Russia’s Ministry of Labor has proposed legislative amendments to clarify the distinction between employment contracts and civil-law agreements. The draft law (ID 15666), introduces specific criteria to identify disguised employment relationships and grants new enforcement powers to the Federal Labor Inspection (Rostrud). If adopted, the changes would take effect on 1 September 2025.
New Criteria for Employment Relationships
The amendments aim to prevent employers from misclassifying employees as independent contractors, which deprives workers of social benefits (e.g., paid leave, minimum wage protections). Key indicators of an employment relationship will now include:
These criteria align with existing Supreme Court guidelines (Resolution of the Plenum of the Supreme Court of the Russian Federation of 29 May 2018 No. 15) but will now be codified in the Labor Code to reduce inconsistent court rulings.
Enhanced Powers for Rostrud
Under the proposed changes, Rostrud may:
File lawsuits to reclassify civil-law contracts as employment relationships (if employers ignore corrective orders).
Escalate penalties for repeat violations, including potential inclusion in a public registry of non-compliant employers.
The proposed changes will require companies to carefully review contractor and freelance agreements to avoid reclassification as employment relationships. Those found misclassifying workers may face back payments for taxes, social contributions, and employee benefits.
ContactSolstico Legal today to prepare your business for these regulatory updates and minimize potential liabilities.