COUNTRY

Written Agreements

Russia's Labor Code mandates the conclusion of a written employment contract between the employee and the employer. If the employee is admitted to the workplace with the employer's permission, but without a formal employment contract, they are considered an employee, and a written agreement must be made within 3 days of the admission. 2 copies of the employment agreement must be made and signed by both parties. A copy must be given to the employee, and another must remain with the employer.

The employment contract must include the following information:

• Full names of the employee and employer
• Information on personal identity documents of the employee and employer
• Taxpayer identification number
• Information on the representative of the employer who signed the labor contract
• The place and date of conclusion of the labor contract
• The place of work
• The job function of the employee and the position offered
• The date of work commencement and the duration of the agreement, in case of fixed-term employment
• The terms for remuneration (including base wage or employee's salary rate, extra payments, mark-ups, and incentives)
• Work and leisure hours
• Compensation for demanding work and for handling harmful materials
• The terms and conditions defining the nature of work
• The types of social insurance associated with the position.

Non-competition covenants in employment relationships are restricted in Russia. The Russian Constitution and Labor Code guarantee the freedom of labor, including the freedom to choose work and a profession, as a fundamental principle in regulating labor relations and related matters.

Oral Agreements

In Russia, while the conclusion of written contracts is mandatory for forming employment relations, the law also allows an employee to work with the knowledge of or at the order of the employer or their representative. In this case, a written contract must be concluded within 3 days of the employee's hiring date. 2 copies of the employment agreement must be made and signed by both parties. A copy must be given to the employee, and another must remain with the employer. The written contract must contain a variety of statutorily required terms.

Implied Agreements

Russia's labor law recognizes that the labor relations between an employee and an employer can be formed based on the employer's permission to let an employee work, even if a formal labor agreement has not been drawn. In this case, a written contract must be made within 3 days of the employee's hire date.

Russia's Labor Code states that the standard duration of working time cannot exceed 40 hours in a week. The employer is responsible for keeping a record of the actual working time of each employee. Employees who work longer than 40 hours per week are eligible for overtime. The law establishes reduced working hours as follows:

• For employees under 16 years of age, the working time is up to 24 hours a week.
• For employees between the ages of 16 to 18, the working time is up to 35 hours a week.
• For disabled employees, the working time is up to 35 hours a week.
• For employees who work in harmful and/or hazardous conditions, the working time is up to 36 hours a week.

The length of working time on days preceding non-working holidays is reduced by 1 hour.

• New Year Holidays - January 1 to January 5
• Eastern Christmas Day - January 7
• Day of the Defender of the Fatherland - February 23
• International Women’s Day - March 8
• Spring and Labor Day - May 1
• Victory Day - May 9
• Day of Russia - June 12
• Day of National Unity - November 4

In Russia, employees are entitled to an annual paid leave of at least 28 calendar days. During the first year of service, the employee acquires the right to go on leave after 6 months of continuous service with the organization.

Before the expiration of the 6-month period of continuous service, the paid leave must be granted upon application to the following categories of persons:

• Women before the maternity leave or right after it
• Employees under 18 years of age
• Employees who adopted a child under three months of age
• A husband may be given his annual paid leave by request during his wife's maternity leave.

The employee should be informed of the time of the leave no later than 2 weeks before its start. Unused leave is eligible for rollover into the following year.

Non-working holidays during the leave period are not included in the number of calendar days and are not paid. Additional annual paid leave must be granted to employees involved in work with harmful and dangerous conditions and employees working in the Far North regions. However, Russia's Labor Code does not specify how much additional leave must be granted.

In Russia, employees who become ill or suffer an injury may take sick leave from work. Sick leave is also extended to employees taking care of a sick relative. While taking sick leave, the employee is entitled to a temporary disability allowance between 60% and 100% of their average earnings as follows:

• An insured person with an insurance record of 8 years or more - 100% of the average earnings (up to RUB 2,242.84 (Russian rubles) per day)
• An insured person with an insurance record of 5 to 8 years - 80% of the average earnings (up to RUB 3,231.78 per day)
• An insured person with an insurance record of up to 5 years - 60% of the average earnings (up to RUB 4,039.73 per day)

If an illness or injury occurs within 30 days after employment ends, insured individuals receive temporary disability benefits amounting to 60% of their average earnings. Temporary disability allowance is paid by the Social Security Fund of the Russian Federation for the entire duration of the temporary incapacity.

Russia's Labor Code grants a total of 140 days of paid maternity leave to pregnant women: 70 days before the delivery and 70 days after the delivery. In the case of multiple births, the leave is extended to 84 days before delivery. In the case of abnormal birth, it is extended to 86 days after delivery. Finally, in the case of the birth of 2 or more children, it is extended to 110 days after delivery. The employee is entitled to receive 100% of their earnings (up to a statutory maximum) during maternity leave, paid by the Social Security Fund of the Russian Federation.

The amounts paid for the standard 140 days of maternity leave are a minimum of RUB 88,565.40 and a maximum of RUB 565,562.20. This amount varies depending on the number of days the maternity leave lasts. Russia provides a one-time benefit for the birth of a child. It is provided to 1 of the working parents, and when 2 or more children are born, the benefit is paid per child. As of 2024, the amount is RUB 24,604 per child.

Pregnant employees may not be employed in overtime or night work. They may also not work on weekends or public holidays. Finally, they may not travel for business. The law also prohibits the dismissal of pregnant employees unless the organization is being liquidated.

In Russia, either parent (or another primary caregiver) can take child-rearing leave until the child turns 3 years old. During the first 18 months of this leave, a benefit amounting to 40% of the caregiver's average salary (subject to a cap) is paid by the Social Insurance Fund. The remaining 18 months are unpaid.

Additionally, fathers are entitled to up to 5 days of unpaid leave upon the birth of a child. This leave is categorized as unpaid leave provided for personal reasons and must be agreed upon with the employer.

Minimum Wage

The minimum wage in Russia is calculated every month and cannot be less than the subsistence level for working citizens. According to Art 129 of the Labor Code, the following payments and bonuses are not included in the minimum wage:

• Payments for overtime work
• Payments for work under harmful, especially hazardous conditions
• Bonuses for anniversaries
• Bonuses for inventions and rationalization proposals
• Financial aid.

The minimum wage is subject to annual indexation, taking into account the inflation rate. As of January 1, 2025, the Federal Minimum Wage is set at RUB 22,440 (Russian rubles) per month.

Salaries are paid at least every half month. The specific date for payment of wages is established by internal labor regulations, a collective agreement or an employment contract no later than 15 calendar days from the end of the period for which it was accrued.

Overtime, Holiday & Vacation Pay

According to Russia's Labor Code, an employee's overtime is limited to 4 hours over 2 consecutive days and 120 hours in a year. Overtime can be performed with the employee's consent when it is necessary to carry out repairs or restore mechanisms. The payment for overtime is as follows:

• For the first 2 hours of overtime, the payment is at least 1.5 times the employee's usual wage.
• For the following overtime hours, the payment is at least twice the employee's usual wage.

Employees are paid additional remuneration for working on public holidays on which they were not involved in work, determined by the collective agreement, agreements, local regulations adopted taking into account the opinion of the elected body of the primary trade union organization, and the employment contract. Employees are paid their normal remuneration while on annual leave.

Notice Period

According to Russia's Labor Code, an employee can terminate an employment contract by providing written notice of at least 2 weeks to the employer. A seasonal employee must provide 3 days notice to the employer if they terminate their employment before the end of the season. An employer of seasonal employees must provide 7 days written notice to the employee if they terminate an employee before the end of the season. Employers and employees may mutually agree to terminate an employment contract before the expiration of the notice period. Notice periods are generally stipulated in individual employment contracts or collective agreements. An employer must give 2 months' notice to employees if the organization is being dissolved. Employers are not required to provide notice if an employee is terminated for cause.

Severance Benefits

According to Russia's Labor Code, employees whose contract is terminated due to the organization's liquidation or due to redundancy are entitled to severance pay equal to their average monthly earnings for up to 3 months.

If the employment contract is terminated for the following reasons, the severance pay is equivalent to 2 weeks' salary:

• The employee refused to be transferred to another job due to a medical condition.
• The employee is being drafted to undergo military service or alternative civil service in place thereof.
• The employee refused to be transferred to a job in another area together with the employer.
• The employee is declared as entirely incapable of working by a medical practitioner.
• The seasonal employee's contract is canceled due to the organization's liquidation or a reduction in the number of employees.

Individual or collective employment agreements can vary the amount and length of severance pay given to the employee.

Pension

The retirement age in Russia for 2024-2025 is 63 for men and 58 for women (the retirement age will gradually increase to 65 for men and 60 for women by 2028). Employees must be insured for at least 15 years to be eligible for a retirement pension. The old-age pension is the sum of the insured's pension points multiplied by the pension point's value in the year the pension is claimed plus a basic flat-rate benefit. The flat-rate benefit is adjusted for pensioners with disabled dependent family members and pensioners who have worked in the Far North.

Russia also has a social pension plan where non-working persons who have reached the age of 65 years (men) or 60 years (women) receive a fixed amount from the government, adjusted every year.

Dependents/Survivors Benefits

Russia's Pension Fund provides for pensions to survivors in case of death of the head of a household. The following persons are considered survivors:

• Children, sisters, brothers, and grandchildren of the deceased who have not reached the age of 18 years or are enrolled in full-time education until the age of 23 years, or are disabled
• The parents and the spouse of the deceased, if they have reached the age of 65 (men) and 60 (women) or are disabled
• The deceased's grandfather and grandmother, if they have reached the age of 65 (men) and 60 (women) or are disabled

The pension for survivors is equal to the sum of the insured's pension points multiplied by the pension point's value in the year the pension is claimed plus a fixed base benefit.

Children under the age of 18 who have lost one or both parents, or children over 18 who are studying full-time, and children of a deceased single mother, receive a survivor's social pension.

Invalidity Benefits

In Russia, disability pensions are classified into insurance disability pensions for individuals with sufficient work experience and contributions, and state disability pensions for those who do not qualify for insurance pensions but meet specific criteria, such as military service.

Pensions vary based on the degree of disability (Groups I, II, and III), with higher payments for severe conditions: RUB 16,269.76 for Group I, RUB 8,134.88 for Group II, and RUB 4,067.44 for Group III as of January 2024. Any disability recognized through medical-social examination qualifies, regardless of whether it is work-related. Individuals eligible for retirement benefits may transition to old-age pensions with supplements for disabilities. Additional compensation is provided for occupational accident-related disabilities through a separate employer-funded insurance system, covering medical and rehabilitation expenses.

The Social Security Fund also provides temporary disability benefits for illness, injury, or caregiving for dependents, with specific rules. Social disability pensions are also provided for disabled individuals, children, and those disabled since childhood, regardless of retirement age.