Russia Employment Guide
Russia Employment Guide
Russia is located in northern Eurasia, with a vast territory and the largest land area in the world. It borders the Pacific Ocean to the east and multiple European countries to the west. With a population of approximately 146 million, its economy is dominated by energy (oil and natural gas), mining, manufacturing, agriculture and services. Moscow, the capital, serves as the political, economic and cultural center. Russia’s labor laws require employment contracts to be in writing, with a standard 40-hour workweek. They guarantee the minimum wage, social insurance and paid leave. Dismissals must comply with legal procedures and include compensation for employees. The country has a relatively well-established labor relations system and provides certain policy support for foreign-funded enterprises, but attention must be paid to compliance with legal and administrative procedures.
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Currency
Russian Ruble (RUB)
Capital
Moscow
Official language
Russian
Salary Cycle
Monthly
Our Employment Guide in Russia
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Navigating Employee Termination in Russia: A Comprehensive Guide for International Employers
Terminating employment relationships in Russia requires meticulous adherence to complex legal frameworks and country-specific regulations. The dismissal process must be handled collaboratively between employers and key stakeholders, often involving special considerations and mandatory procedures depending on termination circumstances.
Legally Compliant Termination Methods
Russian labor law strictly regulates employment termination, prohibiting arbitrary dismissals without valid justification. Employers must operate within these legally recognized categories:
- Mutual agreement termination
- Employee-initiated resignation
- Employer-initiated termination with legal grounds
- Probation period assessment
- Organizational liquidation
- Workforce reduction or restructuring
- Repeated failure to perform job duties without valid reason
- Serious violations (breach of safety requirements, etc.)
- Contract expiration
Notice Period Requirements by Termination Type
| Termination Circumstance | Mandatory Notice Period |
|---|---|
| Probation period termination | 3 calendar days |
| Company liquidation | 2 months |
| Staff reduction or reorganization | 2 months |
| Change of company ownership | New owners may terminate key management contracts within 3 months of ownership transfer |
Severance Payment Obligations
Russian severance calculations depend on both termination reasons and employment duration, with specific requirements for each scenario.
| Dismissal Reason | Severance Entitlement |
|---|---|
| Company liquidation | Average monthly salary for second month post-termination; third month payment in special cases |
| Workforce reduction | Average monthly salary for second month post-termination; third month payment in special cases |
| Medical inability to transfer positions | Two weeks' average earnings |
| Military conscription | Two weeks' average earnings |
| Refusal to relocate with company | Two weeks' average earnings |
| Contract violation through no employee fault | One month's average earnings |
Practical Considerations for International HR
Companies like SailGlobal often encounter challenges when managing Russian terminations. One manufacturing firm faced significant penalties for improperly handling a redundancy case, highlighting the importance of local expertise. Another technology company successfully navigated a complex termination by engaging Russian legal counsel early in the process.
Documentation remains critical throughout termination procedures. Employers must maintain detailed records of performance issues, violation incidents, and communication attempts. The Russian labor inspectorate frequently requests comprehensive documentation during disputes.
Recent legislative changes have increased scrutiny on foreign employers, particularly regarding mass layoffs and termination procedures. SailGlobal's experience shows that proactive compliance monitoring can prevent costly legal challenges and maintain positive employer branding in the Russian market.
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