Recent developments

On 31 December 2017, the effective term of the industry agreement for the agricultural sector 2015-2017 expires.

As a reminder, the agreement applies to companies in the agricultural area (including food and pharmaceutical industries, tobacco production and sale, etc.) and establishes additional guarantees for employees in this sector (including guarantees regarding the duration of working hours and payment for work, additional social guarantees and compensation, etc.).

Due to the expiration of the term of the above agreement, its parties plan to conclude a new industry agreement for 2018-2020.

According to the current procedure, the new industry agreement will be concluded and submitted to the Russian Federal Labor and Employment Service (the Rostrud) for notice-based registration. Having received this agreement, the Ministry of Labor and Social Security of the Russian Federation (the Mintrud) places it on its website and publishes an offer to join the agreement in the newspaper "Rossiiskaya Gazeta" for those companies conducting activity in the relevant sector.

As a reminder, in accordance with the Russian Labor Code, companies in the industries above can refuse to join the agreement by providing a reasoned written refusal to the Mintrud within 30 days after the offer has been published in the newspaper "Rossiiskaya Gazeta". Otherwise, the agreement will be automatically extended to all relevant employers.

Recommended actions

Companies that do not wish to join the new agreement for 2018-2020 should monitor the newspaper "Rossiiskaya Gazeta" for its publication of Mintrud’s offer to join the agreement, and further submit reasoned refusals as soon as possible. Records of consultations with the elected body of the primary trade union must be attached to such refusals (if applicable).

We will inform our clients as soon as the recommendations to join the agreement have been published.