Doctrinal Controversies on the Manager’s Capacity as Employee

Abstract

Art. 294 of the Labor Code states that, in this Code, employees having leading positions are employed managers,” although it does not stipulate expressis verbis the possibility of the entering of an employment agreement by the manager of the company, the law allows for the extraordinary solution for the combination of the capacity as manager with the capacity as employee. On the other hand, the bill for the Amendment of Law no. 31/1990 on companies introduces a totally opposed provision according to which, in order to carry out their mandate, managers can not enter an employment agreement with the company” (art. 1371 paragraph 3). There is thus a contradiction – which of the two legal texts is a legislative error and which presents the adequate solution/ We considered that a common sense argument – such an Agreement would lack an essential employee to the employer respectively. In the case of the sole manager, the execution of a Labor Agreement would indicate a self-employment.

Note: Downloadable document is in Romanian.

Keywords: company, manager, employee, mandate

JEL Classification: K10, K12