Management and Employment Agreements
Lawyer for management agreement in Romania. Business manager in Romania
The management agreement in Romania has become a legal instrument increasingly used by a Romanian company seeking to transfer leadership to professionals in order to improve efficiency, accountability, and to achieve clearly defined performance objectives. This type of agreement clearly establishes the relationship between the owner of a Romanian company and the person appointed to lead it, emphasizing the achievement of specific and measurable goals. Whether we speak about a private company, a state-owned enterprise, or a public institution, the management agreement in Romania provides a well-defined legal framework for delegating leadership responsibilities.
According to the legal definition in Law no. 66/1993, the management agreement in Romania is the agreement through which a legal entity conducting economic activity in Romania, as the owner, entrusts a business manager in Romania with the organization, leadership, and management of its activity, based on quantifiable performance objectives and criteria, in exchange for payment.
The regulations under Law no. 66/1993 on the management agreement in Romania apply only to commercial companies in which the state owns at least 50% of the share capital, including those resulting from the reorganization of former autonomous administrations. Therefore, the law does not apply to commercial companies with a majority of private capital.
The Romanian Law Firm Pavel Mărgărit and Associates recommends working with a lawyer specialized in civil contracts in Romania or in commercial law in Romania to assist in drafting, negotiating, and implementing a management agreement in Romania.
Lawyer for civil contracts in Romania. Parties and Content of a Management Agreement in Romania
To become a manager in Romania for a Romanian company, a person must have full legal capacity, relevant experience or appropriate professional training, verified through official documents and favorable references from the previous workplace or from managers or administrators of commercial companies or autonomous administrations with a similar profile.
Also, the status of manager in Romania may be obtained by legal entities, which can conclude such management agreements in Romania. These must have legal personality proven by official documents, a relevant business scope, experience in management, and proof of financial credibility.
The law also stipulates several restrictions regarding those who cannot be appointed as business manager in Romania. These include individuals already acting as manager or administrator of another company, those with final criminal convictions that make them incompatible, individuals listed as revoked managers or administrators, those sanctioned for violating tax laws, or individuals holding shares in another company with a similar business scope.
The management agreement in Romania must include the contracting parties, the object of the agreement, duration, rights and obligations of the parties, reference indicators, objectives and performance criteria, manager tasks in Romania, special contractual clauses in Romania, guarantees, loyalty and confidentiality provisions, liability of the parties, modification or termination terms, dispute resolution mechanisms, and final provisions. If needed, parties may include additional contractual clauses in Romania.
The management agreement in Romania is concluded for a maximum of 4 years, with the possibility of extension.
Collaboration with a lawyer specialized in commercial contract in Romania or civil contracts in Romania is strongly recommended, as such a lawyer can draft the agreement in accordance with legal requirements, include personalized contractual clauses in Romania specific to the company’s profile and the manager’s objectives, and assist in negotiating the contractual terms to ensure a balance between rights and obligations.
Lawyer specialised in commercial law in Romania. Manager Tasks in Romania
A business manager in Romania plays a crucial role within a company conducting economic activity in Romania, as they are responsible for optimizing and streamlining operations. The manager tasks in Romania include the general leadership of the company’s activities, achieving the performance objectives stated in the agreement, entering into legal acts on behalf of the Romanian company within the limits established by the board of directors or the management agreement in Romania, negotiating the collective labor agreement, and handling employment procedures.
The agreement of a business manager in Romania terminates upon the expiration of the term, in the event of revocation due to non-fulfillment of contractual obligations, resignation, mutual consent, a situation of incompatibility, or death. In cases of revocation or resignation, the involved party must provide at least 30 days’ notice.The Romanian Law Firm Pavel Mărgărit and Associates recommends working with a commercial law in Romania specialist or a lawyer experienced in civil contracts in Romania to ensure the legality of the documents, protect the client’s interests, and prevent potential disputes.
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Lawyer specialised in commercial contract in Romania. Differences Between Management Agreement in Romania and Employment Contract in Romania
There are major differences between a management agreement in Romania and an employment contract in Romania, both from a legal and practical perspective. These differences relate to the nature of the relationship, the obligations of the parties, applicable tax regimes, and the level of autonomy.
First, under an employment agreement in Romania, the employee is hierarchically subordinated to the employer, while a manager in Romania may lead the entire company. An employment agreement in Romania is usually concluded for an indefinite period, while a management agreement in Romania has a maximum term of 4 years. Employees benefit from labor law protections, while the manager in Romania operates based on objectives and performance rather than working hours.
Another significant difference is that an employment contract in Romania must be registered in REVISAL – the General Registry of Employees – while a management agreement in Romania is not subject to this obligation.
Therefore, a management agreement in Romania offers flexibility and autonomy focused on performance, while an employment agreement in Romania provides stability, legal protection, and subordination.
In this context, the Romanian Law Firm Pavel Mărgărit and Associates offers high-level legal services across various practice areas, including matters related to the management agreement in Romania, employment agreement in Romania, and employment contract in Romania. Our team has a deep understanding of commercial law in Romania and civil contracts in Romania, providing clear and efficient legal solutions for all clients seeking assistance from a specialist in commercial contract in Romania or a business manager in Romania.
Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2025, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2025 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.
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