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Employment Law in Russia

Employment Law in Russia

Updated on Thursday 23rd February 2017

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In Russia, the Employment Law is based on the Russian Labor Code adopted in February 2002. The Russian Labor Code establishes the rights of an employee and of the employer. The Employment Law applies to all types of companies, national or foreign, but also to all employees regardless their citizenship.

If you want to start a business and you need details about the employment contract, our lawyers in Russia can offer that information.

The applicability of the employment legislation in Russia

The Russian Labor Law applies to both local and foreign worker carrying out a paid activity in this country. Also, the Employment Law recognizes international treaties which might apply to certain conditions in the work contract of foreign employees. These international treaties refer to double taxation agreements which refer to the taxes paid by foreign employees, to international arbitration rules and even to the recognition of foreign judgements.

Also, in accordance with the international regulations on employment, the Russian Labor Code acknowledges the following types of workers:

  • -       employees hired directly by a company;
  • -       independent contractors;
  • -       agency employees (workers hired through recruitment agencies).

Our attorneys in Russia can assist foreign investors interested in opening recruitment agencies in this country.

The Russian employment contract

The employment contract in Russia is an agreement between an employer and an employee. The article 67 in the Russian Labor Code clearly states that the agreement will be concluded in written and individually with every employee. Also, according to article 72, if any amendments appear regarding the work contract, they will be made in writing as well.

The employment contract will contain data like the work schedule, which in Russia is set at eight hours per day, 40 hours per week and 28 vacation days per year. When it comes to overtime, Russian law is very strict, demanding the employee to make a written request.

Russian employment contract is usually made on an indefinite period of time, temporary contracts being agreed upon in just a few cases.

The probation period is established at maximum three months and, in case of dismissal during the trial period, a three-day notice is required. It is also necessary to mention the motive of the dismissal.

The Russian legislation is very strict about the employees’ labor books which should be kept and updated by the employer. The employment books contain important details about the employees’ labor records and the total working years which are very important for the pension level the state will provide to the employees after retirement.

Internal regulations in companies in Russia

One of the most important provisions of the Employment Law in Russia refers to the employment orders and internal regulations workers must comply with. According to law, all companies in Russia are required to create their own rules employees must abide by. The law provides for two types of rules: mandatory and optional ones. Mandatory regulations refer to:

  • -       discipline at the workplace;
  • -       payment of wages;
  • -       protection of personal data of employees.

The last rule was implemented a few years back, in order to align with the international legislation related to the processing of personal data.

In order to be valid, the mandatory regulations must be issued and accepted by the company directors, they must be in Russian and the employees must be recognized by the employees by signature.

Termination of an employment contract in Russia

Ending a labor contract in Russia may prove difficult once the trial period has concluded. The grounds and proceedings for terminating a contract are specifically enumerated in the Labor Code.

The most common reason for termination in Russia is redundancy. In this case, the worker has the right to a two-month paid notice and a severance package from one to three months. Another reason for termination could be the lack of performance of an employee as stipulated in the Labor Code. Pregnant women and mothers with children younger than 3 years old cannot be dismissed.

The Federal Labor Inspectorate is in charge with the supervision of the employers and it is authorized to investigate labor accidents, administrative issues, but also the violation of the employees’ integrity.

For more information on the Employment Law, you may contact our law firm in Russia.
 

 

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