Unlawful Forfeiture of Employee Benefits May Lead to Imposed Fines, Warns the OP
New Russian Law Protects Employees from Unjustified Bonus Reductions
Russian President Vladimir Putin signed a law on June 7 aimed at protecting employees from unjustified bonus reduction in cases of disciplinary punishment. The law, which will come into effect on September 1, modifies the Russian Labor Code.
According to point 6 of article 5.27 of the RF CoA, an employer can be held administratively responsible for unlawfully denying a bonus to an employee. The law states that if an employee has a disciplinary penalty, the employer can only reduce the bonus in the month when the disciplinary offense occurred.
However, the law does not affect the employer's ability to deny bonuses for reasons such as having a disciplinary penalty during the bonus period, termination during the bonus period, not fully working the bonus period, not meeting the plan or task, receiving a client complaint, and missing deadlines.
The reduction should not decrease the monthly salary by more than 20%, as per the amendments to article 135 of the LC. For legal entities, the fine for an illegal bonus denial is between 30,000 and 50,000 rubles. For individuals engaging in entrepreneurial activity without forming a legal entity, the fine is between 1,000 and 5,000 rubles. The fine for officials for an illegal bonus denial is between 10,000 and 20,000 rubles.
If an employee believes they were unlawfully denied a bonus, they can appeal the decision by contacting the employer or filing a complaint with the labor inspectorate. The law applies only to bonus reductions, not the denial of bonuses altogether.
The reduction of bonuses is now regulated and must be clearly outlined in the employment contract, agreement, or local regulatory act. Employers will now have to clearly regulate bonus systems in employment contracts, agreements, and local regulatory acts.
Yevgeny Masharov, a notable figure in Russian labor law, stated that bonus denial is not a fine or disciplinary penalty. He also listed several reasons for bonus denial, including having a disciplinary penalty during the bonus period, termination during the bonus period, not fully working the bonus period, not meeting the plan or task, receiving a client complaint, and missing deadlines.
It is important to note that the available information mainly focuses on significant increases in military recruitment bonuses signed by Putin in 2024, raising the standard enlistment bonus to 400,000 rubles as part of military recruitment efforts. Thus, no direct information on modifications to employer-issued non-military bonuses or their disciplinary handling can be confirmed from the provided results.
In conclusion, the new law aims to protect employees from unjustified bonus reductions in cases of disciplinary punishment. Employers are now required to clearly regulate bonus systems and ensure that any reductions do not exceed 20% of the monthly salary. Employees who believe they have been unlawfully denied a bonus can appeal the decision.
The new law, governing Russian employment, specifically focuses on finance and business matters, with an emphasis on the regulation of bonus reductions for employees. In accordance with the law, employers must clearly outline their bonus systems in contracts or local regulatory acts, and any reductions should not exceed 20% of the monthly salary.
