Hiring Employees in Russia

Employment in Russia is regulated at federal and regional level, but the main legal framework is the Labor Code enabled in 2001. However, certain aspects of employment relations are provided by the Russian Civil Law. The most important civil law regulations refer to trade unions and the employment of foreign citizens in Russia. With respect to foreign companies and workers, other international treaties will also apply. The most significant law on the employment of foreign citizens in Russia is the Federal Law on Legal Status of Foreign Citizens which also covers the employment of foreign chief executive officers in companies.

Our lawyers in Russia explain below the main requirements imposed on companies hiring employees in this country. You can rely on our lawyers for assistance in various matters related to the Employment Law in Russia.

Recruitment and hiring in Russia

Russian companies may recruit personnel through newspaper ads or employment agencies and, once the employment process concluded, the company must maintain a work record book for each employee. These books will reflect the Russian employee’s whole employment history and, upon request, the company must provide copies of the documents to the employee.

In order to enter into an employment agreement with a Russian company, the future employee is also required to provide certain documents among which:

• - the employee’s passport and Russian work visa,
• - educational documents,
• - a retirement insurance certificate.

Other documents might be requested by the Russian employer. Also, if an individual is at his or her first job, the employer will issue the work record and the retirement insurance certificate. All documents must be drafted in Russian.

Terms of employment in Russia

Russia has very strict regulations when it comes to companies hiring employees. The main provisions on employment in Russia are provided under:

1. the new Labor Code, which was enabled in 2002 and ever since, it has been amended several times, the last changes being enforced in 2006;
2. various presidential decrees and national regulations which cover specific types of employment contracts and relationships between employer and employees;
3. regional and municipal legislative acts which provide for employment in specific areas and zones in Russia;
4. collective work contracts and employment contracts related to working in specific industries in Russia;
5. the internal regulations and other documents and policies enacted by Russian employers inside the company.

No matter the regulations under which employment takes place, all relations between an employer and its employees are based on different types of labor contracts.

Our Russian lawyers can offer more information on the requirements a company must abide by when hiring workers.

The employment contract in Russia

All work relations are based on an employment contract in Russia. Russian companies must also know that employment contracts must contain certain information, but can also be amended at later stages. Also, all Russian employment agreements must be written. The contract will be drafted in two copies - one for the employer and another for the employee. Employment agreements must contain the following information:

• - the job description,
• - the probation period which is three months for regular positions and six months for executive positions,
• - holiday leave of 28 days,
• - the salary and other wages,
• - the working hours.

The contract may also contain other provisions as established by the Russian company and the employee and must be signed by both parties.

The parties in a Russian work contract

The Russian Employment Law provides for two parties to enter a work agreement: the employee who is usually a natural person and the employer who is usually represented by a company or any other legal entity registered with the Russian authorities.

Foreign companies with activities in Russia can also hire local or foreign employees they bring from their countries or origin or other states. It is also important to mention that a foreign company operating in Russia through a branch or subsidiary must hire employees under the Russian legislation.

The following types of employment contracts can be concluded when hiring employees in Russia:

• - unlimited or indefinite-term agreements which are the most common types of work contracts in Russia;
• - limited or fixed-term agreements which are also often concluded in Russia and which target fixed-term projects;
• - full-time contracts which provide for the maximum working hours which be completed by an employee;
• - part-time employment contracts which provide for a lower work schedule, in accordance with the Employment Law;
• - temporary work contract which are also known as seasonal employment contracts (these can be found in agriculture most of the times);
• - an agreement with a company director is usually the first form of employment of a foreign citizen in Russia.

Russian companies hiring employees can choose any of the above-mentioned types of work contracts, as long as they respect the provisions of the Labor and Civil Code in this sense.

It is important to note that each employee is subject to a 3-month period of probationary work, unless the employer decides otherwise, or special conditions apply. During this period each party in the employment contract can end the relation without any previous notification.

Our law firm in Russia can offer consulting services to companies interested in various employment regulations.

The rights and duties of employees in Russia

Russian employees have various rights and obligations towards the employer. The first and most important obligation of an employee is to respect the terms of the work contract and complete his/her activities in accordance with the job description and the internal regulations of the Russian company. In return, the worker will be entitled to a fair compensation which can be made of the salary and other wages.

Russian employees also have the right to annual vacations which are granted based on the company’s schedule, however, every employee is entitled to 28 days of leave every year. Employees also have the right to compensation in special situations, such as sick leave, maternity leave in the case of women and work accidents.

If you need legal advice in relation to your rights as an employee, our attorneys in Russia can help you.

Rights and duties of employers in Russia

Just like employees, Russian employers have several rights and obligations. Among the rights of Russian companies hiring employees are to benefit from the job or work completed by the worker, the right to dismiss the employee in case he or she fails to comply with the provisions of the contract or internal regulations of the company.

When it comes to the obligations of the employer, it should be noted that a Russian company must pay the wage as established in the employment contract and ensure the right to proper work conditions to all employees. It is the employer’s duty to register employees for social security contributions and taxation in Russia.

For additional information about employment contracts, please contact our Russian law firm.