Care Home Contract: Essential Clauses and Rights

When deciding to seek residential care services for a parent or loved one, most families feel they are taking an important yet emotionally difficult step. Amidst these emotions, one essential document risks being treated as an afterthought: the care contract. Yet this document is far more than an administrative formality – it is the guarantee that your loved one will receive the care that was promised, that their rights will be respected, and that the family will know exactly what to expect from the chosen service.

Unfortunately, many families discover too late that they have signed incomplete contracts containing ambiguous or even exploitative clauses. Some residents end up receiving services that differ from what was promised, families are notified overnight of fee increases, and in extreme cases, contracts are terminated without notice. These situations not only cause emotional distress, but can also have serious legal and financial consequences.

In this article, we will examine everything you need to know about the residential care contract: what it must contain according to the law, which problematic clauses to avoid, what rights you have as a family member and as a resident, and how to proceed if the contract terms are not honoured. This is a practical guide designed to help you make an informed decision and protect your loved one.

Contents

1. What a contract must contain by law
2. Problematic clauses and red flags
3. Rights of the resident and family guaranteed by the contract
4. What to do if the contract is breached
5. Essential questions to ask before signing
6. Practical checks before signing
7. Frequently asked questions

What a contract must contain by law

Romanian legislation, through Social Assistance Law no. 292/2011 and its associated methodological norms, clearly establishes what elements a residential care contract for elderly persons must include. These provisions are not optional – they protect both the resident and the family.

A valid contract must include the complete identification of all parties (service provider and beneficiary), a detailed description of the services offered, including their frequency and quality standards. The contract must clearly specify the duration of the contract, the conditions for renewal, amendment, or termination, as well as the full fee, with explicit mention of which services are included in the base rate and which are charged separately.

Mandatory elements required by law

• Identification of parties: complete details of the provider (name, operating licence, registered address) and of the beneficiary
• Detailed services: accommodation, meals (number of meals and sample menu), personal care, medical assistance, social activities
• Individualised care plan: tailored to the resident's specific needs and updated periodically
• Transparent costs: monthly fee, included services, additional services with their respective prices
• Rights and obligations: of both parties, clearly stated
• Termination conditions: notice period (usually a minimum of 30 days), refund conditions
• Complaints procedures: how the family or resident can raise concerns, and within what timeframe they will receive a response

Contract annexes – equally important

In addition to the main clauses, the contract must be accompanied by annexes that detail essential aspects: the individualised care and support plan, the care home's internal regulations, the complete list of services and fees, and emergency medical procedures. The absence of these annexes, or their vague formulation, is a red flag.

Problematic clauses and red flags

Based on the experience of many families and cases reported to the authorities, certain problematic clauses appear repeatedly in care contracts. Recognising them early can protect you from difficult situations and future disputes.

Problems most frequently arise from vague or ambiguous wording. For example, a contract that mentions "quality personalised care" without specifying in concrete terms what this entails leaves room for interpretation and disappointment. Similarly, clauses that allow the provider to unilaterally modify fees "in line with inflation" or "according to operational costs" without clear limits or advance notice are unjustified and potentially exploitative.

Clauses to avoid or clarify urgently

• Arbitrary termination: clauses that allow the care home to terminate the contract without clear grounds or with very short notice (fewer than 15 days)
• Excessive visiting restrictions: unjustified restrictions on visiting hours or the number of visitors (outside genuine medical circumstances)
• Transfer of medical liability: clauses that completely absolve the care home of any responsibility in the event of a medical incident, including through negligence
• Hidden costs: fees not mentioned initially that appear later (medication administration, linen changes, activities)
• Excessive confidentiality clauses: prohibitions on discussing services or writing reviews (potentially unlawful)

Red flags in how the contract is presented

The way in which the contract is presented to you says a great deal about the provider's integrity. If you are pressured to sign quickly "so as not to lose the place", if you are told that "everyone signs it as it is" without having the clauses explained to you, or if you are not given a copy to review at home with your family or a specialist, these are clear signals that something is not right. A reputable provider will want the family to fully understand and feel comfortable with the contract terms.

Rights of the resident and family guaranteed by the contract

Regardless of what a particular contract does or does not state, elderly persons receiving residential services have fundamental rights guaranteed by law. These rights cannot be removed by contractual clauses – any such provision is null and void.

Among the most important rights are the right to dignity and respect, to privacy and confidentiality, to personalised care according to individual needs, and to complete information about their health condition and treatments. The resident has the right to refuse certain services or treatments, to express their opinions and preferences, and to make complaints without fear of reprisal.

Specific rights guaranteed by contract

• Unrestricted visits: the right to receive visits from family and friends under reasonable conditions, without arbitrary restrictions
• Information and consultation: the family must be promptly informed of any change in the resident's health or of any incident
• Access to records: the right to consult the resident's file, care plan, and medical reports
• Participation in planning: the family and resident must be involved in developing and updating the care plan
• Advance notice of changes: any change in fees must be communicated at least 30 days in advance (in accordance with ANPC regulations)
• Confidentiality: personal and medical information may not be disclosed without consent

The right to make a complaint and resolve disputes

The contract must set out clear procedures through which the resident or family can raise concerns. Generally, the first step is a written communication to the care home's management, who must respond within 15 working days. If the response is unsatisfactory or is not received at all, the family has the right to contact the supervisory authorities, such as the National Authority for Persons with Disabilities, Children and Adoption (ANDPDCA) or the county directorates for social assistance.

What to do if the contract is breached

Even with a well-drafted contract, situations may arise in which the provider does not honour the agreed terms. It is important to know that you have several courses of action available and that the law offers you protection.

The essential first step is documentation. Keep all evidence: the signed contract and its annexes, receipts and invoices, written correspondence (emails and letters), notes about conversations (with the date, time, and name of the person you spoke with), and photographs where relevant. This documentation will be essential regardless of the course of action you choose to take.

Concrete steps in the event of a contract breach

1. Written notice to the provider: Send a formal letter (ideally by recorded delivery) describing the specific irregularities and requesting remediation within a defined timeframe (usually 7–15 days). Keep a copy.
2. Report to the local social assistance directorate: If the provider does not respond or fails to resolve the issue, contact the General Directorate for Social Assistance and Child Protection (DGASPC) in the relevant county. This authority has an obligation to verify compliance with service standards.
3. Complaint to ANDPDCA: The National Authority for Persons with Disabilities, Children and Adoption (formerly ANPIS) oversees the quality of social services, including care homes for elderly persons. You can submit a complaint online or at the institution's offices.
4. Petition to the People's Advocate: If fundamental rights are being violated (dignity, humane treatment, the right to health), the People's Advocate can investigate and intervene. The process is free of charge and can be initiated online.
5. Complaint to ANPC: For issues relating to unfair contract terms, unjustified fee increases, or misleading commercial practices, the National Authority for Consumer Protection has the power to intervene.
6. Legal action: The last resort, but sometimes necessary, is a civil claim for contract termination and compensation for material and moral damages. Consult a solicitor specialising in civil law or consumer protection.

Institutions you can contact

For urgent or serious situations (negligence, abuse, mistreatment), do not hesitate to contact the Police (112) and the Ambulance Service immediately. For administrative and quality-related issues, the county DGASPC is the first point of contact. ANDPDCA can be reached by telephone on 0371.110.30 or via the online form on the institution's website. The People's Advocate has offices in every county and accepts petitions online at avocat@avp.ro.

Essential questions to ask before signing

Before signing the contract, it is crucial to ask the right questions. You should not feel embarrassed or worry about being a nuisance – you are choosing a place where your loved one will live, and receiving clear answers is a right, not a privilege.

Question checklist for your discussion with the provider

• What services are included in the base fee? Ask for a detailed list: meals (how many per day, what the menu includes), personal care (hygiene, dressing), medication administration, social activities, room cleaning.
• What services are charged additionally and at what cost? Clarify this from the outset to avoid surprises: physiotherapy, hairdressing, specialist medical care, personal hygiene products.
• How and when can fees be changed? How frequently (annually?), with what notice, on what basis (inflation, costs?), and is there a maximum cap on increases?
• What are the termination conditions for both parties? How much notice is required, is any advance payment refunded, and under what circumstances can the care home terminate unilaterally?
• How many carers are on each shift, and how many residents do they look after? The carer-to-resident ratio is an indicator of care quality (the optimum is 1 carer to a maximum of 8–10 residents, depending on the level of dependency).
• How is medical care provided? Is there a doctor based at the care home, or is there an arrangement with external doctors? What are the procedures in an emergency?
• How are the family and resident involved in the care plan? How often is it updated, and are there regular meetings with the family?

Questions about everyday practical matters

Do not overlook the practical details that affect daily life: What are the visiting hours and are there any restrictions? Can the resident leave the care home accompanied by family? How are medicines stored and administered? What happens if the resident needs to be hospitalised? Can they have personal belongings and their own furniture in their room? Is there an activities programme, and what does it look like?

Practical checks before signing

Beyond asking questions, there are concrete checks you should carry out before committing to a contract. These can give you a far more accurate picture than any sales presentation.

The first and most important check is the operating licence. Every social service, including care homes for elderly persons, must be licensed by the county DGASPC. Ask to see the licence and verify that it is current (not expired) and that it covers the type of services being offered. You can also verify the validity of the licence with the DGASPC or ANDPDCA.

Essential document checks

• Operating licence: current and valid, issued by the DGASPC
• Certificates and accreditations: qualified staff with training certificates in elderly care
• Public liability insurance: the provider must hold insurance covering harm caused to residents
• Contracts and regulations: ask to see a sample contract and the internal regulations before making any commitment
• References: if possible, speak with other families who have relatives residing there, or ask for reference contacts

On-site visits and observations

Never sign a contract without having visited the care home in person – ideally on multiple occasions and at different times of day. During your visit, observe: cleanliness and smell (it should smell fresh, not unpleasant, nor overly perfumed in a way that might be masking odours), the condition of the building and furnishings, how staff interact with residents (with respect and patience?), and whether residents appear well cared for and comfortable.

If possible, try to have a brief conversation with a few residents or their family members. Ask them directly about their experience, what they like and dislike, whether any problems have arisen and how they were resolved. It is also worth visiting at mealtimes to see what is served and how, or during activities to observe the level of staff engagement and resident participation.

Frequently asked questions

Is it mandatory to sign a written contract for residential care services?

Yes, absolutely. Under social services legislation, every licensed provider must conclude a written contract with the beneficiary or their legal representative. Verbal agreements or oral arrangements have no legal standing and offer you no protection. Refuse any provider who attempts to avoid a written contract.

Can I negotiate the clauses in the contract proposed by the care home?

Yes, the contract is negotiable. If certain clauses are not to your satisfaction or are unclear, you can request that they be amended before signing. A reputable provider will be open to reasonable discussion. If they refuse any negotiation and insist the contract must be taken "as is", this is a red flag.

What happens if I want to move my loved one to a different care home before the contract expires?

You can terminate the contract by observing the notice period set out in the agreement (usually 30 days). Check the contract for any clauses regarding the refund of deposits or advance payments. As a general rule, you are expected to pay for services up to the actual date of departure, but there should be no excessive penalties for termination.

Can the care home increase its fees whenever it wishes?

No, any changes to fees must comply with the provisions of the contract and consumer protection legislation. Fee increases are generally permitted on an annual basis, with a minimum of 30 days' notice and objective justification (inflation, rising costs). Arbitrary increases or increases without notice can be challenged with the ANPC.

What should I do if I notice signs of neglect or mistreatment?

Act immediately. Document everything you observe (photographs, notes, statements), notify the care home's management in writing, and simultaneously report the matter to the DGASPC and the Police if there is a risk to the resident's physical or psychological wellbeing. Do not wait – in such cases, acting quickly is essential. You may also move your loved one immediately, with the formal contract termination to follow.

Am I obliged to pay for additional services that were not mentioned in the contract initially?

No, you are only obliged to pay for the services set out in the contract and any additional services that you have subsequently requested and explicitly agreed to in writing. Any "additional" service that appears on an invoice without your consent can be disputed. Always insist on a written specification of any additional services and their costs before agreeing to them.

Can someone sign the contract on behalf of my parent?

Yes, if your parent no longer has full legal capacity (due to dementia, for example), the contract may be signed by their legal representative – either a guardian appointed by the court, or a person holding notarised power of attorney if your parent retains partial legal capacity. The provider will request documents proving the representative's legal authority.

Choosing a care home for your loved one is a significant decision, and the care contract is the foundation upon which the entire relationship with the provider is built. Do not treat this document as a mere formality – it is what guarantees that the promises made will be kept and that your parent's or relative's rights will be protected. Give it the time and attention it deserves, ask all your questions, seek clarification on anything that is unclear, and do not hesitate to consult a legal specialist if you have any doubts. The time you invest now can spare you serious difficulties later and will give you the peace of mind that you have made the best possible decision for your loved one.

This article is intended for informational purposes only and does not substitute specialist legal advice. For complex contractual situations or disputes, please consult a solicitor specialising in consumer protection law or civil law.