Labor contract termination

The Labor Code of Russia prescribes several grounds for labor contract termination.

Termination of labor contract initiated by an employee


An employee has the right to terminate a labor agreement. The employee must warn the employer in written form about the termination of the agreement at least two weeks before the termination. The employer may agree to terminate the contract with an employee earlier than two weeks.

Termination of labor contract initiated by an employer

The employer has the right to terminate a labor contract in the following cases:

1. The liquidation of the company.
2. If the employee is not t for the occupied position because of insufficient qualications by the results of a professional attestation.
3. A change of property owner of the company (in this case, the employer has the right to terminate the labor agreement only with the Chief Executive Ocer, his deputies, and the Chief accountant)
4. The poor results of the test during the probation period before it ends.
5. Redundancy.
6. Violation of labor duties and labor discipline.
7. In other cases established by the Labor Code and Federal laws. It is not allowed to dismiss an employee at the employer’s initiative (except in the case of liquidation of the organization) during his temporary incapacity for work and while on vacation. The employer should notify the employee about dismissal two months before the date of dismissal and make a severance payment in the case of liquidation of the company.
When the employee is dismissed due to poor results during the trial period, it is necessary to notify him about termination no later than three days before the end of the trial period.

Termination upon mutual agreement

Employee and employer may agree to terminate labor contract by mutual agreement. In this case, they draft and sign the agreement and put all the necessary statements in it. Also, they may agree on the payment of severance pay or compensation. At the same time, such a benefit is not mandatory. Once the employee and employer signed a mutual agreement, the employee cannot cancel or change the arrangement unilaterally.

Summary dismissal


The employer can dismiss an employee without notice in the case of:

  • Repeated non-fulfillment of job functions by an employee without good reasons if an employee has a disciplinary punishment;
  • A single gross violation of job duties by an employee (truancy, narcotics or other intoxication, disclosure of the company or trade secrets, submission of false documents, etc.)
  • Taking inconsistent decisions by a chief executive of the company (branch oce, representative office), assistants of a chief executive of the company, and chief accountant that has led to violation of the safety of company property, illegal usage of company property, or other damage to company property.
All above groundings should be conrmed in a proper way by documents, evidence, etc.

Retrenchment

In the case of reducing the number of job positions in the company, the employer has a right to dismiss employees on the grounds of reduction. The employer should notify an employee about dismissal two months before the date of dismissal and make a severance payment.

Retirement

The employer has no right to initiate the dismissal of an employee in connection with the retirement age. An employee who has reached retirement age retires at his request. However, the employee may indicate a valid reason for dismissal, such as "in connection with his retirement. " In the case of such dismissal, the employee is not obligated to provide notice to the employer two weeks before the date of dismissal. By the employee’s request, he may be dismissed on the same date the employer receives his application.
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