G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Moldova. Your candidate is hired via G-P’ Moldova PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Moldova while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Moldova.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Moldova is a landlocked country located in Eastern Europe and bordered by Romania and Ukraine.
When negotiating terms of an employment contract and offer letter with an employee in Moldova, it may be useful to keep the following in mind:
Employment Contracts in Moldova
Fixed-term contracts are permissible, but may not exceed five years.
It is legally required to put a written employment contract in place in Moldova, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Moldova should always state the salary and any compensation amounts in Moldovan leu rather than a foreign currency.
Working Hours in Moldova
In general, the workweek is 40 hours, with five, eight-hour days. On the day before a holiday, work is decreased by at least one hour.
Holidays in Moldova
Moldova celebrates 11 national holidays:
- New Year’s Day
- Orthodox Christmas
- International Women’s Day
- International Solidarity Day of Workers
- Orthodox Easter Monday
- Victory Day
- Memorial/Parents’ Day
- International Children’s Day
- Independence Day
- National Language Day
- Western Christmas
Vacation Days in Moldova
Employees are generally entitled to 28 calendar days of paid annual leave, not to include public holidays. The vacation may be taken in parts, but at least one part must be of at least 14 calendar days.
Moldova Sick Leave
Employees are eligible for paid sick leave if they present a medical certificate. State social insurance pays for sick leave.
Maternity/Paternity Leave in Moldova
Female employees are generally entitled to maternity leaves of 70 calendar days before the birth and 56 calendar days after. Male employees receive 14 calendar days of paternity leave to be used in the 56 calendar days after the child is born.
Employees are also generally eligible for a partially paid holiday until the child reaches the age of three. The duration of the holiday is dependent on the employee’s seniority, position, and insurance. Both maternity leave and the partially paid holiday are paid for out of the social insurance fund.
Female employees with two or more children under the age of 14 are entitled to four additional days of paid annual leave.
Female employees with two or more children under the age of 14, and single parents with at least one child under the age of 14, are eligible for an unpaid vacation of 14 calendar days which can be used in conjunction with the annual paid holiday or separately, and does not have to be taken all at once. Unpaid holidays can be taken from the child’s age of three until the child reaches the age of six. The duration of the leave is dependent on the position of the employee and her seniority.
Fathers, grandparents, or other relatives who care for children are eligible for a partially paid holiday to take care of a child under the age of three.
Health Insurance in Moldova
The state health insurance provides for primary healthcare and emergency care, but many services are paid for out of pocket.
Employees are generally entitled to a holiday allowance of an amount at least corresponding to the wages they would be paid for the duration of the leave. Pay is due to the employee at least three days before the leave.
Annual and performance-based bonuses are common.
Termination/Severance in Moldova
Probationary periods of up to 3 months, and six months for officials, are allowed and may not be renewed.
Fixed-term contracts may also have probation periods, but they may not exceed 15 calendar days for a contract of between three and six months or 30 calendar days for a term of greater than six months.
Employees may terminate their contract with 14 calendar days’ written notice.
Termination of employees is permissible with just cause and may be subject to the agreement of the trade union.
Employees are generally entitled to one month’s notice of dismissal, or two months in the case of the business being liquidated or a redundancy. Employees are also entitled to one day per week to seek new employment.
Employees are generally eligible for severance pay equal to one week’s wages for every year worked, with a minimum of one month’s wages if they are terminated due to economic reasons.
Employees dismissed for just cause are generally entitled to two weeks of pay.
Paying Taxes in Moldova
As of January 2021, only employers make social security contributions to the Social Security Fund – paid at a rate of 24% of the employee’s gross salary.
Both employers and employees must contribute 4.5% of wages to health insurance.
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Moldova to engage a small team is time-consuming, expensive and complex. Moldovan labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Moldova. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Moldova PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Moldova, please contact us.