Russian Labor Law

Overview of Russian Labour Law

Russian labour law is codified in the Labour Code of the Russian Federation (Trudovoy Kodeks), adopted on 30 December 2001 and effective from 1 February 2002, replacing the Soviet-era Labour Code of 1971. The Labour Code establishes a comprehensive regulatory framework governing individual and collective labour relations, working conditions, remuneration, and dispute resolution. The Code is supplemented by federal laws, presidential decrees, governmental regulations, and normative acts of federal executive authorities, particularly the Ministry of Labour and Social Protection.

Scope and Principles

The Labour Code applies to all employees and employers within the territory of the Russian Federation. Article 2 enumerates the fundamental principles of labour law, including the prohibition of forced labour and discrimination in employment, the right to fair working conditions, the right to remuneration not below the minimum wage, the right to rest and leisure, and the right to resolution of individual and collective labour disputes. The Code draws a distinction between a labour contract (trudovoy dogovor) governed by labour law and a civil law contract for services (dogovor grazhdansko-pravovogo kharaktera), which falls outside the scope of labour protections. The labour contract must be concluded in writing and contain mandatory terms including the place of work, the job function, the commencement date, the terms of remuneration, the working hours, the duration of the contract, and conditions of social insurance.

Working Time and Rest

Article 91 of the Labour Code establishes the maximum normal working week at 40 hours. Reduced working hours are provided for employees under 16 years of age at 24 hours per week, employees aged 16 to 18 at 35 hours per week, employees with disabilities at 35 hours per week, and employees working in harmful or dangerous conditions at 36 hours per week. Overtime is limited to four hours per day and 120 hours per year, subject to employee consent. Article 108 provides for daily rest breaks of at least 30 minutes for meals and rest. Weekly rest must be at least 42 consecutive hours. Annual paid leave of 28 calendar days is guaranteed under Article 115, with additional leave for employees engaged in hazardous work, work in the Far North, and irregular working hours.

Remuneration

The minimum wage (MROT) is established by federal law under Article 133 and is adjusted annually. Regional minimum wages may exceed the federal minimum through tripartite agreements between regional governments, trade unions, and employer associations. The Labour Code requires salary indexation in connection with rising consumer prices. Wages must be paid in cash in the currency of the Russian Federation at least twice per month, on dates established by the internal labour regulations or the employment contract. Article 137 of the Labour Code strictly limits the circumstances in which deductions may be made from wages. The Code establishes regional coefficients and percentage increments for work in regions with adverse climatic conditions.

Termination of Employment

Article 77 of the Labour Code enumerates the general grounds for termination of the labour contract, including mutual agreement of the parties, expiry of the term, employee initiative, employer initiative, transfer of the employee, refusal to continue work due to changes in ownership, and circumstances beyond the control of the parties. Article 81 sets out the grounds for termination at the employer’s initiative, including reduction in workforce or headcount, inadequacy of the employee for the position held, repeated failure to perform work duties without valid excuse, absenteeism, appearance at work under the influence of alcohol or drugs, disclosure of protected secrets, theft or embezzlement, breach of labour safety requirements, and loss of trust for employees handling monetary or valuable assets. Employees resigning voluntarily must provide two weeks’ written notice. Severance pay (vykhodnoye posobiye) under Article 178 is payable in cases of redundancy and certain other grounds, generally amounting to one month’s average earnings.

Collective Labour Relations

The Labour Code and the Law on Trade Unions govern collective labour relations. Trade unions operate under the Federal Law on Trade Unions, Their Rights and Guarantees of Activity. The Federation of Independent Trade Unions of Russia is the largest trade union confederation. The Code provides for the conclusion of collective agreements regulating working conditions, wages, and social benefits. The right to strike is regulated by Chapter 61 of the Labour Code, which requires conciliation procedures, a secret ballot, and advance written notice to the employer. Strikes are prohibited in essential services including energy supply, healthcare, and transportation. A lock-out by the employer is prohibited under Article 415 of the Labour Code.

Labour Disputes

Individual labour disputes are resolved by Labour Dispute Commissions (Komissii po trudovym sporam) established within organisations, or by the courts. Collective labour disputes are subject to conciliation procedures involving a conciliation commission, a mediator, and labour arbitration. The general limitation period for bringing a claim in an individual labour dispute is three months from the date the employee knew or should have known of the violation. Dismissal claims must be brought within one month. Court decisions in labour disputes are subject to appeal through the ordinary judicial hierarchy.