The Labor Code, efficient since February 1, 2002, that replaced the old Labor Code of 1971, targets all organizations in the Russian Federation, non-respectably to ownership, size and legal status. There are four major areas of innovations in the new Labor Code:
The primacy of law in labor relations. Thus, all clauses in individual labor contracts, even if a contract is voluntarily signed by an employees, that deteriorate the conditions of employments regarding the existing legislation, are illegal.
Second, the rights of trade-unions are seriously limited. For example, the approval of a trade-union in mass lay-offs is not required anymore, trade-union activists may be easily fired, and employer is not obliged to provide the necessary conditions for trade-union daily activities.
Third, a special chapter was devoted to contracts of executives, thus enabling owners for stricter control of top managers in their companies.
Fourth, dismissal of employees became easier. An employee may be fired:
- After a single serious violation of his/her job duties (previously it was required a series of violations).
- If an employee refuses to continue work after the change of ownership.
- If an employee refuses to move to another workplace for medical reasons.
In addition, the Code contains the inclusive set of reasons for temporary work contracts.
In general, Russian labor legislation became more flexible. However, some innovations have met fierce resistance; some have proved to be ineffective. In June 2006, more than 300 amendments in the Labor Code were proposed by the Duma (parliament). Most of these amendments were included in the Federal Law No. 90 and were put in force in October 2006