Rivermate | Russia flag

Russia

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Russia

Notice period

In Russia, the Labour Code (Article 80) outlines the notice period required for terminating an employment contract. This notice period varies depending on the reason for termination and is applicable to both employers and employees.

Notice Periods for Employers

In most cases of employer-initiated termination, the employer is required to provide the employee with a written notice two months in advance. This is applicable in situations such as company restructuring, redundancy, or employee performance issues outside the probationary period.

However, there are exceptions where a shorter notice period is allowed:

  • During the employee's probationary period, if performance is deemed unsatisfactory, the employer can provide only a three-day written notice. This applies to standard probation periods, which can last up to three months for most employees and six months for some senior positions.
  • Upon expiration of a fixed-term contract, the employer needs to provide only a three-day written notice.

With the employee's written consent, the employer can cancel the notice period by paying compensation equal to the average wage for the remaining notice period.

Notice Period for Employees

Employees intending to resign must notify their employers in writing at least two weeks in advance. This period can be shortened by agreement with the employer.

Severance pay

In Russia, an employee's entitlement to severance pay is determined by the reason for employment termination as outlined by the Labour Code of the Russian Federation.

Employer-Initiated Termination

In cases of redundancy or company closure, the employer is required to pay the employee a severance equal to one month's average salary on the last day of employment. The employee can claim an additional one month's average salary for the job search period if they haven't found a new position within two months of termination. However, this requires a formal application within 15 days after the second month following dismissal. No severance pay is mandated if the termination is due to employee misconduct or a serious breach of contract.

Employee-Initiated Termination

If the employee resigns by following the proper notice period, they are not entitled to severance pay. There are limited exceptions where an employee may be eligible for severance pay even upon resignation, such as relocation due to a spouse's job transfer or health reasons that prevent them from continuing the work. However, these situations typically require documented proof and may be subject to employer discretion.

Special Cases

Employees dismissed for specific reasons like conscription, medical reasons rendering them unfit for work, or reinstatement of a previously dismissed employee are entitled to two weeks' average salary as severance. Employees working in the Northern and Far Eastern regions of Russia may be entitled to a higher severance pay, reaching up to three months' average salary in standard redundancy cases. In exceptional circumstances, employment agencies can extend this to six months' average salary.

Termination process

The termination of an employment contract in Russia follows specific procedures outlined by the Labour Code of the Russian Federation and can be initiated by either the employer or the employee.

Employer-Initiated Termination

  1. Grounds for Termination: The employer must have a valid legal reason for termination as defined by the Labour Code. Common grounds include redundancy, company closure, employee performance issues, or misconduct.

  2. Documentation: The employer must issue a termination order outlining the reason for termination and the effective date. Additionally, the employer needs to make the necessary entries in the employee's work book, a mandatory document recording employment history in Russia.

  3. Final Payment: On the employee's last working day, the employer must pay all outstanding wages, vacation pay, and any other compensation due.

Employee-Initiated Termination (Resignation)

  1. Notice: The employee must submit a written resignation letter to the employer.

  2. Work Handover: During the notice period, the employee is typically expected to complete their assigned tasks and ensure a smooth handover of responsibilities.

  3. Documentation: Upon resignation, the employer completes the employee's work book and settles any outstanding payments.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.