Russian individual and collective labour law provisions significantly differ from that of the German labour law and, in practice, play an essential role, as there are multiple rules regulated by law that are integral for organizing and running a company’s business. This primarily applies to health and safety in the workplace, accounting control, new data protection laws, and numerous other aspects. Labour inspectorates conduct audits even more often than tax authorities with such audits being equally irritating. Hiring and dismissal of employees (which include the General Director) involve a huge amount of formalities. If certain formalities are not complied with, a dismissal often becomes invalid, though there are certain signs of a change in the Russian courts’ mindset.

Collective labour law previously took a back seat, but regained relevance in the course of the economic crisis, and a large number of foreign investors, for example in the automotive industry, have had to face strikes.

Russian labour law also applies to foreigners employed in Russia, with such employees eligible for certain preferential terms. However, in practice, the process of employing a foreign employee, involving his/her relocation to Russia is quite troublesome, even without consideration of the employee’s insurance and tax status in his/her home country. However, the immigration and tax laws saw some changes in 2010 that simplified the process for “highly skilled professionals” significantly. We will be happy to advise you on any labour and immigration law issues, and we can also represent the interests of our clients in labour law cases and income taxation matters.