Could you explain the procedure for entering into the employment agreement? Is it possible to execute it orally, and namely, in case of hiring by the commercial company?

The procedure for entering into the employment agreement provided for under "the Guidelines for Entering into the Employment Agreement (Contract) in Writing", is governed by the same terms applicable to entering into the agreement in Civil Law. In compliance with the general rule, the employment agreement should be executed in writing and confirmed by the principal's order (article 18 of the Labor Code of the RF). In such a case, a written form of execution of labor relations enhances the guarantees pertaining to the protection of rights in pursuing the reached agreements. An oral form of execution of the employment agreement is also not excluded, though in practice it causes a number of equivocal propositions in respect of its contents and legal effect. In such a case, pursuant to clause 3 of article 18 of the Labor Code of the RF, an actual admission to a job should be deemed as conclusion of the employment agreement whether or not the employment was executed in writing. And this means that if the employee and the employer reached the agreement on all essential terms of the employment agreement orally and the employee was actually admitted to discharge his labor duties, the agreement is deemed concluded. The essential terms shall be deemed to be the terms pertaining to place and time of work, including remuneration for the job.

An important circumstance when hiring is the necessity to check written authority of the person who executes the employment. This may have a significant impact on the settlement of disputable issues, if the case was referred to court at the employee's initiative. In a case where upon approval of all essential terms of labor, the employee was not admitted to job by administration, the employment agreement is deemed as not entered into force. In such case an oral execution of the employment agreement has no legal effect for any party. Pursuant to article 210 of the Labor Code of the RF the employee has the right to appeal the refusal of granting the employment in court.