Changing a Foreign Employee’s Working Hours and Salary: Employer Procedure

Why You Cannot Simply Reduce Working Hours and Pay

The employer must provide the work stipulated by the employment contract and pay the salary in full and on time. If the contract specifies working hours, the salary, allowances, or the payment procedure, an HR decision to reduce the working day or week affects the agreed terms. Employment and pay cannot be reduced simultaneously by an internal order.

The practical risk arises not only from an explicit salary reduction. A situation in which the employee is actually given less work and their pay is then reduced without a documented basis may also become problematic. This may lead to a claim to restore the previous terms and pay the outstanding wages. An employment dispute, an order from the labour inspectorate, administrative liability, and additional compensation costs are possible.

First Option: Reach an Agreement with the Employee

The most straightforward option is to change the terms by agreement between the parties. Before negotiations, HR should review the contract: working hours, salary, allowances, calculation rules, and other related provisions. This will make it possible to identify exactly what needs to be changed rather than limiting the wording to a general reference to a new schedule.

If the employee agrees, an addendum to the employment contract must be executed. It should specify the new schedule, the date on which work begins under the new arrangement, and the pay terms. The date is determined by the parties in the addendum itself. This procedure is particularly important for a foreign employee: citizenship does not replace consent and does not create a separate simplified procedure for reducing employment guarantees.

When the Employer Considers Article 74 of the Labour Code of the Russian Federation (ТК РФ)

If there is no agreement, the employer may assess whether the procedure for changing specified employment terms under Article 74 of the Labour Code of the Russian Federation (ТК РФ), the federal law governing employment relations in Russia, applies. This requires genuine organizational or technological reasons, which must be supported by documents. The mere desire to reduce costs is not identified in the material as sufficient grounds, so the reason and evidence should be reviewed before starting the HR procedure.

When Article 74 of the Labour Code of the Russian Federation (ТК РФ) is used, the employee must be notified in writing no later than two months in advance. The employee’s job function cannot be changed as part of this procedure. The employer’s control task is to distinguish a change in working hours and pay, which is permissible when grounds exist and the procedure is followed, from an actual transfer to another job, which must not be disguised as a change in employment terms.

Part-Time Work: What to Check Separately

Part-time work does not mean arbitrary pay. Compensation is calculated in proportion to the time worked or the work performed, while the terms must not contradict the employee’s guarantees. Before introducing the arrangement, it is necessary to check how the new calculation relates to the contract terms and the time actually worked.

If part-time work is introduced by the employer to prevent mass dismissals, the arrangement may remain in effect for up to six months. The procedure must be followed, including consideration of the opinion of the employees’ representative body, if one exists. The material does not specify the criteria for mass dismissal or the contents of the supporting documents: they must not be assumed and should be established as applicable to the specific situation.

HR Checks Before Calculating Salary

Do not document a reduction in working hours retroactively or withhold salary that has already been accrued. Separately check the calculation for time actually worked before the date on which the terms were lawfully changed: new agreements or a procedure do not provide grounds for revising previous payments. This check reduces the risk of arrears and subsequent employee claims.

For an employer that employs foreign nationals, a uniform standard of action for all personnel is useful. Different procedures may not be established solely because of citizenship. Internal controls should confirm that each employee has a contractual basis, procedural documents, a clear date on which the new arrangement begins, and a correct pay calculation.

FAQ

Can an employer reduce a foreign employee’s working hours and pay simply by issuing an order?

No. A foreign employee has the same employment guarantees as a Russian citizen, and holding a patent, work permit, temporary residence permit (РВП), or permanent residence permit (ВНЖ) does not allow for a less protective procedure for changing the work schedule or pay.

What should we do if the employee agrees to the new schedule?

A supplementary agreement must be executed. It should specify the new schedule, the date the employee starts working under the new arrangement, and the pay terms; the parties determine the date in the agreement itself.

When can the terms be changed without the employee’s consent?

The procedure under Article 74 of the Russian Labour Code (ТК РФ) may be considered if there are genuine organisational or technological reasons supported by documents. The employee must be notified in writing no later than two months in advance, and the employee’s job function cannot be changed.

Can we recalculate pay for time already worked after reducing the employee’s hours?

No. Changes should not be formalised retroactively, already accrued pay should not be withheld, and payments for time actually worked before the date of the lawful change in terms should not be reduced.

What to Check

• Review the employment contract for working hours, salary, allowances, and the payment procedure.
• Determine exactly which terms need to be changed.
• If an agreement is reached, obtain the employee’s written consent.
• Execute an addendum specifying the new schedule, the date on which the arrangement begins, and the pay terms.
• If there is no agreement, check whether organizational or technological reasons exist for applying Article 74 of the Labour Code of the Russian Federation (ТК РФ).
• Collect documents supporting those reasons.
• Deliver written notice no later than two months in advance when applying Article 74 of the Labour Code of the Russian Federation (ТК РФ).
• Do not change the employee’s job function as part of the procedure for changing employment terms.
• Do not reduce payments for time already worked or document changes retroactively.
• For part-time work, check the proportional calculation and, where necessary, the procedure for considering the opinion of the employees’ representative body.