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DOING BUSSINESS
IN RUSSIA

  Useful information

Doing business in Russia
  1. Forms of business in Russia
  2. Registration of Russian legal entity
  3. Representative and Branch office accreditation
  4. Accounting principles
  5. Main taxes and duties
  6. Double taxation
  7. Statements to the Tax authorities and terms of submitting
  8. Labor legislation
  9. Personal legalization of foreign employees in Russia
Useful information

  Labor legislation

The Russian Labor Code forms the basis of labor relations in Russia and outlines the rights of employees at the workplace. There may be discrepancies between the actual labor practices and the letter of the Russian Labor Code. However, employers should be aware that should a conflict arise, an employee will most likely be in the position to demand in court the application of the protective provisions of the Labor Code, which will prevail over any conflicting provision of the individual labor contract.

Normal working hours in Russia is from 9 a.m. to 6 p.m. with a one-hour lunch break. Employees are typically provided with a hot lunch at the workplace. The length of the workweek should not exceed 40 hours per week. The Labour Code provides for shorter working hours under certain conditions: shift work, night work etc.

Overtime is payable at higher rates per hour or should be compensated by additional days-off.

The Russian Labor Code determines the employee rights and guaranties for labor in conditions meeting the requirements of labor protection services. For example the working place should meet the requirements of labor safety; obligatory social insurance from accidents in the production process and for sick leave; employer should provide safe work environment , should keep the salary for the scheduled medical examinations of the employee, should pay compensations for hard and dangerous working environment. The employer is responsible for safe working environment.

There are some restrictions for implementing hard and dangerous work for women and people younger than 17 under Russian labor legislation.

The labour contract should be concluded between the employer and the employee either in form of an individual contract or a collective agreement. It determines all the rights and obligations of employees and employer. The Labour Code indicates that the labour contract may contain essential and additional conditions.

Employers are required to conclude an individual written labour contract with each employee (collective labour contracts are also permitted). The duration of the individual labour contract may not exceed 5 years or the contract should be effected as termless (without time-limit). On signing the contract a certificate of acceptance of an employee should be issued by the employer.

In general, employees are entitled to paid Russian national holidays and annual leave of not less than 28 calendar days. Employees are able to use their annual leave after six months work.

In the case of an employee dismissal (s)he is entitled to 2 months paid notice (which may or may not be served) as well as 1 to 3 months severance pay depending on whether the employee finds alternative work. Generally employees may be chosen for dismissal based on their performance, although certain categories of employees (pregnant women and women with children under three) are protected from dismissal. In any event specific advice should be sought before taking any employment law decisions.

Since the 1st of October 2006 a new labor code is started.
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