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Albania

Section 7. Worker Rights

e. Acceptable Conditions of Work

The national minimum wage was higher than the national poverty threshold. The SILSS and tax authorities are responsible for enforcing the minimum wage but had an insufficient number of staff to enforce compliance.

While the law establishes a 40-hour workweek, individual or collective agreements typically set the actual workweek. The law provides for paid annual holidays, but only employees in the formal labor market had rights to paid holidays. Many persons in the private sector worked six days a week. The law requires rest periods and premium pay for overtime, but employers did not always observe these provisions. The government rarely enforced laws related to maximum work hours, limits on overtime, or premium pay for overtime, especially in the private sector. These laws did not apply to migrant workers or workers in the informal sector, which made up 36 percent of the economy, according to the Western Balkans Labor Market Trends 2019 report.

The SILSS is responsible for occupational health and safety standards and regulations, and while these were appropriate for the main industries, enforcement was lacking overall. Working conditions in the manufacturing, construction, and mining sectors frequently were poor and, in some cases, dangerous. For example, police detained the owner of the construction firm Skela Syla in September after two of his employees died on the job. Unions claimed unsafe working conditions were the cause of death. Violations of wage and occupational safety standards occurred most frequently in the textile, footwear, construction, and mining industries. Resources and inspections were not adequate, and penalties were insufficient to deter violations, because law enforcement agencies lacked the tools to enforce collection and consequently rarely charged violators.

Workers often could not remove themselves from situations that endangered their health or safety without jeopardizing their employment. Employers did not effectively protect employees in this situation.

Romania

Section 7. Worker Rights

e. Acceptable Conditions of Work

The law provides for a national minimum wage that is greater than the official estimate for the poverty income level. The minimum wage has nearly tripled in nominal terms since 2012. In addition a government decision issued in December 2018 introduced a differentiated minimum wage, decreeing that employees with a university degree and at least one year on the job must receive at least 13 percent more than other minimum wage workers earn. The government also introduced a significantly higher minimum wage for construction workers. Up to 60 percent of employees earn the minimum wage according to the Labor Ministry. Authorities enforced wage laws adequately, although a significant informal economy existed. According to Eurostat data, in 2018 nearly a third of the population (32.5 percent) was at risk of poverty or social exclusion. Despite minimum wage increases, nearly one in seven employed Romanians was at risk of poverty.

The law provides for a standard workweek of 40 hours or five days. Workers are entitled to overtime pay for weekend or holiday work or work of more than 40 hours. An employee’s workweek may not exceed 48 hours per week on average over a four-month reference period, although exceptions are allowed for certain sectors or professions. The law requires a 48-hour rest period in the workweek, although most workers received two days off per week. During reductions in workplace activity for economic or technical reasons, the law allows employers to shorten an employee’s workweek and reduce the associated salary. Excessive overtime may lead to fines for employers if workers file a complaint, but complaints were rare. The law prohibits compulsory overtime.

The law gives employers wide discretion regarding the performance-based evaluation of employees. The law permits 90-day probationary periods for new employees and simplifies termination procedures during this period.

The law provides for temporary and seasonal work and sets penalties for work performed without a labor contract in either the formal or the informal economy. In accordance with EU regulations, the maximum duration of a temporary contract is 36 months.

The Labor Ministry, through the Labor Inspectorate, is responsible for enforcing the law on working conditions, health and safety, and minimum wage rates, but it does not effectively enforce all aspects consistently. The inspectorate was understaffed and inspectors underpaid; consequently, the inspectorate had high turnover and limited capacity. Minimum wage, hours of work, and occupational safety and health standards were not effectively enforced in all sectors. The construction, agriculture, and small manufacturers sectors were particularly problematic sectors for both labor underreporting and neglecting health and safety standards. The Labor Inspectorate increased inspections in 2018, identifying 14,568 undeclared workers and fining employers 119.2 million lei ($29.8 million). Through June the Labor Inspectorate identified 5,004 undeclared workers and fined employers 50.5 million lei ($12.6 million).

According to trade union reports, many employers paid supplemental salaries under the table to reduce both tax burdens for employees and employers alike. To address underreported labor, in 2017 the government increased the minimum required payroll taxes that employers must pay for their part-time employees to equal those of a full-time employee earning minimum wage. In addition the Labor Inspectorate collaborated with the National Authority for Fiscal Administration to conduct joint operations to check employers in sectors prone to underreported labor, including the textile, construction, security, cleaning, food preparation, transportation, and storage industries. These investigations often focused on underpayment of taxes rather than workers’ rights.

The government did not effectively enforce overtime standards. Union leaders complained that overtime violations were the main problem facing their members, since employers often required employees to work longer than the legal maximum without always receiving mandatory overtime compensation. This practice was especially prevalent in the textile, banking and finance, and construction sectors.

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