Workforce management is an endless challenge. Recruitment, offers, head-hunting, onboarding new employees, and employee turnover all create pressure on both company management and the human resources department.

Employee management obligations are largely strictly regulated by law. Where legislation does not specify detailed procedures for employee management, practices, ITM guidelines, and specialized articles help to complete the picture.

Today, we are addressing the issue of personnel files: how crucial it is for them to be correctly prepared, continuously updated throughout employment, and kept up-to-date. This is not only to avoid fines but also to mitigate the employer’s vulnerability against employees in case of a legal dispute.

Without for a moment disputing the importance of protecting employees and their rights, we must also acknowledge the responsibility that weighs on the shoulders of employers, as their tasks are far from easy. All employers are required to create a personal file for each employee under an individual employment contract, keep it in good condition at the company’s headquarters (or, if applicable, at the secondary headquarters), and make it available to labor inspectors upon request.

According to Article 7 of Decision No. 905/2017 regarding the general register of employees, the employee’s personal file must contain at least the following documents: hiring documents, the individual employment contract, additional documents, and other documents related to modifications, suspensions, and terminations of individual employment contracts, educational certificates/qualification certificates, and any other documents certifying the legality and correctness of the entries in the register.

In detail, the file will include:

A. Hiring Documents:

• Copy of ID/passport or residence permit;
• Copies of educational documents;
• Occupational health physician’s approval (aptitude assessment);

B. Individual employment contract, necessarily accompanied by the job description;

C. Additional documents concerning the conclusion, execution, suspension, modification, and termination of the individual employment contract;

D. Other documents:

• Employee’s requests for leave approval;
• Self-declaration regarding dependents for personal deduction purposes;
• Other types of requests, declarations, etc.

In addition to these mandatory documents, the employer may also request other documents deemed essential for the employment relationship, payroll, and verification of the accuracy of employee statements:

• Birth certificate, marriage certificate, children’s birth certificates, and divorce decree;
• Copies of certificates from previous workplaces;
• Recommendations from previous workplaces;
• Criminal record certificate, if applicable;
• Curriculum vitae, signed and dated by the employee;
• Job offer;
• Evaluation report based on established criteria;
• Copy of the driver’s license, if applicable;
• Bank account statement for salary transfer;
• Self-declaration by the employee regarding dependents for personal deductions and supporting documents for dependents;
• Self-declaration acknowledging the employer’s Internal Regulations;
• Inventory receipts for company property (mobile phone, laptop, vehicle);
• Employee consent for the processing of personal data.

Employers are required to keep each employee’s data and personal files in proper conditions to ensure data security and compliance with legal provisions regarding the protection of personal data. Personal files must be made available to ITM inspectors upon request.

Among the penalties provided in Decision No. 905/2017, the following are examples:

• Failure to provide the labor inspector with the documents on which the entries in the register are based is a contravention and is punishable by a fine ranging from 5,000 to 8,000 lei.
• Incorrect or incomplete register entries are a contravention and are punishable by a fine ranging from 3,000 to 6,000 lei.
• Failure to keep the personal file at the employer’s headquarters or, if applicable, at the secondary office is a contravention and is punishable by a fine ranging from 2,000 to 5,000 lei.

In another vein, you may have heard the saying, “A company’s vulnerability lies within each of its employees.” Equally valid would be to say, “A company’s vulnerability lies within each employee file.”

When a conflict arises between employees, the “voice” of the documents will prevail: the employment contract, job description, attendance records, leave procedures, etc. The personal file is the starting point of evidence, and an irresponsibly prepared file is a handicap that is hard to overcome later.

An incomplete file hints at unprofessionalism, inconsistency, even a lack of respect toward employees, and poor control of subordinate departments. An unsigned job description, for instance, creates an uncertain work environment and can erode the entire evaluation process.

Often, this is not due to the incompetence or negligence of the HR department. On the contrary, many workplaces operate under an unwritten code of respect, honor, trust, and rely on the belief that work can proceed without constraints.

Unfortunately, this is not the correct way to build rapport. This can be fostered over time through harmonious collaboration, a flexible and friendly working environment provided by the employer, supported by the employee’s respect and commitment to duties, and, of course, tenure with the company.

When, as an employer, you find yourself unable to dismiss an underperforming employee, warned by lawyers that you might be obligated to pay compensatory wages that could endanger the company’s solvency, or forced to settle with “n” compensatory wages because you neglected something as “simple” as a personnel file, you realize that an ITM fine might actually be the least of your worries.

It is essential to always see the big picture in every operation we perform and to fulfill it responsibly. Beneath what may appear trivial could, in fact, lie significant risks.

We raise the alarm and advocate for a more extensive training of HR employees from a broader perspective, such as that held by an experienced labor litigation lawyer. It is never too late to audit company files and address deficiencies before the pressure of a labor dispute arises.

Author: Atty. Lavinia Rusu