On 1 January 2015 changes that were introduced by Federal Law No. 421-FZ On Amending Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law 'On the Special Assessment of Working Conditions' concerning the establishment of new grounds and conditions for administrative penalty for violations of labor legislation came into effect.Labor & Migration
Urgent Changes Concerning Labor Relationships
New grounds and conditions of administrative penalty for violations of labor legislation
On 1 January 2015 changes that were introduced by Federal Law No. 421-FZ “On Amending Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law ‘On the Special Assessment of Working Conditions’” (the “Law”) concerning the establishment of new grounds and conditions for administrative penalty for violations of labor legislation came into effect.
What the Law says
Consistent with the Law, the following amendments were made to the Code of Administrative Offences of the Russian Federation:
additional administrative penalty was introduced for failure to conclude (or improperly concluding) an employment agreement or concluding a civil-law contract that actually regulates employment relations between an employee and an employer. This violation will result in an administrative fine of RUB10,000 to 20,000 on officials, RUB5,000 to 10,000 on persons engaged in business activity without creating a legal entity, and RUB50,000 to 100,000 on legal entities;
it is now an offence when an individual not duly authorized by the employer admits an employee to work when the employer (or his authorized representative) has refused to recognize employment relations (doesn’t conclude an employment agreement). In such case the employer will have to pay compensation to the individual admitted to work for the period actually worked. Further, such a violation will result in an administrative fine of RUB3,000 to 5,000 on citizens and RUB10,000 to 20,000 on officials. Thus the actual admission to work without the employer’s (or his authorized representative’s) knowledge or authorization now constitutes an administrative offence, but it does not give a rise to the labor relationship;
it is now an offence for an employer to violate the procedure for special assessment of working conditions or to fail to assess workplaces. This violation will result in a warning or an administrative fine of RUB5,000 to 10,000 on officials, RUB5,000 to 10,000 on persons engaged in business activity without creating a legal entity, and RUB60,000 to 80,000 on legal entities;
administrative penalty was introduced for the employer’s failure to comply with or for improper compliance with the orders of the
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Labor & Migration
2 Legal Alert January 2015
official conducting the federal state inspection of labor provisions compliance. A violation will result in an administrative fine of RUB30,000 to 50,000 or disqualification for the period of up to 3 years for officials; RUB30,000 to 50,000 on persons engaged in business activity without creating a legal entity, and RUB100,000 to 200,000 on legal entities;
employers are prohibited from admitting employees to perform employment duties without undergoing training and a knowledge or skills test in work safety or without a preliminary or periodic medical examination if required. Such a violation will result in an administrative fine of RUB15,000 to 25,000 on officials, RUB15,000 to 25,000 on persons engaged in business activity without creating a legal entity, and RUB110,000 to 130,000 on legal entities;
it is now an offence not to provide employees with personal protective gear if required. Such a violation will result in an administrative fine of RUB20,000 to 30,000 on officials, RUB20,000 to 30,000 on persons engaged in business activity without creating a legal entity, and RUB130,000 to 150,000 on legal entities;
Please pay special attention!
the period of limitation to institute administrative proceedings was extended from two (in some occasions three) months to one year from the date the violation was committed.
Documenting business trips
On 31 December 2014 Government Regulation No. 1595 “On Introduction of Changes to Several Government Regulations” was published on the official government website of legal information [gov.ru] (the “Regulation”).
According to the Regulation, the obligation to formalize a business trip by a business trip certificate and duty assignment was cancelled. Currently, for accounting purposes, employees are only obligated to present travel documents. When employees use personal transport the actual period of being on a business trip is indicated in the memo, then obligatory presented by the employee to the employer along with supporting documentation (e.g. route sheet, bills, receipts, cash register receipt, etc.).
Actions to consider
In order to comply with the new rules our clients are advised to consider changes concerning the regulation of labor relationships in order to avoid administrative penalty. The changes affecting the formalization of business trips will reduce the burden for accounting and human resources departments in organizations and facilitate documentation process.
This LEGAL ALERT is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.