As we have previously written, the draft law granting the National Labor Inspectorate the authority to issue decisions transforming civil law contracts into employment contracts is highly controversial, as confirmed by subsequent public consultations and opinions. Many entities have raised critical comments on the draft.
Immediate enforceability of the decision
The greatest controversy concerns the immediate enforceability of the decision (from the date of its delivery) regarding the consequences that labor law imposes on the establishment of an employment relationship (the obligation to meet tax and insurance obligations, among other things, and to make mandatory contributions to funds). Filing an appeal does not suspend the enforcement of the decision.
Comments
The most frequently raised arguments against immediate enforceability include:
- risk of loss of economic stability – in the case of larger enterprises and the issuance of more decisions to one entity, there will be a sudden increase in operating costs;
- shifting the consequences of lengthy proceedings onto entrepreneurs – despite filing an appeal, the consequences of the decision will burden entrepreneurs until the case is finally considered, and the longer the proceedings, the more severe the consequences will be;
- inconsistency with the Constitution – it is pointed out, among other things, that the freedom of economic activity is restricted, and that the change violates the principle of the separation of powers, due to the granting of court competences to the National Labor Inspectorate and the right to decide, with effect for many years
(until the end of court proceedings), on the rights and obligations of the parties to contracts; - a multitude of new obligations – the decision will result in the imposition of a number of obligations arising from legal provisions overnight: maintaining employee documentation, ensuring employee entitlements (e.g. leave), calculating and paying current social and health insurance contributions, organizing occupational health examinations, conducting occupational health and safety training;
- failure to respect the will of the parties as to the type of contract concluded;
- very difficult to undo the effects of a decision once it has been repealed.
Withdrawal of the effects of a decision after its repeal
This last issue is particularly hotly debated. The draft law, while providing for immediate enforceability of decisions, does not address the revocation of the decision's effects following its possible reversal by a court. It is argued in particular that:
- annulment of the decision may lead to a situation where wages and sickness benefits were calculated and paid without a legal basis, social security and health insurance contributions were paid, undue leave was granted, and other undue employee and social benefits were collected;
- there will be a need to make corrections to settlements;
- Compensating for the damages incurred as a result of the decision, in particular the recovery of undue benefits, will be complicated and will require significant financial and organizational outlays.
Summary
Therefore, there are many concerns and doubts regarding the immediate enforceability of decisions issued by the National Labor Inspectorate, particularly the difficulties in reversing their effects once they have been repealed. It seems that a better solution would be to suspend the effects of the decision until it becomes final.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of November 6, 2025.
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