The Ministry of Labor has stated that entering into employment contracts with workers who are located abroad is not permissible. This stance was reported by a newspaper citing Dmitry Mylnikov, a representative of the Ministry, in response to an anonymous inquiry posted on the Consultant Plus portal. News outlets picked up the remark as an authoritative clarification on the matter.
In addressing when an employee should inform the employer about plans to work overseas, Mylnikov clarified that the ministry regards a remote worker who intends to perform duties outside the country and change their place of work as someone who must notify the employer. Failure to do so is viewed as a breach of the employment agreement.
Mylnikov further explained that, according to the Ministry of Labor, it is not allowed to conclude an employment contract for remote work with a citizen for work outside the Russian Federation. Cooperation with individuals working remotely from abroad should occur within civil law relationships rather than under a formal employment contract. He also highlighted that an employee’s decision to work abroad has tax implications, as it influences tax residency status.
Anna Ivanova, a partner in BGP Litigation’s labor law practice, noted that Russian labor law does not impose prohibitions on citizens traveling abroad. She emphasized that the majority of court decisions favor remote work conducted from abroad, underscoring a trend in judicial interpretation when a worker is outside Russia.
Natalya Greshnova, the Chairwoman of the Executive Committee of the Russian Lawyers Association SRO, reminded readers that labor law norms apply to citizens while they perform work within Russia. When the employee is abroad, these labor law provisions do not govern the relationship. She added that the ministry’s letter carries no formal legal force, though it may be influential in resolving labor disputes.
Earlier, the Russian Federation established a uniform personal income tax rate for remote workers, a policy that continues to shape how individuals are taxed when their work location changes across borders. This policy context blends with ongoing debates about the proper framework for remote labor arrangements and how tax residence is determined in cross-border scenarios.
In sum, the ministry’s guidance signals a cautious stance on treating remote work abroad as a standard employment relationship, favoring civil law arrangements when personnel operate outside the country. The statements reflect an emphasis on notifying employers about foreign work plans and recognizing potential tax residency consequences, while legal practitioners acknowledge that national labor rules primarily apply when work occurs inside Russia. As discussions continue, businesses and employees alike are urged to seek clarity through formal agreements and, where appropriate, civil-law counsel to navigate cross-border work arrangements.