Home / Doing business in Russia 2020 / Employment and migration / Managing employment relationships
  1. Introduction
    1. Political and administrative structure
    2. Legal environment
  2. Common forms of business structures for foreign investors
    1. Main types of structure
    2. Registration, liquidation and reorganisation of business structures
    3. Shareholders’ and participants’ agreements
    4. Strategic industries
  3. Anti-monopoly issues
    1. General legal and regulatory framework
    2. Scope of application of the Competition Law
    3. Anti-competitive practices and restriction of competition
    4. Liability
  4. Tax system
    1. General approach
    2. Corporate taxation
    3. Incentives
    4. Special tax regimes
    5. Taxation of individuals
    6. Double taxation treaties
  5. Customs regulations
    1. General approach
    2. Trade between EEU and non-EEU countries
    3. Mutual trade between the EEU members
  6. Currency control
    1. Foreign currency transactions
    2. Consequences of breach/Penalties
  7. Lending in Russia
    1. Lending documents and governing law
    2. Jurisdiction
    3. International finance transactions and repatriation requirements
    4. Security interests
    5. Recognition of security trusts
    6. Syndicated loans
    7. Enforcement
    8. Suretyships and guarantees
    9. Bankruptcy considerations
    10. Other lending related issues
  8. Employment and migration
    1. Formalising the employment relationship
    2. Managing employment relationships
    3. Terminating an employment agreement
    4. Specifics of employing foreign nationals
  9. Personal data protection
    1. General approach
    2. Scope of the Data Protection Law
    3. Liability
    4. Right to be forgotten
  10. Intellectual property
    1. General approach
    2. Contractual aspects of intellectual property rights
    3. Rights over the results of intellectual activity
    4. Company names, trade names, trademarks and appellations of origin
    5. Intellectual property rights infringements
    6. IP Court
  11. Advertising issues
    1. General approach
    2. Scope of application of the Advertising Law
    3. Violations of the Advertising Law
    4. Liability
  12. Anti-corruption and compliance
    1. General approach
    2. Legal framework
    3. Compliance requirements for companies
    4. Concept of corruption in Russian law
    5. Possible targets of bribery
    6. Liability and penalties for corruption
    7. Example of sector-specific anti-corruption measures
  13. Real estate and construction
    1. Rights to real estate
    2. Real estate transactions
    3. Resolution of real estate disputes
    4. Planning and construction issues
  14. Corporate bankruptcy
    1. Insolvency criteria
    2. Stages of bankruptcy proceedings
  15. Import substitution and production localisation in Russia
    1. Measures affecting goods importation and current import substitution legislation
    2. Localisation incentives
    3. Sector-specific impact of import restrictions and localisation requirements
  16. Banking sector
    1. Legislative and regulatory framework
    2. Licensing and operations
    3. Deposit insurance
    4. The anti-money laundering law
    5. Bank secrecy
    6. FATCA and CRS
  17. Environment, energy efficiency and renewables
    1. Environment
    2. Energy efficiency
    3. Renewables
  18. Infrastructure and public private partnerships
    1. General approach
    2. Key PPP legislation
    3. Russian PPP environment
    4. Financing
    5. Legal issues
    6. Prospects for infrastructure projects
  19. Oil & gas
    1. Legislative framework
    2. Ownership and licensing
    3. Restrictions on foreign investors
    4. Licences
    5. PSAs

Employment and migration

The Labour Code of 30 December 2001 (the “Labour Code”) outlines the main provisions applicable to employment arrangements in Russia, along with numerous decrees and instructions, as approved by the competent state authorities. Migration issues are mainly regulated by Federal Law No. 115-FZ “On the Legal Status of Foreign Nationals on the Territory of the Russian Federation” dated 25 July 2002.

Below is a general description of employment law provisions as they apply to all employees, as well as how they apply to foreign employees specifically.

Key contacts

Valeriy Fedoreev
Valeriy Fedoreev
Head of Employment and Sports Law
T +7 495 786 40 60
Christophe Huet
Christophe Huet
Avocat Associé
T +7 495 786 40 51

Managing employment relationships

Internal policies

All employers in Russia (except for those that are qualified as “microenterprises”) must adopt a set of mandatory internal policies that include Internal Labour Regulations, a Labour Safety Policy, a Personal Data Protection Policy, a Remuneration Policy and an Anti-corruption Policy. These policies must be in Russian or at least in a bilingual format, approved by the order of an authorised representative of the employer. The policies must be brought to the notice of, and signed by, employees. 

The same requirements apply to any global policies that the employer would like to be binding upon the employees in Russia. 

Health and safety at work

Workplaces of all employees in Russia must be assessed from a work safety perspective. The workplace assessment is not required for homeworkers, teleworkers and employees working for individuals who are not registered individual entrepreneurs. 

The main purpose of the work safety assessment is to provide employees with relevant guarantees and compensation, and to set additional pension and social insurance rates. These rates depend on workplace hazards, which are rated as optimal, acceptable, harmful or dangerous. 

The provision of the workplace assessment is a duty of the employer. It must be held at least once every five years unless an unscheduled workplace assessment is required under law. 

Sick leave

When an employee is on sick leave, his/her employer is required to pay him/her a temporary disability allowance for the period of sickness. The employee’s entitlement to the allowance is dependent on the submission of a medical certificate in the required form. The allowance is calculated on the basis of the average monthly salary over a period of two years and is capped at a specified amount. 

The first three calendar days of an employee’s temporary disability period are paid by the employer out of its own funds. Any additional days are then funded at the expense of the Social Security Fund of the Russian Federation.

The same rules may apply to foreign nationals, provided that they meet certain criteria in relation to their migration status.

Maternity and child care leaves

An employee who gives birth is entitled to 70 calendar days’ maternity leave prior to and 70 calendar days’ leave after the child’s birth. Longer maternity leave may be granted in case of a multiple or abnormal pregnancy. This right arises upon the presentation of a medical certificate, which may be issued starting from the 30th week of pregnancy. This provides for a period of entitlement equal to 140 calendar days that can be used by the employee summarily (i.e. irrespective of the actual number of days used before the child’s birth).

Child care leave may last up to three years and can be used by the mother or the child’s relatives at any time during this period.

The employer is responsible for paying various maternity related allowances provided for by law and then sets off the relevant amount against payroll contributions.

In general, pregnant women and women with children under the age of three years are entitled to an extensive number of benefits and privileges under Russian employment law. In particular, such women may not be dismissed on the grounds of staff redundancy, neither may men with at least three children one of whom is under the age of three years provided that the mother of the children is not employed. Moreover, pregnant women may not be compelled to work a night shift, overtime, during days of rest or holidays and may not be sent on business trips. Women with children under the age of three years may only be engaged in the above types of work upon their written consent and provided that their state of health allows them to perform these types of work, as confirmed by a medical certificate.  

Trade unions

A trade union aims to represent employees and protect their social and labour rights and may be established in any company by at least three employees. 

In the situations specified by the Labour Code (such as, for example, staff redundancy or termination of an employment agreement with a trade union member) or in collective agreements (if any), the trade union’s motivated opinion is required. Should this occur, the employer must provide the trade union with draft documents explaining the relevant situation. The trade union has to reply within five working days, failing which the employer is free to ignore the union’s opinion. If the opinion was duly submitted, but the employer decides to act contrary to it, the trade union has the right to appeal against the employer’s decision to the Labour Inspectorate or a competent court. 

Trade union leaders enjoy additional protection in certain cases where their employment is terminated at the instigation of their employer on certain grounds. They may not be dismissed without the consent of the upper-level trade union in cases of mass redundancy, repeated breaches of their work obligations, or where their dismissal was based on poor performance evaluation results.

Disciplinary sanctions

Non-compliance with work discipline (i.e. the non-fulfilment or inadequate fulfilment by an employee of his/her duties) may result in the following disciplinary sanctions being applied: a warning, an official reprimand or dismissal on corresponding grounds established by law.

Disciplinary sanctions may be imposed no later than one month after the time the employer had, or should have had, knowledge of the breach and, in any event, no later than six months after the breach was committed.

The Labour Code regulates the procedure for imposing disciplinary sanctions. Failure to comply with it renders the sanction invalid.

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Key contacts

Valeriy Fedoreev
Valeriy Fedoreev
Head of Employment and Sports Law
T +7 495 786 40 60
Christophe Huet
Christophe Huet
Avocat Associé
T +7 495 786 40 51