Labour law

The Labour Code of the Russian Federation was adopted on December 30, 2001 and provides for some flexibility in labour relations, particularly in the conclusion of labour agreements for a fixed term and in the establishing of working hours.

The labour agreement is an innovation of the Russian labour law especially in comparison with the previous one adopted in 1971.

Labour agreement is an agreement in writing between the employer and the employee (parties to the agreement) according to which the employer shall provide the employee with the work specified in the labour agreement, ensure proper labour conditions, pay labour remuneration in full and on time and the employee shall personally carry out the work specified in the agreement and observe in-house labour rules.

It comes into effect upon signing by both parties (unless otherwise stipulated by the Russian legislation and the agreement itself) or on the day the employee de facto gets access to work and starts working (if the employee starts working before the agreement is concluded, the employer shall draw up the agreement in writing within three days of the employee starting work). Any labour agreement contains such substantial terms and conditions as:

• place of work (organisation or its structural unit);
• date of beginning of work;
• the employee’s position, speciality, occupation, qualification or specific labour function;
• the parties' rights and duties;
• description of work conditions, compensation and privileges for employees working in hard and (or) hazardous conditions;
• work and rest schedules (if different from those generally established in the organisation);
• remuneration conditions

as well as optional terms&conditions such as:

• probation;
• confidentiality clause (on state, official, commercial or other secret);
• employee’s obligation to work for a certain period after training effected at the expense of the employer;
• other terms not worsening the employee’s position compared to labour law or work team agreement.

The labour agreement can be concluded either for an indefinite time period or for a definite one, but not over 5 years (so called fixed-term labour agreement). A labour agreement is recognised as concluded for an indefinite period if the agreement does not stipulate its duration period.

Conclusion of labour agreement

As a rule, a labour agreement is concluded with employees of 16 years of age or older.

Persons applying for a job in the field of education may not be employed if they are prohibited from such jobs by court ruling, due to medical indications or previous convictions, as established by federal laws.

The following persons may not be employed:

• women — at jobs implying lifting and carrying heavy items exceeding the weight limit allowed
• persons under 18 years of age — at jobs with hazardous conditions, in mining, at jobs that may damage their health or morals (gambling business, working in night clubs and cabaret, manufacturing or transportation or trading in alcohol and tobacco products, drugs and toxic substances), at jobs implying lifting and carrying heavy items exceeding the weight limit allowed, at shift-work
• expectant mothers, mothers with children under three years of age and persons with medical contra-indications for shift-work — at jobs implying shift-work.

Special requirements established for conclusion of certain labour agreements

Before being employed, the following persons shall undergo compulsory medical examination:

• persons under 18 years of age (after being employed are subject to annual medical examinations until the age of 18)
• employees at jobs implying carrying heavy items or jobs with hazardous conditions, jobs in transport communications, food industry, public catering and trading, water supply communications, medical treatment and prophylactic institutions, institutions for children and a number of other organisations, at jobs implying working with sources of extra danger (in the latter case, besides a general medical examination, a psychiatric inspection is required)

Employees at jobs related to transport communications are employed and trained according to the procedure set by a corresponding federal authority

Persons applying for a job:

• in the field of education, shall have a specific qualification established by a provision approved by the RF Government;
• in the fields of medicine and pharmacy, shall have the RF higher or high medical or pharmaceutical education; besides, persons applying for jobs in the list of the Ministry of Health shall have a qualification certificate and a licence (Art. 54 of Foundations of Legislation of the RF on Health Protection)

Restrictions on conclusion of certain labour agreements

An effective court sentence (Art. 47 of the Civil Code) may deprive the citizens of the right to:

• occupy positions at state service and in bodies of local self-government
• perform particular activities

Documents submitted for conclusion of labour agreements

• passport (or other identification document)
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• job record book (except for cases when the labour agreement is concluded for the first time* or a person is employed part-time)
• state pension insurance certificate (except for cases when the labour agreement is concluded for the first time*)
• documents on military registration (for persons subject to military service as conscript)
• education certificate, qualification and other specific certificates (if any required).

*Are drawn up by the employer if an employee concludes a labour agreement for the first time

Employment procedure

The hiring of an employee is formalised in an order (directive) of the employer which is drawn up in compliance with the labour agreement.

The order (directive) shall be read out to the employee against the latter?s signature within three days of the labour agreement being signed (at the employee’s request (s)he must be given an attested copy of the order).

The employee is obliged to start working on the day set by the labour agreement (if the agreement does not stipulate any specific day, the employee must begin working the next day after the agreement comes to force).

Probation period

The parties may agree to establish a probation period (generally not exceding 3 months) for an employee in order to check the compliance of the latter with job requirements; the probation clause must be included into the labour agreement (otherwise the employee is considered to be employed without probation).

Should the probation’s result be poor, the employer has the right to terminate the labour agreement with the employee before the end of probation without severance pay and approval of the trade union; however, the employer must notify the employee in writing at least three days before the dismissal (and name the reasons for the dismissal). The employee may appeal the dismissal in court.

If the employee keeps working after expiry of the probation period, (s)he is considered as passed the probation successfully, and the labour agreement may be terminated on the general grounds only.

During probation, an employee has the right to terminate the labour agreement at his/her initiative provided (s)he informs the employer on the decision in writing three days before.

No probation is established for:

• persons hired for up to two months
• persons transferred from another job
• persons under 18 years old
• graduates being employed in line with their profession for the first time
• persons won competitions for a vcancy
• persons elected to a position implying paid job
• expectant mothers
• other cases stipulated by laws and work team agreement

Job record book

A job record book is the major document certifying the employee’s labour activity.

The employer (except for employers — natural persons) shall keep a job record book for each employee having been on payroll for more than five days (at employee’s principal work).

A job record book contains relevant information on the employee, his/her job, transfers to other permanent jobs, dismissals and their reasons (must repeat the wording of the Labour Code or of other federal laws, and refer to appropriate paragraphs), entries on the employee’s rewards for efficient work (information on penalties imposed on the employee for poor work performance are not included).

The employer gives the employee his/her job record book (at request of the employee — together with copies of documents related to the job) on the day of dismissal (the last day of work).

Grounds for termination of labour agreement

• Mutual consent (art. 78) where the parties agree to terminate the agrement at any moment
• Expiry of duration period of labour agreement (para. 2 of art. 58, art. 79) (unless the employee continues working) where the employee must be notified at least 3 days before dismissal
• Termination of the agreement at the employee's initiative (art. 80) provided the employee notified the employer hereof within 2 weeks
• Termination of the agreement at the employer's initiative (art. 81) in the following cases:
  • liquidation of an organizaton;
  • redundancy;
  • employee’s poor state of health or poor qualification;
  • change of property owners of non-commercial organisations (with respect to organisation’s CEO, his/her deputies and chief accountant);
  • employee’s multiple failure to perform his/her job duties without valid excuses;
  • gross violation by employee of his/her job duties (e.g. truancy, being drunk at work, breach of confidentiality, theft or infringement of safety rules resulted in serious damage);
  • immoral conduct — with respect to employees in the field of education;
  • decision of CEO, his/her deputy or chief accountant resulted in damage to the organisation’s property;
  • employee submits false information necessary for labour agreement conclusion;
  • employee is denied access to state secret if such access is required by job duties;
  • other cases stipulated by law
• Transfer of the employee to a different employer or to an elective position (upon the employee&'s approval)
• The employee's refusal to continue work after employer’s reorganisation or change of founders (art. 75)
• The employee's refusal to continue work due to amendments to substantial terms&conditions of the labour agreement (art. 73)
• The employee's refusal to transfer to another work required due to his/her state of health (medical testimony required) or due to relocation of the employer (art. 72)
• Events beyond the parties' control (art. 83) such as:
• the employee is subject to militare service as conscript;
• the ex-employee must be reinstated by decision of state inspection or court; an employee who has been hired instead and now has to be dismissed should first be offered other jobs available in the organisation;
• a person has not been elected to a position;
• the employee has been convicted by court;
• the employee has been recognised totally disabled by medical examination
• Labour agreement was concluded with infringement of rules established by the Labour Code or by other federal law (art. 84). Labour agreements must be terminated where the following infringements occur:
  • the employee may not occupy the position due to a court sentence
  • the employee may not perform the given work due to his/her state of health
  • the employee does not have a qualification certificate required for the job
  • Labour agreements are terminated only if the employee may not be transferred to another job If the infringement occurs without the employee’s fault, (s)he must get severance pay equal to the amount of his/her average monthly remuneration
• Other grounds stipulated by the Labour Code and other federal laws