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Risks of violation of Russian labor laws and regulations

State authorities have tightened control over the fulfilment of applicable labor laws and regulations, and this could entail greater risks for business. Below you will find a list of the most sensitive points.

Vacation payment

Vacations must be paid no later than three days before the vacation start date. If such payment is due on a day off, then it should be made the day before such day off.

(Article 136 Russian Labor Code)

Salary payment

Salaries must be paid at least every fortnight. Salary payment dates are set out by internal regulations, collective and employment contracts and may not be later than 15 calendar days from the end of the period for which salaries are accrued.

(Article 136 Russian Labor Code)

The Ministry of Labor recommends providing in agreements and internal regulations that salaries for the first half of the month are paid in proportion to the time worked.

The Ministry of Labor also strongly recommends paying salaries:

  • For the first half of the month – from 15th  to 30th (31st) of the current month;
  • For the second half of the month – from 1st to 15th of the following month.

In case of violation of the above rule, the following sanctions apply:

  • A warning or administrative fine from RUB 10,000 to RUB 20,000 imposed on company officers;
  • A fine from RUB 30,000 to RUB 50,000 imposed on legal entities.

(Article 5.27(6) Russian Code of Administrative Offenses)

Mandatory internal regulations

The following documents must be available:

  • Internal work regulations;
  • Personal data policy (including each employee’s consent for personal data processing).

It is also recommended for employers to have:

  • A salary policy (if salary issues are not regulated in employment contracts);
  • Itinerant work policy (if provisions on itinerant work are included in employment contracts). Provisions on itinerant work may also be included in a general document such as business trip and itinerant work regulations.

Special assessment of working conditions

Employers must conduct special assessments of working conditions (Federal Law 426-FZ On Special Assessment of Working Conditions, and provisions of the Russian Labor Code)

In case of violation of the above rule, the following sanctions apply:

  • A warning or administrative fine from RUB 5,000 to RUB 10,000 imposed on company officers;
  • A fine from RUB 60,000 to RUB 80,000 imposed on legal entities.

(Article 5.27.1(2) Russian Code of Administrative Offenses)

Health and safety

Employers must take a number of measures to ensure health and safety in the workplace. These measures include, in particular, staff training, health and safety training for staff, preparation of certain documents.

(Section X Russian Labor Code)

In case of violation of the above rule, the following sanctions apply:

  • A warning or administrative fine from RUB 2,000 to RUB 5,000 imposed on company officers;
  • A fine from RUB 60,000 to RUB 80,000 imposed on legal entities.

(Article 5.27.1(1) Russian Code of Administrative Offenses)

Civil law contracts

We recommend paying attention to civil law contracts entered into with individuals so that they cannot be recognized as employment contracts as companies would, in such case, be brought to liability for violation of labor law. In the event that civil law contracts are recognized as employment contracts, other risks would also arise for employers. When a civil law relationship is recognized as an employment relationship, certain consequences arise, such as, for example, the obligation to pay sick leave, provision of paid leave, and fewer grounds for termination of such relationship, etc.

In case of violation of the above rule, the following sanctions apply:

  • An administrative fine from RUB 10,000 to RUB 20,000 imposed on company officers (disqualification for 1 to 3 years in case of repeated offense);
  • A fine from RUB 50,000 to RUB 100,000 imposed on legal entities (RUB 200,000 upon repeated offense).

(Article 5.27(4) Russian Code of Administrative Offenses)

Failure by employers to record time actually worked by employees

(Articles 91 and 99 Russian Labor Code)

In case of violation of the above rule, the following sanctions apply:

  • A warning or administrative fine from RUB 1,000 to RUB 5,000 imposed on company officers (administrative fine from RUB 10,000 to RUB 20,000 or disqualification from 1 to 3 years in case of repeated offense);
  • A fine from RUB 30,000 to RUB 50,000 imposed on legal entities (a fine of up to RUB 70,000 upon repeated offense).

(Article 5.27(1) Russian Code of Administrative Offenses)

The most serious violations with the highest possible fines

Practice shows that the following violations are deemed the most serious and entail the highest possible fines:

  • Avoidance of entering into employment contracts;
  • Substituting employment contracts for civil law contracts;
  • Violations upon dismissal;
  • Non-payment of wages (other payments due to employees);
  • Failure to provide individual protective equipment;
  • Failure to comply with health and safety requirements.

We would be pleased to assist in making the necessary amendments to your internal regulations and employment contracts. We would also be happy to provide your company with more detailed advice on labor law matters.

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