What is an employment contract and why is it needed?
An employment contract is the main document on the basis of which the relationship between an employee and an employer is built.
As stated in the article of the Labor Code of the Russian Federation, within the framework of an employment contract, the employer assumes the responsibility to provide the employee with work, ensure safe working conditions, and also pay wages on time and in full. The employee, in turn, must personally perform a labor function under the management and control of the employer, as well as comply with internal labor regulations. Draw up regulations on remuneration and internal labor regulations using ready-made templates
An employment contract should be drawn up with each employee before he starts work (Article of the Labor Code of the Russian Federation). An article of the Labor Code of the Russian Federation prohibits requiring work to be performed that is not specified in the employment contract. This means that until the signing of a document that will reflect the type of work (position, specialty, job function) and the amount of payment, the employer, in principle, cannot demand anything from the employee.
ATTENTION
Involving employees in work without drawing up written employment contracts with them entails administrative liability. Penalties are: for individual entrepreneurs - from 5,000 to 10,000 rubles, for organizations - from 50,000 to 100,000 rubles (part 4 of article 5.27 of the Code of Administrative Offenses of the Russian Federation).
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Who draws up an employment contract and when?
Typically, organizations already have in their document flow a template of an employment contract, which is developed in accordance with working conditions, production features and the specifics of the enterprise. The employee’s personal information, additional conditions, adjustments are entered into the contract form, and the final version is subject to agreement by both parties.
An employee can begin work duties after signing an employment agreement, then an order for employment is issued and an entry is made in the work book. If the contract does not contain a date from which the employee must return to work, then the date is the next day after the conclusion of the contract. If the employee does not begin work duties within the specified period, the agreement is canceled.
The following option is also possible, when an employee begins working at the enterprise, and the contract is concluded within 3 days.
An employment contract is concluded only in writing, in two copies, one is issued to the employee, the second remains with the employer.
An employment contract may also provide for part-time work. An employee working at his main job does another in his free time. The combination can be external for different employers and internal within the same enterprise.
Open-ended and fixed-term employment contract
Typically, an employment contract is concluded for an indefinite period. However, in some situations you can set the duration of its effect. An exhaustive list of such cases is given in the article of the Labor Code of the Russian Federation.
This list is divided into two parts. The first mentions situations where a fixed-term employment contract can be concluded at the initiative of the employer. For example, to replace an absent employee or to perform temporary (for up to two months) work. In such circumstances, the organization has the right to immediately indicate that the agreement is temporary. If the candidate does not agree with this condition, this may be grounds for refusal of employment.
The second part of the list consists of cases when a term clause is included in the contract only by agreement of the parties. Examples: employment of managers, old-age pensioners, part-time workers. In such situations, you can only offer the employee to formalize a temporary employment relationship. If he does not agree, it is impossible to refuse to conclude an open-ended contract.
IMPORTANT
A term clause can be included in an employment contract only if it is expressly permitted by the Labor Code of the Russian Federation. In this case, the text of the contract must necessarily indicate the circumstances (reasons) that served as the basis for concluding the contract for a certain period in accordance with the article of the Labor Code of the Russian Federation.
For more details, see: “Fixed-term employment contract: instructions for use” and “Fixed-term employment contract: how to extend it, renew it or terminate it.”
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Documents for drawing up an employment contract
Before concluding an employment contract, the employee must present the following set of documents (Part 1 of Article of the Labor Code of the Russian Federation):
- general passport;
- work book, if the applicant has previously worked. There are three exceptions. The first is that the employee switched to an electronic work book (see: “Electronic work books: what employers should do in 2021”). In this case, information about labor activity is provided in the form STD-R or STD-PFR (Part 3 of Article 66.1 of the Labor Code of the Russian Federation). The second is that a person is hired part-time. In this case, a work book (information) is not required at all (Article 283 of the Labor Code of the Russian Federation). And the third situation is that the employee lost or damaged the previously issued work book, but did not switch to the electronic version (Part 5 of Article of the Labor Code of the Russian Federation). In this case, it is recommended to take a corresponding application from him;
Prepare all documents for the transition to electronic work books
- document on registration in the individual (personalized) accounting system. Such a document can be either a SNILS card (issued before 04/01/2019), or a notification of registration in this system in the form of an electronic document or on paper (Resolution of the Pension Fund Board dated 06/13/19 No. 335p; see: “The form of the document that replaced SNILS plastic card"). An exception is made for persons who have not previously worked and are not registered in the Pension Fund system. The employer must register them after concluding an employment contract;
- military registration documents (provided by those liable for military service and persons subject to conscription for military service);
Prepare personnel reports for the military registration and enlistment office and other regulatory authorities
- document on education, qualifications or special knowledge (provided upon applying for a job that requires special knowledge or special training).
Sometimes additional documents may be required. For example, if an employee is hired for a position to which persons who have or have had a criminal record or have been subject to criminal prosecution cannot be admitted. In this case, a certificate of absence of criminal record or the fact of criminal prosecution (termination of such on rehabilitative grounds) is required.
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Contents of the employment contract
The list of conditions that must be included in the employment contract is given in the article of the Labor Code of the Russian Federation. In particular, this is information about the employee and the employer (including his TIN), as well as about the person who will sign the contract on behalf of the employer. The place of work, job function, payment conditions, working hours, etc. must also be indicated.
In some cases, the employment contract must include information not mentioned in the article of the Labor Code of the Russian Federation. For example, in an agreement with a foreigner temporarily staying in the Russian Federation, it is necessary to add a clause on the grounds for providing him with medical care (including entering data on the VHI policy). This is the requirement of Part 2 of Article 327.2 of the Labor Code of the Russian Federation. For more information about the employment of foreigners, see “Hiring foreign citizens in 2021: step-by-step instructions.”
Draw up an employment contract with a foreigner using a special constructor
Additional terms of the employment contract
The parties determine their list independently. At the same time, it is imperative that additional conditions do not worsen the employee’s situation in comparison with what is determined by labor legislation.
Most often, the contract additionally includes data specifying the place of work - the structural unit of the organization, a specific mechanism and its location, a workplace (address, office, etc.)
You can also include a probationary period clause in your employment contract. Let us remember that, as a general rule, it should not exceed three months. A test of up to six months can be established only for the head of the organization and his deputies, the chief accountant and his deputies, the head of a separate structural unit (Article of the Labor Code of the Russian Federation). But the minimum period of probation is not established by law.
IMPORTANT
There are categories of employees for whom it is prohibited to introduce a probationary period when hiring:
- pregnant women and women with children under the age of one and a half years;
- persons under the age of 18;
- persons who have received secondary vocational education or higher education in state-accredited educational programs and are entering work in their specialty for the first time within one year from the date of receiving education at the appropriate level;
- persons elected to an elective position for paid work;
- persons invited to work by way of transfer from another employer as agreed between employers;
- persons entering into an employment contract for a period of up to two months.
- persons who have successfully completed an apprenticeship, in the event of concluding an employment contract with the employer under the contract with whom they were trained. Note that in the employment contract you can additionally stipulate a condition regarding the person’s obligation to work for at least a certain period of time after training paid for by the employer.
In addition, the employment contract can include a condition on non-disclosure of official (commercial) trade secrets and personal data of employees; on the types and conditions of additional insurance and non-state pension provision, as well as other guarantees provided to the employee.
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Employment contract: concept according to the Labor Code of the Russian Federation and meaning
The majority of the population of any country consists of people who work for hire and receive payment from their employer - a legal entity (enterprise) or an individual (usually an individual entrepreneur). Russia is no exception. Art. 56 of the Labor Code of the Russian Federation provides that when formalizing labor relations, it is necessary to conclude an employment contract reflecting the agreement between the employer and the employee on the very fact of entering into an employment relationship and on its conditions.
The definition of an employment contract implies mutual obligations of the parties
Signs of an employment contract
Formulated in Art. 56 of the Labor Code of the Russian Federation, the concept of an employment contract allows us to highlight its main features. It is important to note the difference between an employment contract and civil contracts related to the use of labor:
- construction contracts (Article 702 of the Civil Code);
- contracts for the implementation of research and development work (Article 769 of the Civil Code);
- contracts for paid services (Article 779 of the Civil Code);
- contract of agency (Article 971 of the Civil Code).
The features of an employment contract include:
- the employee’s obligation to perform work in a specific position or profession in accordance with the staffing schedule;
- the employee’s obligation to obey the employer’s internal labor regulations;
- the employer’s obligation to provide the employee with working conditions provided for by law and directly by the employment contract;
- the employer's obligation to pay the employee wages regularly, on time and in full.
An employment contract will have legal force only if it is concluded in accordance with the requirements of the law.
The results of the work and the procedure for its payment under civil contracts are determined by the contract and are not tied to either the regular performance of duties by the employee or to payment of labor on certain calendar dates.
The features of an employment contract have important practical significance. By concluding an employment contract, a citizen is subject to labor legislation, which entails the provision of appropriate social guarantees. Persons working under civil contracts do not have such guarantees.
Functions of an employment contract
The functions of any agreement are fundamental principles aimed at identifying the goals for the implementation of which the agreement is concluded. From a functional point of view, an employment contract:
- is the basis for the emergence of labor relations;
- ensures the implementation of the right to work provided for by the Constitution of the Russian Federation;
- ensures the organization of work at the employer;
- is the basis for the emergence of legal guarantees for an employee.
Who can act as parties to an employment contract?
Art. 20 of the Labor Code of the Russian Federation stipulates who can act as a party to an employment contract. They are called the employee and the employer.
Any citizen at least sixteen years of age can act as an employee in an employment contract. Art. 63 of the Labor Code of the Russian Federation provides for the possibility of concluding an employment contract with persons under 16 years of age. These can be teenagers who have reached the age of 15 and have received general education. They have the right to enter into an employment contract to perform light work that does not harm their health and does not interfere with the continuation of general education.
With the written consent of one of the parents (guardian) and the guardianship authority, an employment contract can be concluded with a person who has received general education and has reached the age of fourteen years. Work should also be easy. It is also possible to conclude an agreement with a schoolchild, provided that the work does not create obstacles to studies.
Video: questions and answers about the employment contract
How to draw up an employment contract
Only written form is acceptable. The document is drawn up in two copies, each of which is signed by both parties (Article of the Labor Code of the Russian Federation). One is given to the employee, and the second (kept by the employer) must bear the employee’s signature confirming that he received his copy. This is where the mandatory requirements for the procedure for drawing up an employment contract end. All other points are optional.
In particular, the legislation does not contain an obligation to number employment contracts. Therefore, if the employer does not consider it necessary, he may not assign them numbers.
But if the number of employees is significant, numbering is advisable, as it will help organize documents and ensure their quick identification. The employer has the right to independently develop a numbering system. Or you can use the method given in the letter of Rostrud dated 08/09/07 No. 3045-6-0: the contract number consists of its serial number and numbers indicating the month and (or) year of its conclusion.
REFERENCE
The law does not require an employment contract to be certified with the employer’s seal. This means that even if an organization has a seal, the absence of its imprint on an employment contract is not an error. Nor will it be a violation to certify the contract with the employer’s seal.