Learn about the legal processes for employee termination and severance in Russia
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
Final Payment: On the employee's last working day, the employer must pay all outstanding wages, vacation pay, and any other compensation due.
Notice: The employee must submit a written resignation letter to the employer.
Work Handover: During the notice period, the employee is typically expected to complete their assigned tasks and ensure a smooth handover of responsibilities.
Documentation: Upon resignation, the employer completes the employee's work book and settles any outstanding payments.
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