Secondment may become illegal

Secondment may become illegal in Russia. The draft law forbidding workers from being allowed to work in another company, while still legally employed by the first one, has passed preliminary hearings in Russian Parliament (the State Duma). Though it is hard to justify why this institution - which is widely used to dodge labour legislation - should still be allowed to exist, its abolition will create more problems than solutions.

For many foreign companies in Russia secondment instead of direct employment together with short-term contracts for services instead of ongoing labour agreements are the main routes to local labour. Cutting them off will arguably be the most serious blow to international business in Russia in years. Fortunately, the task of putting such a law into practice is more arduous than the lawmakers might think.