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.
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.
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.
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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