Contracts in Russia

Overview by

The Active Population in Figures

Main Indicators 20062005200420032002
Labor Force 7418773811729097283572421
Labor Force (Annual Growth, %) 0.501.200.100.601.40
Rate of Activity (%) 82.281.781.681.781.5
Unemployment Rate (%)

Source: Federal Statistics Service

Note: The rate of activity is calculated on the basis of the population of working age.

Employed Persons, by Occupation (% of Total Labor Force) 2006
Agriculture, hunting and forestry 10.6%
Fishing and fish farming 0.2%
Mining sector 1.5%
Manufacturing industry 16.8%
Distribution of electricity, water and natural gas 2.9%
Construction 7.6%
Commerce 16.6%
Hotels and catering 1.8%
Transport and communications 8.0%
Financial intermediation 1.4%
Real estate 7.4%
Public administrations 5.3%
Education 9.0%
Health and social services 6.9%
Other activities 3.7%

Source: Federal Statistics Service


Management of Human Resources



Method of Recruitment
The most common method of recruitment is still by word of mouth.
There are many Internet sites for advertisements, and this is an efficient way of recruiting.
Moreover, more and more companies are resorting to recruitment agencies. An interview takes place before hiring.
Recruitment Agencies
Regional or national head-hunters who generally contact candidates directly.
The market is in full expansion.There are more than a hundred agencies in Moscow, most of them Russian, but the large international agencies are also present such as Adecco, Alexander Hughes, Arthur Hunt, Brainpower and Amrop Hever. Click here to see a list of recruitment agencies.
Recruitment Websites
Tip Top Job International
The Moscow Times Career Center

The Contract

Type of Contract
A work contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiation.
Contracts can be permanent or fixed-term. The use of a fixed-term contract must be justified.
Breach of Contracts
  • Retirement
It can take several forms: "normal" retirement, for personal reasons, an agreement with the employer, voluntary early retirement, etc.
  • Dismissals
Only allowed in a limited number of cases: liquidation of the company, down-sizing, serious professional misconduct, inadequacy for the work required.
  • Other Possible Methods
Mutual agreement, at the employee's initiative, the employee's refusal to continue to work when working conditions have changed.
Labor Laws
Synthesis of labor legislation in Russia
Different laws

Dispute Settlement


Conciliation Process

Cases of Dispute
Most disputes are the result of challenging a dismissal or disciplinary measure, but collective disputes are on the rise.
  • Legal Framework
Procedures are different according to whether the case concerns one person or if it is collective. If the case only concerns one person, a distinction is made between disputes over the application of existing working conditions and those concerning new working conditions. Within the framework of collective disputes, arbitration is obligatory.
The 2 parties first set up an arbitration committee with equal representation whose decisions are binding.
If arbitration fails, the parties can appoint a mediator, who may be recommended by the Service for the Settling of Collective Labor Disputes.
In case of failure, the decision will fall to an ad hoc arbitration committee created by the parties and the above-mentioned service. The composition, procedures and powers of this committee are set by common agreement.
  • Procedure
Labor Code of the Russian Federation

Judicial Structures

  • Legal Framework
Labor Code of the Russian Federation
  • Competent Legal Body
Individual disputes are usually dealt with by the Dispute Settlement Committee, an equal representation body inside the company.The worker can appeal the decision of this Committee or in some instances take the case directly to a civil tribunal.

Social Partners

Social Dialogue and Involvement of Social Partners
The scope of the unions is seriously limited by government policy and the position of strength of the Federation of Russian independent unions (FSIR), which is close to the government and prevents other unions from developing freely.
In addition, the new law on NGOs also applies to unions and limits their activity considerably.
Unionization Rate
46% according to the FSIR (of which 95% are members of this). The trend is towards a drop.
Federation of Russian independent unions
Regulation Bodies
Federal migrations Service (in Russian)
Ministry of Health and Social Development, Employment and Social Relations Service

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