and also the spouse/spouse.

(5) the Business entity performing donation in the form of things, except for the foodstuff offered according to provisions of the Law on prevention of losses and irrational use of foodstuff No. 299/2022, is considered sold the presented thing at the price which represents the maximum size between cost, not depreciable for the purpose of the taxation, and market value at the time of donation.

(6) Income gained by the taxpayers performing business activity from the economic transactions with the founder physical persons or other affiliated physical persons who are not performing business activity made at the price below market is adjusted for tax purposes to market price.

Provisions of this part are not applied to transactions to which in case of determination of the price the principle of outstretched arm was applied, and also to which Article 19 provisions were applied.

Article 22. Non-recognition of the income in case of forced loss of property

(1) the income in case of property exchange on property of the same type in case of forced loss is not recognized.

(2) in case of non-recognition of the income according to part (1) the cost basis of replacement property is considered the cost basis of the replaced property increased by the amount of the incurred property purchase costs which is not covered by the income in case of forced loss.

(3) the Property is considered by force lost if it is fully or partially destroyed, stolen if it it is seized or it is intended to demolition or if the taxpayer is forced to leave otherwise it because of threat or inevitability of one of the above-stated actions or events.

(4) the Replacement property is considered as similar if it has the same properties or the nature, as replaced (irrespective of whether it is property of the same level and quality).

(5) the replacement Period – the period which is coming to an end in tax period, the following ambassador of the period in which there was loss.

Chapter 3 Deductions of the expenses connected with business activity

Article 23. General rule

The deduction of personal and family expenses is not allowed, except as specified, for which other is provided in this Section.

Article 24. Deductions of the expenses connected with implementation of business activity

(1) the deduction of the regular and necessary expenses paid or suffered by the taxpayer during tax period only for the purpose of implementation of business activity Is allowed.

(2) If the expenses incurred by the taxpayer consist of the expenses connected with implementation of business activity, and personal expenses, then the deduction only is allowed if the expenses connected with implementation of business activity prevail over personal expenses, and only that part of expenses which directly belong to implementation of business activity.

(3) the Deduction of the expenses connected with sending of workers, entertainment expenses, expenses on insurance of business entities is allowed in the limits set by the Government, except for expenses which are regulated by this Article.

(4) In departure from Article 30 the deduction of the amounts of the taxes and fees paid by the divisions located in administrative and territorial units which budget is not component of the national public budget is allowed.

(4-1) V departure from provisions of this Article and Article 26-1 deduction of depreciation and expenses on maintenance, operation and repair of the cars used by persons specified in compound groups 112 and 121 of the Qualifier of the occupations of the Republic of Moldova subtracted according to this Section are allowed only on one car on each person specified in compound groups 112 and 121 of the Qualifier of occupations of the Republic of Moldova and only for the purpose of business activity.

(5) Voided according to the Law of the Republic of Moldova of 23.12.2011 No. 267

(6) the deduction of the amounts paid for acquisition of property on which depreciation is charged and to which Articles 26-1, 28 and 29 are applied is not allowed.

(7) the deduction of compensations, remunerations, percentage charges, the hire charges of property and other expenses made for the benefit of the member of the family of the taxpayer, the official or the head of business entity, the copartner or other affiliated person is not allowed if there are no proofs of admissibility of payment of such amount.

(8) the deduction of losses from realization or exchange of property, performance of works and rendering services (directly or indirectly is not allowed) affiliated persons each other, except for transactions according to which in case of determination of the price the principle of outstretched arm was applied. For the purposes of this part losses represent the difference between the annual amount of cost of sales and annual income amount from sales reflected in financial accounting for all tax period in the relations with the affiliated person. Provisions of this part do not extend to the relations between members of the same cooperative or the same group of agricultural producers, and also to the relations of cooperative or group of agricultural producers with their members.

(9) the deduction of the costs connected with income acquisition is not allowed, exempted from the taxation.

(10) the deduction of not documented regular and necessary expenses incurred by the taxpayer during tax period in the amount of 0,2 of percent of the leviable income Is allowed.

(10-1) the deduction of not documented regular and necessary expenses incurred by the taxpayer during tax period for payment of acquisitions by means of the payment business card Is allowed.

(11) the deduction of the amounts paid or the expenses incurred for benefit of owners of the entrepreneurial patent and/or for benefit of the physical persons performing independent activities according to Chapter 10-2 is not allowed.

(12) the deduction of payments for above-standard emission of pollutants in the environment and for superlimit consumption of natural resources is not allowed.

Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.

bout the public pension system

(as amended on 30-04-2025)

The parliament adopts this organic law.

Chapter I Basic provisions

Article 1. Subject and purpose of the law

(1) This law establishes the legal base of functioning of the public pension system, and also its interaction with the state system of social insurance and other state mechanisms of social protection of the population.

(2) the Purpose of this law is providing the fair and steady pension system which will provide to receivers of pensions worthy level of living.

(3) For the purpose of this law the following concepts are used:

the new circumstances relating to insurance years of service and to the insured income – the certificate supporting documents of availability of insurance years of service and the insured income for the period activities before realization of pension entitlement which was not considered in case of award of pension;

indexation of pension – periodically implementable measure for updating of the size of the estimated pension for the purpose of preserving purchasing power of pension;

paid pension – the pension which is monthly paid to the receiver by means of the payment service provider chosen as the receiver;

the estimated pension – the sum of money determined depending on the fees paid to the budget of the national social insurance and from the period of insurance years of service which is reviewed, increases and indexed;

the periods equated to insurance years of service – the periods for which fees of social insurance, but which according to this law join in general insurance years of service were not paid;

review of pension – recalculation of the size of pension according to provisions of this law existing for date of filing of application about review of pension according to Items and) and c) parts (1) and to parts (2), (4-1), (4-2) and (4-3) Articles 33;

the minimum insurance years of service – the minimum period of activities during which insured persons acquired the insurance years of service provided by part (1) article 15 of this law, for award of pension on reaching standard retirement age;

complete insurance years of service – the amount of the periods of activities during which fees of the national social insurance were paid to the budget of the national social insurance as it is provided by part (1) article 42 of this law;

the allowance of solidarity – the increase equal to difference between the size of the estimated pension and the size of minimum pension provided to the corresponding category of pension;

valorization of the insured income – indexation of the average monthly insured income gained since January 1, 1999 which is performed taking into account coefficient of growth of the average salary on economy during insurance periods about one the year preceding year of award of pension;

standard retirement age – age for men and women, the stipulated in Clause 41 this law on reaching which can acquire pension entitlement on age;

the insured income – the income from which fees of social insurance were paid, being basis for calculation of the size of pension in the public pension system.

Article 1-1. Public pension system

(1) National pensions – all types of pensions in terms of money which purpose and payment are guaranteed by the state according to the law.

(2) the Public pension system will be organized and operates on the principles of the state system of social insurance, the stipulated in Article 3 Laws on the state system of social insurance No. 489-XIV of July 8, 1999.

Article 2. Pension entitlement

(1) person corresponding to the conditions provided by this law has the Pension entitlement.

(2) limitation period does not extend To pension entitlement.

(3) the Pension entitlement is not subject to transfer – completely or in part.

Article 3. Agreements on social insurance between the Republic of Moldova and other states

In cases when agreements (agreements) on social insurance, including on provision of pensions, between the Republic of Moldova and other states contain others, than the provisions provided by this law, provisions of these agreements (agreements) are applied.

Article 4. Sources of the means intended for pension payment

(1) the Pensions granted according to this law are paid from means of the pension fund.

(2) Means of the pension fund are created from:

a) fees of the national social insurance;

b) ceased to be valid according to the Law of the Republic of Moldova of 16.12.2016 No. 290

c) transfers from the government budget;

d) other means.

Article 5. Insurance years of service

(1) the Insurance years of service in the state system of insurance are estimated by summing of all insurance periods.

(2) For insured persons the following not insurance periods are equated to insurance periods:

a) the period of execution of the urgent or reduced military service;

a-1) the stay period on military service under the contract or the service equated to it – in case of impossibility of award of pension according to the Law on provision of pensions of the military personnel and persons of the commanding and ordinary structure of law-enforcement bodies No. 1544-XII of June 23, 1993;

b) the period of the child care aged up to three years performed by one of parents or in case of the death of both parents – the guardian;

c) the period in which insured person received temporary disability benefit, on unemployment, on employment;

d) the period of child care with heavy restriction of opportunities aged to 18 years, behind other person with heavy restriction of opportunities, performed by one of parents, the guardian or the custodian before acceptance to position of the personal assistant;

e) the residency period in compulsory post-university education;

f) not insurance periods of activities in judgeships and the prosecutor till December 31, 2005;

g) the periods in which till January 1, 1999 were performed specified in Items d) – f) parts (1) articles 50 types of activity.

(3) Provided by part (2) the periods which are equated to insurance years of service in the amount cannot constitute more than eight years, except provided by Items and 1), b), d) and f) the specified part and Item f) parts (1) Article 50.

Article 6. Calculation of insurance years of service

(1) the Insurance years of service are estimated advanced in years.

(2) the Insurance years of service are estimated by summing of months for which fees in the established sizes, and divisions of this amount on 12 are paid to the budget of the national social insurance. The received result is rounded to one sign after comma. If the annual amount of the paid fees is less than annual amount of the fees estimated from minimum wage over the country established by the legislation, the insurance years of service are estimated in proportion to paid amount.

(3) For persons working according to the individual employment contract in the sphere of agricultural production, the period of implementation of activities of seasonal nature joins in insurance years of service and is considered as one insurance year provided that the annual amount of fees is at least annual amount of the fees estimated from minimum wage over the country established by the legislation. If the annual amount of the paid fees is less than annual amount of the fees estimated from minimum wage over the country established by the legislation, the insurance years of service are estimated in proportion to paid amount.

(4) Voided.

(5) the Insurance years of service acquired after appointment/review of old-age pension are estimated by summing of months for which fees, and divisions of this amount on 12 are paid. The received result is rounded to one sign after comma.

Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.

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Agreement between the Republic of Moldova and Ukraine in the field of social security

What it is: The Republic of Moldova and Ukraine have established a new social security agreement framework that replaces prior bilateral arrangements.

What it changes: The new social security framework may change how social contributions are coordinated and how payroll reporting is handled for cross-border and mobile workers; employers and EORs should review contribution coordination and payroll processes.

Who is affected:

  • Employers
  • EORs (employers of record)

What employers should do:

  • Review how social contributions are coordinated under the new framework.
  • Assess and adjust payroll reporting processes to align with the updated social security framework.

Notes: Effective month: 2026-04. Manual verification recommended.