Doing business in Russia: personnel

Labor Relations

The Labor Code of the Russian Federation is the main law governing relations between employees and employers. It is mostly aimed at protecting the interests of employees.

Virtually all personnel documents and local normative acts can be signed electronically (using HRM EDI) and do not need to be duplicated on paper. In order to use HRM EDI, an organization and its employees must have an electronic signature. HRM EDI is especially relevant for companies with employees working remotely.

Options of engaging personnel

1. Interview/ testing
2. Job offer (not binding in Russia)
3. Conclusion of an employment agreement
4. Signing of HR documents: hiring order, introduction to internal policies, etc.

From 2021, it is possible to establish both permanent and partial / temporary remote work in an employment contract. At the same time, in the case of an emergency, the employer can transfer employees to remote work without their consent.

Employment agreement


Grounds for employment termination upon the employer's initiative:

In Russia, it is impossible to dismiss an employee at the employer's will without citing grounds stipulated by the Labor Code of the Russian Federation

Other grounds for termination of an employment agreement as indicated in the Labor Code of the Russian Federation are quite rarely applied due to the complicated procedures and inefficiency in practice.

Labor protection

Health and safety issues for personnel are quite strictly regulated in Russia. Employers must perform workplace assessments and other activities. The issue of occupational health and safety is particularly relevant for industrial production businesses.

Liability for violation of labor laws

Inspection of companies for compliance with labor laws is performed by:

• State Labor Inspection
• State Prosecutor

Major violations of labor laws include:

1. Violations of labor protection — fines up to 200 000 RUB for each violation, suspension of business activity; criminal responsibility.
2. Delayed payment of salaries — fines up to 100 000 RUB for each violation; suspension of business activity; criminal responsibility.
3. Violations of procedures for maintaining HR documentation — fines up to 50 000 RUB for each violation.

Freelancers

A service contract with individuals (freelancers) can be signed for irregular works. It is recommended to conclude these contracts with caution, as the state authorities are inclined to reclassify them to labor agreements — especially if the services are provided to only one company.

To work in Russia, a foreign citizen must obtain a work visa (some countries are exempt) and a work permit.

Instead of the standard work permit, one may obtain a highly qualified specialist permit 

Foreign citizens coming to Russia without visa (from Republic of Moldova, Tajikistan, Azerbaijan, Uzbekistan and others) must obtain a work patent (or an HQS permit).

A patent is a special kind of permit that allows a foreigner to work at any company. The cost of a patent depends on the region and varies from 3 000 to 9 000 rubles per month. In Moscow and Moscow region — about 5 000 rubles a month.

In accordance with the Eurasian Economic Union Treaty, citizens of the Republic

of Belarus, Kazakhstan, Armenia and the Kyrgyz Republic may work in Russia without a work permit or patent.

Violation of migration laws by the company can lead to fines up to 1 million rubles and suspension of business activities for up to 90 days.

The Russian-Asian Union of Industrialists and Entrepreneurs (RAUIE) has been helping foreign companies to develop business with Russia since 2010. To start cooperation with Russia with the support of the RAUIE you can leave an application via the "ask a question" form on the website, or by email office@raspp.ru.

Our experts will help you develop your business with Russia not only in export but also in import, namely to find a direct manufacturer in Russia and conclude a deal with him on the supply of products to China or start your investment project in Russia for the production of agricultural or food products for export to China, including obtaining government incentives for the investor in Russia.

The article was prepared by experts from Bellerage, a member of the Russian-Asian Union of Industrialists and Entrepreneurs