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Basic Labor Law Compliance with a Limited HR Management Function

AmCham HR Conference 17 June 2005, Moscow. Basic Labor Law Compliance with a Limited HR Management Function. Marina Ryzhkova, advocate. Юридическая фирма года в Восточной Европе. Labor Law Compliance. How important is labor law compliance for employers ?

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Basic Labor Law Compliance with a Limited HR Management Function

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  1. AmCham HR Conference 17 June 2005, Moscow Basic Labor Law Compliance with a Limited HR Management Function Marina Ryzhkova, advocate Юридическая фирма года в Восточной Европе

  2. Labor Law Compliance • How important is labor law compliance for employers? • Most common consequences of noncompliance with labor law: - Disputes with employees (including litigation); - State Labor Inspectorate audits; - Penalties on employer or employer’s officers; - Increased costs.

  3. Labor Law Violations:Substantial vs. Technical • Substantial violations: clear infringement of employee rights. Examples: - Wage arrears; - Failure to settle accounts with dismissed employees fully and promptly; - Failure or delay in returning “labor book” (trudovaya knizhka) to employee upon dismissal; - Breach of contractually-established work routine (or work routine not conforming to statutory requirements); - Refusal to grant vacation.

  4. Labor Law Violations:Substantial vs. Technical (cont’d) • Technical violations. Most common problem documents: - Employment contract: - Fixed-term employment contract (vs. open-ended) without lawful grounds. - Absence of substantial terms or conditions; - “All inclusive” compensation arrangements; - Employee’s agreement to all employer demands (overtime, etc.); - Deviation from statutory labor standards.

  5. Labor Law Violations:Substantial vs. Technical (cont’d) • Technical violations. Most common problem documents: - Staffing roster; - Code of conduct (none at all/improper content/employee’s acknowledgement); - Vacation schedule; - “Labor Book” and labor book movement record; - Personnel file cards;

  6. Labor Law Violations:Substantial vs. Technical (cont’d) • Technical violations. Most common problem documents: - Work time register (overtime, weekend/holiday work); - Settlement and payment journals (wages, vacation pay, temporary disability compensation); - Personnel orders; - Personal data regulation; - Receipts; - “Full material liability” agreements.

  7. Labor Law Violations:Substantial vs. Technical (cont’d) • Occupational safety & health violations: substantial and technical. • Importance of OS&H compliance: blue-collar vs. white-collar. • Strenuous/harmful/dangerous working conditions. • Organizing a corporate OS&H system: general requirements.

  8. Penalties for Violations of Labor Law and Occupational Safety & Health Laws • Administrative penalties; • Criminal prosecution. Identifying who is responsible for violations of labor law and occupational safety & health laws.

  9. Contact Information Marina Ryzhkova, advocate E-mail: mryzhkova@salans.com Tel: +7 095 258 3444 Fax: +7 095 258 3477 Salans 17/9,Gazetnyi Pereulok, 125009 Moscow Russia www.salans.com

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