Labor Law in an International Context

Labor Law as Part of Public Law

Labor relations are regulated not only by contract—the state establishes minimum standards for the protection of workers, which cannot be bypassed by agreement. This is a restriction of the autonomy of will in favor of the weaker party (the employee).

Key Differences in Regulation

Russia: The Labor Code strictly regulates the grounds for dismissal. Wrongful dismissal results in reinstatement at work and payment of average wages for the period of forced absence. There is high legal pressure on the employer.

USA: At-will employment (in most states)—the employer may dismiss for any reason (except discriminatory). Flexibility, but the risk of discrimination lawsuits.

United Kingdom: Dismissal after two years of employment—only for a valid reason (redundancy, performance, conduct). Employment Tribunals—a specialized body.

UAE: Since 2022—“groundless” dismissal entails compensation. Restrictions on dismissal of pregnant employees, during periods of illness.

Expats and Remote Workers

When an employee works in another country, questions arise: (1) Which country's law applies? (2) In which country are taxes and contributions paid? (3) Is a work permit required?

Principle: labor relations are generally governed by the law of the country where the work is actually performed (Lex loci laboris), regardless of the choice of the parties.

Remote work “from another country” (WorkFromAnywhere) creates the risk of unintended tax presence of the employer in the worker’s country of residence.

Practical Assignment

A Singaporean company hires a Russian citizen who will work remotely from Dubai. The employment contract is concluded under English law. Analyze: (1) which country's law actually regulates the labor relations? (2) where does the employer risk creating a permanent establishment? (3) in which country does the employee pay taxes?