Little time remains before the entry into force of the Federal Law dated July 3, 2016 № 272-FZ, which amends the old provisions of labor and administrative law, with respect to the periods for payment of wages and liability for their violation.
As of October 3, 2016, the legislation establishes the obligation of employers to pay wages at least every two weeks, that is, no later than 15 calendar days after the end of the period for which they are accrued.
From this it follows that in October, many organizations need to change the established procedure for issuance and payment of wages before the 17th of the month, inclusive (since October 15 falls on a Saturday).
Note that the maximum period between an advance payment and wages can be no more than 15 calendar days. Thus, if your company pays an advance on the 20th, the employee must receive the wages not later than the 5th of the following month.
An important point is the fact that according to the new legislation, the employer cannot indicate a time range (e.g., between the 1st and the 5th), in which wages will be paid — the date of payment must be specifically indicated.
Regarding the new periods for payment of bonuses, the exact dates must be recorded in the local normative acts of the organization (one of the options: the company pays monthly, quarterly and annual bonuses on the 14th day of the month following the month in which they are accrued).
“We do not recommend that you to set the 15th day of the month as the day of wage payment. In that case, it turns out that the advance pay falls on the 30th. And with advances issued on the last days of the month, it is necessary to calculate and withhold personal income tax.”
– Natalia Leshchenok,
Head of Payroll Department.
In accordance with the new provisions, the employer should harmonize internal documentation of the company, including issuing an order on the appropriate changes, and conclude an additional agreement to the employment agreement with the employee.
It is also important to meet the requirement of Article 74 of the Labor Code of the Russian Federation and notify the employee 2 months before the entry into force of the expected changes, namely, no later than August 2, 2016.
However, not all employers take into account the established provision on notification, in which case application of Article 72 of the Labor Code of the Russian Federation, which provides for changes in conditions of employment by mutual agreement, comes to their aid.
Based on the provisions of Article 72 of the Labor Code, it is sufficient for the employee and the employer to conclude a new additional agreement to the labor contract (by mutual agreement) and determine the date the changes come into force; thus, giving notice is not required.
Additionally, in order to expand legal protection for employees in terms of material compensation as of October 3, 2016, the size of penalties for delay in the payment of wages and other violations increases.
Non-payment within the prescribed period of wages and / or other payments shall entail a warning or an administrative fine in the amount of:
- for company officals — from RUB 10,000 to 20,000;
- for individual entrepreneurs — from RUB 1000 to 5000;
- for legal entities — from RUB 30,000 to 50,000.
For a repeat offence:
- for individual entrepreneurs — fine from RUB 10,000 to 30,000;
- for company officals — either a fine of RUB 20,000 to 30,000 or disqualification for a period of 1 — 3 years;
- for legal entities — fine of RUB 50,000 to 100,000.
Please also note that the likelihood of unscheduled inspections significantly increases.
It has been found that most often upon violation of employers’ obligations, employees turn primarily to the labor inspection, and less often to the сourt. We remind you that the statute of limitations for individual disputes is 3 months, with the exception of dismissals disputes, which is 1 month.
Specialists of our company are ready to provide you with more in-depth information on the new provisions of this law. We are happy to assist you with audits of internal documentation, the drafting of standard forms in your organization and ready to offer a resolution of labor disputes of any complexity.