Association of European Businesses in the Russian Federation AEB LEGAL COMMITTEE OPEN EVENT Lithuani

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Association of European Businesses in the
Russian FederationAEB LEGAL COMMITTEE OPEN EVENT
Lithuanian Cultural Centre , Povarskaya St. 24
September 22, 2006
Labour Law Reform What is important for AEB
members? Chaired by Dr. Rainer Wedde, Member
of the Legal Committee, Beiten Burkhardt, Moscow
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Labour Law ReformOverview of the recent changes
and innovations
Moscow, 22 September 2006

Ekaterina Karlova?MS Hasche Sigle Moskau
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Main changes and innovations

• Content of the labour contract
• Conclusion and termination of the labour
  contract
• Amending of the labour contract
• Payment for labour
• Schedule of work
• Annual payable leave
• Compensation and guarantees provided to the
  employees
• Employment of the separate categories of the
  employees
• Labour protection

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New in the content of the Labour contract
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Obligatory terms

• Place of employment (the name of the organization
  department is included only if it is situated in
  another place)
• Employment function
• Date of the beginning of the work
• Wage conditions
• Schedule of the working hours and of the
  time-off
• Compensation for the heavy conditions of work
• Terms on the obligatory social insurance
• Terms defining the characteristics of the work
• Other terms if specified in the legislation

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Additional terms

• Clarification of the place of work (e.g. name of
  the organization department)
• Probation period
• Nondisclosure of the legally protected secret
• Obligation to work for the employee after the
  study if the study was financed by the employee
• Additional insurance of the employee
• Improvement of the social-domestic conditions
• Clarification of the rights and obligations of
  the employee and employer

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Data to be included into the labour contract

• The full name of the employer and employee
• Data on the documents proving employees identity
• Identification number of the taxpayer (for the
  employer)
• Data on the representative signing the contract
  on behalf of the employer and on the document
  confirming his authority
• Place and date of its signature

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New procedure of amending of the labour contract

• Under agreement of the Parties
• Every amendment of the labour contract (all
  terms, not only obligatory) is subject to mutual
  agreement of parties

• Under initiative of the employer
• Possible only if the labour contract can not
  remain without amendment due to the change of the
  organizational or technological conditions of
  work
• The employ ee should be notified on the future
  amendment in written not later than 2 months
  prior to the amendment

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Transfer vs Relocation in light of the new
amendments

• Transfer
• Change of the employment functions
• Move together with the employer to another area
• Move to another organizational department (if the
  clause on the name of the organizational
  department is included into the contract)
• Written consent of the employee is necessary

• Relocation
• Is not connected with the change of the
  employment functions
• Move to another work place
• Move to another organizational department (if the
  clause on the name of the organizational
  department is not included into the contract)
• Written consent of the employee is not necessary

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New in the payment for labour
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New rules of calculation of the average
wageCalculation of the average day wage for
payment of the leave and compensation for the
unused leave

• Average day wage wage for the previous 12
  months 12 29,4

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Work over the established duration of the
working time
Overwork
Non standard working day
With consent of the employee
Without consent of the employee
Professions subject to the non standard
working day should be specified in the
collective contracts, agreements and local
normative acts
With consent of the employee and consideration
of the opinion of the elected trade union body
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Overwork

• Consent of the employee is not demanded
• In the case of liquidation or prevention of the
  catastrophe or technological accident
• In the case of performance of the socially
  necessary works on liquidation of the unforeseen
  circumstances that obstruct the work of the
  systems of the water-supply, sewerage, transport,
  communication, gas, heating and lighting
• In the case of performance of the work caused by
  emergency state or military situation

• Consent of the employee demanded
• In order to finish the work that could not be
  finished earlier and can not be stopped without
  causing damage to the employer
• In the case of the temporary work in order to
  repair or reconstruct the objects which
  derangement may cause termination of work of the
  essential number of the employees
• In order to continue the work if it should not be
  stopped and the relieving employee hasnt come

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Dual jobholding (Additional employment) New in
the duration of the working time when working as
dual jobholder

• The working time when working as dual jobholder
  should not prevail 4 hours a day or the half of
  the monthly rate of the working time established
  for the relevant category of employees a month
• Exceptions
• When employee is exonerated from performance of
  the employment duties at his main employment
• When employee suspends work due to the delay in
  payment of the wage
• If the employee, director of the company, his
  deputies or chief accountant are discharged from
  the work due to the medical report

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Annual payable leave

• New in the calculation of the labour experience
  for the purposes of the annual payable leave

Included now into the labour experience giving
the right for the annual payable leave included
the periods of the discharging from the work of
the employees who have not passed the obligatory
medical inspection (if it was not caused by their
own fault)
Amended Into the labour experience included the
periods when employee did not work but his
working place was reserved for him in accordance
with the Labour Code, other regulatory legal
acts, collective contract, agreements, local
normative acts, labour contract Non payable
leaves are not included into the labour
experience if their general duration prevail 14
days

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Replacement of the leave with compensation
Replacement of the leave with money is impossible
2004 28 days unused
2006 28 days unused
2005 28 days unused
84 days of leave


Partial replacement of the leave with money is
possible
2004 31 days unused
2005 31 days unused
2006 31 days unused

84 9

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Main changes in the compensations and guarantees
provided to the employees
Severance benefit (two new grounds for
payment) In the case of acknowledging the
employee fully disabled (clause 5, p. 1,
Art.83 LC) In the case of refusal of
the employee to continue work after change of
the terms of the labour contract (clause 7, p. 1
Art. 77 LC)
Companys liquidation and personnel
reduction Under consent of the employee the
labour contract can be terminated before
expiration of the two months notification period.
In this case additional compensation is paid to
the employee proportionally to the time left till
expiration of the notification period
Compensation of the expenses for the
away employees Employees whose employment
functions are performed on the way or connected
with permanent trips are compensated the same
expenses as the employees that go to the
business trip
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New peculiarities of the employment of the women
and persons with family duties
Business trips, overwork, night work, work on
the days off and holidays For single parents
of the children under 5 years - only with their
written consent
Dismissal of the pregnant women Possible if
she was employed in order to perform the duties
of the temporary absent employee and her
transfer to another position is impossible
Break for feeding Provided to women having
children under 1,5 years every three hours
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Employment of the company executive
Termination of the contract Should the
additional grounds for termination of the
contract specified in the Labour code or
contract appear, the employer has to terminate
the contract with executive
Compensation in the case of termination of the
contract Should not be less than three average
wages of the employee
Duration of the contract Concluded for the
fixed term only under consent of the Parties
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Main innovations concerning labour protection

• Obligation of the employer to transfer the
  employee to the medical organization in the case
  of his illness
• Obligatory establishment of the labour protection
  department in the company with more than 50
  employees
• New list of the job related accidents to be
  investigated

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Contact person

• Ekaterina Karlova
• Jekaterina.Karlowa_at_cms-hs.com
• Vasily Ermolin
• Wassilij.Jermolin_at_cms-hs.com
• CMS Hasche Sigle
• 119034 Moskau, ul. Ostoschenka, 23
• Tel. [phone]
• Fax [phone]
• moskau_at_cms-hs.com
• www.cms-hs.com