Reducing excessive regulation could ease pressure on Moldova’s businesses
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Opinion: Doing Away with Excessive Regulation Will Ease the Pressure on Businesses

The government's package of proposals to reduce overregulation of the private sector and streamline the permitting system has received widespread attention in the business community.
Tatiana Sichirliiscaia Reading time: 2 minutes
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The most widely discussed issue has been a series of amendments to the Labor Code of the Republic of Moldova. According to Roman Ivanov, a partner at the law firm Vernon David and an expert on legal matters, these amendments “can rightly be considered substantial and quite bold.”

Work on the draft began in the spring of 2026, when the Ministry of Economic Development and Digitalization, in collaboration with the Economic Council under the Prime Minister, organized a series of meetings with representatives of business associations, experts, and donors. An ambitious idea was put forward to develop a bill aimed at eliminating excessive regulation of the private sector and streamlining the permitting system.

The draft law was to be developed and approved before the start of the summer recess in government agencies so that, after completing all procedures and votes, it could take effect this fall. The document was published for public comment on July 2, 2026, and the deadline for submitting proposals and recommendations was set for July 27.

“Bold Proposals” to Simplify Business

“As expected, the result is a fairly voluminous document that includes amendments to more than 30 different codes and laws,” says Roman Ivanov. “One of the most discussed topics is a series of amendments to Moldova’s Labor Code, which, according to experts and the business community, can be considered substantial and quite bold.”

The expert highlights several proposals that will significantly simplify doing business. For example, the initiative to eliminate the requirement for companies to have their staffing plans approved will, in his view, reduce the bureaucratic burden on employers. The same applies to the removal from the legislation of another requirement—to inform employees, in the prescribed manner and form, about changes that may occur in the future, as well as other procedural matters.

The expert also views positively the provisions allowing newly established companies—i.e., startups—to enter into fixed-term employment contracts during the first 36 months following their state registration. The expert also welcomes amendments allowing employers to unilaterally amend an employment contract in exceptional cases, provided that the employee’s rights and obligations remain unaffected.

“Zero-hour” contracts will give employers more leeway

“I would like to specifically note the introduction of a new employment regime into the Labor Code—so-called zero-hour contracts or on-demand work,” the expert comments. “Under the proposed amendments, the parties may agree that the employer will not guarantee the employee a minimum number of hours per month, calling the employee to work only when necessary.”

According to the draft, such a request must be sent to the employee 24 hours before the start of work, and the work shift must not exceed 12 hours.

“Although the draft bill provides for this arrangement to apply to no more than 30% of a company’s total workforce, the amendments have been well received by the business community,” emphasizes Roman Ivanov. “This innovation should help businesses that operate on a project basis, or where workloads depend on seasonal or other factors that result in a need for more employees during certain periods.”

The expert suggests that this arrangement could also benefit businesses such as courier delivery or taxi services, where employers are often unable to guarantee employees a specific minimum number of working hours.


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