Overview of Russian Labor Law and Employment Policy

Employment Law Overview

• Key Laws and Regulations:
  • Russian Federation Labor Code
  • Russian Federation Tax Code
• Legal Characteristics:
  • Aims to protect employee rights and promote a fair employment environment
  • Provides detailed regulations on employment contracts, working hours, vacations, severance pay, and taxation

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (not exceeding 5 years)
  • Indefinite-term contracts
• Contract Provisions:
  • Must include provisions on job description, remuneration, working hours, vacations, and severance pay
• Language and Currency:
  • Contracts must be in Russian and denominated in Russian rubles

Working Hours Regulations

• Standard Working Hours: 40 hours per week
• Rest Days and Breaks: At least 24 hours of rest per week and at least 30 minutes of rest after each hour of work

Vacation Policy

• Annual Leave: Minimum of 28 days of paid annual leave per year
• Public Holidays: 14 national public holidays
• Special Leaves:
  • Sick Leave: Up to 15 days of paid sick leave
  • Maternity Leave: 140 days of paid maternity leave
  • Parental Leave: Paid parental leave until the child reaches 18 months of age

Employee Dismissal and Contract Termination

• Notice Periods:
  • Employer termination: 2 months
  • Employee termination: 14 days
• Severance Pay:
  • Employer termination without notice: Equal to the average salary for the notice period
• Protection Against Unfair Dismissal:
  • Employees are legally protected against unfair dismissal

Tax Law

• Personal Income Tax:

  • Salary Range (RUB)	Tax Rate
    0 - 5,000,000	13%
    5,000,000 and above	15%

• Social Insurance Contributions:

  • Pension insurance: 22% (on salaries up to RUB 1,917,000)
  • Medical insurance: 5.1% (on salaries up to RUB 1,917,000)
  • Social insurance: 2.9% (on salaries up to RUB 1,917,000)
  • Accident insurance: 0.2%- 8.5% (depending on occupational risk)

Health Insurance

• Insurance Policy: Employees are required to participate in the state healthcare system
• Insurance Coverage: Basic medical services

Compensation and Benefits

• Minimum Wage: RUB 12,130 per month (as of 2020)
• Salary Structure: Typically includes base salary, bonuses, and allowances

Work Permits and Visas

• Permit Requirement: Foreign workers require work permits
• Application Process: Apply through the Federal Migration Service of the Russian Federation

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable and not unduly restrict employee's career development
• Common Provisions: Confidentiality, non-competition, and non-solicitation

Training and Development

• Legal Requirements: Safety training and skills enhancement training
• Government Support: Government-funded training programs

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, gender, religion, or other protected characteristics
• Enforcement Measures: Government agencies responsible for enforcing anti-discrimination laws

Remote Work Policy

• Legal Framework: Remote work is permitted, but must be in the form of a written agreement
• Tax and Insurance Implications: Tax and social insurance implications of remote work depend on specific circumstances

Authoritative Website Addresses

• Ministry of Labor of the Russian Federation: https://rosmintrud.ru/