Doing Business in Russia

18 Doing Business in Russia KPMG Labour Law Kazan Labour regulations Relations between employers and employees are primarily regulated by the Labour Code of the Russian Federation (the Labour Code). Employment relations in the Russian Federation are regulated by the Labour Code, as well as other legal acts that also regulate labour. These include collective/industry-specific agreements, internal policies, decrees and acts adopted by employers, as well as employer agreements with their staff (if any agreements exist) and direct employment contracts with actual employees. Russian labour legislation provides employees with rights and benefits, and governs the types of employment contracts that can exist along with the terms under which they can be concluded, amended and terminated. Importantly, the Labour Code provides that no employment contract can stipulate conditions that are worse than the minimum provisions provided for under Russian labour legislation. Social partnerships The Labour Code establishes a set of principles providing for social partnership in labour relationships. Social partnership is defined as the system of relations between employees, employers, the state and local authorities, aimed at regulating and balancing the interests of the employees and employers in their labour relations. The following areas of interest, among others, are regulated: Negotiation of collective agreements; Mutual consultation on employment issues; - Participation of employees in the management of the company; Involvement of all parties in negotiations/disputes before things go to court. Collective agreements A collective agreement can be concluded between an employer and its employees. The law does not require a collective agreement if neither party requests it. If a collective agreement is signed, then a trade union usually represents the employees. The employer is represented by the general director or his/her authorised representative(s). The law allows the parties to define the content of any collective agreement independently; however, the contents must not make any conditions worse than the minimum standards provided for by the Labour Code. The collective agreement is subject to registration with the appropriate State Labour Office. Role of trade unions According to the Labour Code, an employer is obliged to consider the opinion of a trade union(s) (if such a union exists) on certain matters. In Russia, trade unions are more typically formed at company level rather than at industry level. Employment conditions Employee guarantees Russian labour legislation provides certain guarantees for employees, in particular: Standard working hours are not to exceed 40 hours per week. © 2016 KPMG. All rights reserved.

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