HR Solutions & Employee Relations in Russia with IRIS
IRIS HR Consulting has experience helping businesses grow in Russia. Without expert guidance, it can otherwise be risky and costly to leave local laws and legislation open to interpretation. For a scalable, compliant operation, IRIS can manage your HR in Russia to help businesses hire, recruit, and pay staff overseas in new, unfamiliar countries. As a popular destination for businesses, IRIS can navigate local barriers – from culture to compliance – to arrive at a rewarding opportunity for your business to thrive in this exciting marketplace.
Take your business to Russia with IRIS HR Consultancy.
Global Expansion to Russia
The largest country globally, with a geography that stretches across 11 time zones and reaches from Asia to North America, and even neighbours Europe. This expansive region enjoys one of the quickest growing consumer economies, accessed by a large population with an appetite for luxury. This consumer market, which is largely educated, has untapped potential for businesses that are globally mobile. Russia has long attracted foreign investment – in part for access to its internal markets, a booming economy, and then again for its trade routes. Infrastructurally, Russia enjoys support from its central government and from the Foreign Investment Advisory Council (FIAC).
When two businesses negotiate and arrive at a deal, this is often positioned to create equal and advantageous opportunity for both. This attitude, ushered into the workplace, generally promotes a communal impression of equality and business advantages enjoyed by all. This is all underpinned by Russia’s collective spirit for work, where most professionals are unified under a social model that prospers from equality.
Establishing your business into Russia
Embarking on a global expansion is a strategic move to gain extra value from exciting foreign markets, which are constantly evolving and full of opportunity. But the international stage isn’t always easy to navigate.
Before establishing your operation in these exciting and faraway markets, you must ensure compliance with employment regulations, which are constantly evolving.
Starting a business in Russia can be economically advantageous, especially for access to its trade routes within Europe, the Middle East and further afield. Every business must plan for HR services, compliance, tax and adherence to local labor laws, which lay the foundations for employment relations and often offer favourable conditions for employees.
Owed to the country’s alignment with socialism, labor laws often focus on wellbeing and mentality, thereby nurturing professionals. For businesses with the right people priorities, this can open opportunities for skill availability and talent acquisition.
Did you know?
The disciplinary processes that govern employment can seem strict at times and, due to compliance, an employer will be required to complete and submit paperwork that supports employment.
Employment rights & contracts in Russia
As a strict standard, it’s common in Russia for employers to supply a contract that contains the details and agreements of employment. This should be written in the local language. The contents of a contract should contain at least compensation, benefits – including remuneration – and disclose termination requirements.
Contracts can be fixed term or operate on undefined durations.
Offer letters should outline salary expectations, and this should be spelled in Russian rubles rather than an alternative currency.
Contracts should include:
- Names and other details regarding employer and employee
- Starting dates
- Renumeration package
- Social insurance(s)
Hiring & recruitment in Russia
When getting your first hire overseas, you will need to negotiate terms of employment. But that requires local knowledge, strict compliance, and an understanding of what to include in an offer.
In Russia, the driving force for employment is captured in The Russian Labor Code (2002). This regards the rights of employees, employers and their relationship. It covers all areas and types of businesses from a range of industries and includes all employees regardless of citizenship status.
Equal Opportunities in Russia
These rulings determine equality in employment condition and include anti-discrimination policies. The specifics are captured in the Russian Labor Code and will protect employees from unfair or unequal bias.
What are the working hours in Russia?
The conventional working week is set at 40 hours, with strict exemptions that allow for overtime. Yet, certain classifications of employees have reduced hours.
Overtime in Russia
Employees are required to seek out written permission for overtime in Russia. Any working hours in excess of the standard 40-hours weekly will need this kind pf permission, and should not surpass four extra hours over two consecutive days of work.
Sick Leave in Russia
According to Russian law, when workers are unable or unfit to work due to injury or illness – often requiring medical attention – then they can expect to receive anywhere between 60% – 100% of their wage.
Maternity Leave in Russia (Including Paternity)
Pregnant female employees can expect to receive 140 days of paid leave. The split is usually taken as 70 days prior to childbirth and 70 days thereafter. Where pregnancy is complicated, or there are extra births, then leave can extend up to 194 days.
There is currently no statutory requirement for employers to offer paternity leave.
Public Holidays in Russia
In Russia, there are six national holidays, including:
- Defenders of the Fatherland Day
- International Women’s Day
- Spring and Labor Day
- Victory Day
- Day of Russia
- National Unity Day
During the first week of January, the whole country celebrates Orthodox Christmas and the New Year, which is generally perceived as a national holiday.
The minimum requirement for vacation in Russia is set at 28 days annually (per calendar year). But this subject to the following rules:
- Employees must take at least one segment of time-off in the form of 14 consecutive days.
- When vacation time is in excess of 28 days, then employees can request cash pay-out for the additional days that are surplus.
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Deliver your business to new, exciting markets with confidence and compliance.
End of Service
HR in Russia requires compliance not only during an employee’s service, but also at the end of it. End of service might include severance, termination, redundancy, and leaving packages. Or, for globally mobile companies with teams in foreign markets, this could be repatriation services for those returning from an assignment overseas.
For these more complicated matters, you will need expert HR guidance to navigate Russian labor laws and remain compliant.
Termination (including Severance) in Russia
Probation is fixed at three-months in Russia for all types of employment. In the scenario of a dismissal before that time, an employer must provide valid reasoning.
Ordinarily, termination of a contract results in peaceful negotiations between an employer and employees, whereby exit strategies can be planned and agreed upon.
Severance pay is determined on a range of factors, including length of service. Typically, at least three-months pay is offered, in addition to 1-2 months of pay prior to concluding the contract and in light of the employee’s notice.
Retirement & pensions in Russia
The pension scheme is very similar to other social welfare estate and receives employee-based contributions. The employer will supply funding through payroll, contributing 22% to help fund retirement schemes like pension.
In Russia, the welfare state covers the following areas regarding employee benefits:
- Retirement schemes, or pension
- Survivors benefit
The social system is funded by payroll contributions, whereby the employer must anticipate that 22% of their payroll should be contributed as tax. As a maximum for employer contributions, funding is capped at 624,000 rubles against 10% of payroll.
Under social funding, all citizens (and employees) have access to free and open medical care. Yet, supplementary health plans and insurances can give employees extra confidence from privatized schemes.
Why Partner With IRIS?
When entering new, exciting countries such Russia, you will need an employment specialist to navigate the parts of local laws that are mandatory and those that are not. Delivering a compliant solution, IRIS can help your business arrive into new marketplaces whilst protecting your workforce – our partners can discover power and protection through us.
Overseas expansions can seem risky to those who dare it alone. Understanding the complexity of a fully complaint solution, IRIS can help businesses reach Russia.
Our cost-effective, knowledgeable approach to HR in Russia makes us an ideal partner to commence your overseas plans.