New Rules for Labour Dispute Resolution in Court. Greater Liability for Failure to Pay Salary


Legal Update No. 579

Goltsblat BLP advises that Federal Law 272-FZ dated 3 July 2016 “On Amending Certain Legislative Acts of the Russian Federation to Increase Employer Liability for Breaching the Legislation on Labour Remuneration” (the “Law”) has come into effect and applies from 3 October 2016.

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Employees may now go to court at their place of residence

The Law modifies the rule on jurisdiction over disputes associated with reinstatement and protection of labour rights. Employees will now be able to file lawsuits for protection of labour rights at their place of residence.

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Employees have one year to seek recovery of their salary through the courts

Another amendment affects the statute of limitations for disputes over failure to pay salaries.

Under the new rules, employees may go to court seeking recovery of fully or partially unpaid amounts due to them within one year of the relevant payday.

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Deadlines are established for paying salary

The Law stipulates changes in the procedure and term for paying salaries1. Under the new rules, the employer is required to pay salary within 15 calendar days of the end of the payroll period. For instance, salary for the first half-month must be paid to an employee no later than the 30th day of the current month; payments due for the rest of the month must be paid within the first fifteen days of the following month.

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Higher default interest for delayed remuneration

The Law scales up the interest payable to employees for delays in payments due to them.

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Employers face greater administrative liability

Among other things, late payment of salary and other amounts due to employees under employment relations is now added as an independent administrative offence under the Russian Code of Administrative Offences.

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With the Law coming into force, we would recommend, first of all, checking your company's employment contracts and local regulations for compliance.

Goltsblat BLP will monitor the practical application of the Law and update you on material developments in this respect.


1  Article 136 of the Russian Labour Code.

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