Buju Stanciu & Associates: Entrepreneurs are tempted to turn employees into collaborators to reduce costs. ANAF has intensified controls, with fines of up to 200,000 lei and retroactive payment of contributions related to salaries

With the elimination of tax incentives in IT, agriculture, construction, and the food industry, as well as in an economic context with pressure on the business environment, companies in Romania are tempted to transform individual employment contracts into collaboration contracts.

The risk of receiving sanctions has increased significantly, especially since ANAF has intensified controls on salary income, companies may be required to pay fines of up to 200,000 lei, retroactive payment of tax and social contributions for amounts given to collaborators, but also the reinstatement of collaborators as employees, warns the law firm Buju Stanciu&Asociatii.

Companies are tempted to resort to “creative” solutions to reduce salary costs. However, tax authorities closely monitor these practices and actively collaborate with the Labor Inspectorate to quickly identify any form of disguised employment. Moreover, inspectors use advanced control tools, including tax reporting and SAF-T cross-analysis, to detect any deviation from the law efficiently. For example, recently, ANAF discovered fraud of over 1 million lei at an IT company in Iași, where it was found that outsourcing services to external collaborators were hiding clear employment relationships.

“What seems like a smart optimization strategy can quickly turn into a tax nightmare: the reclassification of collaborators as employees, with the full recalculation of the related tax obligations. Simply put, whoever thinks they are getting away with it cheaper ends up paying unexpectedly much. The ANAF message is unequivocal: the status of collaborators is not a gray area. Misinterpretations can be costly, and inattention becomes a luxury that entrepreneurs cannot afford.

“Artificial optimizations and pseudo-collaborations may offer illusory benefits in the short term, but in the long term, they represent a major risk for business. The solution lies in respecting the legislation and consulting specialists – the key to a healthy business environment, free from sanctions and significant financial losses,” explains Marius Staciu, a lawyer specializing in Tax Law and partner at Buju Stanciu & Associates.

Entrepreneurs are tempted to reduce costs through independent collaborations

The tax authorities have intensified the monitoring of apparently independent collaborations, and the experts of Buju Stanciu & Asociații signal: that if a collaborator works exclusively for the company, on its equipment and within a fixed schedule, ANAF will consider that company to have an employee, which implies additional tax assessments following the controls. In this context, taxpayers are advised to re-analyze external collaborations that could be targeted by such controls and possible tax reclassifications.

From a legal perspective, the transformation of employees into collaborators, with a subordination relationship specific to an employment relationship, may fall under the concept of “undeclared work”. The Labor Code sanctions undeclared work with fines of 20,000 lei for each person identified without a valid individual employment contract, the maximum cumulative ceiling of these fines being 200,000 lei for an employer.

“Entrepreneurs are tempted to reduce costs by working independently, but a tax classification mistake can lead to severe financial losses, with retroactive payment obligations. Today’s savings become tomorrow’s astronomical bill.The current atmosphere in the business environment increasingly clearly indicates that the “loopholes” used in the past to save on salary costs tend to be closed by the ANAF authorities and the Labor Inspection, thus sending a firm message: compliance with both tax and labor legislation is not optional, and any attempt to evade can have important consequences”, warns Marius Stanciu, a lawyer specializing in tax law and partner at Buju Stanciu & Asociații.

Companies risk paying tax and social contributions retroactively for payments made to employees

According to the Fiscal Code, any collaborator who works under the authority of the company, using its resources and within the company’s work schedule, can be qualified as an employee. A direct consequence is that income tax and mandatory social contributions are recalculated at the level of salary contributions, the payment obligation falling (jointly) on the employer and the employee. In other words, the amount paid to the employee is reinterpreted as a net salary, to which all salary taxes that were not initially paid are added.

“The plea of ignorance of the law or good faith does not work in front of ANAF inspectors. The employer may be required to pay both the employee’s and the employer’s share of contributions, and then recover their share from the respective persons. In practice, the total tax burden can exceed 40% of the gross amounts paid within the collaboration, illustrating how great the financial impact of a requalification can be. Moreover, tax authorities can recalculate obligations for the last 5 years, which is the general tax statute of limitations. Thus, an advantageous short-term scheme can generate massive historical debts in the event of an unexpected audit. For this reason, we recommend maximum caution in configuring these collaborative relationships from the very beginning”, emphasizes lawyer Marius Stanciu.

What can companies do specifically to legally transform employees into collaborators – specialized consulting, is the key to preventing tax and legal risks

Faced with these risks, entrepreneurs have an essential solution at hand: prevention through specialized consulting. Buju Stanciu & Asociații specialists recommend that companies turn to tax and labor law experts in advance to analyze the status of their collaborators and the contracts used.
Through specialized consulting, companies receive concrete and legal solutions to classify employees as collaborators, thus being able to reduce expenses, while also complying with the law and avoiding fines. With a preventive check, potential framing problems can be identified in advance, making it possible to adjust forms of collaboration before the authorities intervene.

“Prevention is much better than cure in such situations. A proactive legal audit of labor relations and remuneration practices can save a company from enormous subsequent costs. By consulting a tax lawyer and an expert in labor law, managers can be sure that the chosen collaboration models comply with the law, thus avoiding unpleasant surprises in the event of an audit,” explains lawyer Marius Stanciu.

By addressing these issues lucidly and turning to professionals for guidance, companies can safely navigate legal obligations.

Buju Stanciu & Asociații is a business law firm focused on personalized and pragmatic solutions for each client. Our experienced team provides legal advice in traditional areas such as corporate law, intellectual property, and litigation, but also in innovative sectors, including emerging technologies such as artificial intelligence and blockchain. We are members of Interlegal and Legal Network International, collaborating with internationally renowned law firms to ensure the best quality of our professional services. Since 2025, Buju, Stanciu & Asociații has been a member of the international network Exsus Global, representing an important step in the expansion of the firm’s services. Through this partnership, companies in Romania will have access to an extensive network of international specialists, benefiting from legal, financial, and business expertise tailored to their needs.