Russia HR Information

Updated on: 2025/03/11 04:48 (UTC)

Overview

The principal Russian statute governing employment is the Labor Code, which is supplemented by other labor-related laws and regulations.

The current strategy of the government is to seek balance between the employers’ and employees’ interests.

The following general trends currently characterize Russian labor relations:

• more employees are taking employment grievances to the courts and to labor inspection bodies,
• the government is conducting more labor audits of commercial companies and
• the government is more strictly enforcing federal and regional labor legislation.

While the Labor Code had been stable for years, the legislature has recently begun to adapt it to current economic and political conditions.

The major issue on which labor law has focused recently is accidents at work. Legislative action in this area has been supported by numerous inspections by state employment services and prosecutors’ offices.

Hiring

Employment Contracts

Individual labor contracts are required by Russian labor law.

The labor contract must contain information on such conditions of employment as:

• working hours,
• salary and bonuses,
• job functions, and
• social insurance.

Labor contracts are designated either for a definite period of time up to five years, which is known as the fixed-term contract, or for an indefinite period.

A labor contract must be formalized within three days of the employee starting work. An employee’s signature is required on a labor contract.

Probationary periods are allowed by law for the purposes of verifying the employee’s suitability for a particular position but may not exceed three months for ordinary employees or six months for CEOs and chief accountants and their deputies.

Probationary periods are not allowed for some employees, including:

• those who won a competitive position,
• pregnant women,
• women with children under 1 ¹ / ₂ years of age,
• employees who are younger than 18 years of age,
• employees who graduated from vocational education institutions and are getting their first jobs in their chosen specialties,
• elected officials,
• employees transferred in an agreement between employers, and
• employees entering a fixed-term employment contract of two months or less.

Upon request, employers are obliged to inform candidates, in writing, of the reason they were not selected during the hiring process.

Employers cannot unreasonably refuse to hire an individual who is within five years of being eligible for an old-age pension. If the company commits such an infraction, the responsible employee can be held criminally liable and fined up to 200,000 rubles or a sum equal to his or her salary.

Effective Jan. 1, 2021, employers may unilaterally require employees to work remotely on a temporary basis without their agreement in exceptional circumstances. The employer cannot use a remote work assignment as grounds to reduce the employee’s salary, provided that the amount of work remains the same. Remote workers may be dismissed if they are absent for more than two working days without providing a valid reason or if they are unable to perform their duties as stated in the contract under the previous conditions.

Employment contracts must give employees flexibility to perform ‘office work’ or ‘telework’ (i.e. work remotely), which means they can have both office and “home office” days during the week. Remote work can be set for up to six months.

From Jan. 1, 2022, employment-related documents, including employment contracts, may be created, signed, and stored in electronic form without the need to be duplicated on paper.

Restrictions on Hiring

With some exceptions, the minimum age for employment is 16.

Fifteen-year-olds can enter into contracts to work if the work is light and is part of their education or training or if they have left the educational system. Fourteen-year-olds can enter into contracts with the permission of a parent or guardian as long as the work is light and does not interfere with their education. Youths under 14 years of age can work in film, theater, music and circuses with the permission of a parent or guardian as long as it is not harmful to their educational or moral development. Individuals under the age of 18 are required to receive a preliminary medical certification and annual medical examinations.

Workers under 18 years of age must not work more than seven hours a day, while workers and trainees under 16 years must not work more than five hours a day, and workers and trainees 15-16 years of age must not work more than four hours a day.

Federal law requires that the regions of the Russian Federation enact quotas for employers with 100 or more employees. For example, in Moscow the regional law requires that 2 percent of jobs go to people with disabilities and 2 percent to young employees (although employing disabled workers in 4 percent of total jobs will fulfill the entire quota requirement).

Recordkeeping

Employers must document all relevant employee activity in work books and keep records of wages paid and hours worked. The period of time for which certain types of records must be kept are as follows:

• applications relating to a need for foreign employees: one year;
• employees’ applications for the issue of employment documents: one year;
• vacation schedules: three years;
• documents relating to disciplinary actions: three years;
• notifications, warnings given to employees: three years;
• record books, registers, record cards, vacation databases: five years;
• documents on working conditions and measures to improve working conditions and health and safety of the organization: five years; and
• record books, registers, industrial accident databases, accident records: 45 years.

Effective April 14, 2023, Russian employers must act as intermediaries by sharing information with the military about their workers. Under Federal Law No. 127-FZ, employers must inform the military about any changes in information for workers who are required to register with the military.

Background Checks

Background checks generally are prohibited in Russia.

Noncompetition Agreements

Noncompete agreements are generally unenforceable under Russian labor law.

Reference Citations

Employment Contracts: Labor Code, 2001, No. 197-FZ (as amended), arts. 56-59 (Russian); Federal Law on Amendments to Certain Legislative Acts of the Russian Federation on the Purpose and Payment of Pensions, 2018 (Russian); Federal Law Amending the Criminal Code of the Russian Federation (2018) (Russian)

Restrictions on Hiring: Labor Code, 2001, No. 197-FZ (as amended), art. 20 (Russian); Law on Social Protection of Disabled Persons, 1995, No. 181-FZ, art. 21 (Russian)

Recordkeeping: Labor Code, 2001, No. 197-FZ (as amended), art. 66 (Russian)

Immigration and Work Permits

In General

To work legally in Russia, an expatriate must in most cases have both a work visa and a work permit. A multi-entry work visa can be valid for one to three years and must be approved by the Federal Migration Service. A work permit is only valid for a year but can be extended while the expatriate employee remains in Russia. Employers seeking to hire a non Russian national must apply for a work visa at the local office of the passport authority and receive permission for hiring from the local office of the Federal Migration Service.

Visas and Work Permits

Work visas are generally issued under a quota system. Individual territorial agencies establish quotas based on the job market in their particular areas, which are then approved by the central government. Employers seeking to hire a non Russian national must apply for a work visa at the local office of the passport authority and receive permission for hiring from the local office of the Federal Migration Service. The employer will be issued an invitation for the prospective employee which must be forwarded to the worker for submission with his or her visa application.

The hiring process involves the following steps:

• The company must apply for accreditation as an employer and must submit monthly reports of open positions to the employment authorities.
• After a position has been listed for a month and no suitable Russian national has been found to fill it, the employer can apply to the Federal Migration Service for a permit to employ foreign labor.
• Prior to July 1, the company must submit a Declaration of Need to the Foreign Migration Service substantiating its need to hire non Russian employees in the following year. The application process is quite specific, and an employment permit granted an employer will specify the number of expatriates that can be hired, their nationalities and the positions for which they are being hired. Amending hiring authority—to hire a U.S. national in place of the French national approved, for example, or a manager in place of a technician—is very difficult. There is also a list of professions approved by the Russian government to which the quota requirement does not apply (e.g. general director, director of representative office, director of department).
• Once the Declaration of Need is approved, the employer must apply for a work permit on the employee’s behalf. This is a three-step process:

submission to the Employment Center of anticipated need for expatriate employees,

application to the Federal Migration Service for approval to hire expatriate employees and

application for individual work permits.

Upon approval of the work visa, the employer will be issued an official invitation for entry into Russia, which it must forward to the expatriate for submission with his or her work visa application.

Highly qualified workers are exempt from the expatriate quota system, subject to a simplified work visa/permit application process, can qualify for renewable three-year work permits (rather than the usual one-year permit) and are taxed at a flat 13-percent rate whether they qualify as tax residents or not. To be considered a skilled worker, the employee must meet minimum salary requirements and the employer must be able to certify his or her qualifying credentials or work experience. Employers must register highly qualified workers with local tax authorities and submit quarterly reports on their compensation.

U.S. citizens entering Russia must have a U.S. passport and a visa issued by the Russian embassy or a consulate. On entry, visitors must fill out a two-part migration card. One part is submitted to immigration authorities on arrival, the other on departure. Visitors staying longer than a week must register their visas and migration cards, which in the case of an employee is done by the Russian employer. Any visitor must register with the local office of the Federal Migration Service within seven working days of arrival. Expatriate employees granted work visas are not required to have residence visas, although family members accompanying them are. After a stay of at least a year on a temporary residence permit, foreigners intending to remain in Russia indefinitely can apply for a permanent residence permit valid for five years with unlimited renewals. Permanent residents do not require work permits for employment and are allowed to work anywhere in Russia.

To work legally in Russia, an expatriate must in most cases have both a work visa and a work permit. A multi-entry work visa can be valid for one to three years and must be approved by the Federal Migration Service. A work permit is only valid for a year but can be extended while the expatriate employee remains in Russia. It can take approximately three to four months to complete the work visa / work permit application process.

Five-year work visas are available to executive officers of large foreign corporations operating in Russia. To qualify for this program, foreign businesses must report no less than 30 billion rubles in sales and no less than 6 billion rubles in net profit for the previous calendar year, no less than 30 billion rubles in assets and no less than 90 million rubles in implemented foreign investment in Russia.

Russian police have the authority to request at any time and for any (or no) reason that individuals show their identity and travel documents. According to the U.S. embassy, “due to the possibility of random document checks by police, travelers should carry their original passports, migration cards and visas with them at all times.”

The visa does not in itself guarantee admission to Russia, which is at the discretion of the immigration inspector. Work visa holders should therefore have all support documentation ready to present to the inspector if requested.

The initial work visa is valid for three months and allows a single entry into Russia. On the employee’s arrival, the employer should immediately apply for a multiple-entry visa valid for one year. Highly qualified workers receive multiple-entry work visas valid for up to three years at a Russian consulate with no need to apply for new visas upon arrival in Russia.

Foreign workers applying for regular non-highly qualified work permits must:

• pass a medical exam and present a medical certificate confirming they are not addicted to drugs or infected with HIV or certain other diseases, and
• provide the Federal Migration Service with a certificate confirming knowledge of the Russian language, history of Russia, and basics of legislation.

Work permits are generally only valid for the region in which the employer has been approved to hire the expatriate. Multi-regional work permits can be issued, in which case the employer must register with the employment authorities in each region the permit covers.

Employers are obliged to notify the Federal Migration Service on termination of labor and civil law contracts with foreign workers within three business days.

Employers must ensure that their newly hired foreign workers:

• perform work that is in line with the declared purpose for which they were allowed to enter Russia, and
• leave Russia prior to the expiration of their visa.

The actions that employers must take to ensure compliance with this requirement include:

• requiring that all newly hired foreign workers sign two documents: one that details their need to comply with the purpose of their entry and the other on their need to comply with the duration of stay;
• ensuring there are no impediments that preclude foreign workers from performing their stated purpose or leaving the country on time, and
• notifying employees no later than 10 days before their visa expires of their need to leave the country.

Employers also must notify the Ministry of Interior within five days if they have lost contact with the foreign worker or there has been a failure to comply with the purpose of the entry. The employer also must notify the ministry if employees do not leave Russia prior to the expiration of their visa.

Penalties

Employers that violate Russian immigration laws are subject to penalties of up to 1 million rubles per employee per violation. Employees illegally in the country can be deported and their employers forced to suspend operations for up to 90 days. Noncompliant employers can also be banned from employing highly qualified specialists under more favorable terms for two years.

Reference Citations

Visas and Work Permits: Federal Law No. 216-FZ on Amending Article 16 of the Federal Law on the Legal Status of Foreign Citizens in the Russian Federation, 2018 (Russian)

Nondiscrimination

In General

The constitution prohibits discrimination and guarantees equal rights and freedoms to all people regardless of their race, gender, nationality, origin, language, property ownership, office held, place of residence, religion, opinion or membership in public associations. In addition, the Labor Code prohibits discrimination based on age, skin color, marital status, social and employment status and political views.

The law does allow distinctions, restrictions and preferences in employment that are deemed necessary for a specific type of work or that result from special governmental provisions for people who may require protection. Federal Law No. 181-FZ, for example, requires that in businesses employing more than 100 employees, 2 percent to 4 percent of positions be held by disabled employees.

Gender Discrimination

The Labor Code prohibits employers from refusing to hire a woman based on pregnancy or parenthood. It is also illegal for an employer to terminate a contract of employment with a female employee who is pregnant, has children age 3 or younger or is a single mother raising children age 14 or younger or children with disabilities age 18 or younger.

The issue of sexual harassment is not addressed in labor laws but is covered in Article 133 of the Russian Federation Penal Code, which mandates prison sentences for individuals who use their positions to force subordinates to have sex. In practice, sexual harassment cases are very rarely heard by the courts because most victims prefer not to pursue a judicial procedure that will publicly reveal their identities. In any case, sexual harassment lawsuits are rarely won by plaintiffs because the penalties are so stringent that judges prefer to reject the claims if the case does not deal with physical compulsion or serious threats.

Employers must provide men and women equal pay for equal work.

Disability Discrimination

Employers are obliged to:

• create and maintain healthy and safe workplace conditions for disabled employees,
• make workplace premises more accessible for employees with disabilities,
• arrange mentoring programs for disabled employees to facilitate their professional training, and
• assist disabled employees in working remotely from home.

Reference Citations

Nondiscrimination: Labor Code, 2001, No. 197-FZ (as amended), arts. 2-3 (Russian); Law on Social Protection of Disabled Persons, 1995, No. 181-FZ, art. 21 (Russian)

Gender Discrimination: Labor Code, 2001, No. 197-FZ (as amended), arts. 64, 261 (Russian); Russian Criminal Code, 1996, No. 63-FZ, art. 133

Employee Privacy

Employee Data

Employers may collect and process employees’ personal data where any of the following conditions are met:

• the employee consents;
• the processing is required by a federal law or under an international treaty;
• the employer needs to process the data to perform or conclude a contract to which the employee is a party or beneficiary party or guarantor;
• personal data that is processed was publicly made accessible by the employee or upon his or her request; or
• personal data that is processed is subject to publication or mandatory disclosure under law.

Personal data must be obtained directly from the employee. If the employee’s personal data can only be obtained from a third party, the employee’s written consent must be obtained in advance.

Employers seeking to transfer employee personal data to a third party must issue a policy on processing employee personal data. Personal data may only be transferred to a country that provides a sufficient level of protection. Transfers to countries that do not provide adequate protection are permitted only where there is a legal basis such as consent, contractual necessity, or vital interests.

The employer must ensure the confidentiality of personal data. The employer and other persons who have access to the personal data must not disclose any information to a third party without the prior consent of the data subject.

Employers are required to take appropriate technical and organizational measures against unauthorized or unlawful processing and accidental loss, changing, blocking or destruction of, or damage to, personal data.

Employee Monitoring and Surveillance

Employers may conduct video monitoring of employees provided that:

• the monitoring is covered in the employment agreement;
• employees are given advance notice; and
• employees have given their written consent.

Surveillance must be limited to the scope outlined in the employer’s internal policies.

Reference Citations

Employee Data: Labor Code, 2001, No. 197-FZ (as amended), arts. 86-88 (Russian)

Employee Monitoring and Surveillance: Labor Code, 2001, No. 197-FZ (as amended), art. 20 (Russian)

Compensation

Hours of Work

A standard workweek generally may not exceed 40 hours. The Labor Code does not specify a standard workday. Employers are allowed to establish workdays and workweeks as short as they want.

The Labor Code specifies standard workweeks under 40 hours for some categories of employees:

• for employees under the age of 16: 24 hours a week;
• for employees 16 to 18 years of age: 35 hours a week;
• for employees with disabilities: 35 hours a week; and
• for employees in hazardous, unhealthy or dangerous conditions: 36 hours a week.

Such employees enjoy reduced working time without their pay being reduced. When the employee is working part-time for other reasons, however, pay is calculated pro rata based on the actual working time.

The workweek must include a rest period of 42 continuous hours, whether the workweek is five or six days. The Labor Code does not require particular days of the week to be days off, but notes that Sunday is a common day off and that in the case of five-day workweeks, the two days off are usually consecutive.

Workers are entitled during each workday to a meal/rest break of not less than 30 minutes and not more than two hours. Employers are not required to provide a meal break during any work shift that lasts fewer than four hours.

Night work is defined as that performed between 10 p.m. and 6 a.m. Employees who were not hired to do night work and who do not already have shortened workdays must have their shifts shortened by one hour when they do night work. Pregnant women and employees younger than 18 years old are not allowed to perform night work unless they work in the media or entertainment fields. Women having children under 3 years old, employees having children with disabilities, single parents having children under 5, employees caring for a sick family member and employees with disabilities can do night work only if they give their express prior written consent.

Employers are obliged to reduce the length of the work day or shift directly before a public holiday by one hour.

Effective Jan. 1, 2021, employers may temporarily transfer employees to remote work without their consent in cases where the life or normal living conditions of the population are in danger. Employees’ salaries cannot be reduced because they are working remotely. Employees working remotely can be discharged if they:

• do not communicate with the employer on work-related issues without a valid reason for two consecutive days; or
• change their location and as a result are unable to perform their work as before.

Minimum Wage

Effective for 2025, the national monthly minimum wage is 22,440 rubles, up from 19,242 rubles. Regional governments can set higher minimums. Night work is paid at an increased rate established by government regulations and varies depending on the industry.

Overtime

Overtime pay is set by federal law as 1.5 times the regular rate of pay for the first two hours beyond normal working hours and two times the regular rate of pay for all working hours beyond that. Overtime cannot exceed four hours in two days or 120 hours in a year for each employee.

Collective bargaining agreements can also address the specific compensation granted during overtime work.

Employees must give written consent to work overtime. Employers must record all overtime hours for employees.

Pregnant women may not be required to work overtime hours, and women with children under three years of age can only work overtime hours with their expressed consent. Employees assisting handicapped children until age 18 are also entitled to these provisions.

Wage Payment

Wages have to be paid in rubles , the currency of the Russian Federation. Payment in nonmonetary form may be permitted by collective agreements and contracts, as long as they do not violate federal law, international conventions or treaties. The amount of nonmonetary payment cannot exceed 20 percent of total wages. Payment cannot be made in the form of promissory notes, alcoholic beverages, drugs, weapons, ammunition or toxic or hazardous substances. Employees must be paid wages at least every two weeks.

Sanctions may be imposed on an employer and an employer’s officers for any delays in the payment of wages. If payment is delayed by more than 15 days, the employee has the right to stop working after providing written notification to the employer. Stoppage of work is not allowed during natural disasters, after the imposition of martial law or in health care, essential services or national security. Delays in wage payment may result in criminal liability and interest for the period of delay.

Deductions from wages are permitted in the following cases:

• to recoup a payment made in advance for work that the employee failed to perform,
• to recoup a payment made in advance for a business trip or an allowance for a job transfer that was not spent or returned in time,
• to correct accounting mistakes in which an employee was overpaid, and
• when an employee leaves the job and has already used more annual leave than was earned to that point, to compensate the employer for that annual leave.

In most cases, deductions must be taken no later than one month after the date of the qualifying action.

The sum of all deductions generally cannot exceed 20 percent of a paycheck, although deductions may reach as high as 70 percent in special circumstances, such as payment of child support or criminal liabilities.

Mandatory Bonuses

Russia’s labor code does not regulate payment of bonuses.

Reference Citations

Hours of Work: Labor Code, 2001, No. 197-FZ (as amended), arts. 91-92, 95-96 (Russian); Federal Law of June 18, 2017 No. 125-FZ (Russian)

Overtime: Labor Code, 2001, No. 197-FZ (as amended), arts. 97-99, 149, 152 (Russian)

Wage Payment: Labor Code, 2001, No. 197-FZ (as amended), arts. 131, 138, 142 (Russian)

Benefits

Vacation

Employees are entitled to 28 days of paid leave a year after six continuous months of work with a company. Annual leave does not need to be taken all at once, but at least one increment must be 14 or more calendar days. Employees can ask for compensation in lieu of any annual leave entitlement in excess of 28 days. Unused vacation may be carried over to the following year.

Employees in hazardous jobs, such as mining and work with radioactive materials, or who have irregular workdays are entitled to additional days off.

When employees leave a job, they are entitled to be paid for unused leave.

The right to choose a convenient vacation time is limited to employees with three or more children under the age of eighteen until their youngest child reaches the age of fourteen.

Holidays

Employees are entitled to the following eight paid public holidays:

• Jan. 1: New Year’s Day
• Jan. 7: Orthodox Christmas Day
• Feb. 23: Defenders of the Fatherland Day
• March 8: International Women’s Day
• May 1: Spring and Labor Day
• May 9: Victory Day
• June 12: Russia Day
• Nov. 4: National Unity Day

Holidays that fall on weekends are observed on the next business day. Workdays preceding a public holiday are reduced by one hour.

Employees cannot generally be required to work on holidays, although they can agree to work. For companies with continuous operations (e.g., factories, stores), work on holidays may be authorized. Employees can be required to work on holidays to prevent or in the aftermath of workplace accidents, during emergencies or martial law, if a natural disaster is imminent or in the aftermath of one or if they are in certain media or entertainment jobs. Employees who work on holidays get double pay or an additional day off. Collective agreements or individual employment contracts may specify higher payment rates.

Maternity Leave

Female employees are entitled to 70 days of paid prenatal leave, extended to 84 days if more than one child is expected, and 70 days of postnatal leave, extended to 86 days in cases of complications in childbirth or 110 days in the event of the birth of two or more children.

Allowances during pregnancy and maternity leave are paid by the Social Insurance Fund.

The Labor Code prohibits business trips, overtime work, night work or work on days off and holidays for pregnant women. A woman with a child under 3 years of age also cannot be required to perform such duties.

Women with children up to 1 ¹ / ₂ years old are entitled to take half-hour breaks every three hours to feed the child. If the mother has two or more children that young, she must be given hourly breaks. Breaks to feed children are included in working time.

Pregnant women cannot be dismissed except due to the liquidation of the business.

A mother, father or other relative is also entitled to leave to care for a child under 3 years of age. Child care leave is paid through the Social Insurance Fund at 40 percent of regular wages until a child is 1 ¹ / ₂ years of age. During ages 1 ¹ / ₂ to 3, Social Insurance Fund payments are minimal. Payment amounts vary within the Russian Federation.

Employees are guaranteed the right to return to their jobs following child care leave.

Paternity Leave

There is no statutory entitlement to paternity leave, although new fathers may qualify for parental leave.

Sick Leave

Medical care is free to employees through the social security system and is partially funded by employers.

Employees unable to work due to non-work-related illness or other injury are entitled to sick leave compensation until they can return to work. The employer pays a temporary disability allowance for the first three days and the Social Insurance Fund pays for the remainder of the time.

The employer can offset its expenses against its Social Insurance Fund liability.

The amount of the sick leave benefit depends on how long an employee has been covered under the social security system:

• less than six months: the minimum wage;
• more than six months and up to five years: 60 percent of average earnings;
• five to eight years: 80 percent of average earnings; and
• more than eight years: 100 percent of average earnings.

These amounts are paid for the first 10 days of leave. Thereafter, payments are reduced by 50 percent.

Other Leave

Parental leave. Parents are entitled to leave to care for a child under 3 years of age. Child care leave is paid through the Social Insurance Fund at 40 percent of regular wages until a child is 1 ¹ / ₂ years of age. Employees who have three or more children under the age of 12 are entitled to take parental leave at a time that is convenient for them.

Sick child leave. Employees can take paid leave to care for a sick child—up to 60 days if the child is under seven years of age, up to 15 days per illness and 45 days in a year if the child is seven to 15 years old and up to seven days per illness and 30 days in a year for older children. Payment comes from the Social Insurance Fund, and the amount depends on how long the employee has been insured and paid contributions to the fund:

• less than six months: the minimum wage;
• between six months and five years: 60 percent of average earnings;
• five to eight years: 80 percent of average earnings; and
• more than eight years: 100 percent of average earnings.

These amounts are paid for the first 10 days of leave. Thereafter, payments are reduced by 50 percent.

Family leave. Employees can take paid leave to care for a sick family member—up to seven calendar days for one illness and 30 calendar days in a year. Family leave is paid by the Social Insurance Fund in the same amounts as sick leave.

Unpaid leave. Employers are obliged to grant unpaid leave to the following groups of employees upon receipt of a written request:

• World War II veterans (up to 35 days per year),
• working retirees (up to 14 days per year),
• parents and spouses of military personnel who died in the service or as a result of their service (up to 14 days per year),
• employees with disabilities (up to 60 days per year), and
• employees in cases of childbirth, marriage or death of close relatives (up to five days per year).

Upon mutual agreement between an employer and an employee, unpaid leave may be granted to the employee for an unlimited period of time.

Medical check-up leave. Regular employees are entitled to one paid working day for a regular medical check-up once very three years upon request. Employees who are within five years of retirement age are entitled to two paid working days per year for medical check-ups.

Pensions and Social Security

All employees are covered by Russia’s pension system.

Effective Jan. 1, 2019, a new law took effect that gradually raises the retirement age in Russia to 60 years for women and 65 years for men. The transition will last until 2028.

Workers’ Compensation

The Labor Code and other federal laws provide for workers’ compensation if an employee suffers an injury or disease as a result of fulfilling job responsibilities. The law dictates that the employee be reimbursed for lost income and expenses related to medical, social and professional rehabilitation. In the event of a work-related death, the employee’s family is compensated for expenses.

Temporary disability resulting from a workplace accident: The injured employee receives free medical care and treatment necessary for recovery from the disability, as well as payments from the Social Insurance Fund until recovery or a determination that the disability is permanent.

Permanent disability or death: Workers determined to have lost the ability to do their jobs as a result of work injuries or diseases receive a lump-sum payment, monthly payments and access to medical care. The monthly insurance payment is a portion of the employee’s regular wage as calculated according to the level of loss of employability.

If an employee dies as a result of a work-related illness or injury, benefits are paid to his or her children, nonworking family members who care for the employee’s children or dependents with disabilities. The current death benefit is 1 million rubles .

Reference Citations

Vacation: Labor Code, 2001, No. 197-FZ (as amended), arts. 115-117, 125-126 (Russian)

Holidays: Labor Code, 2001, No. 197-FZ (as amended), arts. 115-117, 125, 153 (Russian)

Maternity Leave: Labor Code, 2001, No. 197-FZ (as amended), arts. 255, 261 (Russian)

Paternity Leave: Labor Code, 2001, No. 197-FZ (as amended), art. 256 (Russian); Law on State Benefits for Citizens with Children, art. 15 (Russian)

Sick Leave: Law on Compulsory Social Insurance for Temporary Disability, arts. 5, 11.2 (Russian)

Other Leave: Labor Code, 2001, No. 197-FZ (as amended), arts. 128, 185.1 (Russian)

Workers’ Compensation: Labor Code, 2001, No. 197-FZ (as amended), arts. 184, 219 (Russian)

Labor Relations

In General

The constitution guarantees the right to participate—or not participate—in a trade union. An opinion from the trade union is required before the employer engages in certain actions, such as conducting a mass layoff.

Collective labor disputes can be initiated when the employer rejects the employees’ demands or when there is a disagreement during collective bargaining. The Labor Code entitles employees to strike if conciliatory procedures fail to settle a dispute or if the employer evades such procedures but specifically prohibits lockouts.

An existing collective agreement remains in effect following a change in corporate ownership.

Right to Organize

The Constitution of the Russian Federation declares that anyone has a right to participate—or not participate—in associations and to set up trade unions.

Under federal law on trade unions, individuals who are at least 14 years of age and engaged in any labor activity may join a trade union, conduct trade union activities or leave unions. Trade unions may independently draft and approve their charters and regulations. The Russian Constitution guarantees equal rights and freedoms to individuals regardless of their participation in labor organizations. Under federal law, employers are not allowed to dismiss, promote or hire any person based on that person’s membership or lack of membership in a trade union.

An opinion from the trade union is required before the employer engages in certain actions, such as conducting a mass layoff.

Dispute Resolution

An individual labor dispute is an unresolved disagreement between an employer and an employee, including former employees and unhired job applicants. Individual labor disputes are decided by labor dispute committees established under the Labor Code and by the courts.

Committees are composed of an equal number of employee representatives—elected by a general meeting of employees or picked by employee representatives—and representatives of the employer.

Some individual labor disputes are considered directly by a court, including challenges to a hiring decision, discrimination complaints and requests for reinstatement.

Employees also may address their claims to the public prosecutor’s office or to the labor inspectorate.

A collective labor dispute is defined in the Labor Code as:

• an unresolved difference between employees or their representatives and employers with regard to:

establishing or changing wages or other working conditions or

agreeing to, changing or fulfilling collective contracts or

• the refusal of the employer to consider the opinion of the elected representative body of the employees when adopting labor rules.

Collective labor disputes can be initiated when the employer rejects the employees’ demands or when there is a disagreement during collective bargaining. Three different entities are available for settlement of disputes: a conciliation commission, which is a compulsory first step in attempting to resolve a dispute; a mediator; and a labor arbitration panel.

Conciliation commission are formed to hear specific disputes and are comprised of an equal number of representatives of the parties to a collective labor dispute. The dispute must be considered by the commission within five days of its establishment, and the commission’s decisions are binding on the parties.

If no agreement is reached through the conciliation commission process, the parties can take the dispute to a mediator or a labor arbitration panel.

A mediator must consider the complaint within five days of being appointed. If no mediator is agreed upon, an arbitration panel must be formed. At the conclusion of the mediation process, both parties must adopt a written agreement or compose a protocol of disagreements.

A labor arbitration panel must be established the next working day after the failure of the parties to reach agreement through conciliation or mediation. It is formed by the employer, employees’ representatives and government authorities. The dispute must be considered within five working days of the panel’s formation. In cases in which a strike would be illegal, the parties must establish an arbitration panel and its decisions are binding. Otherwise, if the parties fail to agree on establishing a panel or fail to come to an agreement through the arbitration process, the dispute goes to government authorities.

Strikes and Lockouts

The constitution recognizes the right to strike, although that right is restricted by law to protect public order and interests. The Labor Code entitles employees to strike if conciliatory procedures fail to settle a dispute or if the employer evades such procedures.

Participation in strikes must be voluntary; a person cannot be compelled to participate. A proposal to strike is adopted if more than half the employees at a meeting to consider the proposal give it their approval or, in lieu of such a vote, if the employees’ representatives collect more than half the employees’ signatures signifying their approval.

The employer must receive a written warning five working days prior to the start of a strike. The employees’ representative body is responsible for the logistics of the strike, including calling meetings to convene the employees and suspending or resuming the work stoppage.

Strikes may be temporarily suspended if organizations responsible for public health and safety do not ensure that minimum necessary services are being provided. Employees are not allowed to strike if martial law has been invoked or during states of emergency. The military and employees involved in national security may not strike, nor may employees involved in providing essential public services, such as utilities or transportation, if it would threaten the nation’s security or people’s lives or health. If there is a direct threat to people’s lives or health, a court can delay or suspend a strike for 15 days. If vital national interests are involved, the government can suspend a strike for up to 10 days until a court can take the dispute under consideration.

Although employers do not have to pay employees who are on strike, they have to retain the employees’ positions within the organization. Participation in a strike cannot be considered grounds for discipline or dismissal.

Lockouts are directly prohibited by the Labor Code.

Successorship Clauses

The Labor Code mandates that a collective agreement remains in effect if the company changes its legal form, if the company’s top executive is terminated or if the name of the business changes. If a company is involved in a merger, splits up or closes, a collective contract remains in effect during the transition or closing process.

Reference Citations

Right to Organize: Labor Code, 2001, No. 197-FZ (as amended), arts. 2-3 (Russian)

Dispute Resolution: Labor Code, 2001, No. 197-FZ (as amended), arts. 400-408 (Russian)

Strikes and Lockouts: Labor Code, 2001, No. 197-FZ (as amended), arts. 409-417 (Russian)

Successorship Clauses: Labor Code, 2001, No. 197-FZ (as amended), art. 43 (Russian)

Safety, Health and Security

In General

Workplace Health and Safety

The Constitution gives employees the right to working conditions that meet occupational safety and hygiene standards. The Labor Code requires employers to:

• ensure that workplaces and equipment are safe,
• provide any special safety clothing or equipment necessary,
• maintain safety standards for dangerous jobs or the handling of hazardous materials,
• train employees in safe methods of work and first aid,
• inform employees of occupational safety standards and
• provide medical examinations for employees when required.

Employees are required to comply with occupational safety standards, correctly use means of protection, get training in first aid and immediately notify supervisors of dangerous conditions, accidents or indications of occupational diseases.

The Labor Code also requires every business that employs more than 50 people to set up an occupational safety service, employ an occupational safety specialist or contract with an organization that provides occupational safety and health services.

The Ministry of Health and Social Development and regional executive bodies are in charge of ensuring that standards for workplace health and safety are met. The Federal Labor Inspectorate also serves to ensure compliance with occupational safety standards.

Restrictions on women. Women cannot engage in hazardous or dangerous work.

Women who are pregnant or have children under 1 ¹ / ₂ years old may ask to have their job requirements reduced or to be temporarily transferred to another job while receiving the same pay. Women who are pregnant cannot be sent on business trips or required to work overtime, at night or on weekends or public holidays. Women with children under age 3, parents with children who have disabilities, single parents with children under 5 and employees caring for sick relatives can be sent on business trips or required to work overtime, at night or on weekends or public holidays only with their written consent.

Drug and Alcohol Use

Smoking in the workplace is prohibited. An employer cannot let an employee work if the employee is intoxicated due to drug or alcohol use.

Reference Citations

Workplace Safety and Health: Labor Code, 2001, No. 197-FZ (as amended), arts. 217, 219 (Russian)

Drug and Alcohol Use: Law on Protecting the Health of Citizens from the Effects of Second-Hand Tobacco Smoke and the Consequences of Tobacco Consumption, 2013, No. 15-FZ; Labor Code, 2001, No. 197-FZ (as amended), art. 76 (Russian)

Termination

Termination by Employer

Employers are allowed to terminate contracts for a variety of reasons, including:

• closure of the business,
• staff redundancy,
• poor work performance due to a lack of qualifications as confirmed by a special attestation procedure,
• a change in ownership of the business and
• repeated failure of an employee to perform the duties of the job.

A single gross violation of labor duties can also be grounds for immediate termination of a contract.

Such violations include:

• unjustified absence from work during the whole working day (shift) or for more than four consecutive hours;
• working while under the influence of drugs or alcohol;
• divulgence of secrets protected by law (trade secrets, state secrets, etc.);
• theft or destruction of the company’s property, which should be confirmed by court or competent administrative authority and
• violations of occupational safety and health requirements that result in a potential or actual accident.

The Labor Code also lists various circumstances that require the termination of an employment contract, regardless of the wishes of the employer or the employee. These include:

• call up of the employee for military service;
• the court-ordered reinstatement of a former employee whose position has been filled;
• the employee’s criminal conviction that precludes continuing in the job;
• a medical condition that leaves the employee unable to perform the job;
• the death of the employee or the employer;
• the employee’s disqualification;
• military actions or natural disasters that prevent the continuation of employment;
• the suspension for more than two months or the expiration of special licenses or approvals, such as having a driver’s license, that are required to perform the given job duties;
• actions required to comply with quotas on employment of foreign nationals;
• suspension, expiration or annulment of a permission to hire a foreign worker;
• annulment or expiration of a work permit, temporary residence permit or permanent residence permit of the foreign employee; and
• expiration of a medical insurance policy of the foreign employee or termination of a contract for provision of medical services concluded by the employer.

To terminate the contract of a union member for reasons of general workforce reductions or poor performance, the employer must obtain an opinion from the elected trade union body. The employer may terminate the contract within one month of obtaining this opinion. If the union disagrees with a dismissal, it must consult with the employer. If no agreement is reached, the employer may decide on termination, and the union can appeal to a state labor inspectorate or a court. The employer can also appeal a labor inspectorate decision to the courts.

Employees must receive two weeks severance pay if they are terminated for the following reasons:

• they have a health condition that requires them to transfer to another job but they refuse, or no such job is available within the company;
• they are drafted to military service;
• they refuse to relocate when an employer moves to another location;
• they become completely disabled;
• they refuse to continue working due to a change in the labor contract.

The Labor Code also makes it illegal to terminate an employment contract with female employees who are pregnant, have children age 3 or younger or are single mothers raising children age 14 or younger or children with disabilities age 18 or younger where such termination is performed at the employer’s initiative (except such grounds as liquidation of the company).

If an employee’s fixed-term contract is set to expire and will not be renewed, the employer must provide warning to the employee of at least three days.

Employers are prohibited from unreasonably dismissing an employee who is within five years of being eligible for an old-age pension. If the company commits such an infraction, the responsible employee can be held criminally liable and fined up to 200,000 rubles or a sum equal to his or her salary.

On the day of dismissal, employees must receive the average monthly earnings for one month of unemployment. Dismissed employees also must be registered with the employment authorities within 14 business days. Employees who have not found a job can apply to the employer to receive payment for the second and third months of unemployment. The former employee can do this no later than 15 working days after the end of the second and third months, respectively, from the date of dismissal. If the former employee has found a job, then the payment must be provided in proportion to the time of unemployment.

Termination by Employee

If the employee wants to dissolve the contract voluntarily, he or she must provide an employer with two weeks’ notice.

Plant Closings and Mass Layoffs

When an employer decides that a mass layoff is necessary, it must notify the elected trade union body in writing at least three months prior to the layoff. A mass layoff generally occurs when:

• 50 employees or more are dismissed within 30 calendar days,
• 200 employees or more are dismissed within 60 calendar days,
• 500 employees or more are dismissed within 90 calendar days, or
• 1 percent of the employees are dismissed within 30 calendar days where the population of the region is less than 5,000 people.

These criteria may vary in different industries and regions.

Trade union members enjoy some additional protection against mass dismissal. If the trade union disagrees with a dismissal, it can appeal the decision to a regional labor inspectorate.

When the employment contract is terminated due to the closure of the organization or to staff redundancy, employees facing dismissal are entitled to two months’ advance notice or, in lieu of notice, payment of two months’ wages. Employees who contact the state employment service and do not find employment are entitled to an additional month’s salary during the third month from the date of dismissal.

In cases of mass dismissal, a three-month notice should be delivered in advance to the local employment authority and trade union (should it exist).

The Labor Code establishes the following special categories of employees who have preferential rights to employment during a mass reduction of staff:

• employees who are deemed to have higher labor productivity and skill than their colleagues,
• married individuals with two or more dependants,
• employees who are the only working individuals in a family,
• employees with a professional injury or illness received in connection with their employment, and
• employees improving their qualifications on the initiative of the employer.

Payment on Termination

If an employee’s employment contract is terminated, all wages due must be paid to the employee on the last day worked, including salary calculated pro rata on the last working day, unused leave and unpaid business travel expenses.

Unemployment Insurance

Unemployment benefits are paid by the government. To be eligible, a person must be registered at an employment office, have 26 weeks of full-time employment in the last 12 months and be willing and able to work.

Benefits may be reduced or terminated if the worker is dismissed because of misconduct, left employment without good cause, violated conditions for job placement or vocational training or filed a fraudulent claim.

Benefits are calculated as a percentage of previous average wages and are paid for up to 12 months. The benefits decrease over time: 75 percent of the previous average monthly wage is paid for the first three months, 60 percent for the next four months and 45 percent for the last five months.

Reference Citations

Termination by Employer: Labor Code, 2001, No. 197-FZ (as amended), arts. 77-81, 261, 292 (Russian)

Termination by Employee: Labor Code, 2001, No. 197-FZ (as amended), art. 180 (Russian)

Plant Closings and Mass Layoffs: Labor Code, 2001, No. 197-FZ (as amended), arts. 80-81, 179 (Russian)

Payment on Termination: Labor Code, 2001, No. 197-FZ (as amended), arts. 127, 140 (Russian)

Personal Taxes

Residency Requirements

A Russian tax resident is anyone who spends at least 183 days during a 12-consecutive-month period in Russia.

Taxable Income

Residents are taxed on their worldwide income, nonresidents on Russia-sourced income only.

Employment income includes wages, bonuses and increments to salary paid by employers. All additional allowances and benefits provided by the employer are also taxable income for employees.

Tax Rates

Russia’s income tax rates for resident workers are levied on a progressive scale, with rates ranging from 10 percent to 13 percent. Nonresidents working in Russia generally are subject to a flat tax rate of 30 percent on employment income.

Employers pay a social security contribution of 30 percent of the annual income ceiling plus 10 percent of the amount exceeding the annual ceiling. There is no obligation for Russian employees to contribute to social security or national insurance.

Because the individual income tax is in most cases withheld at source at the time of payment, the taxpayer is not obliged to file a tax return.

Reference Citations

Residency Requirements: Tax Code of the Russian Federation, 2000, No. 117-FZ, art. 207

Web References

In Russian unless otherwise noted.

Law and Regulation

Constitution of the Russian Federation (Russian)

Labor Code

Law on Social Protection of Disabled Persons (Russian)

Law on State Benefits for Citizens With Children (Russian)

Law on Trade Unions (English)