Doing Business in Russia

20 Doing Business in Russia Employment contracts can be concluded for: An indefinite term; or A fixed term not exceeding five years. Fixed term contracts are only allowed when employment relationships cannot be established for an indefinite term and specific conditions have been satisfied. In particular, fixed term contracts are permitted, inter alia, for the following types of employees: - - Directors, deputy directors, chief accountants; Employees working in companies created for a specific project; Part-time workers (having more than one job); Individuals in full-time education. Employers are required to sign individual written employment contracts with each of their employees. After the contract is signed, a respective order admitting the employee into work within the company should be issued by the general director. The grounds for terminating employment under Russian employment legislation include, inter alia: - Mutual agreement that has been reached by both parties; - Expiry of the term of the employment contract; Cancellation of the employment contract upon the initiative of the employer (as discussed below) or the employee; Refusal by the employee to continue working due to a change in the ownership/management or control of the employer, or due to the employer undergoing restructuring; Refusal of the employee to continue working after the employer has relocated. In general, an employee has the right to terminate a contract by giving two weeks advance written notice to the employer, unless an earlier termination date is mutually agreed upon. A fixed term employment contract can be terminated by an employee if he/ she is injured or disabled and unable to perform the required work, or if management violates employment legislation/the collective agreement/ the employment contract, or if the employee has other good grounds for doing so. In some limited circumstances, the employee has the right to terminate an employment contract without prior notice. In a limited number of cases, the employer has the right to terminate a contract. These include: - - - An employee submitted false documents when hired; An employee fails to fulfill their work duties on a regular basis without any good reason for why they cannot; is absent without any good explanation; is inebriated at work; discloses state, commercial or the employer's internal confidential information; steals from the employer; fails to comply with labour protection requirements, resulting in significant damages; The director of a company or company branch commits a single violation of their employment responsibilities; An employee with financial responsibilities commits an act which breaches the trust of the company. Russian law states that employment contracts cannot be terminated on the initiative of the employer, inter alia, with the following types of employees: Pregnant women or women with children under the age of three; Single women with children under 14 or disabled children under 16. Russian law states that employment contracts cannot be terminated on the initiative of the employer, inter alia, with the following types of employees: Pregnant women or women with children under the age of three; - Single women with children under 14 or disabled children under 16. Where employees are less than 18 years of age, an employment contract can be terminated only with the approval of the State Labour Inspectorate and Commission on Minors. It can prove difficult to terminate an employment contract on the grounds that the employee is not suitable for the position unless there are clear job requirements with demonstrable failings by the employee. Courts generally rule in favour of the employee when considering cases of alleged wrongful dismissal. In practice, companies seek, where possible, to secure the employee's voluntary resignation. The Labour Code prohibits employers from initiating termination procedures against certain categories of employees. Work book Russian labour legislation requires that a work book be kept for each employee who has worked for at least five days at a company, if this work is the employee's main employment. This is a fundamentally important document in which the employment history of Kazan KPMG © 2016 KPMG. All rights reserved.

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