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

Employment and migration

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

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

Key contacts

Contact
Fedoreev Valeriy
Valeriy Fedoreev
Partner
Head of Employment and Sports Law
Christophe-Huet
Christophe Huet
Partner
Avocat Associé

Terminating an employment agreement

Cases and grounds for termination

An employment agreement may be terminated (the list is not exhaustive):

  • at any time by the mutual agreement of the parties;
  • unilaterally by an employee providing two weeks’ written notice or at the initiative of the employer (as discussed below);
  • because of circumstances beyond the reasonable control of the parties;
  • when the term of the employment agreement expires;
  • if an employee refuses to continue working because of a change in the ownership of the company (employer) or its reorganisation (this only applies in relation to certain top executive positions); or
  • if an employee refuses to continue working because he/she (together with the employer) is relocated.

The employer may terminate the employment agreement at its initiative only on the limited number of grounds expressly set out in the Labour Code, which include, among others:

  • When there is staff redundancy or the employer is being liquidated. The employer must notify each employee in writing at least two months in advance. If there is staff redundancy, the employer must offer employees all available vacancies which are equivalent to or below their current qualifications.
  • When an employee is unsuitable for an employment position. Unsuitability must be confirmed by an attestation committee review.
  • When an employee systematically fails to fulfil his/her employment duties without reason or commits a single gross dereliction of his/her duties.
  • When an employee is found to have presented false documents during the hiring process.

In respect of specific categories of employees (e.g. the general director, teleworkers), additional termination grounds may be provided for in the employment agreement.

The Labour Code requires that severance pay be made under certain circumstances.

Court practice with regard to dismissals varies substantially, and may differ from region to region. However, the general tendency is to protect the interests of employees, thus placing a greater onus on the employer.


Key contacts

Fedoreev Valeriy
Valeriy Fedoreev
Partner
Head of Employment and Sports Law
Christophe-Huet
Christophe Huet
Partner
Avocat Associé