By “disguised dismissal” we refer to situations in which the termination of an employment relationship is either forced or indirectly caused by the employer, without complying with the legal procedures for dismissal set out in the Romanian Labor Code (Articles 58 et seq.).

These situations may include:

• Abusive redefinition of the role – significant changes to the employee's responsibilities, without prior consultation or consent, which violates Article 41 of the Labor Code. This article stipulates that any modification to the employment contract requires the agreement of both parties.
• Pushing the employee to resign – through psychological pressure, isolation, withdrawal of duties, or the imposition of unreasonable or unachievable tasks. Such practices may be deemed a breach of Articles 8 and 39(1)(e), which guarantee respect for human dignity in the workplace.
• Forced changes to contractual terms – such as altering salary, working hours, or workplace location without the employee’s written consent through an official addendum, as required by Articles 17 and 41 of the Labor Code.

Why Some Employers Resort to This Approach

Although labor legislation provides a clear and lawful framework for terminating individual employment contracts, in practice, some employers choose to bypass formal procedures.

Common reasons include:

• Fear of complications or internal backlash – formalizing a dismissal can involve difficult conversations, input from multiple decision-makers, and careful team-level communication.
• Lack of clear internal procedures – in the absence of a structured process, some decisions are made impulsively or under pressure from operational management, without proper legal risk assessment.
• The mistaken belief that the employee will not challenge the decision – some employers assume that a lack of immediate reaction equals tacit acceptance. However, such assumptions can escalate into legal claims or complaints to the Territorial Labor Inspectorate.

The Real Risks

Informal or abusive practices related to the termination of employment may expose the employer to serious risks:

• Litigation for unlawful or abusive dismissal, under Article 80 of the Labor Code. In such cases, courts may order the reinstatement of the employee, payment of lost wages, associated contributions, and potentially moral damages.
• Complaints to the Labor Inspectorate (ITM) – if changes to the contract are not properly registered in REVISAL or lack legal justification, fines may be imposed according to Government Decision No. 905/2017.
• Inability to demonstrate good faith – without adequate documentation (such as performance evaluations, written notices, or addenda), the employer is vulnerable before courts or labor authorities.

How to Properly Manage a Difficult Employee Situation

Any tense employment situation must be handled with rigor and caution. Recommended steps include:

• Documented performance discussions – feedback should be clear, example-based, and recorded in writing.
• Objective evaluations based on transparent criteria – ideally using pre-agreed performance indicators reflected in the employment contract.
• Involvement of HR and legal counsel – starting from the early stages of conflict or when considering restructuring or organizational changes.

Avoiding formal legal procedures ultimately creates significant legal and reputational risks. Compliance with labor law, well-documented decisions, and an organizational culture grounded in mutual respect and balance are essential to preventing disputes and building a sustainable work environment.

If your organization is facing challenges in managing labor relations, we can work together to identify legally sound and context-appropriate solutions.

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