Obligatory employment conditions in Russia
If your business is growing successfully, you will need to start hiring more and more employees sooner or later. Today, we will tell you how to hire an employee correctly.
The definition of an «employment contract» is given in article 56 of the Labour Code of the Russian Federation. It’s an agreement between employer and employee, whereby the employer undertakes to provide the employee with work due to the labour function; to provide working conditions stipulated by the Code, laws and other normative legal acts, collective agreement, agreements, local normative acts; to pay the full salary to the employee on time; while the employee undertakes to perform the labour function, and comply with the organization’s internal labour regulations.
Suppose you have had a successful interview with the person, and you decide to hire him.
First of all, a future employee should write an application. It is submitted to the head of the organization. In this application, the employee asks to be accepted for the appropriate position. The document is written by hand in free form.
The employment application is signed by the manager or his deputies authorized to hire employees. The Director must not only sign the application but also write «I do not mind» or «I Agree».
There is a list of professions in Russia for which regular medical examinations are mandatory. These are workers employed in harmful working conditions, doctors, shift workers. Office employees who work with a computer for more than 50% of their working hours and sales employees — for example, sellers of
If your employees work with food, children, or provide services in the spheres where it is possible to infect consumers with any diseases, then they also need to pass the full medical examination, special training on work safety and pass the exam. After that, the employee gets a medical book, which he provides to the employer.
Now it’s your turn to issue a job order. This is the main document for employment. On its basis, an employment contract is concluded. The order specifies the organization’s name, the full name of the head, and the number of the document.
The employee must read and sign it. The order is registered in the order log. It is accompanied by a certificate of medical examination or medical book (if needed) and the application (that the employee has already written at step 1) — this is the employee’s personal file.
Now you need to sign an employment contract.
The agreement is prepared in two copies — one for each party. The document specifies the basic things:
- position and department;
- who the employee reports directly to;
- the period of probation, if any; (the test period may not exceed three months; for heads of organizations and their deputies, chief accountants and their deputies, heads of branches, representative offices and other separate structural divisions of organizations — six months)
- official duties;
- other working conditions.
Another important point that must be specified in the employment contract: work and rest hours. For example, something like this «for an employee, a
You need to make a record in the employment record book. If the employee has already got the book — you just make a record. If he has never worked before — the employer buys the book for the employee and makes the record in it.
Now you need to notify the State about one more employee and start paying contributions to the pension and social funds.
In order to avoid problems with government agencies, you must pay insurance, pension contributions, and taxes for each employee. So, you need to submit a notification to the social insurance Fund in 30 days after the employee is hired. After that, you pay taxes and pension contributions to the Tax Service and contributions to the Social Insurance Fund. Also, you have to make monthly reports on payments of contributions to the Pension Fund.
All in all, you need to pay:
- 13% of the income tax;
- 22% to the Pension Fund;
- 5.1% for medical insurance;
- 2.9% to the Social Insurance Fund;
- payments on «incidents» from 0.2 to 8.5% (according to the sphere your company works in)
But sometimes there is a need to hire employees for a short time or do some temporary work. In that case, you can enter into a civil contract.
The document specifies the type and scope of work, terms of its completion, and payment terms. After completing the order, the parties sign the act of acceptance of the completed work and financial documents.
For organizations that do not register employees for work in accordance with the law, administrative and criminal liabilities are provided.
Our company provides payroll, HR administration services, and labor legislation consulting. In the case of foreigners' employment in Russia, we will help arrange a work permit and provide all the necessary support.
If you need any assistance, please, contact us.