The Labor Code of the Russian Federation and Employee Protections in Russia
The Labor Code governs the rights and duties of employees working in Russia, regardless of whether the employer is foreign or Russian. This guidance is widely cited by experts, including specialists from government agencies who stress that workers should understand their protections in all applicable situations. The following sections summarize five key ways workers can safeguard their rights when a foreign company reduces operations or ends its presence in Russia.
If a foreign company has announced the suspension of its activities in Russia
When suspension occurs, employers must issue orders that address essential payments to staff. If the suspension results from the employer’s fault or a lack of objective grounds, employees are entitled to two thirds of their average earnings, calculated over the last twelve months. If the disruption stems from external challenges outside the employer’s control, such as logistical issues or supply chain problems, the same two thirds of salary applies.
If a formal order is missing or deemed unlawful, employees retain the right to seek compensation. They may first contact the prosecutor’s office and the state labor inspectorate, and then pursue a court remedy if necessary.
If a foreign company leaves Russia for good
Companies cannot simply abandon their workforce. The liquidation decision must be clearly stated, followed by written notice to each employee with signature acknowledgement. Notice must be provided at least two months before the anticipated dismissal date. In case of liquidation, all staff are affected, including those on maternity leave and temporary disability leave.
During the two month notice period, workers should not be subjected to forced reductions or unpaid vacation. They should continue to work under normal terms, and salaries or bonuses cannot be reduced. Dismissed employees qualify for severance pay equal to an average monthly salary, payments for unused vacation days, and any legally mandated compensation. Early dismissal is possible only with the employee’s consent and appropriate compensation. Such arrangements are typically formalized through a mutual agreement.
During the job search period, laid-off workers receive protections for up to two months, and in certain exceptional cases up to three months. If the job search extends beyond one month, the employee may be paid an additional average monthly salary for the second month or part thereof. Workers should contact their former employer within 15 days after the second month of unemployment, often by presenting a certificate from a business support center.
Voluntary resignation is discouraged. Employees who resign on their own may forfeit rights to benefits and compensation. In addition, a separation agreement that pays less than the statutory amount is not required to be signed.
If the company goes bankrupt
The Labor Code does not list bankruptcy as a distinct reason for dismissal. Bankruptcy procedures resemble liquidation rules. Affected employees receive severance pay equivalent to an average monthly salary, compensation for unused vacation days, and wages earned for the period of work. In bankruptcy cases, dismissals can proceed with or without a mutual agreement between the parties.
Debt repayment often comes through the sale of the bankrupt organization’s assets. In some situations, owners may be held personally liable, enabling recovery of funds from their own resources.
If a person was laid off – what are the payments and guarantees?
Upon dismissal, employees should receive severance pay, wages for time worked, and compensation for unused vacation days. The typical payment at dismissal reflects an average monthly salary, though employers may choose to provide more based on internal guidelines or negotiations. The total sum corresponds to the length of the employee’s service with the company.
In cases of workforce reductions, certain workers enjoy preferential retention rights. These may include individuals supporting multi-member disabled households, sole earners with industrial injury or occupational disease, disabled veterans, workers with specialized training tied to the employer, or persons affected by radiation-related illnesses. A collective agreement can also grant priority retention to certain employees.
What to do if you have to quit
Forcing an employee to resign is not permitted. A manager who pressures someone to resign to reduce payments may engage in coercive tactics. In such cases, the worker should resist the pressure and document evidence of the violation. The first step is typically to report the issue to the prosecutor’s office or, if needed, to the state labor inspectorate and ultimately to the court. Modern practices accept a range of evidence, including audio and video records of violations, as well as screenshots of electronic communications and chats, to support the claim.