Romania drafts ordinance to restrict transfers in public sector and regulate work after retirement

Romania’s Ministry of Labor has published for consultation a draft emergency ordinance (OUG) that would ban transfers and secondments between public institutions until the end of 2026, Cursdeguvernare.ro reported. The measure is intended to prevent civil servants from circumventing upcoming staff reductions as the government prepares a broad administrative reform that will cut tens of thousands of positions in the public sector.

Currently, transfers and secondments allow civil servants to secure posts in other state bodies when staff reductions are applied, since institutions are obliged to reserve the position. The new ordinance would suspend this practice until December 31, 2026, ensuring that workforce downsizing cannot be avoided through administrative manoeuvres.

The draft also introduces new rules for employees in the public sector who wish to continue working beyond retirement age. 

Publicly funded personnel – including employees of state-owned companies, entities where local authorities hold majority stakes, autonomous administrations, and regulators – will be permitted to work until the age of 70 if they obtain annual approval from their employer. However, during this extended employment period, pension payments will be suspended. 

Officials explained that pension rights would resume only once the employment contract or service relationship ends. The rule will apply equally to those receiving public pensions, service pensions, or military pensions.

According to the Ministry of Labor, the ordinance aims to clarify the balance between pension entitlements and continued employment while ensuring that the government’s planned cuts to the public payroll are not undermined by institutional transfers.

The proposal comes as part of a broader effort to streamline Romania’s public administration and curb budgetary expenditure. The government has committed to implementing structural reforms under the National Recovery and Resilience Plan (PNRR), which requires reductions in public sector staffing and improvements in efficiency.

If adopted, the emergency ordinance would apply across central and local public authorities, regulatory agencies, and state-owned companies, creating a uniform framework for employment beyond retirement age and blocking the use of transfers to preserve redundant positions.

iulian@romania-insider.com

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