written by Vacation plans are always on our minds — whether you’re dreaming of the seaside, the mountains, or simply a few quiet days on the couch. Even so, the legislation surrounding paid annual leave often remains a mystery for many employees. How many days are we entitled to? What happens if we don’t manage to take them? Can we lose them? Can they be paid out? These questions come up year after year, especially at the beginning of the summer season or the end of the year, when everyone takes stock of their remaining vacation days.
Vacation is not just a well-deserved break. It’s an essential part of both professional and personal well-being, as time off helps us recharge and return to work with renewed energy. Proper planning of leave days contributes to both employee balance and team efficiency, which is why it’s important to discuss annual leave planning early in the year. Knowing the legal rules helps everyone avoid unpleasant surprises and enjoy stress-free vacations.
What Is Annual Leave and What Rights Do Employees Have
Annual leave is a legally guaranteed, paid rest period granted to all employees to recover their work capacity. The Romanian Labor Code guarantees this right to all employees, regardless of their industry or individual employment contract type.
Article 144 of the Labor Code:
“The right to paid annual leave is guaranteed to all employees.”
Employees have the right to:
plan their vacation together with their team and manager;
receive full pay during their legal annual leave;
choose the period of leave, in agreement with company needs and operations.
This right cannot be restricted by contract or internal decision.
Minimum Duration of Annual Leave and How It’s Calculated
Article 145 of the Labor Code establishes: A minimum of 20 working days of paid annual leave per year. The total number may increase depending on:
The individual employment contract;
The collective labor agreement;
Seniority;
Special or hazardous working conditions.
Companies may grant additional days as part of their benefits policies to attract and retain talent.
Public Holidays Are Not Counted as Annual Leave
Public holidays established by law do not reduce the number of annual leave days.
Example: If an employee takes a week off that includes two legal holidays, only three vacation days are deducted, not five.
Employees who work on public holidays are entitled either to compensatory time off within 30 days or to additional pay, as reflected on the payslip, in accordance with the law.
Interrupting Annual Leave: Permitted Situations
According to Article 151, annual leave can be interrupted in the following cases:
objective personal reasons;
the employee’s justified request;
the employer’s request, only in exceptional cases requiring the employee’s presence.
Unused days are rescheduled later, by mutual agreement.
Monetary Compensation for Unused Annual Leave
Compensation in money is allowed only when the employment contract ends (Article 146).
If the employee has not used their full legal annual leave:
The employer must grant the remaining days within 18 months;
Expired days are lost if the employee is at fault.
| Situation | What Happens |
|---|---|
| You have 4 unused days from 2024 | You can use them until mid-2026 |
| You don’t use them within the legal period | The days are forfeited |
Additional Leave Days: Who Benefits
According to the Labor Code, employees who receive at least +3 extra days include:
employees under 18 years old;
persons with disabilities;
employees working in harmful, difficult, or dangerous conditions;
visually impaired employees;
employees undergoing in vitro fertilization treatments.
In addition, there are other types of paid leave:
family events (marriage, childbirth, bereavement);
blood donation day;
caregiver’s leave (without additional contributions).
Leave for Professional Training
Employees are entitled to leave for professional training, either paid or unpaid.
Main rules:
must be requested at least 30 days in advance;
the employer may refuse only if company activity would be seriously disrupted;
up to 10 working days or 80 hours, when training was not provided by the employer as required by law.
Good planning helps employees develop professionally while enabling companies to benefit from updated skills.
Unforeseen Situations: Flexibility in the Law
The Labor Code allows justified absences in urgent situations, with later recovery.
Maximum duration: 10 working days per year.
Annual Leave Must Include at Least 10 Consecutive Days
The law promotes real rest and the prevention of burnout.
Each employee must take at least 10 consecutive days of vacation per year.
How Smartree Solutions Can Help
Proper vacation management reduces legal risks and improves employee experience. Through Payroll Software and HR Services, Smartree provides:
automatic calculation of leave days;
integration of legal holidays;
automated notifications and scheduling via MyStaff Notifier;
updated legislative support.
We all make vacation plans, but few of us know the legal details behind annual leave. Vacation days should be planned and discussed with the direct manager, often together with team members, based on everyone’s needs and preferences at the beginning of the year.
Paid annual leave is a cornerstone of professional health and a right guaranteed by law. Transparent planning and proper leave management contribute to a healthy, productive workplace.
We are Smartree, pioneers in HR outsourcing and personnel administration services, active for 25 years on the Romanian HR market. We bring innovative, strategic, and automated solutions to your HR challenges. Beyond payroll and HR specialists, legislative consultants, and creators of the MyStaff platform, we aim above all to be your trusted partner. Contact us for a discussion!
