On 1 January 2016 the provisions of Russian law on employee's labour arrangements (secondments) adopted back in 2014 entered into force.

The new provisions of the Labour Code now officially establish general prohibition on arrangements under which employees perform their work upon their employer's instruction in the interests and under the management and control of an individual or a legal entity that is not their employer (the 'customer'). At the same time the Labour Code and related legislation provide for a specific regulation on where such arrangements are allowed.

In particular, the provision of employee's labour can be carried out by:

  • accredited private employment agencies in accordance with Chapter 53.1 of the Labour Code; or
  • other legal entities if the provision of employees is between related persons, including (a) affiliates, (b) parties to shareholders’ agreements and (c) by a shareholder bound by the shareholders’ agreement (as employer) to joint stock companies (but not limited liability companies) in respect of which the agreement is concluded (as customer) in accordance with separate regulations which have not been adopted yet.

The new rules also provide certain protections for the employees provided under secondment arrangements and prohibit employers from seconding employees for certain reasons, such as replacing employees on strike.

Actions for employers

Since the beginning of this year care should be given to structuring secondment arrangements with Russian companies so as to avoid breaches of Russian law.

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