Far North and equivalent employers to compensate employees for vacation travel expenses, including for luggage.

22.03.2012

Legal Update No. 338

Goltsblat BLP advises of the publication of Resolution of the Constitutional Court of the Russian Federation of 9 February 2012 No. 2-P on a case of checking the constitutionality of a provision of part eight, article 325 of the Labour Code of the Russian Federation in connection with a complaint submitted by Ms I.G. Trunova (the Resolution).

The Resolution states that the collective bargaining agreements, local regulatory acts adopted in consideration of the opinion of elected bodies of shop-floor trades union organisations or employment contracts of employers that are not state supported and conduct entrepreneurial and (or) other commercial activities in the Far North and equivalent localities must envisage compensation for employees for travel and luggage transportation costs to and from vacation locations in the Russian Federation in an amount, on conditions and in a manner complying with the purpose of this compensation.

The Resolution allows that the amount, conditions and procedure for the given compensation for a non-state-supported employer’s employees might differ from those envisaged for employees of organisations financed out of the budget and that this might entail differences in the scope of additional guarantees of exercise of rights to vacation and health protection for those who work under unfavourable natural and climatic conditions. The differences should, however, be justified, founded and proportionate to the constitutionally significant objectives, namely, guarantee the employee an opportunity to leave the Far North and equivalent localities for the purposes of vacation and health restoration. The compensation may be established on the basis of a balance of the interests of the parties to the employment contract, in consideration of its objectives and bearing in mind the employer’s real economic possibilities, though this may not serve as grounds for refusing to pay any compensation at all or reducing it too much.

The Constitutional Court of the Russian Federation has also stressed in the Resolution that a minimum amount for such compensation might be set or other measures be envisaged in the legislation to ensure that people working in the Far North or equivalent localities are able to spend their vacations outside areas with unfavourable climatic conditions.

For additional information, please contact: 

to Nadezhda Ilyushina,
Head of Employment, Pension & Benefits Practice, 
Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com

to Olga Fedchenko,
Associate, Employment, Pension & Benefits Practice, 
Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com


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