The relationship between the employer and his employees is determined by the Russian Labor Code. This code is very strict and very protective for employees. Normal working hours in Russia are eight hours per day and 40 hours per week. Russian law is stringent in limiting overtime hours. Under the code overtime work may only be required in extraordinary situations or upon written consent from an employee and should be payed at an increased rate.

It is advisable to conclude a written contract between the employer and each employee because, in case of a lawsuit. It is the duty of the employer to keep an internal ducumentation about the employer-employee relationship. Each event such as illness, holidays or overtime hours must be ducumented. In case of government tax audit, as Yukos case shows, the administration could act harshly.