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Thursday, March 15, 2018

The Russians sweeten the delayed wage penalties for employers

President Vladimir Puti has signed a law that toughens penalties for employers for non-payment of wages. 2 times increases the amount of compensation and 4 times – the Statute of limitations on violations of this kind. How will it help the Russians, suffering from wage arrears? The legislators themselves understand that some punitive measures will not solve the problem.

photo: Gennady Cherkasov

The bill was prepared by the government, it makes changes to the Code of administrative offences, the Labour code and the code of Civil procedure.

If the term of payment of wages to the regulatory authorities punished employers, as well as for other labor law violations, administrative fine: for officials it ranged from 1 to 5 thousand rubles, and for legal entities — from 30 to 50 thousand.

Now the penalties for non-payment of wages on time and in full amount prescribed in the administrative code separately, and from one to five thousand will be able to get rid of only individual entrepreneurs, and then for the first time. For officials, the fines increased to 10-20 thousand rubles. Repeated violation will cost official in the 20-30 thousand рубле1 (possible disqualification), SP — 10-30 thousand rubles, and legal entities — in the 50-100 thousand rubles.

In addition, the Labour code refined the timing of the payment of wages and other payments: this should happen no later than 15 calendar days after the end of the period for which accrued wages.

And the amount of compensation payable to the employee in the case of debt owed to him, increased from the current one three hundredth of the refinancing rate of the Central Bank for each day of delay, until actual payment of the debt up to one stamatelatos the key rate of the Central Bank per every day of delay. (The government proposed to introduce higher compensation only starting from the 81st day of delay, but the deputies did not agree with him.)

How large are these amounts — judge for yourself: if you owe 50 thousand rubles, and did not pay them for 6 months, compensation will amount to 6,300 roubles (plus those 50 thousand, of course).

Another very important innovation is the increase of time within which the employee may apply to the court to he indebted to the employer: instead of 3 months from the time when the employee learned of the violation of their rights, and now in cases of non-payment of wages — up to one year.

The first Deputy head of the Duma Committee on labor, social policy and veterans Affairs Mikhail Tarasenko in conversation with “MK” has admitted that the problem of wage arrears in the crisis cannot be solved only monetary sanctions.

He said that “in the course of work on the text of the document received offers from the regulatory organizations to be fined for each worker separately, but they were not supported, because the money in the first place to get people who are owed wages, not the budget, where will the fines.”

Mr. Tarasenko said that “in 80% of cases is not so clear, sometimes unpaid, are a consequence of delays in payment of work performed budget or subcontractors, and when imposing a fine, the Supervisory authorities “must take into account all the nuances in order to punish unfair and rude behave of employers. The law the Deputy considers “not perfect, but still a step forward in protecting the interests of workers”.

According to Rosstat, as of 1 June 2016 arrears of salary – a little more than 4 billion rubles (not counting small enterprises), accounting for only about 1 percent of the total payroll in the country. In may the debt was reduced by 1.2 percent.

Rosstat analyzed the reasons of formation of debts to workers, and found that 98.5% of the total amount of outstanding debt — a consequence of the lack of funds at enterprises ‘ accounts. Debts due to the late receipt of funds from budgets of all levels from the total sum amounted to 59 million rubles and increased compared to may 1, 2016. 31 million rubles (2.1 times), including debt from the Federal budget has increased compared to may 1, 2016. 15 million rubles (12 times), the budgets of constituent entities of the Russian Federation – 23 million rubles, or 4.7 times.

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