GILS Employment Law: Russia

RUSSIA  

(1) Maternity and Family Leave Rights

1.1. How long is the duration of maternity leave?

The duration of maternity leave is established on the basis of a duly issued sick leave. 

1. In general, a sick leave is formed at 30 weeks of pregnancy for a lump sum of 140 calendar days (70 calendar days before childbirth and 70 calendar days after childbirth). 

In the case of complicated childbirth, in addition to the 140-calendarday sick leave, an additional 16 calendar days of sick leave is granted (except in cases of multiple pregnancies). 

In cases of childbirth occurring between 22 and 30 weeks of pregnancy, a sick leave for 156 calendar days from the date of childbirth is formed. 

2. In case of multiple pregnancies, a sick leave of 194 calendar days (84 calendar days before and 110 calendar days after childbirth) is granted at 28 weeks of pregnancy. 

In the case of multiple births occurring between 22 and 28 weeks of pregnancy, the sick leave is formed for 194 calendar days from the date of delivery. 

3. If multiple pregnancy is diagnosed during childbirth, in addition to the sick leave for 140 calendar days in accordance with paragraph 1, a sick leave for an additional 54 calendar days is formed.

1.2. What are the rights of a parent when returning to work after parental leave?

• The employee retains his place of work;
• Parental leave can be taken fully or in partially;
• Has the right to interrupt the leave and start work before the expiry of the parental leave by notifying the employer two weeks in advance. (In this case, annual main leave is granted for the actual time worked);
• State childcare allowance is paid for the child’s care.

1.3. Do fathers possess the right to take paternity leave? 

According to Art. 2, para. 256 The parental leave may be taken in full or in part by the child’s father, who is actually caring for the child. 

To art. 13 Federal Law of 19.05.1995 81-FZ «On state benefits to citizens with children» noted that mothers or fathers, other relatives, guardians, who actually care for the child have the right to a monthly child care allowance, subject to compulsory social insurance for temporary incapacity for work and maternity, and on parental leave.

1.4. Are there any additional parental leave rights that employers must adhere to?

In addition to the mother, other relatives can take parental leave, either all at once or alternately. Both parents can now take leave at the same time.

While on maternity leave, you can work part-time, receive a salary and allowance. At the same time, you are entitled to paid annual leave and sick leave. 

Legally, infant care leave is up to 3 years. 

The allowance is paid by the Russian Social Fund. 

If the baby's father is a foreigner, it does not matter whether he lives in Russia or not, it is possible to take parental leave and receive the allowance.

1.5. Do employees have the right to flexible working arrangements if they are responsible for dependents? 

The Labor Code of the Russian Federation allows for part-time working hours to be established by agreement of the parties for any category of employees of an organization (for example, those undergoing training at the organization). 

However, there is a certain range of persons for whom the employer is obliged to establish a part-time working day (shift) and (or) parttime working week at their request. These include:

• pregnant women;
• one parent (guardian, custodian) who has a child under the age of 14 (a disabled child under the age of 18);
• another person bringing up children under the age of 14 (or a disabled child under the age of 18) without a mother;
• a person caring for a sick family member in accordance with a duly issued medical certificate (dependents).

Part-time working hours for employees in these categories shall be established for a period convenient for them, but no longer than for the period of the circumstances that gave rise to the reason. 

In this case, the working time and rest time regime is established in accordance with the employee's wishes and taking into account the conditions of production (work) at the given employer.

(2) Termination of Employment

2.1. Is it mandatory for employers to provide notice of termination of employment? How is the notice duration determined?

An employer is obliged to notify the employee on termination of employment in the following cases and terms: 

• if an employee has not passed the probation period, the employer shall notify her/him about it in writing no later than three days in before the expiration of the probation period, indicating the reasons;
• in the event of liquidation of an organization, reduction of the number or staff of employees of the organization, employees should be notified by the employer personally and under their signature at least two months before dismissal;
• if an employment contract is concluded with a part-time employee for an indefinite period, it may be terminated in the event of hiring an employee for whom this work will be the main one, subject to a notification in writing at least two weeks in advance.

2.2. Can employers enforce "garden leave" during the notice period, where the employee remains employed but does not have to attend work?

A "garden leave" is not provided for by the Labor Code of Russian Federation. However, there is the possibility for an employee to take either a paid vacation before termination of employment (if there are unused calendar days of an annual paid vacation), or a vacation at her/his own expense upon agreement with the employer.

2.3. What safeguards do employees have against dismissal? Under what circumstances is an employee considered to be dismissed? Is consent from a third party necessary before dismissal by an employer?

Dismissal upon initiative of an employer is allowed only in the cases expressly provided for by Art. 81 of the Labor Code. An employer is required to follow strictly the procedure in each such case of termination of employment, depending on the grounds for termination, otherwise an employee has the right to contest a dismissal with a court. 

An employer is obliged to require a motivated opinion of the trade union in the event of dismissal of employees – members of the trade union in the following cases: 

• reduction of the number or staff of employees;
• non-compliance of the employee with the position held or the work performed due to insufficient qualifications, confirmed by the results of the certification;
• repeated failure by an employee to perform work duties without valid reasons, if he has a disciplinary penalty. 

The elected body of the primary trade union organization, within seven working days from the date of receipt of the draft order and copies of documents, considers this issue and sends its reasoned opinion in writing to the employer.

2.4. Are there specific employee categories enjoying special protection against dismissal?

It is prohibited to dismiss the following employees due to a reduction in the number of employees or staff: 

• a pregnant woman;
• a woman with a child (children) under the age of 3 years;
• a single mother raising a disabled child under the age of 18 or a young child (under 14 years old);
• an employee raising a disabled child under the age of 18 or a minor child (under 14 years old) without a mother;
• an employee (parent or legal representative) who is the sole breadwinner of a disabled child under the age of 18;
• an employee (parent or legal representative) who is the sole breadwinner of a child under the age of three in a family raising three or more young children, if the other parent (legal representative) is not in an employment relationship.

2.5. Under what circumstances is an employer justified in dismissing employees: 1) due to individual reasons; 2) business-related grounds? Do employees receive compensation upon dismissal, and if so, how is it calculated?

Individual reasons for dismissing employees include: 

1. non-compliance of the employee with the position held or the work performed due to insufficient qualifications, confirmed by the results of the certification (attestation);

2. a repeated failure by an employee to perform his/her work duties without valid reasons, if he/she has a disciplinary penalty; 

3. a single gross violation of an employee's work obligations, in particular, absence at the workplace for more than four hours without a valid cause, or divulging commercial secret of the employer; 

4. the commission of guilty actions by an employee directly servicing monetary or commodity values; 

5. the commission by an employee performing educational functions of an immoral offense incompatible with the continuation of this work; 

6. making an unjustified decision by the head of the organization (branch, representative office), his deputies and the chief accountant, which resulted in a violation of the safety of property, its misuse or other damage to the property of the organization; 

7. submission of forged documents by an employee to an employer at the conclusion of an employment contract; 

8. grounds provided for by the employment contract with the CEO or members of the collegial executive body of the organization.

If an employee is dismissed due to one of the abovementioned wrongdoings on her/his part, he/she is not entitled to any compensation. 

In the event the CEO or the chief accountant or one of their deputies is dismissed upon initiative of the employer without any wrongdoing, the respective employee is entitled to the compensation of three monthly average salaries. 

Business reasons for dismissal of employees include: 

a) liquidation of an organization / termination of activity by an individual entrepreneur; 

b) reduction of the number or staff of employees; 

c) changes in the owner of the organization's property (in relation to the head of the organization, his deputies and the chief accountant). 

Upon termination of an employment contract in connection with the liquidation of an organization or reduction of the number or staff of employees of the organization, the dismissed employee shall be paid severance pay in the amount of his/her average monthly salary. If a dismissed employee cannot find a job for more than one month, the employer is obliged to pay him the average monthly salary for the second month from the date of dismissal.

2.6. Are there particular protocols that employers must adhere to regarding individual dismissals? 

Yes, for example, if an employer intends to dismiss an employee due to non-compliance of the employee with the position held or the work performed due to insufficient qualifications, the employer should follow the following protocol, according to Article 81 of the Labor Code: 

1. Adopt a local regulatory act on the certification of employees; 

2. Issue an order on appointment of the commission for certification and on conducting the certification of an employee; 

3. Conduct the certification of an employee; 

4. If upon results of certification it is established that the employee does not correspond to the position he/she holds (the work he/she is doing), offer him/her a transfer to suitable vacancies available; 

5. If the employee refused to transfer or the employer does not have vacancies, the employer may issue an order on dismissal of the employee.

2.7. What claims can an employee pursue if they are dismissed? What remedies are available for a successful claim?

An employee has the right to apply to the court if he/she disputes the dismissal within one month from the date of handing him/her a copy of the dismissal order or from the date of issue of the work book or from the date of providing the employee with in connection with his dismissal, information about his /her employment (Article 66.1 of the Labor Code) and demand to recognize the dismissal illegal, to reinstate her/him at the job with employer, to oblige the employer to pay the average salary for the period when employee was absent from work due to the dismissal. 

If an employee does not intend to continue working with the employer, he/she may demand the court to change the wording of the grounds for dismissal, for example, to dismiss at your own request, at the same time, the date of dismissal is also changed - on the date of the relevant court decision or the date preceding the day of the start of your work with a new employer (part 4.7 of Article 394 of the Labor Code). 

In cases of dismissal without a legitimate reason or in violation of the established procedure for dismissal, the court may, at the request of the employee, take a decision to recover in favor of the employee monetary compensation for moral damage caused, the amount of such compensation is determined by the court.

2.8. Can employers resolve claims before or after they are initiated?

An employer can establish a labor dispute commission upon its initiative or initiative of employees (the representative body of employees), from an equal number of representatives of employees and the employer. 

An individual labor dispute is considered by the labor dispute commission if the employee has not settled the differences independently or with the participation of his representative during direct negotiations with the employer. 

An employee may apply to the labor dispute commission within three months from the day when he learned or should have learned about the violation of his right. 

The decision of the labor dispute commission should be performed within three days after the expiration of the ten days provided for appeal, otherwise the commission shall issue to the employee a certificate, which is an executive document and shall be enforced through a court’s bailiff.

2.9. Does an employer bear additional obligations when dismissing multiple employees simultaneously?

In the event an employer is taking a decision on dismissal of employees due to reducing the number or staff of employees, the employer is obliged to inform the elected body of the primary trade union organization in writing no later than two months before the start of the relevant events, and in the event that if the decision to reduce the number or staff of employees may lead to mass layoffs of employees - no later than three months before the start of the relevant termination procedures. 

An employer is also obliged to inform the employment service about the upcoming reduction of staff or number of employees: 2 months in advance if the employer is an organization, 2 weeks in advance if the employer is an individual entrepreneur.

2.10. How can employees enforce their rights regarding mass dismissals, and what are the consequences if an employer fails to comply with its obligations? 

Employees can file claims with the court, as well as to file complaints with the State Labor Inspectorate and the prosecutor’s office.

If the dismissal of an employee is declared illegal by the court, the employee shall be reinstated at his/her previous job and the court's decision on reinstatement at work must be executed immediately (Part 1 of Article 394, Article 396 of the Labor Code). 

The employer shall be held liable by the court in the form of compensation to the employee for average salary during forced absenteeism (including in case of delay in the execution of the decision to reinstate the employee at work). 

The court may also decide to recover from the employer monetary compensation for moral damage caused by illegal dismissal. 

Based on the results of consideration of the complaint by the State Labor Inspectorate, the employer and its officials may be brought to administrative responsibility (Article 5.27 of the Administrative Code of the Russian Federation). 

In the event of unjustified dismissal of an employee based on discriminatory grounds of the employee's pregnancy, having children under the age of three or reaching pre-retirement age, the head of an organization upon the employee’s appeal to the prosecutor's office may be brought to criminal liability (Articles 144.1, 145 of the Criminal Code of the Russian Federation).

(3) Data Protection and Employee Privacy 

3.1. How does the employment relationship get impacted by employee data protection rights? Is the transfer of employee data across borders unrestricted for employers?

Personal data operators that plan to transfer personal data abroad must notify Roskomnadzor about the intention to carry out such a transfer. 

After sending the notification, the operator has the right to carry out cross-border transfer of personal data on the territory of foreign states that are parties to the Council of Europe Convention on the Protection of Individuals with Automated Processing of Personal Data or included in the list of foreign states providing adequate protection of the rights of personal data subjects, until Roskomnadzor decides to ban the transfer. 

When inspecting notifications, Roskomnadzor may request all information on assessing whether the foreign counterparty to which the data will be transferred has complied with the measures to protect data when processing it. The operator will have to transmit the information to the authority within 10 working days. The deadline can be extended for a valid reason for no more than five working days. Until Roskomnadzor has received all the requested information from the operator, it suspends verification of the notification. 

Roskomnadzor may prohibit or restrict cross-border transfer upon submission by authorized authorities, e.g., the Ministry of Internal Affairs, Ministry of Defense, FSB. Such a decision is taken in order to protect the interests of the Russian Federation, its citizens, to ensure sovereignty and state security (part 12 of Article 12 of Law No. 152-FZ as amended by 266-FZ).

3.2. Are employees entitled to obtain copies of any personal information held by their employer?

Article 62 of the Labor Code of the Russian Federation establishes the employer's obligation to issue copies of documents related to the employee's labor activity at the employee's request, for example: extracts from the employment record book, wage statements, etc. 

According to Article 89 of the Labor Code of the Russian Federation, in order to ensure the protection of personal data stored by the employer, employees have the right to full information about their personal data and the processing of such data, to free access to their personal data, including the right to receive copies of any record containing personal data of the employee, taking into account the provisions of Article 14 of the Federal Law "On Personal Data".

3.3. Do employers have the authority to conduct preemployment checks on prospective employees (such as criminal record checks)?

When hiring an employee, the employee is obliged to provide the employer with the documents stipulated in Article 65 of the Labor Code of the Russian Federation. Upon receipt of documents from employees, as well as in the presence of the employee's consent to the processing of his/her personal data as provided for by the Federal Law "On Personal Data" and in compliance with the provisions of this Federal Law, the employer has the right to conduct a background check of potential employees. 

The employer has the right to request a certificate of criminal record absence only for certain categories of employees: persons engaged in teaching, labor activity in the field of education, upbringing, development of minors, etc.

3.4. Do employers have the right to monitor employee emails, phone calls, or use of company computer systems?

The employer has the right to control the employee's performance of the labor function by any lawful means, including control over the use of office equipment and corporate mail. At the same time, the risk of disclosure of personal correspondence lies with the employee, if he/she conducts it from a corporate computer and using a work Email or other means of communication provided by the employer. In this case, the employer may not use technical and software tools, the use of which is allowed only to a limited number of persons in special conditions (special services, law enforcement agencies, etc.), for example, remote wiretapping or remote access to personal mobile and other devices of the employee. It is allowed to use software tools based on the analysis of Internet traffic, use of applications, hardware resources. 

According to part 1 of Article 21 of the Labor Code of the Russian Federation, an employee has the right to full reliable information about working conditions and labor protection requirements at the workplace, so the employer is obliged to notify the employee against signature about the possibility of conducting control measures. In particular, it is mandatory to notify employees about video and audio surveillance. Violation of this requirement gives the employee the right to claim compensation for moral damages for violation of his labor rights, namely the right to receive reliable and complete information about working conditions and labor protection measures.

3.5. Can employers control an employee's use of social media both inside and outside the workplace?

Employers have the right to monitor employees' activities during working hours. In case an employee uses social networks during the working day, which entails a violation of labor discipline and/or work discipline. 

Social networks during the working day, which entails a violation of labor discipline and / or failure to fulfill labor duties, the employee may be subject to disciplinary liability. 

In addition, in a local normative act, for example, in the "Regulation of Regulations on Employee Behavior in Social Networks and the Internet" the employer has the right to establish a ban to write and publish negative or unverified information about the company in mass media and social networks. 

Special requirements are established for certain categories of employees - state municipal employees and military personnel. For example, Art. 20.2 of the Federal Law No. 79-FZ of July 27, 2004 "On the State Civil Service of the Russian Federation" requires employees to provide information on the placement of information on the Internet (annually report all accounts and sites on the Internet where they have posted any information on the Internet).

(4) Court Practice and Procedure

4.1. Which courts or tribunals hold jurisdiction over employment-related complaints, and what is their composition?

In Russia, there are no courts and tribunals specializing exclusively in the consideration of labor disputes, including employment-related. All individual labor disputes are resolved by the courts of general jurisdiction. 

The composition of the court varies depending on which court is considering the relevant claim. In the court of first instance, a labor dispute is resolved by a judge alone, in the court of the 2nd and 3rd instance - collectively.

4.2. What procedures govern employment-related complaints? Is conciliation obligatory before proceeding with a complaint, and is there a fee for employees to submit a claim? 

If, in the opinion of a job seeker, the employer unreasonably refuses employment, a written request should be made to the employer, asking him to indicate the reason for his decision. According to Article 64 of the Labor Code of the Russian Federation, the employer has 7 days to provide a response, and it must be provided in writing. 

An appeal against a refusal of employment should be lodged with the district court at the location of the respondent employer. The deadline for appeal is no later than three months from the day on which employment was denied. 

When a labor dispute is initiated by an employee (job seeker), he or she is exempt from paying any costs of the dispute, including state duty.

4.3. What is the typical duration for resolving employment-related complaints? 

The general term for consideration of a statement of claim is two months from the date of receipt of the statement to the court. Cases of reinstatement must be resolved before the expiration of one month.

4.4. Is it possible to appeal against a decision at the first instance, and if so, how long does such an appeal usually take? 

In case of disagreement with the decision of the court of first instance, the party may file an appeal within one month from the day of drawing up the reasoned decision of the court. Consideration of the case in the court of appeal shall not exceed two months from the date of receipt of the case from the court of first instance.

(5) Work Permits 

5.1. What are the restrictions or limitations placed on individuals holding a work permit in terms of job duties, employer changes, or duration of stay? 

Work permit is region- and occupation-bound and only allows working in the respective constituent entity of the Russian Federation (exceptions are made for business-trips and some other cases) and only within the occupation stated in the permit. Since the application for a permit is filed with the territorial authority of the Ministry of the Internal Affairs by the employer, employer changes require obtaining a new work permit. 

As a general rule, work permit duration is equal to the duration of an individual's temporary stay or their employment contract, but no more than one year. Work permits can be prolonged additionally 

5.2. What are the requirements for obtaining a work permit? 

In order to obtain work permits, an employer who has previously obtained a permit to employ foreign labour must file with the territorial authority of the Ministry of Internal Affairs (MIA of Russia): 

• an application for each foreign citizen to be employed;
• a copy of the foreign employee's identity document;
• medical certificates confirming that the foreign employee does not have certain diseases. 

If a foreign citizen arrives on the territory of the Russian Federation in a visa-free regime, in order to carry out labor activity in the Russian Federation, the foreign citizen must submit with the territorial authority of MIA of Russia an application for a patent and other required documents.

5.3. Are there any recent changes or updates to work permit regulations or policies that individuals or employers should be aware of? 

Actually, there are quotas for foreign employees that set the maximum number of work permits to be issued by the Ministry of Internal Affairs of the Russian Federation and ratio of local/foreign employees in various businesses for companies to follow. The quotas are adopted annually by the Government of the Russian Federation, so employers should keep up with them. 

Federal Law No. 316-FZ dated 10 July 2023 "On Amendments to the Federal Law "On the Legal Status of Foreign Citizens in the Russian Federation" has implemented the following amendments that become effective from 2024: 

• the period of stay of highly qualified specialists in the Russian Federation after early termination of a labour contract has been reduced. A highly qualified specialist has 30 business days to find a new job and 30 calendar days to leave Russia if a new work (civil law) contract has not been concluded;
• the amount of remuneration of a highly qualified specialist shall amount to at least RUB 750,000 for three months, i.e. an average of RUB 250,000 per month;
• a foreign worker pursuant employment under the patent shall notify the territorial body of the Ministry of Internal Affairs of Russia within two months from the date of issuance of the patent about their employment in accordance with the prescribed form.

5.4. Are there specific industries or occupations that have different requirements or exemptions for obtaining a work permit? 

Foreigners are prohibited from specific areas like state and municipal, military service, as well as strategic and state defense facilities the list of which is approved by the Government of the Russian Federation, to be members of the crews of warships. Apart from general restrictions some additional limits may be implemented temporarily, for example in 2020 in connection to the COVID-19 pandemic foreigners were banned from pharmaceutical and general retail trade. 

There is also a special category of foreign employees – highly qualified specialists. They are provided with some exemptions from requirements: employment quotas do not apply, their work permit may allow working in several constituent entities of Russia, and its initial term is up to three years (against one year in general).

5.5. What is the ratio of foreign and local labor? 

As mentioned, there are quotas for employment of foreign and local employees. Thus, by the Resolution of the Government of the Russian Federation the total amount of work permits to be granted in 2024 is 155,929 which are divided between regions unequally. 

There are also quotas regarding the ratio of foreign and local labor in different business areas. For example, construction works allow for up to 80% of foreign labor, forestry – 50%, retail alcohol and tobacco trade – 15%, pharmaceutical retail trade – 0% etc. for various industries.

(6) Tax

6.1. What are the legal obligations and requirements regarding the individual income tax paid by employers? 

Insurance contributions are allocated as follows: 

• for compulsory pension, medical and social insurance in case of temporary incapacity for work and in connection with maternity - 30% in the standard case without preferential rates;
• for insurance against accidents and occupational diseases - from 0.2% to 8.5% depending on the risk class assigned to the main activity of the organization.

6.2. What is the percentage of withholding tax? 

The standard rate of personal income tax to be withheld from payments to an employee is set at 13%. If annual income exceeds 5 million roubles, the rate of 15% applies.

 

Authors:

Yana Dianova, Vladislava Novokreshchenova.