Finding a Job in Game Development: Which Employment Option to Choose and What to Look Out For

Contents:

• What types of employment exist in game development?
• Pros of an employment contract and cons of a civil-law contract
• Cons of an employment contract and pros of a civil-law contract
• Who are individual entrepreneurs and self-employed?
• So, you need to get a job under an employment contract?
• Probationary period
• Can remote work be under an employment contract?
• What if the applicant is under 18?
• Possible bonuses and inadequate fines
• Where else can I go?

Many people dream of creating games, but not everyone knows where to start. According to a My.Games survey, 45% of respondents in Russia are unsure what education to choose and where to go next in their careers. When job seekers finally achieve their goal, they can become complacent and make mistakes when applying for a job at a game studio. It's important to research the requirements and prepare for the process in advance to avoid common pitfalls and successfully launch a career in the gaming industry.

Carelessness can cause significant losses for newcomers to the gaming industry, both financial and emotional. This can lead to a loss of interest in working in game development. To help job seekers avoid common employment mistakes, we consulted with lawyers and discussed all available options for formal employment. We've also answered key questions candidates may have.

What types of employment are there in game development?

Finding employment in the gaming industry in Russia is largely similar to the job search process in the IT sector. As Egor Larichkin, managing partner of the law firm Larmann Legal, notes, employment methods depend on the hiring company's level. It's important to keep in mind that a successful job search in game development requires not only professional skills but also knowledge of the industry's specifics. Applicants should be prepared to tailor their resume and portfolio to employer requirements, as well as actively develop their competencies and monitor new trends in game development.

Large companies hiring employees in their offices have the opportunity to draw up full-fledged employment contracts. At the same time, indie studios and small firms more often choose civil law contracts, known as GPC contracts. In recent years, the popularity of concluding agreements with the self-employed has also increased. If you plan to work remotely, for example, from Russia for a company in Cyprus, you will most likely be offered a civil law contract. This is due to the flexibility of such agreements and the ability to minimize tax liabilities for employers.

An employment contract, a civil law contract (CLC), self-employment, and registration as an individual entrepreneur are different forms of labor relations, each with its own characteristics and nuances. In this text, we will examine each of these forms in detail to understand their differences and advantages.

Advantages of an employment contract and disadvantages of a CLC

The conditions for concluding a civil law contract (CLC) and an employment contract differ significantly, which allows for an effective comparison. The disadvantages of a civil law contract often arise as a result of the advantages of an employment contract, and vice versa. It's important to understand that each of these types of agreements has its own characteristics and advantages, making them suitable for different situations. Egor Larichkin emphasizes that analyzing these differences helps better navigate the selection of the appropriate type of agreement for specific cooperation conditions.

According to an employment contract, an employee has the right to receive a salary at least once every two weeks. The employer is obligated to provide paid vacation, sick leave, and time for childcare. Furthermore, the law protects employees from overtime, which guarantees compliance with working hours standards and the right to rest. These provisions are the foundations of labor law and are important for ensuring the well-being of employees.

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Overtime work, work on weekends and holidays, and night work require the employee's consent and must be paid at higher rates. Egor Larichkin emphasizes that many employees are unaware of their rights, and employers often exploit this. It's important to know your rights and be able to defend them to avoid unfair treatment from employers. Every employee must be informed of their legal rights and responsibilities to protect themselves in employment relationships. An employment contract is the primary tool for protecting employees from overtime, says Nikolai Andreev, lawyer and head of the tax law practice at Zartsyn & Partners. He emphasizes that this document clearly regulates working hours, working conditions, and the rights of both parties. It's important for an employment contract to specify the standard working hours and the overtime payment procedure. This allows employees to avoid unauthorized overtime and guarantees legal compensation for additional work. A formal employment contract also helps establish transparent relationships between employer and employee, minimizing the risk of misunderstandings and legal conflicts. Thus, a properly executed employment contract is key to protecting employees' rights and ensuring their peace of mind in the workplace.

According to the Labor Code, with a five-day workweek, the maximum working hours are 40 hours per week or 8 hours per day. All hours worked in excess of the established norm are subject to increased pay: the first two hours of overtime are paid at no less than one and a half times the normal rate, and subsequent hours at no less than twice the normal rate. This provision ensures the protection of workers' rights and fair compensation for work.

Dismissing employees under an employment contract is quite difficult. According to a representative of the Trade Union of IT and Technology Companies, the employer is obliged to notify the dismissed employee two months before termination of the contract. It is also stipulated that upon dismissal, the employee receives severance pay equal to one salary. If a laid-off employee registers with the labor exchange and fails to find a new job, their previous employer is obligated to pay them one to two times their salary. Employment under an employment contract allows an employee to accumulate work experience, which is important for retirement. If the employee's work experience is insufficient, they will only receive the minimum social pension upon reaching retirement age. According to the GOGOV portal, the minimum pension is 5,700 rubles, but the state provides additional payments to ensure pensioners have an income equivalent to the subsistence minimum in their region. Accumulating work experience is important for ensuring a stable financial future in retirement. Employment contracts for people with disabilities establish special conditions that meet their needs. It is important to note that organizations with more than 35 employees are required to adhere to quotas for the employment of such workers. Employees with disabilities of the first and second groups are entitled to a reduced workday, which should not exceed 35 hours per week, while their wages remain at the level of full-time work. Regardless of their disability category, employees are entitled to an extended vacation of at least 30 calendar days, as well as unscheduled unpaid leave, which cannot exceed 60 calendar days per year. A key aspect is ensuring working conditions that correspond to the individual rehabilitation program of the employee with a disability. This helps create a comfortable and safe working environment that facilitates their integration into society and the work process. When employed under a civil law contract, you lose a number of important guarantees. Specifically, you do not receive a salary twice a month, severance pay, overtime compensation, or paid sick leave and vacations. This is important to consider when choosing between an employment contract and a civil law contract, as such conditions can significantly impact your financial stability and the protection of employee rights.

Disadvantages of an employment contract and advantages of a civil-law contract

Working under an employment contract has its own characteristics, which may be disadvantages for some employees. The main aspect is the need to adhere to the work schedule. Egor Larichkin talks about this in more detail. He emphasizes that strict adherence to a work schedule and compliance with established rules can limit freedom of action and flexibility in organizing working hours. These nuances are important to consider when choosing the format of employment relations.

The employee adheres to the established duration of the work week and daily work schedule, including cases of irregular working hours. He also adheres to the start and end time of the working day, as well as regulated breaks.

The employer sets restrictions for employees registered under an employment contract in matters of delegation of duties. The employee is obliged to independently perform their tasks. In addition, the contract may specify a ban on participation in other projects in parallel with the main job. This allows the employer to ensure that the employee's efforts are focused on achieving company objectives.

When employed under a civil-law contract, you have significant freedom in choosing the location and time of work, as well as the opportunity to participate in several projects simultaneously. A civil-law contract often implies piecework pay, which allows you to flexibly manage your income. This type of employment is ideal for those who value independence and want to plan their own work schedule.

Who are individual entrepreneurs and self-employed individuals?

When registering as an individual entrepreneur (IE), the employee assumes responsibility for paying all taxes and social contributions. In contrast, when working under a civil-law contract (GPC), all tax obligations are assigned to the employer. Self-employed individuals also independently fulfill their tax obligations, but they are exempt from paying social contributions. Instead, they pay a professional income tax of 6% of their earnings. In practice, this means that self-employed individuals can significantly reduce their tax burden, making this type of work more attractive to many. Yegor Larichkin explains that this system allows for flexible financial management and allows for greater focus on professional activities. Self-employment is the optimal choice in terms of taxation and the simplification of tax filing and payment. However, it should be noted that there is an income limit for the self-employed. The maximum annual earnings cannot exceed 2.4 million rubles. This is important to remember when planning your finances and income.

If your annual income exceeds 2.4 million rubles, you lose your self-employed status. In this situation, according to information from Sovcombank, your "My Tax" app will be automatically blocked, and you will no longer be able to pay taxes as a self-employed person. What happens if you continue to operate after exceeding the established limit? Details are provided in the Sovcombank article.

Continuing to operate after this point may result in the loss of the right to pay professional tax, which is 4% for individuals and 6% for legal entities. In this case, entities will be forced to switch to paying personal income tax (PIT) at a rate of 13% for residents, as well as value-added tax (VAT) at a rate of up to 20% on the added value of products. This can significantly increase tax liabilities and, as a result, reduce the financial performance of a business.

A self-employed person has three main options. The first is to suspend their activities and continue receiving income until the end of the tax period. The second option is to register as an individual entrepreneur (IE). The third is to take employment under a civil law contract (CLC). These options allow the self-employed to optimize their tax burden and choose the most suitable method of conducting business.

The opportunity to become self-employed emerged as an alternative to civil law contracts and individual entrepreneurship. In 2019, this option was launched in four pilot regions of Russia, and in the second half of 2020, it became available nationwide. This method of hiring employees is popular among indie studios and small companies, due not only to tax savings but also to its ease of management. Egor Larichkin notes that self-employment simplifies tax reporting and avoids the complexities associated with traditional business models. Employees can easily register as self-employed through bank apps. These apps offer the ability to generate receipts and pay taxes, without the need to submit any reports. This significantly simplifies the business process for self-employed individuals. One of the main reasons companies choose such forms of cooperation as civil-law contracts, individual entrepreneurship, and self-employment is the ability to reduce bureaucracy. In this case, companies are freed from the need to withhold taxes, pay social contributions, and create a payroll, reducing the need for accounting services or other specialists. According to Egor Larichkin, this significantly simplifies HR management processes. Furthermore, some employees prefer not to sign an employment contract because they are already employed by another company and view game development as a side hustle. This highlights the flexibility of modern forms of employment, which are becoming increasingly popular in the industry.

If you are looking to establish yourself in your professional field, an employment contract is the most suitable option for you. This type of employment provides employees with significant guarantees and protection, as confirmed by Trade Union experts. From the employer's perspective, in order to avoid tax liabilities, it is more advantageous to register employees under a civil law contract (CLC) as individual entrepreneurs or self-employed. In extreme cases, unofficial employment is possible, but this is contrary to the law. Tax evasion can lead to serious consequences for the company and its management, including administrative sanctions and criminal liability, with a possible fine of up to 3 million rubles and imprisonment for up to two years.

So, should you get hired under an employment contract?

Ideally, this is indeed beneficial for the employee, but can be expensive for the employer. Companies typically enter into employment contracts with candidates whose qualifications, usefulness, and reliability are beyond doubt. Nikolai Andreev shares his opinion on this topic.

Many companies register new and mid-level employees as self-employed or sole proprietors. This is because not all mid-level specialists justify the high costs, which include 13% personal income tax and 30% social security contributions. This approach optimizes personnel costs and reduces the financial burden on businesses.

Egor Larichkin also notes that inexperienced specialists are more often hired under civil law contracts (CLCs), since employers can assess their professional qualities during the process. The advantage of a CLC is that it is significantly easier to terminate than an employment contract, even if the latter is signed with a probationary period. This allows employers to more flexibly manage their human resources and minimize risks when hiring new employees.

Civil law contracts (CLCs), individual entrepreneurship (IE), and self-employment are becoming attractive not only to entry-level specialists or low-skilled employees, but also to professionals working remotely or on a project-based basis. These forms of employment allow for flexible management of their time and income, which is especially relevant in the modern world. The choice between a CLC, IE, and self-employment depends on the specifics of the job, personal preferences, and goals.

Aspiring developers shouldn't despair when searching for an employment contract. Some companies offer alternatives, such as concluding a civil law contract for a probationary period followed by a transition to an employment contract. Nikolai Andreev notes that if you have a good reputation, the issue of a probationary period may not arise. This opens up opportunities for developers looking to start their careers in IT and gain stable employment.

When considering an employment contract, it's important to evaluate how valuable its benefits are to you. First, consider your skills and experience. Are they sufficiently advanced for an employer to be willing to pay you more? If not, consider a civil law contract. This will allow you to develop and gain experience to secure an employment offer in the future. If not with your current company, then with another organization—it's worth remembering that not all studios offer full-time employment. Pay attention not only to your resume but also to your portfolio, as high-quality work samples can significantly increase your chances of landing the desired position.

Egor Larichkin offers the following advice:

Nowadays, a project portfolio plays a key role in the job search process and can be more valuable than a traditional resume. It's important to thoroughly document your projects, including information about your contributions and the specific tasks you solved. This will help potential employers better understand your skills and level of professionalism. Keep your portfolio current by adding new work and updating information about old projects.

Probationary Period

The probationary period contains many nuances that not all developers are aware of. Unscrupulous employers can exploit this ignorance, violating the law and the rights of their employees. It is important to understand that the probationary period should not become a tool for abuse. Employees must be informed of their rights and responsibilities to protect themselves from potential violations by employers.

A probationary period cannot be established for pregnant women, mothers raising children under one and a half years old, or minors. A full list of categories of employees for whom a probationary period does not apply is set out in Part 4 of Article 70 of the Labor Code of the Russian Federation. Such provisions are aimed at protecting the rights of vulnerable groups and provide additional guarantees in labor relations.

An employment contract should not be concluded after the end of the probationary period, since a contract with a probationary period is already a full-fledged employment agreement. Otherwise, the employee may face deception by the employer, according to expert Nikolai Andreev. It is important to understand that compliance with the rules for concluding employment contracts protects the rights of employees and ensures their legitimate interests.

Executing an employment contract after the probationary period is a violation of labor law. Companies using this argument may seek to force you to work without pay for a certain period. It's important to remember that employers have only three business days to formalize a written employment contract from the moment you are actually admitted to work. By protecting your rights, you can avoid unpleasant situations and ensure legal employment.

If you don't have an employment contract, the company must either enter into a civil law contract with you or register you as an individual entrepreneur or self-employed person. The requirement to "work first, then we'll figure out the paperwork" is illegal. It's important to remember that compliance with labor laws protects employees' rights and ensures legal security for both parties. Avoid agreeing to terms that could lead to a violation of your rights.

If you have an employment contract, salary reductions "due to the probationary period" and dismissal without cause are illegal. Yegor Larichkin emphasizes the importance of adhering to all formalities related to labor relations. The employer is obliged to follow established rules and ensure the protection of employees' rights.

According to labor legislation, the dismissal of an employee who has failed the probationary period must be formalized in writing and carried out no later than three days before the actual dismissal. The notice must state the reasons why the employee failed to fulfill their responsibilities. The law strictly prohibits notification of unsatisfactory performance on the last day of the probationary period. Dismissal without stating objective reasons is unlawful.

A manager does not have the right to fire an employee solely on the grounds that they "did not get along." In practice, a list of requirements and tasks that must be completed is drawn up. Upon dismissal, the employer must record which specific requirements were not met and for what reasons. It is important to note that management's conclusions can be challenged in court. This helps protect employee rights and ensure fairness in labor relations.

Can remote work be under an employment contract?

There is a stereotype that employment contracts are only issued for office workers. However, remote employees also have the opportunity to sign an employment contract, rather than being limited to a civil-law contract, individual entrepreneur status, or self-employment. Nikolai Andreev emphasizes that this opens up additional opportunities for remote professionals, allowing them to receive all the social guarantees and protections provided by labor legislation.

Until 2021, the Labor Code did not include the concept of remote work. The coronavirus pandemic demonstrated its relevance, which became the basis for changes to the legislation. Now, the process of formalizing employment relations with employees who prefer remote work has become simpler and more convenient. Employment contracts concluded before 2021 will also be hassle-free: it is possible to conclude an additional agreement regulating the terms of remote work. These changes facilitate a more flexible approach to work organization and meet the needs of both employees and employers.

Agreements are drawn up fairly quickly. According to Nikolai Andreev, the process can take as little as one day. However, for some companies, the process may take up to a week, depending on internal bureaucracy and procedures.

Employment contracts can be drawn up for both office employees and remote workers. However, self-employed individuals cannot be permanently located in the office, as the law will then consider them an employee. This could lead to accusations of tax evasion against management. It is important to understand that self-employed individuals must comply with certain conditions to avoid legal consequences and ensure proper taxation.

Self-employed workers are not required to be present at the company's office, according to Nikolai Andreev. They have a flexible schedule and can independently plan their working hours, including weekends and holidays. As entrepreneurs, self-employed individuals are responsible for organizing their work and leisure time. Furthermore, self-employed individuals provide themselves with necessary equipment, such as computers and other technology. It is important to note that they cannot work for a company where they have been employed under an employment contract for the past two years. Otherwise, the employer risks a fine and additional charges for taxes and insurance premiums, which the employer will be obligated to pay.

What if the applicant is under 18?

The registration of self-employed individuals and employment contracts has age restrictions for employees. From the age of 14, Russian citizens can be employed both under an employment contract and as self-employed, says Nikolai Andreev. It's important to consider that each form of employment has its own characteristics and requirements, which must be considered when choosing a formalization method. A minor may enter into transactions only with the written consent of their legal representatives, adoptive parents, or guardians. An alternative option is emancipation, which can be formalized through a decision of the guardianship and trusteeship authority or the court. Emancipation grants the minor the right to act independently in certain legal matters. From the age of 14, young people can enter into employment contracts, but this is only possible if the work does not interfere with their education or cause harm to their physical or mental health. Yegor Larichkin explains that the age of a minor affects the work schedule and shares calculations that support this assertion. It is important to remember that compliance with labor legislation ensures the protection of the rights of young people and promotes their harmonious development.

Potential Bonuses and Unreasonable Penalties

In addition to standard rewards and traditional bonuses, a generous employer may offer employees a percentage of sales of products or in-game items. Regardless of the type of bonus, it is recommended to consult with a lawyer before making a decision. This will help avoid potential legal risks and ensure transparency of financial terms. Properly drafting such agreements can significantly impact employee motivation and their engagement in the sales process.

Documentation regarding incentive payments is often more difficult to understand than other parts of the contract, notes Yegor Larichkin. It is recommended to consult with a lawyer to assess the defensibility of the proposed terms in court and whether they comply with market standards. Lawyers specializing in these matters know which terms companies most often offer employees, and which less frequently. They can also clarify which concessions employers are willing to make and which they are not, and explain the reasons for these decisions. If a specific offer significantly deviates from the standards the lawyer is accustomed to, they will definitely bring this to the employee's attention. In some cases, the offer may be invalid, illegal, or unclearly worded. Furthermore, it may provide for dispute resolution in a remote jurisdiction, which can create difficulties for the employee who is unable to appeal to such a court.

A qualified lawyer will help identify terms that should not be agreed to and protect against potential financial losses. Egor Larichkin emphasizes that management can manipulate KPIs by claiming that an employee or the company has failed to achieve its goals. Companies often promise stock options but fail to formalize them in writing or provide legally inconsequential documents. This creates the risk of breaching these obligations. Furthermore, an unscrupulous manager can use the slightest pretext to terminate employment, claiming that the employee has grossly violated the rules, thereby depriving themselves of the right to receive compensation. Consulting a lawyer will help avoid such situations and protect your interests. Employees can be deceived by imposing a contract stating that "the bonus portion of their salary is paid at the discretion of the CEO or owner." The lack of clear criteria for receiving a bonus makes the likelihood of receiving one extremely low. This creates the risk of employee discontent and undermines trust in management, which in turn can negatively impact team motivation and productivity.

The game development and IT industries are facing serious issues not only with bonuses but also with fines. Some companies impose extremely strict conditions, including significant deductions for employees who violate non-compete agreements or intellectual property rights, as well as in cases of early contract termination after training. One such situation was described by the Trade Union, highlighting the need to review practices in this industry to ensure more equitable working conditions.

In 2021, a high-profile case occurred in Belarus involving a novice programmer who signed a training and employment contract with an IT company. After being fired before the contract expired, he was required to pay a $5,000 fine. The company justified its actions by citing the high costs of training the intern. However, as the victim himself explained, he felt that these expenses were greatly exaggerated. He hoped to challenge the legality and fairness of the fine, but the court ultimately ruled in favor of the employer. This case raises important questions about the transparency of employment contracts and the legal protection of employees in the IT sector.

Experts recommend avoiding stressful situations at the start of a career and not signing dubious contracts. It is important to seek help, inform colleagues about the situation, and leave a review of the employer publicly. This will help not only you but also other job seekers avoid similar difficulties.

Where else can I go?

If you suspect that your employer is violating your rights, start by talking to them. Perhaps some mistakes were made accidentally or through an oversight, and they can be corrected through discussion. Egor Larichkin emphasizes that such a conversation won't hurt, as your boss has no right to fire you for wanting to discuss the situation. To demonstrate your seriousness in this matter, try to clearly articulate your thoughts and arguments, and prepare specific examples of violations. This will help you create a constructive dialogue and increase the chances of a positive resolution to the conflict.

Written complaints, email, and chat are various methods of communication that demonstrate your seriousness in discussing the issue. The conversation doesn't necessarily have to be in writing; you can record it. It's important to notify the other person in advance about the recording and, preferably, obtain their consent. This will help avoid misunderstandings and ensure transparency of communication.

If the conversation with your employer doesn't produce the desired results, you can file a complaint about the violations with the labor inspectorate. The inspectorate is available in every region of Russia and allows anonymous submissions. This ensures your anonymity and reduces the risk of a negative reaction from management. If the inspection reveals violations, the manager will be given one month to correct them.

If the labor inspectorate does not yield the desired results, you can file a complaint with the prosecutor's office. The prosecutor's office will interview witnesses and conduct an investigation into the violation. If violations are found, it has the right to hold the employer administratively liable or initiate legal proceedings. However, Yegor Larichkin does not recommend filing a lawsuit yourself, as this may require specialized knowledge and experience in the legal field. It is better to entrust this matter to professionals to ensure maximum protection of your rights.

You can write a complaint to the labor inspectorate or a statement to the prosecutor's office yourself, as many high-quality templates and explanatory materials are available online. However, preparing a lawsuit requires more effort and knowledge, so in this case, it is usually recommended to seek legal assistance.

Russians often experience fear of going to court, believing that the judicial system may be biased. This opinion is not without foundation, and it can hardly be called paranoia. However, when it comes to violations of workers' rights, the situation changes. In such cases, it is important to know your rights and options for protection. The legal system provides mechanisms that can help restore justice and protect the interests of workers. Going to court can be a necessary step to restore violated rights and receive compensation.

In Russia, workers have the opportunity to protect their rights, says Yegor Larichkin. Paternalistic labor protection legislation creates an environment favorable to employees, not employers. Courts and labor protection agencies often side with workers, underscoring the importance of legal protection of labor rights. This circumstance can contribute to more equitable working conditions and improved occupational safety.

To confirm your position, it is recommended to contact the Trade Union of IT and Technology Company Workers or other similar organizations. The Trade Union offers an initial legal consultation. If you need a class action lawsuit, you can count on full legal support and assistance in organizing the campaign.

Lawyers expressed doubts about the ability of trade unions to effectively resolve conflicts. Yegor Larichkin noted that in Russia, trade unions have significantly limited capabilities compared to their European counterparts. Small companies often lack trade unions, which further complicates the situation.

There are not only trade unions but also employers' associations in the gaming industry, such as the Gaming Industry Association. These organizations were created relatively recently and have not yet fully demonstrated their potential. According to Nikolai Andreev, their influence and activity have yet to be fully assessed.

The Trade Union of IT and Technology Workers expressed bewilderment at this assessment. A union representative noted that it is difficult to evaluate something that does not exist. He also added that respondents were likely not familiar with their specific union, and there are virtually no significant non-corporate associations of IT workers in the country. However, even with the lack of such organizations, this does not indicate their ineffectiveness.

The IT and Technology Workers' Union predicts that with the disappearance of outdated and ineffective Soviet-style unions, more people will begin to recognize the importance of organizing to protect their interests. This unification is becoming a necessity for a modern employee striving to improve working conditions and increase their competitiveness in the market.