31 October 2016, 07:21

Dismissal of the employee in Russia can be time-consuming and expensive. That is why employers often prefer fixed-term employment contract.

It is important to understand that fixed-term contract is legitimate only in particular cases. Among them are seasonal works, hiring the employee for the project and replacement of the absent employee. It is also allowed to sign a fixed-term contract on mutual consent with General Managers, Deputies and Chief accountants.

However, there is an exception when the fixed-term contract can be concluded with all employees in the company. If the company belongs to the small businesses (no more than 49% shares of legal entities) and the number of employees does not exceed 35 (20 for retail businesses) then the fixed-term contract can be signed on mutual consent with all employees.

In other cases the fixed-term labor contract can be recognized as labor contract for indefinite period and in case of employee dismissal state authorities can demand to hire him back.   

⇒ The article was written by our partner Bellerage, the Financial and Legal Outsourcing company. Their broad service line covers all back-office functions: 

  • Tax & Finance Advisory
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  • Legal Advisory & Litigation 
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Find out more about Bellerage and their services HERE.

 

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