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A company still operating can’t dismiss employees on grounds of liquidation: ruling from Russia

Written by
ALRUD, a confident Russian leader in labour and employment law.
The Moscow City Court has ruled that if a company continues operating, the dismissal of its employees on the grounds of liquidation is illegal.

A company was declared bankrupt and some employees were dismissed, due to the liquidation of the company. Employees considered their dismissal unlawful and applied to the court. They supported their claims with the fact that the bankruptcy proceedings were extended, and the company had actually hired other individuals to fill their positions. The Moscow City Court supported the employees, indicating that the company had not been expelled from the Unified State Register of Legal Entities and was continuing its activities. These facts meant that it did not have the right to dismiss employees on the grounds of the liquidation.

Source: Appeal ruling of the Moscow City Court, dated February 26th, 2020 No. 33-7837/2020

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Margarita Egiazarova
Senior Associate