Is it necessary to conclude a work contract with General Manager of the Company if he is the sole owner of this Company at the same time?

The question at issue is the one of necessity of a work contract conclusion in the situation when the firm Manager is its founder at the same time. According to Rostrud Letter of 28.07.2008 No.1731-6-0 a work contract with Manager isn’t concluded in such a situation (as a work contract must be concluded by two sides – employee and employer, but in this situation the same citizen is both the employee and the employer).

However, in our opinion, it is necessary to conclude a work contract with Manager who is the sole founder of the organization. It is explained by the fact that besides requirements of chapter 43 of the Labour Code of the Russian Federation general provisions apply to Manager, and Manager appears as employee in relation to the firm. Art. 56 and art.59 of the Labour Code of the Russian Federation in its turn require conclusion of a work contract with an employee. Besides, it is not Manager himself but the legal entity is acting as the employer.

©Professional consultation of the “RosCo” company

Date of foundation
company «ROSCO»
2004
Membership in professional organizations:
SRO NP «Audit Chamber of Russia»
(Certificate No 1809 dated 28.12.2009)
Chamber of Tax
Consultants
(Certificate No 78)
NP «Partnership of RSE»
(Russian Society of Evaluators)
Membership in public association:
Moscow Chamber
of Commerce and Industry
(Certificate No 123-973 dated 21.12.2009)
Non-Profit
Partnership of Turkish Entrepreneurs (RTIB)
Ratings:
A++1+++1++[%]
(as per the results of 2009 -
А++1+++1+[%])
Company
is included in the register of reliable enterprises of Moscow
Certificates of conformity:
Certificate of conformity to the requirements of GOST R ISO 9001-2008 (ISO 9001:2008)
Professional
liability
is insured