Russia's employment legislation has undergone a series of significant updates that took effect in early 2025. Foreign employers operating through Russian legal entities, representative offices, or branch structures must assess their exposure now. Companies that delay risk regulatory penalties, employment contract disputes, and exposure to claims under Russian labour enforcement procedures.
Russia's updated employment legislation introduces stricter requirements for employment contracts, collective agreements, dismissal notice periods, and social security contributions – all directly affecting foreign-owned businesses with staff in Russia. The changes are in force as of 1 January 2025. International companies employing Russian nationals must bring their documentation and internal procedures into compliance without delay.
This alert summarises what changed, which businesses are affected, and the five immediate actions your organisation should take.
What changed – the key regulatory developments
Russia's labour and employment legislation has been amended across several connected areas. The changes span employment contract requirements, termination procedure rules, collective agreement obligations, and social security contribution thresholds.
Employment contract content requirements have been tightened. Every employment contract must now include more detailed specifications of working conditions, job functions, and compensation structures. Contracts that predate the reform but lack the newly required clauses are considered non-compliant. Employers have a prescribed window to execute amendments or supplementary agreements. Failing to update existing contracts exposes the employer to administrative liability under Russian employment legislation.
Dismissal notice periods have been extended in specific categories. The revised rules differentiate between ordinary termination and redundancy-related dismissal. Employees in certain protected categories – including those on fixed-term contracts approaching expiry – now attract longer dismissal notice obligations. A common mistake by foreign employers is applying the pre-reform dismissal notice calendar without checking whether the employee's category falls under the extended regime.
Termination procedure requirements have become more prescriptive. Russian employment law has always required careful sequencing: internal documentation, union or works council notification where applicable, and formal order issuance. The updated rules add a verification step for remote and hybrid employees. International employers who introduced remote working arrangements during 2022 to 2024 without updating their employment contracts are particularly exposed here.
Collective agreement obligations now apply to a wider range of employers. The threshold for mandatory collective bargaining engagement has been lowered. Foreign-controlled entities that previously sat below the threshold may now be required to initiate or renew a kollektivny dogovor (collective agreement under Russian labour legislation). Ignoring this obligation does not eliminate liability – Russian courts and labour inspectors treat the absence of a required collective agreement as a continuing violation.
Social security contribution rates and base calculations have been updated. The revised rules affect the contribution base for certain categories of foreign national employees and for employees working under civil-law service contracts that Russian authorities reclassify as employment relationships. Businesses relying on contractor arrangements to reduce social security exposure should seek an immediate review.
For context on how these developments interact with corporate structure obligations, see our analysis of corporate law requirements for foreign entities in Russia.
Who is affected – threshold criteria and business categories
The updated rules apply broadly. The following categories of foreign employers carry the highest exposure.
- Foreign companies operating through a Russian subsidiary, joint venture, or wholly owned entity with local employees.
- Representative offices and branches of foreign legal entities that engage staff directly under Russian employment legislation.
- Foreign employers using secondment or cross-border assignment arrangements where the host entity bears employer-of-record obligations in Russia.
- Businesses that introduced remote or hybrid work policies for Russia-based employees after 2022 without updating employment contracts or internal regulations.
- Entities that rely on civil-law service contracts with individuals performing functions consistent with an employment relationship.
The collective agreement threshold change is particularly significant for mid-size operations. Entities with more than 15 employees in Russia should verify whether they now fall within the mandatory collective bargaining regime. In practice, Russian labour inspectors apply this threshold at the level of the Russian legal entity – not the global headcount of the foreign parent.
Foreign employers with fewer than 15 Russia-based employees are not exempt from the contract content and termination procedure changes. Those rules apply universally, regardless of workforce size.
To receive an expert assessment of your employment compliance position in Russia, contact us at info@ferrazwhitmore.com.
What to do now – immediate actions for international companies
The compliance window is narrow. Companies operating in Russia should treat the following as immediate priorities.
1. Audit all employment contracts. Review every employment contract against the updated content requirements under Russian employment legislation. Identify contracts that predate the reform and lack the newly mandated clauses. Prepare supplementary agreements and obtain employee signatures within the period prescribed by Russian labour law. Unsigned amendments do not protect the employer from liability.
2. Review dismissal notice and termination procedure for pending separations. If your organisation has planned or ongoing terminations in Russia, verify that the dismissal notice periods and termination procedure steps reflect the updated rules. Errors in sequencing – particularly for remote employees or those in protected categories – frequently result in reinstatement orders issued by Russian courts.
3. Assess collective agreement obligations. Check whether your Russian entity now falls within the mandatory collective bargaining threshold. If a kollektivny dogovor is required and absent, initiate the negotiation process. Russian labour inspectors conduct periodic checks and treat non-compliance as a continuing violation attracting recurring administrative fines.
4. Reclassify contractor arrangements where necessary. Review civil-law service contracts with individuals performing regular, directed work. Under updated Russian employment legislation, the indicators for reclassification as an employment relationship are interpreted broadly. Social security exposure on reclassified arrangements is calculated retroactively.
5. Update internal employment regulations and HR documentation. Internal rules on working hours, remote work, and disciplinary procedures must align with the amended legislation. Russian employment law requires that internal employment regulations be formally adopted, disclosed to employees, and stored in prescribed form. Outdated internal documents compound exposure when labour inspectors visit or when disputes reach the Gosudarstvennaya inspekciya truda (State Labour Inspectorate of Russia).
For a full picture of your Russian employment obligations, our dedicated practice page on employment law in Russia sets out the core procedural requirements in detail. Businesses active across the CIS region may also find it useful to review the parallel regulatory alert on employment regulation changes in Kazakhstan, where several analogous reforms are underway.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our employment law practice covers Russian and CIS employment legislation, cross-border workforce structuring, and compliance with local labour regulations for foreign-owned entities. We advise international businesses on employment contract drafting, collective agreement obligations, termination procedure management, and social security compliance in high-growth and emerging markets. Our attorneys have experience before Russian labour authorities and have supported clients through employment audits, reclassification disputes, and collective bargaining processes. Engaging a lawyer in Russia with genuine cross-border experience matters when the regulatory environment shifts quickly – as it has in 2025. As an international law firm advising on Russia, Ferraz & Whitmore brings both the local knowledge and the cross-border perspective that foreign employers need. To discuss how these changes affect your operations, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.
Published: April 16, 2026
Author: Anna Chen – Senior Associate, Asia-Pacific, Middle East & CIS