Case Overview
KIAP, Attorneys at Law, represented the interests of the Client, a top manager of a company registered in Dubai (UAE), in a complex cross-border dispute over the recovery of arrears of wages, bonuses and compensation payments. As a result of the proceedings, the Russian court fully supported the position of the Client, satisfying the claims in the amount of over 4 million rubles.
Legal Challenge
The main difficulty was to overcome jurisdictional barriers. The court faced the issue of referring the dispute to arbitration in the UAE due to the presence of an arbitration clause in the employment contract. The main argument against the consideration of the case in a Russian court was the absence of a direct mention of the place of performance of official duties in the territory of the Russian Federation in the employment contract.
Approach and Outcome
The KIAP lawyers proved that the absence of a link to the Russian Federation in the contract is not an obstacle to establishing the jurisdiction of Russian courts. The court found convincing the position of the KIAP that the mandatory norms of labor legislation and the rules of special jurisdiction take precedence over the arbitration agreement, which made it possible to protect the rights of the employee in the court of the Russian Federation.
Precedential Value and Practical Significance
Setting a precedent on cross-border labour disputes: This dispute confirms that an abscent reference to the territory of the Russian Federation in an employment contract does not deprive Russian employees of the right to protect their interests in Russian courts.
Priority of protecting workers' rights: The position of Russian courts regarding the limitation of the effect of arbitration clauses in labor disputes has been confirmed.
Benchmark for international business: The court decision serves as an important guideline for foreign companies hiring specialists from the Russian Federation for remote work, showing the way Russian courts qualify the place of actual performance of labor functions in the context of the failure to resolve this issue in the contract.
Team
The interests of the Client on the part of KIAP, Attorneys at Law, were represented by: Partner, Attorney at Law Konstantin Astafiev, Partner, Attorney at Law Julia Paushkina, Associate Nikita Zabegaev.