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Carl's Jr. Causes Controversy as It Pulls Out of Russia

U.S. burger chain Carl's Jr.'s exit from the Russian market has proven messy, as employees claim the company intends to dismiss them without severance pay as required by Russian labor law, according to St. Petersburg news website Fontanka.ru.

Carl's Jr. on Monday announced its intention to withdraw from Russia, closing its 30 locations spread between St. Petersburg, Krasnodar and Novosibirsk, citing growing volatility as Western sanctions and declining oil prices take their toll on the Russian economy.

The St. Petersburg branch of Russia's labor watchdog said it has since received a number of complaints from Carl's Jr. employees claiming that the company was pressuring them to tender letters of resignations rather than dismissing them formally — which under Russian labor law requires severance pay equivalent to three months' worth of salary.

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