Forced recovery of unpaid salaries - amendments to the Labour Code

Forced recovery of unpaid salaries - amendments to the Labour Code

27 November 2019

On 21st November 2019, concluding its third reading, the State Duma of the Russian Federation adopted the Draft Law that grants state labour inspectors the out-of-court authority to collect, from employers, accrued but not paid salaries.

The Draft Law establishes the following procedure for recovery of unpaid salaries:

  • based on results of an audit, the inspector issues an order to eliminate violations related to remuneration;

  • in the case of failure to fulfill the instructions stated in the order, the inspector makes a decision on compulsory enforcement of the order and provides the employer with such a decision, within 3 working days from the day of its adoption;

  • the employer is entitled to challenge the respective decision in court, within 10 days from the date of its receipt;

  • if the decision is not executed and the term for its appeal has expired, an electronic copy of that decision is submitted to bailiffs;

  • bailiffs initiate enforcement proceedings and recover outstanding amounts from the company’s accounts.

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Practices: Labour and Employment

Note: Please be aware that all information provided in this letter was taken from open sources. Neither ALRUD Law Firm, nor the author of this letter bear any liability for consequences of any decisions made in reliance upon this information.

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