HR Policies in Russia

Given the current trends in economic growth, HR policies in Russia have a major role to play. Government policies in recent years have to a large extent made it easier for international companies to open their branches here and also take advantage of the promising prospects in outsourcing. These international companies have mostly hit sectors like construction, education, finance, retail and outsourcing.

This globalization of the Russian human resource has brought the country at par with other countries in terms of economic growth. Viewing the trends it has become inevitable for the government to make commensurate changes in the labor laws of the country. These changes began in 2002, when the requirement for more flexible labor laws was being felt. The changes however were not very exceptional or revolutionary. However, the labor codes dealing with employment issues were certainly made favorable for the flourishing economy in Russia. Key sections of the labor laws of Russia are discussed here which play a direct role in shaping of the HR policies in Russia.

Recruitment Policies
The recruitment policies as per the labor laws of Russia are stated in very general terms. Absence of any strict clause or law has made human resource recruitment flexible in Russia. There are no specific codes that demarcate recruitment guidelines for a foreign national. Furthermore the last amendments in 2006 have also made certain changes in the labor contract between an employer and employee. These changes are working in favor of employer-employee relation, which has been simplified. Fresh Graduates are allowed to be hired by the company without one year trial period, which was mandatory in the previous law.

Termination Policies
There are certain unique codes dictating termination policies. In the last amendments in 2006, health reasons have been omitted as a reason for termination of an employee. Complete disability has been stated as the only cause of termination in this respect. In case of health reasons the employee should be shifted to some other work suiting him or her. Absence from work with an unreasonable excuse is also regarded as a valid ground for termination. Working in the office in the state of intoxication can lead to termination as well. Compensation of a minimum of two weeks wage has to be paid by the employer while terminating a contract. Visa versa the employee has to pay a minimum of three months average pay in case of abrupt termination of a contract.

Pension and other social security benefits in Russia
Retirement age in Russia for men is 60 years while for women it is 55 years. Old age pensions are paid along with a minimum insurance coverage of five years. For government employees an additional State service pension is also paid. Disabled persons receive a state social pension. A social insurance system also exists by which employed, self employed, farmers, state officials are covered.

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