Labor Dispute over Loaned Employee’s Claim

30.03.2016, Marina V. Abramova, Kristina V. Timoshenko

A staffing company provided the Claimant to AGP’s client to perform the functions of accountant and upon his termination by redundancy the employee went to the court to claim determination that he had employment relationship with AGP’s client and should be reinstated in job at AGP’s client. The Claimant also requested the court to recover his unpaid salaries to be calculated based on the wage amount set by AGP’s client for a similar job position. The staffing company was summoned to the proceedings as third party.

Without denying that the Claimant had performed the functions of accountant at the client’s office under supervision of its chief accountant, the Defendant (AGP’s client) argued that no employment relationship in the sense of the Russian Labor Code had existed between the Claimant and the Defendant and that the Claimant had missed the statute of limitation period for part of his claim.

The court accepted the Defendant’s arguments and dismissed the claim in full. Marina Abramova and Kristina Timoshenko acted as defense counsel for AGP’s client.

Labor Law