What is Involved When Terminating Employment and/or Employment Contracts?

Grounds for termination of employment under Russian Labor Law include a number of situations including among others:

• Agreement of the Parties
• Expiration of the Term of the Employment Contract
• Cancellation of the Labor Contract at the Initiative of Management or Employee
• Refusal of the Employee to Continue Working Due to the Change of Ownership or Subordination of the Employer or It’s Reorganization
• Refusal of the Employee to Continue To Work Because of the Relocation of the Employer

In General, an employee may terminate a contract concluded for an indefinite term by two weeks advance written notice to the Company, unless an earlier termination is mutually agreed upon. A Labor Contract for a definite term may be terminated by an employee if he/she is injured or disabled and unable to perform the required work, management violates labor legislation, the labor contract or if the employee has other good cause. In some limited instances, the employee may terminate a labor contract without prior notice.

In general, an employer may terminate a contract in the event of:

• Presentation of false documents by an employee when being hired
• Systematic non-fulfillment of work duties without good cause, such as being absent without notice, being at work in a drunken condition, disclosure of state, commercial or employer’s internal confidential information, theft, non-fulfillment of labor protection requirements which result in significant damage
• A single violation of labor responsibilities by a director of a company or its branch
• An action by an employee with financial responsibility which breaks the trust of the company

Russian law provides that employment contracts cannot be terminated on the initiative of the employer with the following employees:

• Pregnant women or women with children under the age of three
• Single women with children under 14 or disabled children under 16

In the case of employees under the age of 18; termination of an employment contract is permitted upon approval by the State Labor Inspection and Commission for Minors.

Termination of a contract on the grounds that the employee is not suitable for the position may be difficult to establish unless there are clear job requirements with demonstrable failings by the employee. Courts are generally disposed in favor of the employee when wrongful dismissal cases are brought. In practice, companies seek to gain the employee’s resignation when this is possible.

INDEPENDENT CONTRACTORS

An independent contractor may be engaged pursuant to the Russian Civil Code provisions relating to civil work contracts. Under a civil work contract, the contractor performs certain work at his own risk for the “customer” (employer). The contractor is required to use his own materials, unless otherwise provided by the contract.

However, if the nature of the contract or the actual “employment” is effectively a labor agreement, a court will likely uphold the applicability of the labor law should a dispute arise.

FOREIGNERS

Work Permits for Foreign Employees