Employment law issues rarely determine the strategy for a multi-jurisdictional business acquisition, but they can certainly give rise to significant avoidable costs and delay if issues are not spotted in advance. In the Herbert Smith Freehills 2016 global survey, 57% of respondents cited employment regulations as one of the reasons a deal had failed to complete. The temptation may be to assume that employee issues will be broadly similar in each country, but in practice employment law varies significantly from jurisdiction to jurisdiction and it is not even safe to assume that a particular continent will have a broadly similar approach.
On 1 January 2016 the provisions of Russian law on employee's labour arrangements (secondments) adopted back in 2014 entered into force.
Herbert Smith Freehills has published the first edition of a Global Guide to Whistleblowing, providing a quick reference guide to the law and culture around employees 'blowing the whistle' in 40 key jurisdictions covering in EMEA, the Americas and Asia Pacific.
On 1 January 2015 new amendments governing the liability of employers for breaches of Russian employment legislation entered into force. In particular, the general penalty for breach of employment legislation has been increased. Moreover, some new penalties have been introduced for specific types of breaches. An additional penalty for repeated breaches has also been introduced. Continue reading
We have recently updated our multi-jurisdictional guide discussing potential employee issues in business transfers (first published in October 2013). The second edition reflects the law as at February 2015. The guide is a quick reference tool covering the key legal requirements in 32 jurisdictions in EMEA, South and Central America and Asia-Pacific, in a simple Q&A format. To request a soft copy of the fully updated guide, please click here.
Following Russia's accession to the World Trade Organisation and various policy developments, the law governing the engagement of foreign employees in Russia has undergone several changes. Continue reading
After almost 4 years of deliberation, the concept of a secondment has finally been introduced into the Russian Labour Code by Federal Law No. 116-FZ dated 5 May 2014 (the "Law") entering into force on 1 January 2016. Amendments have also been made to the Russian Tax Code and the Employment Law.
Although the Law will not come into effect for another year and a half, we recommend that it should be taken into account when structuring secondments arrangements in Russia. Continue reading
Employment contracts in Russia often contain ‘golden parachute’ provisions which entitle employees to compensation in the event of termination of their employment. Continue reading
Compliance with local employment and immigration laws is an area of increasing interest to Russian regulatory authorities. Multi-national companies operating in Russia may be surprised by many aspects of Russian law, and should take particular note of the requirements given that non-compliance can have serious consequences.
Some of the key points to note are set out below. Continue reading
Recent developments in Russian employment law arising out of the President's Order given on 14 March 2011 allow employees to work from home. These changes to the Labour Code of the Russian Federation (the "Labour Code") are effective from 19 April 2013.
The current market requires more flexibility regarding the workplace since many professionals are able to work from a location other than their employers' offices, i.e. home, local café, etc. Remote employment offers a number of advantages, including cost savings for both employer and employee. Moreover, it also gives employers access to professionals whom they might otherwise not easily employ (due to mobility problems or living outside the commuting area). Continue reading