GOOD FAITH PRINCIPLE IN EMPLOYMENT RELATIONS UNDER RUSSIAN CIVIL LAW INFLUENCE: LEGAL OBLIGATIONS, EMPLOYER CONDUCT AND EMPLOYEE PROTECTION

1. INTRODUCTION

The principle of good faith is an important foundation of contractual relationships, including employment relationships. It requires parties to exercise their rights honestly, reasonably, fairly, and without abusing their legal position.

In Russia, the principle of good faith has a particularly important connection with civil law. The Civil Code of the Russian Federation establishes good faith as a general principle governing the exercise of civil rights and the performance of civil obligations. Although employment relationships are primarily governed by the Labour Code, civil-law principles may influence their interpretation, particularly where employment legislation does not expressly resolve a particular issue.

The principle is relevant to recruitment, employment contract negotiations, remuneration, performance evaluation, disciplinary proceedings, dismissal, confidentiality, and the exercise of managerial authority.

The fundamental objective is to prevent employers and employees from exploiting contractual rights dishonestly or using legal procedures for purposes inconsistent with their legitimate objectives.

2. LEGAL FRAMEWORK UNDER RUSSIAN CIVIL LAW

A. ARTICLE 1 OF THE CIVIL CODE

Article 1 of the Civil Code of the Russian Federation establishes the principle that participants in civil relations must act in good faith when establishing, exercising, and protecting civil rights and performing civil obligations.

It also recognises that no person may derive an advantage from unlawful or bad-faith conduct.

B. ARTICLE 10: PROHIBITION OF ABUSE OF RIGHTS

Article 10 prohibits the abuse of civil rights.

It addresses the exercise of rights primarily for the purpose of causing harm, circumvention of law for an unlawful purpose, and other forms of knowingly bad-faith conduct.

This provision is relevant when an employer formally exercises a contractual power but uses it for an improper purpose.

C. ARTICLE 307: OBLIGATIONS AND GOOD FAITH

Article 307 addresses obligations arising between parties and establishes duties associated with proper performance.

It supports the expectation that parties should cooperate and take account of the legitimate interests of one another when performing obligations.

D. ARTICLE 309: PROPER PERFORMANCE OF OBLIGATIONS

Article 309 requires obligations to be performed properly in accordance with their terms and applicable legal requirements.

In employment-related contractual arrangements, this principle may assist in understanding duties concerning remuneration, benefits, and agreed contractual conditions.

E. ARTICLE 393: LIABILITY FOR BREACH OF OBLIGATIONS

Article 393 establishes the obligation to compensate for losses caused by non-performance or improper performance of contractual obligations, subject to the applicable legal requirements.

Civil liability under this provision must be distinguished from the special remedies and liability rules governing employment relationships.

3. APPLICATION OF GOOD FAITH UNDER RUSSIAN LABOUR LAW

The Labour Code of the Russian Federation remains the primary legislation governing employment relationships.

Civil-law principles cannot simply replace mandatory employment protections. However, the good faith principle can assist in interpreting employment rights and obligations.

A. ARTICLE 2: FUNDAMENTAL PRINCIPLES OF LABOUR LAW

Article 2 recognises fundamental principles of labour regulation, including protection of employee rights, equality, freedom of labour, and the protection of workers' interests.

These principles support fair and responsible employment relationships.

B. ARTICLE 21: EMPLOYEE OBLIGATIONS

Article 21 establishes employee obligations, including conscientious performance of employment duties, compliance with internal workplace rules, and respect for workplace discipline.

C. ARTICLE 22: EMPLOYER OBLIGATIONS

Article 22 requires employers to comply with labour legislation, employment agreements, and other applicable employment requirements.

Employers must respect employee rights and fulfil their statutory obligations.

D. ARTICLE 56: EMPLOYMENT CONTRACT

Article 56 establishes the essential nature of the employment contract, including the employer's obligation to provide work and remuneration and the employee's obligation to perform the agreed employment function.

E. ARTICLE 192: DISCIPLINARY LIABILITY

Article 192 regulates disciplinary sanctions and requires disciplinary action to be based on established misconduct and applicable legal requirements.

Good faith requires employers to avoid using disciplinary authority arbitrarily or as a means of retaliation.

F. ARTICLE 81: TERMINATION OF EMPLOYMENT

Article 81 establishes statutory grounds for employer-initiated termination.

Employers should not manipulate dismissal procedures or manufacture misconduct to achieve an unlawful employment objective.

4. APPLICATION OF GOOD FAITH IN EMPLOYMENT RELATIONS

A. RECRUITMENT AND PRE-CONTRACTUAL CONDUCT

Employers should provide truthful information concerning job responsibilities, remuneration, working hours, and contractual conditions.

Employees should also provide accurate information relevant to the employment relationship.

B. REMUNERATION AND BENEFITS

Employers must not manipulate performance criteria or contractual interpretations to withhold legally owed remuneration.

C. PERFORMANCE EVALUATION

Performance-management procedures should use legitimate, consistent, and transparent criteria rather than arbitrary assessments designed to disadvantage particular employees.

D. DISCIPLINARY PROCEEDINGS

Employers should investigate misconduct objectively, examine available evidence, and avoid imposing penalties for personal, discriminatory, or retaliatory reasons.

E. TERMINATION OF EMPLOYMENT

Dismissal powers must be exercised within statutory limits. Employers should not manufacture grounds for termination or use restructuring procedures to conceal unlawful motives.

F. EMPLOYEE COOPERATION

Employees should perform their duties honestly, protect legitimate employer interests, and avoid deliberate falsification of workplace records or misuse of confidential information.

5. RELEVANT CASE LAWS

The following seven judicial decisions provide important authority concerning good faith, abuse of rights, contractual obligations, and employment protection under Russian and comparative legal principles.

1. Resolution No. 25 of the Plenum of the Supreme Court of the Russian Federation (23 June 2015)

This Resolution addresses the application of certain provisions of Part One of the Civil Code of the Russian Federation.

It provides judicial guidance concerning good faith, abuse of rights, and the interpretation of civil-law obligations.

Legal principle: Participants in civil relations must exercise rights honestly and cannot obtain legal advantages through knowingly bad-faith conduct.

Relevance: Direct authority for the civil-law good faith framework. Its principles may assist in evaluating related contractual issues in employment matters, subject to the Labour Code.

2. Resolution No. 54 of the Plenum of the Supreme Court of the Russian Federation (22 November 2016)

This Resolution concerns general provisions of the Civil Code regarding obligations and their performance.

Legal principle: Obligations must be performed in accordance with legal requirements and the principles governing proper contractual performance.

Relevance: Analogous authority. It assists in analysing cooperation, performance, and contractual responsibility in employment-related civil arrangements.

3. Resolution No. 49 of the Plenum of the Supreme Court of the Russian Federation (25 December 2018)

This Resolution concerns the application of general provisions of the Civil Code on the conclusion and interpretation of contracts.

Legal principle: Contractual interpretation requires examination of the agreement as a whole, the parties' intentions, and the applicable interpretative principles.

Relevance: Analogous authority. Employers should not selectively interpret employment-related contractual provisions to defeat the legitimate expectations created by the agreement.

4. Resolution No. 2 of the Plenum of the Supreme Court of the Russian Federation (17 March 2004)

This Resolution concerns the application of the Labour Code by courts of the Russian Federation.

Legal principle: Employment disputes must be decided by applying statutory labour protections and the relevant procedural requirements.

Relevance: Direct employment-law authority. Employers must exercise managerial and disciplinary powers consistently with the Labour Code rather than relying exclusively on general contractual freedom.

5. Danilenkov and Others v. Russia (2009), European Court of Human Rights

The Court examined discrimination against employees associated with membership and activities in an independent trade union.

Legal principle: Employees must receive effective protection against discrimination based on trade union membership and lawful collective activities.

Relevance: Direct analogous authority. Employer conduct inconsistent with good faith may arise where managerial powers are used to punish employees for exercising protected collective rights.

6. Keenan v. United Kingdom (2001), European Court of Human Rights

The Court examined the treatment of a prisoner with mental-health difficulties and the state's obligations concerning protection against serious harm.

Legal principle: Article 3 imposes positive obligations in circumstances involving sufficiently serious treatment and risks to individuals.

Relevance: Analogous authority only. The judgment does not establish a general employment-law good faith rule, but it illustrates that legal responsibilities may require consideration of vulnerability and protection against serious harm.

7. Palomo Sánchez and Others v. Spain (2011), European Court of Human Rights

The Grand Chamber examined the dismissal of employees following the publication of offensive material concerning colleagues and management.

Legal principle: Freedom of expression must be balanced against the rights and reputations of others, and serious abusive conduct may justify employment consequences.

Relevance: Direct analogous authority. Good-faith workplace conduct requires balancing legitimate employee expression with duties of professional behaviour and respect for colleagues.

The Russian Plenum Resolutions are judicial interpretative authorities rather than individual employment-dispute judgments. The European Court of Human Rights cases provide comparative principles and do not automatically determine Russian employment disputes.

6. ABUSE OF EMPLOYMENT RIGHTS AND BAD-FAITH CONDUCT

Bad-faith conduct may arise through several workplace practices.

A. MANIPULATIVE DISMISSAL

An employer creates artificial disciplinary violations to remove an employee for an improper reason.

B. UNJUSTIFIED WITHHOLDING OF REMUNERATION

An employer manipulates performance assessments or contractual conditions to avoid paying legally earned wages or benefits.

C. RETALIATORY DISCIPLINARY ACTION

Employees receive warnings, demotions, or dismissal because they report unlawful practices or exercise protected workplace rights.

D. MISUSE OF CONFIDENTIALITY CLAUSES

An employer attempts to use confidentiality obligations to prevent lawful reporting of workplace violations.

E. EMPLOYEE DISHONESTY

Employees intentionally falsify attendance records, conceal conflicts of interest, misuse confidential information, or misrepresent work performed.

F. DISCRIMINATORY MANAGEMENT

An employer selectively applies workplace rules to disadvantage employees because of personal characteristics or protected activities.

7. EMPLOYER AND EMPLOYEE LIABILITY

The good faith principle imposes important behavioural expectations on both parties.

Employers may face legal consequences for unlawful dismissal, unpaid remuneration, discriminatory conduct, abuse of managerial authority, and breach of statutory obligations.

Employees may face disciplinary or other legally authorised consequences for dishonesty, deliberate misconduct, falsification of records, and breach of legitimate employment duties.

However, liability must be established under the appropriate legal framework. Civil-law damages provisions should not automatically be substituted for the Labour Code's specific rules concerning employee and employer liability.

8. PRACTICAL COMPLIANCE REQUIREMENTS

Employers operating in Russia should adopt the following measures:

Establish transparent employment policies and contractual conditions.

Apply workplace rules consistently.

Maintain accurate records of performance and disciplinary proceedings.

Ensure that dismissal decisions have genuine statutory grounds.

Avoid retaliation against employees exercising protected rights.

Pay remuneration and contractual benefits according to applicable obligations.

Provide employees with opportunities to respond to allegations.

Establish accessible grievance and dispute-resolution procedures.

Protect confidential information without restricting lawful employee rights.

Train managers and HR personnel in good-faith employment practices.

Review automated performance and disciplinary systems for arbitrary outcomes.

Ensure that contractual discretion is not exercised for improper purposes.

9. CONCLUSION

The good faith principle plays an important role in Russian employment relations by promoting honesty, fairness, cooperation, and responsible exercise of contractual rights. Although its general civil-law foundation is found in Articles 1, 10, 307, 309, and 393 of the Russian Civil Code, employment relationships remain primarily governed by the Labour Code.

The judicial guidance contained in Supreme Court Plenum Resolutions Nos. 25, 54, 49, and 2, together with the comparative principles developed in Danilenkov, Keenan, and Palomo Sánchez, demonstrates the importance of lawful conduct, contractual responsibility, employee protection, and procedural fairness.

Ultimately, employers must not use managerial authority to defeat employee rights, while employees must perform their employment duties honestly and responsibly. The good faith principle therefore serves as an essential safeguard against abuse of rights and promotes balanced, transparent, and legally sustainable employment relationships.