Dismissing an employee is one of the riskiest actions a foreign employer takes in Russia — the law is strongly employee-protective and the valid grounds are an exhaustive list. How to dismiss lawfully, without handing the employee a reinstatement claim, is the question.
Grounds for dismissal are a closed list, and procedure is unforgiving — a wrong ground, or a right ground applied wrongly, can mean reinstatement.
Build the dismissal on a valid ground with correct process — or, where it's risky, negotiate a clean separation instead.
Dismissing an employee in Russia is one of the most legally complex and risk-laden actions a foreign-owned company can take. Russian labour law (Трудовой кодекс РФ) is strongly employee-protective, courts routinely reinstate dismissed employees on procedural grounds, and the financial consequences of an unlawful dismissal — back pay for the entire period plus compensation — can be significant. This guide covers every dismissal ground available to employers, the required procedure for each, and the practical risks.
Article 81 of the Labour Code provides an exhaustive list of grounds on which an employer can initiate dismissal. Using a ground not on this list — or using a listed ground incorrectly — results in unlawful dismissal and reinstatement. The most practically relevant grounds for foreign-owned companies:
The most common ground for foreign companies reducing headcount. Key requirements:
The position must be genuinely eliminated from the staffing schedule (штатное расписание). Creating a new position with substantially similar duties within 12 months after redundancy exposes the employer to reinstatement claims.
2 months' written notice to the employee personally (with signature acknowledgement)
Written notification to the employment service (центр занятости) and, if applicable, the trade union — same 2-month notice period
Obligation to offer the employee any available alternative positions — must be documented in writing, even if no suitable positions exist
Priority right for some categories (higher qualifications, family responsibilities) to remain employed when positions are being reduced
Severance: 2 months' average salary. If the employee registers with the employment service within 2 weeks and does not find employment within 2 months, a third month's average salary is payable.
Where redundancy affects 50+ employees within 30 days, 200+ within 60 days, or 500+ within 90 days, mass redundancy rules apply. Notice period extends to 3 months. Employment service notification is mandatory 3 months in advance. Mass redundancies require close coordination with the regional labour authority. For foreign-owned companies undergoing significant restructuring, mass redundancy rules apply more frequently than anticipated.
Dismissal for repeated failure to perform employment duties requires an existing valid disciplinary measure (выговор or замечание). The sequence:
Pick your situation — we'll tell you where you stand:
First violation: request written explanation from employee (2 business days to respond). Issue formal замечание (notice) or выговор (reprimand).
Each disciplinary measure must be: issued within 1 month of discovering the violation, not later than 6 months from the violation itself, and formally documented with employee signature.
Second violation within 12 months of an active disciplinary measure: dismissal possible.
The disciplinary measure expires after 12 months if no further violations occur — employer cannot rely on it for subsequent dismissal.
Dismissal without prior warnings is permitted for specific gross misconduct instances defined in Article 81(6):
Absence (прогул): absence from work without valid reason for more than 4 consecutive hours during a working day. Requires documented confirmation of absence — CCTV, access records, witness statements, absence report.
Appearing drunk (алкогольное опьянение): presence at work in a state of alcohol, narcotic or other intoxication. Requires medical examination or refusal of examination documented by 2+ witnesses.
Trade secret disclosure: disclosure of legally protected trade secrets or personal data of colleagues.
Theft or property damage: theft or wilful damage of employer's property — requires a court verdict or administrative decision confirming the act.
Safety violation causing serious consequences: violation of occupational safety rules that caused or created a real threat of serious consequences.
The most flexible and legally safest dismissal ground. Both parties agree to terminate on mutually agreed terms. No notice period is required if both parties agree. The agreement typically includes a compensation payment negotiated between the parties — there is no statutory minimum (unlike redundancy).
Key advantages of mutual agreement: no procedural requirements beyond the written agreement, no reinstatement risk if the agreement is properly documented, flexible timing. Key risk: the employee can subsequently challenge the agreement on grounds of pressure or duress — ensure the agreement is clearly voluntary and the employee had time to consider it.
During the probation period (maximum 3 months for standard employees, 6 months for directors and chief accountants), dismissal is simpler: 3 working days' notice in writing, specifying the reasons for failure. The reasons must be genuine performance-related — not personal characteristics unrelated to job performance.
The following categories are protected from employer-initiated dismissal (except in company liquidation or individual entrepreneur cessation):
It has to be on the Labour Code's exhaustive list — 'at will' isn't a ground in Russia. Whether yours qualifies, and can be documented to survive challenge, is the first question, because an invalid ground leads to reinstatement.
By using a valid ground and following the procedure exactly — a correct ground applied the wrong way still loses. Getting both right, or choosing a negotiated exit where the ground is weak, is what makes the dismissal hold.
Often the safer route — a negotiated separation by agreement closes cleanly and avoids the reinstatement risk of a contested dismissal. Where the ground is uncertain, it's frequently the better option.
This is one of the riskiest actions a foreign employer takes — Russian labour law is strongly employee-protective and the grounds are an exhaustive list. Your question is how to dismiss lawfully, on a valid ground, without handing the employee a reinstatement claim.
Planning a dismissal? Russian labour law is unforgiving of procedure — worth getting the ground and process right before you act.
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