Member Article

Dear All,

Recently we have informed you on the general prohibition to use lease of personnel in Russia introduced by the Law No.116-FZ "On Amendments to Certain Legislative Acts of the Russian Federation" which came into force as of January 1, 2016. After it was adopted there was a period of uncertainty when it was not clear whether secondment contracts concluded before 2016 shall be terminated or not.

The Federal Labor and Employment Agency (Rostrud) has clarified that secondment contracts concluded before 2016 continue to be in force and shall be fulfilled according to their conditions and legal requirements.

As concerns the secondment relations occurring after January 1, 2016, the new legislation shall be applicable. Please be reminded that currently only registered private employment agencies has the right to provide leased personnel. For the moment there is still no legal regulation of secondment between other companies which are not registered as private employment agencies (intra-group secondments).

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We hope you will find this information helpful. Should you have any questions, please do not hesitate to contact Irina Anyukhina ([email protected]), Partner of ALRUD Labor and Employment practice.

Yours faithfully,

ALRUD Law Firm

Please note that this Newsletter should not be considered as a ground for making any decision regarding a particular issue. All the information for this Newsletter was taken from the public sources.