Brook Preloader

Signing Employment Contracts – Digitally!

Signing Employment Contracts – Digitally!

In April 2021, after prolonged discussions from the national and local administration, parliamentary groups, employers’ organisations, and other interested parties from the private sector, the Romanian Government finally adopted a project that allows the signing of employment contracts digitally with electronic signatures. The project, initially drafted as GEO 38/2021, was sent to Parliament, which eventually adopted it in a modified form as Law 208/2021.

This initiative is a welcomed breath of fresh air for the digitalisation of the public space because it now allows for the signing of individual employment contracts (CIM) with various types of electronic signatures—a step that was not possible before. In the context of the pandemic, where a significant proportion of the workforce operates from home, remote, electronic signing of employment contracts and related documents is an important step in easing employment relations, digitalising business processes, and making employer-employee interactions more flexible.

Let’s take a closer look at what the law entails. According to Law 208, employers now have the option to sign employment contracts with either an advanced or qualified electronic signature, in accordance with European Regulation 910/2014, also known as the EIDAS Regulation.

Specifically, what does the law stipulate?

  • Documents can be signed using an advanced electronic signature (SEA / AES – Advanced Electronic Signature) or a qualified electronic signature (SEC / QES – Qualified Electronic Signature).
  • Both the employer and employee must sign using either an advanced or qualified signature in the signing process.
  • The employee and employer can choose to conclude, suspend, and terminate an employment contract using an electronic signature (either advanced or qualified).
  • Signing an employment contract must be done either electronically or in physical form, but not a combination of both.
  • Employers cannot compel employees to use an electronic signature—it is merely an option. If the employee prefers to sign manually, they can do so under Law 208/2021.

Largely, the law simplifies the process of signing employment contracts but also references the modern phenomenon of teleworking through subsequent articles in the law, as well as the archiving of those employment contracts that must be archived according to Law 135/2007 (the Law on Electronic Archiving).

There are a few ambiguities with the law, specifically the almost exclusive reference to European Regulation 910/2014. This detail could lead to unfortunate confusion due to gaps in Romanian legislation. According to national legislation, Law 455/2001, the advanced signature does not exist—only the simple signature or the qualified signature is recognised. However, and here lies a significant point, Law 455 is an old, outdated, and archaic piece of legislation that no longer meets digital needs. That is why both the GEO project and the final law refer almost exclusively to European Regulation 910/2014, as it includes the advanced signature and, most importantly, it directly applies in national legislation.

A final important point to mention is the difference between an advanced and a qualified signature. Although the qualified signature is better known to the public and offers certain legal advantages, it is costly and requires precise identification of the person signing—whether through face-to-face identification or remote identification. The advanced signature does not require such strict identification; an SMS confirmation of the signature suffices.

In conclusion, as many in the industry would say—a BIG step forward!

Important Links – Legal Framework

EIDAS Regulation 910/2014 – https://eur-lex.europa.eu/legal-content/RO/TXT/HTML/?uri=CELEX:32014R0910&from=EN