Payroll Compliance In Action: A Best Practice Case From Romania's IT Industry

Introduction

Within human resource management, payroll processing carries a critical responsibility for the accurate calculation and timely payment of salaries. Even minor administrative oversights can lead to serious legal and financial repercussions. This case study examines an exceptional payroll situation arising from a classification error and the failure to apply an approved salary increase.

The Client

Caseware Romania SRL

Caseware Romania SRL, a company operating in the IT sector with approximately 50 employees, uses an integrated digital system for HR and payroll management. The HR department is responsible for performance evaluations, promotions, and salary adjustments, while the payroll department manages monthly payments and ensures all updates are accurately reflected in the Revisal register.

The Challenge: Salary Adjustment Error and Compliance Risk

In September 2025, an employee at Caseware Romania SRL noticed that a 15% salary increase, approved in July 2025, had not been applied. An internal review revealed an administrative oversight — the approved modification had not been entered into the payroll system. Consequently, the employee continued to receive the previous salary rate for three consecutive months (July–September 2025).

The Situation Analysis

The investigation identified several root causes:

• Insufficient communication between the HR and Payroll departments.
• Absence of automatic validation mechanisms within the payroll system.
• Lack of a written procedure to verify the implementation of salary changes.

The Impact

• Delay in payment of correct wages, breaching Romanian labour law provisions.
• Potential legal exposure under the Romanian Labour Code.
• Decline in employee trust and potential reputational impact for the company.

The Legal Framework

The following regulations apply in such cases:

Labour Code (Law no. 53/2003):

• Article 159: The salary represents the consideration for work performed by the employee.
• Article 160: Salaries must be paid directly to employees on the due date.
• Article 166: Non-payment of wages entitles the employee to request penalties and interest.

Government Decision no. 905/2017 on the general employee register (Revisal):

• Salary changes must be recorded on the effective date.
• Retroactive modifications must be justified with supporting documentation.

Accounting Law no. 82/1991:

• Employers are required to accurately record all salary rights and obligations in their accounting records.

The Eurofast Approach

After identifying the issue, Eurofast implemented a series of corrective and preventive measures to ensure full compliance and restore employee confidence:

• Issued a formal decision to retroactively correct the salary effective from July 1, 2025.
• Calculated and paid all salary differences due for the period July–September 2025.
• Updated the Revisal register to reflect the corrected salary level.
• Communicated transparently with the employee, explaining the situation and outlining the corrective actions taken.
• Introduced a new cross-verification procedure among HR, Payroll, and Accounting departments prior to month-end closure.
• Launched quarterly internal payroll audits to ensure ongoing accuracy and prevent similar discrepancies.

The Results

The employee received all outstanding salary payments and expressed satisfaction with the resolution. The company successfully strengthened its internal control mechanisms and avoided potential legal or financial penalties. Additionally, the HR department introduced automatic notifications for all approved salary changes, ensuring timely implementation in the future. This case ultimately reinforced employee trust and highlighted the organization's strong commitment to compliance, transparency, and fairness.

Key Takeaways

Extraordinary situations in payroll may occur even in well-structured organizations. The key is to respond promptly, communicate transparently, and implement preventive procedures to ensure future compliance. This case illustrates a best practice approach to managing payroll errors responsibly and effectively.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.