The regulation of remote work for employees is governed by Section 49.1 of the Labor Code of the Russian Federation, which specifies that a remote worker does not need to be physically present at a traditional workplace. This perspective is widely reported by industry observers, including Irina Gukova, the founder of GAP, through discussions with media outlets.
Experts note that the norms in the Labor Code apply within the borders of the Russian Federation. When work is performed outside Russia, Russian laws may not hold the same legal authority, creating a need to consider local regulations in the host country. This nuance is crucial for multinational organizations and any employee relocating for work—an area where clarity in contracts and cross-border agreements becomes essential.
A particularly risky scenario arises when a Russian citizen resides abroad for extended periods without a valid documented reason. If the total time spent overseas reaches 183 days within a calendar year, the individual may lose resident status. Losing resident status changes the applicable tax regime. Personal income tax for non-residents is typically higher than that for residents, potentially resulting in a substantial increase in tax liability. Specifics should be verified with tax professionals, as the tax treatment hinges on current residency rules and the taxpayer’s circumstances.
There are noted cases where employers initiate the relocation of staff to foreign locations by establishing a foreign entity or transferring the employee to a foreign branch. In such arrangements, the employee’s income may be treated as sourced outside the Russian Federation, reducing or eliminating Russian personal income tax on non-resident income. This nuance depends on the precise structure of the employment relationship and the tax laws of the relevant jurisdiction.
Gukova also highlights that employers presently retain the ability to define an employee’s geographic work location within the terms of the employment contract. It is possible to incorporate travel restrictions or require advance permission for overseas trips as part of internal policy. In today’s geopolitically sensitive climate, the employer bears responsibility for approving or denying international travel, and this responsibility should be reflected in well-drafted employment documents and company guidelines.
In light of evolving work arrangements, many Russians have embraced remote or hybrid work models. This trend underscores the importance for both employees and employers to understand how cross-border assignments interact with local labor laws, residency rules, and taxation. Practical steps include formalizing the telework agreement, clarifying tax residency implications, and ensuring compliance with any destination country requirements while balancing the home country’s regulatory framework.
For organizations contemplating global staffing or long-term relocations, it is essential to develop clear policies that address residence status, tax obligations, work permits, and the conditions under which an employee may work abroad. Clear communication, proper documentation, and proactive tax planning are critical to minimize legal and financial risk. Ongoing consultation with tax advisors and labor law specialists is advisable to adapt to changing regulations and to safeguard both the employer and the employee in cross-border work arrangements.
Remote work continues to be a significant portion of employment arrangements, with a growing share of the workforce adopting remote or hybrid models. Ongoing policy updates, supported by experienced counsel, help ensure that remote work is sustainable, compliant, and aligned with both national standards and international practice.