In what promises to be a bruising political fight, the Russian government is pushing for the passage of a new labour code by January. It is none too soon. Russia's existing labour code was drawn up in 1971, and has changed little since.
Foreign firms complain that the current code is too pro- worker and a major barrier to investment.
The existing labour code, KZoT for short, was drafted when the state was the only employer and the majority of workers were expected to spend most or all of their working lives at a single large state enterprise. If a fixed-term contract is ever renewed, it becomes permanent. The existing code makes dismissing an employee maddeningly difficult. While a worker can terminate a contract by simply resigning and providing two weeks' notice, the KZoT only recognises eight reasons for sacking a worker. An employer must prove that the employee's position is being liquidated, or demonstrate that a worker is incompetent, drunk or simply fails to show up for work.