A Glossary of Russian HR Terms

April 1, 1994
Here are a few terms associated with HR in Russia:

Director of social development:
This manager is responsible for administering employee benefits, such as housing, subsidized food from the company farm and child care.

Director of wages:
In large companies, this director handles all areas of employee compensation. In smaller companies, the function is performed by the director of economics.

Employment contract:
The employee and the enterprise are deemed to have a contractual relationship regardless of whether the terms thereof are reduced to writing. Unless written specifically to cover a finite length of time, the employment contract is understood to mean indefinite employment.

Personnel director:
In most Russian organizations, this person manages employee hiring and firing, retirement and personnel recordkeeping.

Russia Labor Code:
This comprehensive piece of legislation was introduced in 1971 in its current version and has been of tamended since that time, most recently in October 1992. It dictates everything from progressive discipline to additional time off work and supplemental compensation for people employed in Arctic regions.

Social guarantees:
In state-owned companies, employees are granted sick pay and insurance as guaranteed by the former Soviet government. The trade union takes an active role in administering these guarantees.

Like exempt staff in U.S. organizations, these employees are ineligible for overtime pay.

Tariff agreements:
These agreements, left over from the former Soviet system, are decrees issued from Moscow that dictate a national minimum wage and appropriate pay for all job classifications. Those must be signed by the central trade-union body

Under the Russian classification system, workers are employees who are compensated on an hourly basis and are eligible for overtime pay.

13th-month pay:
Typically, all employees receive an additional month's pay at the end of each year. This is standard practice and is more of an entitlement than a form of incentive pay.

Personnel Journal, April 1994, Vol.73, No. 4, p. 43.