A sweeping package of amendments to the Russian Labor Code, initiated by Federal Law No. 144-FZ of May 25, 2026, along with changes introduced by Law No. 91-FZ of April 9, 2026, will come into force on September 1, 2026. These innovations will affect almost all areas of labor relations — from hiring procedures to grounds for dismissal. The key goal of the reform is to increase labor market flexibility for employers (especially amid labor shortages) while simultaneously strengthening social guarantees for employees.

The most notable changes concern overtime work. Employers can now, by including a relevant provision in a collective bargaining agreement or sectoral accord, increase the annual overtime limit for an employee from 120 to 240 hours. However, this increase does not apply to everyone: workers with harmful working conditions of degrees 3.3 and 3.4 are still prohibited from working more than 120 overtime hours per year. Furthermore, engaging pensioners, pre-retirees, and employees with harmful conditions of degrees 1 and 2 in overtime exceeding 120 hours requires their written consent and the absence of medical contraindications.

Overtime pay has also changed: the first 120 hours per year are paid according to the old rules (the first two hours at 1.5 times the rate, subsequent hours at double the rate), but starting from the 121st hour, each hour of overtime must be paid at no less than double the rate. Additionally, employees who work more than 120 overtime hours per year receive the right to one additional paid day off for a medical check-up. The amendments also affect the procedure for granting vacations. Previously, recall from vacation was categorically prohibited for employees engaged in work with harmful or dangerous working conditions. Starting in September, they too may be recalled, but only in exceptional cases — to prevent a disaster, industrial accident, or to mitigate their consequences. Hours worked during such recall must be paid at no less than double the rate, and the unused portion of the vacation must be provided to the employee at a convenient time during the current working year or added to the next year's vacation.