Terminating employment in Russia requires strict adherence to the provisions of the Russian Labor Code. Unlike in some other jurisdictions, the process is highly regulated, with specific grounds for dismissal, mandatory procedures, and significant protections for employees. Employers must navigate these rules carefully to avoid legal challenges and potential liabilities, including reinstatement and compensation for wrongful dismissal.
Understanding the legal framework governing employment termination is crucial for businesses operating in Russia. This includes knowing the acceptable reasons for ending an employment relationship, the required notice periods, the calculation and payment of severance, and the specific steps that must be followed to ensure compliance with the law. Failure to comply can result in costly disputes and reputational damage.
Notice Period Requirements
The required notice period for terminating an employment contract in Russia varies depending on the grounds for termination and the type of employment contract. The most common notice period for employer-initiated termination based on general grounds (like redundancy or liquidation) is two months. However, shorter or longer periods may apply in specific circumstances.
| Termination Ground | Standard Notice Period | Notes |
|---|---|---|
| Liquidation of the organization | 2 months | |
| Redundancy (staff reduction) | 2 months | |
| Employee's own initiative (resignation) | 2 weeks | Unless otherwise agreed or for specific roles/circumstances |
| Termination during probation period | 3 days | By either party |
| Termination of fixed-term contract (less than 2 months) | 3 days | Upon expiry or specific grounds |
| Termination of seasonal work contract | 7 calendar days | Upon expiry or specific grounds |
| Gross misconduct (e.g., absence, intoxication) | No notice required | Immediate dismissal possible after investigation and documentation |
It is important to note that collective agreements or the employment contract itself may stipulate longer notice periods, which must be observed. Shorter notice periods are generally only permissible under specific legal grounds.
Severance Pay
Severance pay entitlements in Russia depend primarily on the reason for termination. The most common scenarios requiring severance are liquidation of the company and redundancy (staff reduction). In these cases, employees are entitled to a mandatory severance payment.
| Termination Ground | Severance Entitlement | Calculation Basis |
|---|---|---|
| Liquidation of the organization | Average monthly earnings for the first month after dismissal. Potential entitlement for a second and third month. | Based on average daily earnings over the previous 12 months. |
| Redundancy (staff reduction) | Average monthly earnings for the first month after dismissal. Potential entitlement for a second and third month. | Based on average daily earnings over the previous 12 months. |
| Employee called up for military service | Two weeks' average earnings. | Based on average daily earnings over the previous 12 months. |
| Employee refuses relocation with employer | Two weeks' average earnings. | Based on average daily earnings over the previous 12 months. |
| Employee declared unfit for work (medical reasons) | Two weeks' average earnings. | Based on average daily earnings over the previous 12 months. |
| Employee refuses transfer due to employer's health reasons | Two weeks' average earnings. | Based on average daily earnings over the previous 12 months. |
| Reinstatement of previous employee | Two weeks' average earnings (for the employee being dismissed to make way for the reinstated employee). | Based on average daily earnings over the previous 12 months. |
For liquidation and redundancy, the employer must pay the average monthly earnings for the first month after dismissal. If the employee does not find new employment within the second month, the employer may be obligated to pay average monthly earnings for the second month as well, upon presentation of proof from the employment service. In exceptional cases, the employment service can decide to preserve the average monthly earnings for the third month after dismissal.
Severance pay is generally not required for terminations based on the employee's fault (e.g., misconduct, poor performance) or termination by mutual agreement, although a compensation package can be negotiated in the latter case.
Grounds for Termination
The Russian Labor Code provides an exhaustive list of grounds for terminating an employment contract. These can be broadly categorized:
- By mutual agreement of the parties: This is a common and flexible ground, allowing employer and employee to agree on the terms and date of termination.
- Upon expiry of a fixed-term contract: The contract ends automatically on the specified date.
- By employee's initiative (resignation): The employee provides notice (usually two weeks) and terminates the contract.
- By employer's initiative: These grounds are strictly defined and include:
- Liquidation of the organization.
- Redundancy (staff reduction).
- Employee's failure to meet job requirements due to insufficient qualification (requires certification).
- Employee's failure to meet job requirements due to health condition (requires medical certificate).
- Repeated failure by the employee to perform duties without valid reason, if they have a disciplinary penalty.
- Single gross violation of labor duties (e.g., absence, intoxication, disclosure of protected information, theft).
- Guilty actions by an employee handling money or goods, leading to loss of trust.
- Immoral conduct by an employee performing educational functions.
- Submission of fake documents upon hiring.
- Other specific grounds related to the head of the organization or specific employee categories.
- Circumstances beyond the control of the parties: Includes events like military service, reinstatement of a previous employee, employee's refusal to relocate, employee's recognition as totally disabled, etc.
Terminating an employee on grounds initiated by the employer, especially those related to fault or performance, requires substantial evidence and strict adherence to procedure.
Procedural Requirements for Lawful Termination
Ensuring a termination is lawful in Russia involves following a precise sequence of steps, which vary depending on the termination ground. Common requirements include:
- Issuing a written notice: The employee must be formally notified of the impending termination, stating the ground and effective date. The notice period must comply with legal requirements.
- Obtaining necessary approvals: For certain grounds (e.g., redundancy, disciplinary dismissal), consent from the trade union may be required if one exists and the employee is a member.
- Offering alternative positions (for redundancy/health reasons): If terminating due to redundancy or health reasons, the employer must offer the employee any suitable vacant positions within the company that match their qualifications and health status.
- Issuing a termination order: A formal order (usually using the standard T-8 form) must be issued, signed by the employer, and presented to the employee for signature.
- Making final settlement: On the employee's last day, the employer must pay all outstanding wages, compensation for unused vacation days, severance pay (if applicable), and any other amounts due.
- Issuing employment documents: The employer must provide the employee with their employment record book (if applicable, or information about labor activity), a certificate of earnings, and other required documents on the last day of employment.
Common pitfalls include failing to provide adequate notice, incorrect calculation or non-payment of final settlement amounts, insufficient documentation of the termination ground (especially for fault-based dismissals), failure to offer alternative positions, and not obtaining required trade union consent.
Employee Protections Against Wrongful Dismissal
Russian labor law provides significant protections to employees, making wrongful dismissal a serious risk for employers. Certain categories of employees receive enhanced protection:
- Pregnant women: Cannot be dismissed by employer initiative, except in cases of company liquidation.
- Women with children under 3 years old: Cannot be dismissed by employer initiative, with limited exceptions (e.g., liquidation, gross misconduct).
- Single mothers raising a child under 14 (or disabled child under 18): Similar protections to women with children under 3.
- Employees on temporary disability leave or annual paid leave: Cannot be dismissed by employer initiative during these periods, except in cases of company liquidation.
- Trade union representatives: Require consent from the higher trade union body for dismissal on certain grounds.
If an employee believes their dismissal was unlawful, they can file a claim with the labor inspectorate or a court. If a court finds the dismissal to be wrongful, the employer will typically be ordered to:
- Reinstate the employee to their previous position.
- Pay the employee average earnings for the entire period of forced absence.
- Potentially pay compensation for moral damage.
Navigating these protections and procedures requires careful legal consideration to ensure compliance and mitigate risks.
