Brief Overview of Labor Legislation in Belarus

Belarus remains an attractive point on the map for international IT companies due to its strong engineering school, competitive hiring costs, and well-developed infrastructure for technological business. However, when entering the local market, foreign employers must understand how labor relations are structured in the country and what requirements exist for hiring, formal employee onboarding, and payroll management.

The Belarusian system of labor relations is characterized by a high level of formalization: great importance is placed on documentation, compliance with deadlines, and employee guarantees. Even small companies hiring remote teams or individual specialists must take into account local procedural specifics, from contract execution to salary calculation and social contribution payments.

For IT companies starting operations in Belarus, understanding the core principles and practices of personnel management is not just a formality but a tool for minimizing risks and maintaining operational stability. This material provides a concise overview of how labor relations in Belarus are organized, what obligations employers have, and what foreign companies should consider when hiring Belarusian specialists.

Specifics of Labor Regulation in Belarus

Belarus traditionally follows a formalized approach to labor relations. For foreign companies entering the local market, it is particularly important to understand that the country prioritizes official employment, strict compliance with HR procedures, and employee protection. This means that all agreements with employees must be legally documented — the system does not recognize verbal arrangements or informal employment.

Formal Employment and Its Importance for Employers

Employment relations in Belarus arise strictly on the basis of an employment contract or agreement. This ensures social guarantees for employees (paid leave, sick leave, insurance) and gives the employer a lawful basis to manage personnel and establish internal policies.

For foreign companies, especially in IT, where flexible work formats are common, it is important to note: even if the employee works remotely, from home or another country, they may still be considered under Belarusian jurisdiction if they perform duties for a Belarus-based company.

A properly formalized employment relationship also reduces risks related to inspections, tax penalties, or employee disputes.

Why a Written Employment Contract Matters

In Belarus, a written contract is mandatory. It confirms the fact of employment and defines essential terms, position, salary, work schedule, leave policy, and responsibilities. Without a written document, an employer cannot register an employee with the social funds (FSZN and Belgosstrakh), which may lead to fines or recognition of the business activity as illegal.

A written agreement also protects employers in case of conflict, it serves as proof that obligations were fulfilled correctly. For IT companies, where flexible schedules or performance-based work are common, it is particularly important to prescribe workflow terms, deadlines, and reporting mechanisms.

Key Differences Between Employment Contracts and Civil-Law Agreements

Many foreign companies try to simplify processes by using civil-law contracts instead of employment agreements. However, in Belarus this is only permitted when there are no signs of employment relations — no subordination to internal rules, no fixed work schedule, no regular salary payments, etc.

If an individual works as a regular employee but is hired under a civil-law agreement, this may be interpreted as avoidance of proper employment registration, leading to fines and mandatory reclassification to an employment contract.

Therefore, the choice between an employment contract and a civil-law agreement must reflect the actual nature of cooperation rather than administrative convenience.

Companies hiring in Belarus should formalize relations carefully. A properly drafted employment contract minimizes risks and simplifies interaction with authorities, particularly if supported by a local HR or EOR service provider.

Hiring Local and Foreign Employees

Employee onboarding procedures in Belarus are clearly structured, regardless of whether a local or foreign worker is being hired. In the IT sector, where speed and flexibility matter, it is essential to remember that each stage is regulated, and non-compliance may lead to fines or invalidation of employment relations.

Companies entering the market without a local entity often use Employer of Record (EOR) partners who handle HR administration and legal employment procedures.

Documents Required for Hiring a Belarusian Employee

To sign an employment contract with a Belarusian citizen, an employer must obtain the following standard documents:

• Passport or other identity document
• Employment record book (unless it is the first workplace)
• Education or qualification certificates (if required)
• Military registration document for those subject to conscription

Based on these documents, the contract is drafted, and the employer issues an employment order. The company must then register the employee with the social insurance systems (FSZN and Belgosstrakh).

Remote work arrangements are common for IT companies, but they do not eliminate the need for proper HR formalization, workplace, role, and duties must be defined in the contract.

Hiring Foreign Workers: Permits, Notifications, Registration

Employing foreign citizens in Belarus requires compliance with a set of procedures. Depending on the worker’s nationality and status, the following may be required:

• Employer’s permit to hire foreign workforce
• Work permit for the foreign employee
• Registration at the place of stay
• Notification of the migration authorities about employment

Some categories, such as high-level IT specialists or HTP residents may work under simplified rules without obtaining a work permit.

The procedure usually takes from several days to a few weeks and requires accuracy in documentation, which is why many foreign companies outsource this process to local EOR providers, who manage personnel legalization and handle state communications.

Electronic Workflow and Modern HR Practices

The Belarusian HR system is gradually transitioning to digital formats. Increasingly, companies use electronic contracts, digital signatures, and online tools for work time and leave tracking.

IT businesses actively adopt paperless HR systems, which allow them to:

• streamline employee onboarding
• reduce document load
• store HR records securely in the cloud

However, electronic documents must comply with legal standards, including certified e-signatures and secure data storage solutions.

Working Time, Leave, and Flexible Employment Models

For IT companies operating in Belarus, where workloads fluctuate and project timelines vary; it is essential to understand worktime rules and leave regulations to protect employee rights while maintaining productivity.

Standard Working Hours and Industry Specifics

In Belarus, the standard workweek is 40 hours, usually split into five 8-hour workdays. In the IT sector, workloads may increase during release phases or deadlines, but the following options are possible:

• cumulative working time tracking
• flexible schedules with employee consent
• overtime, compensated by higher pay or additional rest

Any deviation from standard schedules must be documented to avoid risks during labor or social inspections.

Remote Work and Flexible Schedules — How to Formalize Them Correctly

Remote work and flexible hours are common practice in IT. Proper formalization must include:

• specification of work conditions in the contract or addendum
• agreed-upon hours of availability and responsibilities
• use of digital tools for logging work hours, reporting, and communication

Remote employees have the same rights as office-based workers, including salary, social benefits, and leave.

Leave, Sick Pay, and Employee Guarantees

Employees are entitled to:

• annual paid leave (typically 24 calendar days, with possible corporate extensions for IT roles)
• additional leave as defined in company policies or collective agreements
• sick leave, paid based on tenure and average salary
• additional guarantees for hazardous or specialized work, where applicable

Foreign employees receive the same entitlements, with the condition that their employment and migration status are properly documented.

Compensation and Employer Tax Obligations

Proper organization of payroll and fulfillment of tax obligations is a key aspect of effective IT company management in Belarus. This ensures compliance with employee rights and reduces risks for employers.

Minimum Wage Guarantees

Every employee is legally entitled to a minimum wage established at the national level, which cannot be lower than the official government threshold. For IT companies, this serves as a baseline for calculating and structuring competitive salaries. As of January 1, 2025, the monthly minimum wage is BYN 726. In addition to the base salary, employers may offer extra compensation for complexity of tasks, qualifications, or corporate performance, but the core remuneration must not fall below the minimum threshold.

Mandatory Deductions and Contributions — FSZN, Personal Income Tax, Belgosstrakh

When calculating salaries, the company must consider the following mandatory deductions and contributions:

• FSZN (Social Protection Fund) — mandatory employer and employee contributions totaling approx. 34%, influencing total employee cost.
• Personal income tax — withheld from the employee’s salary at a fixed rate (13%), with specific provisions for bonuses.
• Belgosstrakh — additional contributions (~0.6%) providing insurance coverage.

Together, these deductions form the mandatory part of payroll expenses and must be accounted for regularly.

Bonuses, Incentives, and Flexible Compensation Models in IT

IT companies actively apply performance-based reward systems, including:

• Quarterly and annual performance bonuses
• Payments for participation in startup projects
• Stock options and other non-monetary incentives (if available under corporate policy)

It is important to properly formalize the bonus structure and taxation rules to ensure accurate reporting to FSZN and the tax authorities, avoiding financial and compliance risks for the company.

Termination of Employment

Managing employee offboarding effectively is as important for IT companies as managing payroll and HR compliance. A correctly executed termination process reduces the risk of employee disputes and supports a stable internal environment.

Grounds for Contract Termination

An employment contract may be terminated on several grounds:

• At the employer’s initiative — staff reduction, position mismatch, disciplinary violations
• At the employee’s initiative — voluntary resignation, job change, valid personal reasons (e.g., relocation, family care obligations)
• For reasons beyond the parties’ control, or by mutual agreement — where both sides agree to end employment on mutually acceptable terms

Accurate legal justification during termination is essential to prevent disputes or penalties.

Notice Periods and Final Settlement

Both employee and employer must comply with notice periods specified in the contract or applicable legislation. The process includes:

• Written termination notice
• Issuance of an official termination order
• Entry into the employment record book
• Final settlement including salary, bonuses, and severance pay (if applicable)

Proper documentation ensures transparency and reduces employee claims risk.

Employer Liability for Improper Dismissal

Failure to follow lawful termination procedures may result in:

• Administrative fines
• Compensation payments
• Potential court litigation

For IT companies, improper dismissal can negatively impact reputation, disrupt workflow, and drain resources through legal disputes.

How to Reduce HR Compliance Risks in Belarus

Personnel management in Belarus requires careful handling of employment documentation, payroll, and regulatory procedures, especially for foreign companies unfamiliar with local requirements.

Common Mistakes Foreign Companies Face

Foreign employers often experience challenges related to:

• Incorrect employment contract structuring
• Failure to comply with notice requirements and termination procedures
• Inaccurate payroll calculations, bonuses, and social contributions
• Improper handling of foreign employee documentation, including permits and registration

These mistakes can lead to penalties, employee complaints, and administrative issues.

Benefits of Local Legal and HR Support

Engaging local specialists helps companies:

• Execute employment contracts and addendums correctly
• Monitor payroll calculations, deductions, and contributions
• Support onboarding and termination procedures
• Reduce legal and financial exposure

Local experts ensure compliance with Belarusian labor standards, minimizing conflict risks with authorities and employees.

How EOR and Outstaffing Ensure Compliance in Belarus

EOR (Employer of Record) and outstaffing models allow foreign businesses to:

• Hire employees legally through a local provider
• Process payroll correctly with all taxes and contributions
• Register employees with authorities and follow labor requirements
• Manage teams remotely without opening a Belarusian legal entity

Such solutions reduce administrative workload, limit legal risk, and allow companies to focus on scaling operations.

Conclusion

HR compliance in Belarus requires precision, especially for foreign companies unfamiliar with local regulations. Proper employment documentation, accurate salary and contribution calculations, and adherence to hiring and termination procedures are essential for safe and stable business operations.

Our team supports the entire hiring cycle, from contract setup to payroll processing, social contributions, onboarding, and termination compliance. We ensure full alignment with Belarusian labor regulations, reduce legal and administrative risks, and build a smooth, secure work environment for your team in Belarus.