The Russian Presidents address to the Federal Assembly in 2017 set the goal of launching a comprehensive programme to develop a digital economy. Are labour market institutions consistent with this challenge? The practice of teleworking is widespread among IT specialists. Experts estimate that there may be 35 million such workers in Russia. As the digital economy expands, their numbers will only grow. How relevant to the image of a dynamic and modern industry are such attributes of labour relations as employment histories kept by employers, paper employment contracts sent to employees by post, and boxes containing copies of HR documents that are trawled through by labour inspectorates during inspections? Unless changes to labour market regulation are introduced, the development of a digital economy will be held back by rising administrative costs for employees and employers alike, as well as higher levels of informal employment. How can we overcome the constraints of economic growth and find a compromise between protecting workers rights and developing an economy for the digital era? Will there be demand for additional electronic employment services that can be delivered through the Work in Russia portal?