Russian Federation. LABOR CODE OF THE RUSSIAN FEDERATION OF 31 DECEMBER 2001

The purposes of the labor law shall be setting official state guarantees of the labor rights and freedoms of the nationals, creating favorable conditions for work, protecting rights and interests of employees and employers.

The main objectives of the labor law shall be creating the necessary legal conditions for achieving an optimal harmonization of the parties to labor relations' interests, the state's interests as well as legal regulation of labor relations and other relations directly linked to them as for:

organization of labor and management of labor;
job placement with a specific employer;
professional training, re-training and skill improvement of employees directly at a certain employer's facilities;
social partnership, collective bargaining, concluding collective contracts and agreements;
participation of employees and of labor unions in determining working conditions and in applying the labor law in the cases stipulated by the law;
material liability of employers and employees in the sphere of labor;
surveillance and control (including control by labor unions) of compliance with the labor law (including the law on occupational safety);
settlement of labor disputes.

Article 2. Main principles of legal regulation of labor relations and other relations directly linked to them

Based on the generally accepted principles and norms of international law and pursuant to the Russian Federation Constitution the main principles of legal regulation of labor relations and other relations directly linked to them shall be recognized as:

freedom of labor, including the right to work which everyone shall freely choose or freely agree to, the right to dispose of one's capacity for work, choose trade or profession and the kind of activities;
prohibition of forced labor and discrimination in the sphere of labor;
protection against unemployment and assistance in job placement;
safeguarding the right of every employee to equitable work conditions, including the work conditions meeting safety and health requirements, the right to rest and leisure, including limitations of working hours, provision of daily rest, days-off and non-working holidays, paid annual vacations;
equality of employees' rights and opportunities;
safeguarding the right of every employee to timely and complete payment of equitable wages ensuring the decent human sustenance for himself/herself and his/her family and not being lower than the minimal wage set by the federal laws;
safeguarding employees' opportunities, without any discrimination, for carrier advancement with account for work performance, skills and the job seniority as well as for professional training, re-training and skill improvement;
safeguarding the employees' and employers' right of association for protection of their rights and interests, including the right of employees to organize labor unions and join them;
safeguarding the right of employees to participate in the organization's management in the forms stipulated by law;
combining state and contractual regulation of labor relations and other relations directly linked to them;
social partnership which includes the right of employees, employers, their associations to participate in contractual regulation of labor relations and other relations directly linked to them;
liability for damage to the employee caused by his/her performance of work duties;
establishing official state guarantees on safeguarding rights of employees and employers, exercising official state surveillance and control of compliance with them;
safeguarding everyone's right to official state protection of his/her labor rights and freedoms, including by judicial process;
safeguarding the right to settlement of individual and collective labor disputes as well as the right to strike in the manner set by this Code and other federal laws;
duties of the parties to a labor contract to honor the terms and conditions of the contract agreed upon, including the right of the employer to require the employees to perform their work duties and take proper care of the employer's property and the right of employees to require the employer to honor its duties and liabilities concerning the employees, the labor laws and other acts containing the labor law norms;
safeguarding the right of labor union representative to exercise labor union control of compliance with the labor laws and other acts containing the labor law norms;
safeguarding the right of employees to protection of their dignity in the framework of their labor activities;
safeguarding the right to mandatory social insurance for employees.

Article 3. Prohibition of discrimination in the sphere of labor

Everyone shall have equal opportunities to realize his/her labor rights.

No one can be constrained in his/her labor rights and freedoms or get any advantages irrespective of sex, race, color of skin, nationality, language, origins, property, social or position status, age, domicile, religious beliefs, political convictions, affiliation or non-affiliation with public associations as well as other factors not relevant to professional qualities of the employee.

Establishment of distinctions, exceptions, preferences as well as limitation of employees' rights which are determined by the requirements inherent in a specific kind of work as set by federal laws or caused by especial attention of the state to the persons requiring increased social and legal protection shall not be deemed discrimination.

The persons considering themselves to be discriminated against in the sphere of labor shall be entitled to petition the federal labor inspectorate bodies and/or courts applying for restoration of their violated rights, compensation of the material loss and redress of the moral damage.

Article 4. Prohibition of forced labor

Forced labor shall be prohibited.

The forced labor shall be performance of work under duress by menaces of applying some penalty (violent act), including:

in order to maintain labor discipline;
as a retributive step for participating in a strike;
as a means of mobilizing and using labor force for the purpose of economic development;
as a penalty for holding or expressing the political beliefs contrary to the established political, social or economic system;
as a discriminatory measure on the grounds of race, social, national or religious status.

The forced labor shall include:

disregard of set dates for payment of wages as well as their incomplete payment;
the employer requiring the employee to perform his/her work duties when the employee is not provided with group or individual protection means or the work is hazardous to the employee's life or health.

For the purpose of this Code the forced labor shall not include:

the work whose performance is required by the law on military duty and military service or the alternative civil service in lieu of it;
the work performed in the conditions of an emergency situation, in other words, in cases of the declared state of emergency or martial law, of a disaster or a threat of disaster (fires, floods, hunger, earthquakes, intense epidemics or epizootics) as well as in other situations threatening life or normal living conditions of the whole population or its part;
the work performed pursuant to the final court verdict under supervision of the official state bodies responsible for enforcing laws at serving sentences.

Article 5. Labor laws and other normative legal acts containing labor law norms

Labor relations and other relations directly linked to them shall be regulated, pursuant to the Russian Federation Constitution, federal constitutional laws, by the labor laws (including the law on occupational safety) and other normative legal acts containing the labor law norms:

this Code;
other federal laws;
decrees of the Russian Federation President;
resolutions of the Russian Federation Government and normative legal acts of federal executive authority bodies;
constitutions (charters), laws and other normative legal acts of the Russian Federation subjects;
acts of local self-government bodies and local normative acts containing the labor law norms.

The labor law norms contained in other laws shall comply with this Code.

Decrees of the Russian Federation President containing the labor law norms shall not be in conflict with this Code and other federal laws.

Resolutions of the Russian Federation Government containing the labor law norms shall not be in conflict with this Code, other federal laws and decrees of the Russian Federation President.

Normative legal acts of federal executive authority bodies containing the labor law norms shall not be in conflict with this Code, other federal laws, decrees of the Russian Federation President and resolutions of the Russian Federation Government.

Laws and other normative legal acts of the Russian Federation subjects containing the labor law norms shall not be in conflict with this Code, other federal laws, decrees of the Russian Federation President, resolutions of the Russian Federation Government and normative legal acts of federal executive authority bodies.

Acts of local self-government bodies and local normative acts containing the labor law norms shall not be in conflict with this Code, other federal laws, decrees of the Russian Federation President, resolutions of the Russian Federation Government, normative legal acts of federal executive authority bodies laws and other normative legal acts of the Russian Federation subjects.

Should there be conflicts between this Code and other federal laws containing the labor law norms, this Code shall apply.

Should a newly adopted federal law be in conflict with this Code, this law shall be applied provided the relevant amendments and addenda are entered in this Code.

Article 6. Division of authority between the federal state authority bodies and state authority bodies of the Russian Federation subjects in the sphere of labor relations and other relations directly linked to them

Jurisdiction of the federal state authority bodies in the sphere of labor relations and other relation directly linked to them shall include adoption of federal laws and other normative legal acts mandatory for application in the whole Russian Federation territory, which set:

basic directions of the state policy in the sphere of labor relations and other relations directly linked to them;
basics of the legal regulation of labor relations and other relations directly linked to them;
the level of labor rights, freedoms and guarantees to employees safeguarded by the state (including additional guarantees for some categories of employees);
procedures of concluding, amending and terminating labor contracts;
basics of the social partnership, procedures of collective bargaining, concluding and amending collective contracts and agreements;
procedures of settling individual and collective labor disputes;
principles and procedures of exercising the official state surveillance and control of compliance with the laws and other normative legal acts containing the labor law norms as well as the system and competence of the federal state authority bodies exercising said surveillance and control;
procedures of investigating industrial accidents and occupational diseases;
the system and procedures of performing the official state expert examination of work conditions and certification of industrial facilities for conformity with occupational safety requirements;
procedures and conditions of material liability of the parties to the labor contract, including procedures of redressing damage to the employee's life and health inflicted in the course of his/her performance of the work duties;
types of disciplinary sanctions and procedures of their applications;
the system of the official state statistical reporting on the matters of labor and occupational safety;
particulars of the legal regulation of work for some categories of employees.

The state authority bodies of the Russian Federation subjects shall adopt laws and other normative legal acts containing the labor law norms on the matters not included in the jurisdiction of the federal state authority bodies. At that, a higher level of labor rights and guarantees for employees as compared with those set by federal laws and other normative legal acts of the Russian Federation entailing higher budget outlays or reduced budget revenues shall be financed by the corresponding Russian Federation subject.

State authority bodies of the Russian Federation subjects on the matters not covered by federal laws and other normative legal acts of the Russian Federation can pass laws and other normative legal acts containing the labor law norms. Should a federal law or another normative legal act of the Russian Federation on that matter be passed, the law or the other normative legal act of the Russian Federation subject shall be adjusted to the federal law or the other normative legal act of the Russian Federation.

Should a law or another normative legal act of the Russian Federation subject containing the labor law norms be in conflict with this Code or reduce the level of labor rights and guarantees to employees stipulated by this Code or other federal laws, this Code or the other federal law shall apply.

Article 7. Acts of local self-government bodies containing the labor law norms

Local self-government bodies can issue acts containing the labor law norms within the limits of their competence.

Article 8. Local normative acts containing the labor law norms issued by an employer

An employer shall issue local normative acts containing the labor law norms within the limits of its competence in accordance with the laws and other normative legal acts, the collective contract, agreements.

In cases stipulated by this Code, the laws and other normative legal acts, the collective contract the employer, at issuing local normative acts containing the labor law norms, shall take the opinion of the body representing the employees into account.

A collective contract, agreement can stipulate issuance of local normative acts containing the labor law norms by arrangement with the body representing employees.

Local normative acts aggravating the employees' situation as compared with the labor laws, collective contract, agreements or issued without complying with the procedures, stipulated by this Code, of taking into account the opinion of the body representing the employees shall be deemed null and void. Laws or other normative legal acts containing the labor law norms shall apply in such cases.

Article 9. Contractual regulation of labor relations and other relations directly linked to them

In accordance with the labor laws labor relations and other relations directly linked to them can be regulated by employees and employers concluding, amending, appending collective contracts, agreements, labor contracts.

Collective contracts, agreements as well as labor contracts cannot contain terms and conditions reducing the level of rights and guarantees to employees set by the labor laws. Should such terms and conditions be included in a collective contract, agreement or a labor contract, they shall not be applied.

Article 10. Laws, other normative legal acts containing the labor law norms and the international law norms

Generally accepted principles and norms of international law and international treaties of the Russian Federation shall be, pursuant to the Russian Federation Constitution, constituent parts of the Russian Federation legal system.

Should an international treaty of the Russian Federation set the rules differing from those stipulated by laws and other normative legal acts containing the labor law norms, the international treaty norms shall apply.

Article 11. Force of the laws and other normative legal acts containing the labor law norms

This Code, the laws and other normative legal acts containing the labor law norms shall cover all the employees who have concluded a labor contract with the employer.

This Code, the laws and other normative legal acts containing the labor law norms shall be mandatory for application in the whole Russian Federation territory for all employers (legal entities or individuals) irrespective of their organizational and legal status and forms of ownership.

In cases when it has been judicially determined that a civil contract actually regulates labor relations between the employee and the employer, provisions of the labor laws shall be applied to such relations.

In the Russian Federation territory the rules set by this Code, the laws, other normative legal acts containing the labor law norms shall cover labor relations of foreign nationals, stateless persons, organizations established by them or with their participation, of employees at international organizations and foreign legal entities, unless otherwise provided for by a federal law or an international treaty of the Russian Federation.

Particulars of legal regulation of the work of certain categories of employees (organization heads, part-timers, women, persons with family liabilities, young people, civil servants and others) shall be set by this Code and other federal laws.

This Code, the laws and other normative legal acts containing the labor law norms shall not cover the following persons (unless they simultaneously act as employers or their agents):

military personnel in performing its military duties;
members of boards of directors (supervisory councils) in organizations (except for the persons concluding a labor contract with that organization);
persons working under civil contracts;
other persons as stipulated by federal laws.

Article 12. Validity periods of the laws and other normative legal acts containing the labor law norms

The law or the other normative legal act containing the labor law norms shall come into effect on the day stated in that law or the other normative legal act or in the law or the other normative legal act setting procedures for introducing the act of that kind.

The law or the other normative legal act containing the labor law norms shall cease to be valid due to:

its expiry;
coming into force of another act of the equal or higher legal effect;
abrogation (declaring null and void) of such act by another act of the equal or higher legal effect.

The law or the other normative legal act containing the labor law norms shall not be retroactive and shall be applied to the relations emerging after its coming into effect.

Force of the law or the other normative legal act containing the labor law norms shall cover the relations emerging prior to its coming into effect only in the cases directly stipulated by such act.

Concerning the relations emerging prior to coming into effect of the law or the other normative legal act containing the labor law norms said law or act shall be applied to the rights and liabilities emerging after its coming into effect.

Article 13. Territorial coverage of the laws and other normative legal acts containing the labor law norms

The federal laws and other normative legal acts of the Russian Federation containing the labor law norms shall cover the labor relations and other relations directly linked to them emerging in the whole territory of the Russian Federation, unless otherwise provided for in such laws and other normative legal acts.

The laws and other normative legal acts of the Russian Federation subjects containing the labor law norms shall be valid within the limits of the relevant subject of the Russian Federation.

The acts of self-government bodies containing the labor law norms shall be valid within the limits of the relevant municipality territory.

Local normative acts of an organization containing the labor law norms shall be valid within the limits of such organization.

Article 14. Calculation of terms and periods

The periods with which this Code links accrual of labor rights and duties shall commence on the calendar date determining the start of said rights and duties' accrual.

The periods with which this Code links cessation of labor rights and duties shall commence on the date following the calendar date determining the cessation of the labor relations.

The terms expressed in years, months, weeks shall expire on the corresponding date of the last year, month or week of the term. Nonworking days shall be included in the terms expressed in calendar weeks or days.

Should the last day of the term fall on a nonworking day, the next working day following it shall be deemed the date of the term expiry.

CHAPTER 2. LABOR RELATIONS, PARTIES TO LABOR RELATIONS,
GROUNDS FOR ACCRUAL OF LABOR RELATIONS

Article 15. Labor relations

Labor relations shall be the relations based on an agreement between an employee and an employer on the personal performance by the employee of a work function for payment (work of a certain specialty, with a qualification, in a position), on the employee's compliance with the internal working regulations with the employer providing the working conditions stipulated by the labor law, collective contract, agreements, labor contract.

Article 16. Grounds for accrual of labor relations

Labor relations shall accrue between the employee and the employer on the basis of a labor contract concluded by them in accordance with this Code.

In the cases and the manner which are set by the law, other normative legal act or charter (statute) of an organization the labor relations shall accrue on the basis of a labor contract as a result of:

election (nomination) to a position;
competitive selection for a corresponding tenure;
appointment to a position or confirmation in a position;
work assignment by the bodies duly authorized by law as a part of a set quota;
a court ruling on conclusion of the labor contract;
granting actual access to work with the employer's or its representative's knowledge or on its instructions, irrespective of the proper completion of the labor contract.

Article 17. Labor relations accruing on the basis of a labor contract as a result of election (nomination) to a position

The labor relations on the basis of a labor contract as a result of election (nomination) to a position shall accrue, should election (nomination) to the position presuppose performance of a certain work function by the employee.

Article 18. Labor relations accruing on the basis of a labor contract as a result of the competitive selection

The labor relations on the basis of a labor contract as a result of the competitive selection for a corresponding tenure shall accrue, should the law, other normative legal act of the organization charter (statute) determine the list of tenures subject to the competitive occupation and the procedures of the competitive selection for such tenures.

Article 19. Labor relations accruing on the basis of a labor contract as a result of appointment to a position or confirmation in a position

The labor relations shall accrue on the basis of a labor contract as a result of appointment to a position or confirmation in a position in the cases stipulated by the law, other normative legal act or the organization charter (statute).

Article 20. Parties to labor relations

The parties to labor relations shall be the employee and the employer.

The employee shall be an individual entering labor relations with the employer.

The employer shall be an individual or a legal entity (organization) entering labor relations with the employee. In the cases set by federal laws another subject empowered to conclude labor contracts can act as an employer.

The employer's rights and duties in the labor relations shall be exercised by: the individual acting as the employer, management bodies of the legal entity (organization) or the persons authorized by them in the manner set by the laws, other normative legal acts, founding documents of the legal entity (organization) and local normative acts.

The owner (founder) shall be held additionally liable in the manner set by the law for the obligations incidental to labor relations of the agencies financed in full or in part by the owner (founder).

Article 21. Main rights and duties of the employee

The employee shall be entitled to:

conclude, amend and terminate the labor contract in the manner and under the terms and conditions set by this Code, other federal laws;
be provided with the job specified in the labor contract;
a workplace meeting the conditions set by state labor organization and occupational safety standards and by the collective contract;
timely and complete payment of wages in accordance with his/her qualification, the job complexity, the quantity and quality of the work performed;
rest and leisure ensured by setting the normal working time duration, by shorter working time for certain jobs and categories of employees, by providing weekly days-off, nonworking holidays, paid annual leaves;
complete true information concerning the working conditions and occupational safety requirements in the workplace;
professional training, re-training and skill improvement in the manner set by this Code, other federal laws;
association, including the right to organize labor unions and join them in order to protect his/her labor rights, freedoms and legitimate interests;
participation in managing the organization in the forms stipulated by this Code, other federal laws and the collective contract;
engage in collective bargaining and conclude collective contracts and agreements through his/her representatives as well as to be informed on implementation of the collective contract, agreements;
protection of his/her rights, freedoms and legitimate interests in any ways not proscribed by laws;
settlement of individual and collective labor disputes, including the right to strike in the manner set by this Code, other federal laws;
redress of the damage inflicted on the employee in connection with his/her performance of the work duties and compensation of the moral damage in the manner set by this Code, other federal laws;
mandatory social insurance in the cases stipulated by federal laws.

The employee shall:

perform his/her work duties vested by the labor contract in good faith;
comply with the internal working regulations of the organization;
maintain the work discipline;
fulfill the set work norms;
meet occupational safety requirements;
take due care of the employer's and other employees' property;
immediately inform the employer or his/her direct superior about emerging situations hazardous to human life and health, to the employer's property.

Article 22. Main rights and duties of the employer

The employer shall be entitled to:

conclude, amend and terminate labor contracts with employees in the manner and under the terms and conditions set by this Code, other federal laws;
engage in collective bargaining and conclude collective contracts;
reward employees for their conscientious and efficient performance;
require from employees fulfillment of their work duties, due care of the employer's and other employees' property, compliance with internal working regulations of the organization;
invoke disciplinary responsibility and material liability of employees in the manner set by this Code, other federal laws;
issue local normative acts;
organize employers' associations in order to represent and protect their interests and join such associations.

The employer shall:

comply with the laws and other normative legal acts, local normative acts, terms and conditions of the collective contract, agreements and labor contracts;
provide employees with the jobs specified in the labor contract;
ensure job safety and conditions meeting occupational safety and health requirements;
provide employees with the equipment, tools, technical documentation and other means required for performing their work duties;
ensure equal payment to employees for their labor of equal value;
pay in full the wages payable to employees on the dates specified by this Code, the collective contract, internal working regulations of the organization, labor contracts;
engage in collective bargaining as well as conclude collective contracts in the manner set by this Code;
provide employees' representatives with the complete and true information required for concluding a collective contract, agreements and for control of their implementation;
timely fulfill directives of the official state surveillance and control bodies, pay fines imposed for violations of the laws, other normative legal acts containing the labor law norms;
consider communications from relevant labor union bodies, other representatives elected by employees concerning discovered violations of the laws and other normative legal acts containing the labor law norms, take measures to remedy them and inform said bodies and representatives of the measures taken;
create conditions ensuring employees' participation in managing the organization in the forms stipulated by this Code, other federal laws and the collective contract;
provide for housekeeping needs of employees linked to performance of their work duties;
provide mandatory social insurance for employees in the manner set by federal laws;
redress damage inflicted on employees in the course of performing their work duties and compensate moral damage in the manner and under the conditions set by this Code, federal laws and other normative legal acts;
meet other obligations stipulated by this Code, federal laws and other normative legal acts containing the labor law norms, by the collective contract, agreements and labor contracts.

PART TWO

SECTION II. SOCIAL PARTNERSHIP IN THE SPHERE OF LABOR

CHAPTER 3. GENERAL CONCEPTS

Article 23. Social partnership concept

The social partnership shall be a system of relations among employees (representatives of employees), employers (representatives of employers), official state authority bodies, local self-government bodies aimed at ensuring accommodation of employees' and employers' interests on the matters of regulating labor relations and other relations directly linked to them.

Official state authority bodies and local self-government bodies shall be parties to the social partnership in cases when they act as employers or their representatives authorized for such representation by the law or by employers as well as in other cases stipulated by federal laws.

Article 24. Main principles of the social partnership

The main principles of social partnership shall be:

equality of the parties;
respect of and regard for interests of the parties;
commitment of the parties to participate in the contractual relations;
assistance of the state in strengthening and developing the social partnership on the democratic basis;
compliance by the parties and their representatives with the laws and other normative legal acts;
authority of the parties' representatives;
freedom of choice in discussing matters included in the sphere of labor;
voluntary nature of the parties' assuming obligations;
feasibility of the obligations assumed by the parties;
obligation of honoring collective contracts, agreements;
control of honoring collective contracts, agreements;
liability of the parties, their representatives for breach of collective contracts, agreements through their fault.

Article 25. Parties to the social partnership

The parties to the social partnership shall be employees and employers in the persons of their representatives authorized in the set manner.

Article 26. System of the social partnership

The system of the social partnership shall include the following levels:

the federal level setting the grounds for regulating relations in the sphere of labor in the Russian Federation;
the regional level setting the grounds for regulating relations in the sphere of labor in a subject of the Russian Federation;
the industry level setting the grounds for regulating relations in the sphere of labor in an industry (industries);
the territorial level setting the grounds for regulating relations in the sphere of labor in a municipality;
the level of an organization setting specific mutual obligations in the sphere of labor between the employees and the employer.

Article 27. Forms of the social partnership

The social partnership shall be practiced in the forms of:

collective bargaining for preparation of draft collective contracts, agreements and their conclusion;
mutual consultations (negotiations) on issues of labor relations and other relations directly linked to them, on safeguarding guarantees of employees' labor rights and on improving the labor laws;
participation of employees, their representatives in managing an organization;
participation of employees' and employers' representatives in pre-trial settlements of labor disputes.

Article 28. Distinctions in application of the norms of this Section

Distinctions in application of the norms of this Section to civil servants, employees of military and paramilitary bodies and organizations, of internal affairs bodies, of security agencies and bodies, of taxation police bodies, of correctional system bodies, of customs bodies and diplomatic missions of the Russian Federation shall be set by federal laws.

CHAPTER 4. REPRESENTATIVES OF EMPLOYEES AND EMPLOYERS

Article 29. Representatives of employees

Representatives of employees in the social partnership shall be labor unions and their associations, other labor union organizations stipulated by charters of Russian national labor unions or other representatives elected by employees in the cases stipulated by this Code.

Interests of an organization employees at collective bargaining, concluding and amending the collective contract, exercising control of its implementation as well as in exercising the right to participate in managing the organization, considering labor disputes of the employees with the employer shall be represented by the labor union local or other representatives elected by the employees.

Interests of employees at collective bargaining on concluding and on amending agreements, settling collective labor disputes on concluding or amending agreements, exercising control of their implementation as well as at establishing commissions regulating socio-labor relations and carrying out their activities shall be represented by relevant labor unions, their territorial organizations, associations of labor unions and associations of labor unions' territorial organizations.

Article 30. Representatives of non-union employees' interests

The employees not belonging to a labor union shall be entitled to authorize the labor union local executive to represent their interests in relations with the employer.

Article 31. Other representatives of employees

In the absence of a labor union local in an organization as well as when the labor union local amalgamates less than half of the employees the employees can, at their general meeting (conference) entrust said labor union local or another representative with representation of their interests.

Availability of another representative cannot hamper exercising its authority by the trade union local.

Article 32. Employer's duties for creating conditions ensuring activities of employees' representatives

An employer shall create conditions ensuring employees' representatives activities in accordance with this Code, laws, the collective contract, agreements.

Article 33. Representatives of employers

Representatives of employers at collective bargaining, concluding or amending the collective contract shall be the organization head or the persons authorized by him/her in accordance with this Code, laws, other normative legal acts, the organization founding documents and local normative acts.

At collective bargaining, concluding or amending agreements, settling collective labor disputes on concluding or amending them as well as at establishing commissions regulating socio-labor relations and carrying out their activities interests of employers shall be represented by relevant associations of employers.

An association of employers shall be a non-profit organization uniting employers on a voluntary basis for representing the interests and protecting the rights of its members in relations with labor unions, official state authority bodies and local self-government bodies.

Distinctions of an association of employers' legal status shall be stipulated by federal laws.

Article 34. Other representatives of employers

The employers - state-owned and municipal enterprises as well as organizations financed by relevant budgets - can be represented by executive authority bodies, local self-government bodies authorized for such representation by the law or the employer.

CHAPTER 5. SOCIAL PARTNERSHIP BODIES

Article 35. Commission for regulating socio-labor relations

In order to ensure regulation of socio-labor relations, engage in collective bargaining and prepare a draft collective contract, agreements, conclude them as well as to organize control of implementing the collective contract and agreements at all levels on the equal basis commissions shall be formed by the parties' decision from among the duly authorized representatives of the parties.

At the federal level the permanently operating Russian tripartite commission for regulating socio-labor relations shall be formed whose activities shall be carried out in accordance with the federal law. Representatives of the All-Russian labor union associations, All-Russian associations of employers, of the Russian Federation Government shall be members of the Russian tripartite commission for regulating socio-labor relations.

Tripartite commissions for regulating socio-labor relations can be formed in the Russian Federation subjects whose activities shall be carried out in accordance with laws of the Russian Federation subjects.

At the territorial level tripartite commissions for regulating socio-labor relations can be formed whose activities shall be carried out in accordance with laws of the Russian Federation subjects, statutes of such commissions approved by representative self-government bodies.

At the industry level commissions can be formed to engage in collective bargaining, prepare draft industry (inter-industry) agreements and conclude them. Industry commissions can be formed both at the federal level and at the level of a subject of the Russian Federation.

Agreements stipulating financing in full or in part by the budgets of all levels shall be concluded with necessary participation of representatives from the relevant executive authority bodies and self-government bodies being a party to the agreement.

At the level of an organization commissions shall be formed to engage in collective bargaining, prepare a draft collective contract and conclude it.

CHAPTER 6. COLLECTIVE BARGAINING

Article 36. Engaging in collective bargaining

Representatives of employees and employers shall participate in collective bargaining for preparing, concluding and amending the collective contract, agreement and shall be entitled to take initiative on engaging in such bargaining.

Representatives of the party receiving a written notification proposing to commence collective bargaining shall enter into the bargaining within seven calendar days after the reception date for the notification.

Article 37. Procedures of collective bargaining

The participants in collective bargaining shall be free in choosing the issues of regulating socio-labor relations.

Should two or more labor union locals operate within an organization, they shall form a unified representative body for engaging in collective bargaining, preparing a single draft collective contract and concluding it. Formation of a unified representative body shall be done on the basis of proportional representation principle depending on the number of the labor union members. At this, a representative shall be delegated from each labor union local.

Should a unified representative body fail to be formed within five calendar days after the collective bargaining start, interests of all the employees shall be represented by the labor union local amalgamating over half of the employees.

Should no labor union local amalgamate over half of the employees, the employees' general meeting (conference) shall determine by a secret vote the labor union local entrusted with forming the representative body.

In the cases stipulated by paragraphs three and four of this article other labor union locals shall retain the right to delegate their representatives to the representative body prior to the moment of signing the collective contract.

The right to engage in collective bargaining, sign agreements on behalf of the employees at the level of the Russian Federation, a subject of the Russian Federation, and industry, a territory shall be granted to relevant labor unions (labor union associations). Should several labor unions (labor union associations) be in existence at the relevant level, each of them shall be entitled to representation within a unified representative body for collective bargaining formed with account for the number of labor union members they represent. In the absence of an accord on establishing a unified representative body for collective bargaining the right to engage in it shall be granted to the labor union (labor union association) amalgamating the largest number of the labor union (labor unions) members.

The parties shall provide each other, not later than two weeks after receiving the appropriate request, with the information at their disposal required for collective bargaining.

Participants in collective bargaining, other persons linked to collective bargaining shall not disclose the data obtained, if such data constitute the secrets protected by law (state, official, commercial and other). The persons disclosing said data shall be brought to disciplinary, administrative, civil, criminal responsibility in the manner set by federal laws.

Dates, venues and procedures of the collective bargaining shall be determined by representatives of the parties participating in said bargaining.

Article 38. Settlement of disagreements

Should no agreed decision be made in the course of collective bargaining on all or some issues, a protocol of disagreements shall be drawn up. Disagreements emerging in the course of collective bargaining on concluding or amending a collective contract, agreement shall be settled in the manner set by this Code.

Article 39. Guarantees and compensations to the persons participating in collective bargaining

The persons participating in collective bargaining, in preparing a draft collective contract, agreement shall be relieved from their main jobs retaining their average wages for the period determined by the parties' consent, but no longer than for three months.

All expenses incurred in participation in collective bargaining shall be compensated in the manner set by the law, the collective contract, agreement. Payment for services of experts, specialists and mediators shall be effected by the inviting party, unless otherwise specified by the collective contract, agreement.

Representatives of employees participating in collective bargaining shall not, for the duration of it without a prior consent of the body authorizing their representation, be subject to a disciplinary penalty, transferred to another job or dismissed on the employer's initiative, except for the cases of terminating their labor contracts due to them committing an offense which, in accordance with this Code, other federal laws, entails their dismissal.

CHAPTER 7. COLLECTIVE CONTRACTS AND AGREEMENTS

Article 40. Collective contract

The collective contract shall be a legal act regulating socio-labor relations in the organization and concluded by the employees and the employer in the persons of their representatives.

Should no accord be reached between the parties on some provisions of the draft collective contract within three months after the commencement date of the collective bargaining, the parties shall sign the collective contract on the terms agreed upon while simultaneously drawing up a protocol of disagreements.

The disagreements not settled can be a subject of the further collective bargaining or be settled in accordance with this Code, other federal laws.

The collective contract can be concluded in the organization as a whole, in its subsidiaries, representative offices and other separate structural divisions.

At concluding the collective contract in a subsidiary, representative office, another separate structural division of the organization the employer shall be represented by the head of the relevant division duly authorized by the employer.

Article 41. Content and structure of the collective contract

Content and structure of a collective contract shall be determined by the parties.

Mutual obligations of the employees and the employer can be included in the collective contract on the following issues:

forms, schedules and amounts of wage and salaries;
payment of bonuses, compensations;
mechanism of regulating wages and salaries with account for rising prices, inflation level, fulfillment of norms determined by the collective contract;
employment, re-training, conditions of employees' dismissal;
working hours and hours of rest and leisure including the matters of granting leaves and their duration;
improvement of working conditions and occupational safety, including those for women and young people;
protection of employees' interests at privatizing the organization, the residencies provided by the organization;
environmental safety and occupational health of production employees;
guarantees and benefits to employees combining work with studies;
rest and recreation facilities for employees and their dependents;
control of honoring the collective contract, procedures of amending and appending it, liability of the parties, ensuring normal conditions for functioning of employees' representatives;
renunciation of strikes at honoring the appropriate terms of the collective contract;
other matters as determined by the parties.

The collective contract, with account for the employer's financial and economic situation, can set benefits and bonuses for employees, the working conditions that are more favorable compared with those set by laws, other normative legal acts, agreements.

Normative provisions shall be included in the collective contract, should laws and other normative legal acts directly prescribe mandatory attachment of such provisions to the collective contract.

Article 42. Procedures of preparing draft collective contracts and concluding them

The procedures of preparing a draft collective contract and concluding it shall be determined by the parties in accordance with this Code and other federal laws.

Article 43. Force of the collective contract

The collective contract shall be concluded for the period not exceeding three years and come into effect on the date of its signing by the parties or on the date set by the collective contract.

The parties shall be entitled to extend the collective contract validity for a period not exceeding three years.

The collective contract shall cover all the employees of the organization, its subsidiary, representative office and other separate structural division.

The collective contract shall remain in effect in case of changing the name of organization, termination of the labor contract with the organization head.

At reorganizing (merging, affiliating, dividing, separating, restructuring) the organization the collective contract shall remain in effect for the full reorganization period.

At changing the ownership form of the organization the collective contract shall remain in effect for three months after the date of the ownership transfer.

At reorganizing the organization or changing its ownership form any of the parties shall be entitled to send to the other party its proposals on concluding a new collective contract or extending the validity of the existing one for the period of up to three years.

At liquidating the organization the collective contract shall remain in effect for the full liquidation period.

Article 44. Amending and appending the collective contract

The collective contract shall be amended and appended in the manner set by this Code for concluding it.

Article 45. Agreement. Types of agreements

The agreement shall be a legal act setting general principles of regulating socio-labor relations and the economic relations linked to them concluded between representatives of the employees and employers at the federal, regional, industry (inter-industry) and territorial levels within the limits of their competence.

Mutual obligations of the parties can be included in the agreements on the following issues:

wages and salaries;
working conditions and occupational safety;
work and rest and leisure routines;
development of the social partnership;
other matters as determined by the parties.

Depending on the sphere of the regulated socio-labor relations the following agreements can be concluded: a general, regional, industry (inter-industry), territorial and other ones.

The general agreement shall set general principles of regulating socio-labor relations at the federal level.

The regional agreement shall set general principles of regulating socio-labor relations at the level of the Russian Federation subject.

The industry (inter-industry) agreement shall set general provisions for wages and salaries, labor guarantees and benefits for the employees of an industry (industries).

The territorial agreement shall set general provisions for wages and salaries, labor guarantees and benefits for the employees on the territory of a relevant municipality.

The industry (inter-industry) agreement can be concluded at the federal, regional, territorial levels of the social partnership.

Agreements, by arrangement of the parties participating in collective bargaining, can be bipartite or tripartite.

The other agreements shall be agreements which can be concluded by the parties at any level of the social partnership on individual directions of regulating socio-labor relations and other relations directly linked to them.

Article 46. Content and structure of the agreement

The content and structure of the agreement shall be determined by arrangement among representatives of the parties who shall be free in their choice of the scope of issues for discussion and inclusion in the agreement.

Article 47. Procedures of preparing draft agreements and concluding them

A draft agreement shall be prepared in the course of collective bargaining.

The agreements requiring the budget financing shall be concluded and amended by the parties under the general rule prior to development of the draft budget for the fiscal year related to the agreement validity.

The general agreement, industry agreements on wage rates by the industries whose operations are financed by the federal budget shall be concluded under the general rule prior to introduction of the federal bill on the federal budget for the following fiscal year to the State Duma of the Federal Assembly of the Russian Federation.

Regional and territorial agreements shall be concluded under the general rule prior to introduction of relevant draft budgets to representative bodies of the Russian Federation subjects and self-government bodies.

Procedures of , deadlines for preparing the draft agreement and concluding it shall be determined by the commission.

The agreement shall be signed by representatives of the parties.

Article 48. Force of the agreement

The agreement shall come into effect on the day of its signing by the parties or on the day set by the agreement.

The agreement validity period shall be determined by the parties but cannot exceed three years. The parties shall be entitled to extend the agreement for the period not exceeding three years. The agreement shall cover the employees and employers who have authorized representatives of the parties at the collective bargaining to prepare and conclude it on their behalf, the state authority bodies and the self-government bodies within the limits of the obligations assumed by them as well the employees and employers joining it after its conclusion.

The agreement shall cover all the employers belonging to the association of employers concluding the agreement. Cancellation of its membership in the association of employers shall not relieve the employer from honoring the agreement concluded during its membership period. The employer joining the association of employers within the period of the agreement validity shall honor the obligations stipulated by such agreement.

Should the employees be covered in the proper manner by several agreements, the terms of the agreement most favorable to them shall be effective.

Should an industry agreement be concluded on the federal level, the head of the federal executive authority body in the sphere of labor shall be entitled to propose to the employers who have not participated in concluding such agreement to join the agreement.

Should the employers, within 30 calendar days after official publication of the proposal to join the agreement, fail to submit to the federal executive authority body in the sphere of labor their written reasonable refusal to join it, the agreement shall be deemed to cover such employers as of the day of the proposal official publication.

The procedures of publishing agreements shall be determined by the parties to the agreements.

Article 49. Amending and appending the agreement

The agreement shall be amended and appended in the manner set by this Code for

Article 50. Registration of the collective contract, agreement

The collective contract, agreement shall be sent by the representative of the employer (employers) within seven days of its signing for the informative registration to the appropriate body in the sphere of labor.

Coming of the collective contract, agreement into effect shall not be dependent on the fact of their informative registration.

At registering the collective contract, agreement the appropriate body in the sphere of labor shall draw attention to the terms and conditions aggravating the employees' situation as compared with this Code, laws, other normative legal documents and notify on this representatives of the parties signing the collective contract, agreement as well the relevant state labor inspectorate. The terms and conditions of the collective contract, agreement aggravating the employees' situation shall be null and void and not to be applied.

Article 51. Control of honoring the collective contract, agreement

Control of honoring the collective contract, agreement shall be exercised by the parties to the social partnership, their representatives, relevant bodies in the sphere of labor.

At exercising said control the representatives of the parties shall provide the information required for this to one another.

CHAPTER 8. EMPLOYEES' PARTICIPATION IN MANAGING ORGANIZATIONS

Article 52. Right of employees to participate in managing the organization

The right of the employees to participate in managing the organization directly or through their representatives shall be regulated by this Code, other federal laws, founding documents of the organization, the collective contract.

Article 53. Main forms of employees' participation in managing organizations

The main forms of employees' participation in managing organizations shall be:

taking the opinion of the employees' representative body into account in the cases stipulated by this Code, the collective contract;
holding consultations by employees' representative bodies with the employers on the matters of issuing local normative acts containing the labor law norms;
obtaining information form the employer on the matters directly affecting the employees' interests;
discussing the issues of the organization operations with the employer, submitting proposals on improving them;
participating in preparation and conclusion of collective contracts;
other forms determined by this Code, founding documents of the organization, the collective contract or the local normative acts of the organization.

Employees' representatives shall be entitled to get information from the employer on the matters of:

reorganization or liquidation of the organization;
introduction of production modifications entailing changes in the employees' working conditions;
professional training, re-training, skill improvement of the employees;
other matters stipulated by this Code, other federal laws, founding documents of the organization, the collective contract.

Employees' representatives shall be also entitled to submit appropriate proposals on such matters to the organization managing bodies and participate in the meetings of such bodies considering them.

CHAPTER 9. LIABILITY OF THE PARTIES TO THE SOCIAL PARTNERSHIP

Article 54. Liability for evading collective bargaining, non-provision of information required for collective bargaining and for exercising control of honoring collective contracts, agreements

Representatives of the parties evading participation in collective bargaining on concluding, amending collective contracts, agreements, wrongfully refusing to sign agreed collective contracts, agreements shall be liable to fine in the amount and manner set by the federal law.

The persons guilty of non-provision of the information required for collective bargaining and exercising control of honoring collective contracts, agreements shall be liable to fine in the amount and manner set by the federal law.

Article 55. Liability for violations or non-fulfillment of the collective contract, agreement

The persons representing employers or representing employees guilty of violations or non-fulfillment of the obligations stipulated by the collective contract, agreement shall be liable to fine in the amount and manner set by the federal law.

PART THREE

SECTION III. LABOR CONTRACT

CHAPTER 10. GENERAL PROVISIONS

Article 56. Concept of the labor contract. Parties to the labor contract.

The labor contract shall be an agreement between the employer and the employee in accordance with which the employer shall undertake to provide the job to the employee with the work function agreed upon, to ensure the working conditions as stipulated by this Code, laws and other normative legal acts, the collective contract, agreement, the local normative acts containing the labor law norms, to pay wages to the employee timely and in full, while the employee shall undertake to perform the certain work function determined by such agreement, comply with the internal working regulations in effect in the organization.

The parties to the labor contract shall be the employer and the employee.

Article 57. Content of the labor contract

The labor contract shall state:

the employee's surname, first name and patronymic and the employer's name (the surname, first name and patronymic for an individual employer) concluding the labor contract.

The significant terms of the labor contract shall be:

place of work (stating the structural division);
job commencement date;
name of the position, profession, trade stating the qualification according to the organization's personnel arrangements or the specific work function. Should performing work in certain positions, professions or trades entail, under federal laws, provision of some benefits or placing some limitations, designations of such positions, professions or trades and qualification requirements for them shall correspond to the designations and requirements contained in the qualification reference-books approved in the manner set by the Russian Federation Government;
the employee's rights and duties;
the employer's rights and duties;
description of the working conditions, compensations and benefits to the employees for hard, harmful and/or hazardous jobs;
the work and rest and leisure routine (if it differs for the employee from the general rules in effect in the organization);
wage or salary terms (including the basic wage rate or official salary of the employee, additional payments, allowances and incentives);
types of the social insurance and its terms directly linked to work activities.

The labor contract can include terms of the probation period, the non-disclosure requirements concerning the secrets protected by laws (state, official, commercial and other), the obligation of the employee to work for a certain period of time after training, should such training be provided at the employer's expense, as well as other terms and conditions not aggravating the employee's situation as compared with this Code, laws and other normative legal acts, the collective contract, agreements.

Terms and conditions of the labor contract shall be amended by the written consent of the parties only.

Should a term labor contract be concluded, it shall state its validity period and the circumstances (reasons) being the grounds for concluding the labor contract for the specific term in accordance with this Code and other federal laws.

Article 58. The labor contract term

The labor contracts can be concluded:

for an indefinite term;
for a definite term not exceeding five years (a term labor contract), unless another term is set by this Code and other federal laws.

The term labor contract shall be concluded in the cases when the labor relations cannot be established for an indefinite term taking into consideration the nature of the impending job or conditions of its performance, unless otherwise set by this Code or other federal laws.

Should the term of the labor contract be omitted from it, the contract shall be deemed as concluded for an indefinite term.

In case when neither party requests termination of the term labor contract due to its expiry and the employee continues working after expiration of the labor contract term, such labor contract shall be deemed concluded for an indefinite term.

The labor contract concluded for a specific term without sufficient grounds for it as determined by the body exercising state surveillance and control of compliance with the labor law and other normative legal acts containing the labor law norms shall be deemed concluded for an indefinite term.

Conclusion of term labor contracts in order to evade granting rights and guarantees due employees with whom labor contracts are concluded for an indefinite term shall be prohibited.

Article 59. The term labor contract

The term labor contract can be concluded on the initiative of the employer or the employee:

for replacing a temporary absent employee for whom the job is retained in accordance with the law;
for the period of performing temporary (up to two months) work as well as seasonal work when due to natural conditions the work can be performed only during a certain period (season);
with persons enrolling in the organizations located in the Polar North areas or in the localities equated with them, if this is occasioned by a move to the job venue;
for performing urgent work on preventing accidents, incidents, catastrophes, epidemics, epizootics as well as for liquidating consequences of the abovementioned and other emergency situations;
with persons enrolling in small business organizations with the personnel numbering up to 40 persons (up to 25 persons in the trading and consumer services organizations) as well as working for individual employers;
with persons being sent for a job abroad;
for performing work out of the regular operation scope of the organization (renovation, assembly, commissioning and other work) as well for performing work in connection with the knowingly temporary (up to one year) expansion of production or volume of the services rendered;
with persons enrolling in the organizations formed for a knowingly predetermined term or in performing a knowingly predetermined work;
with persons hired for performing a knowingly predetermined work in cases when its implementation (completion) cannot be determined by a specific date;
for jobs directly connected with practical training and professional training of the employee;
with persons attending day schools;
with persons working for the organization part-time;
with old-age pensioners as well as with the persons to whom temporary work is only allowed due to their health in accordance with a medical opinion;
with creative personnel in mass media, movie industry, theater, theatrical and concert organizations, circuses, and with other persons participating in creation and/or performance of art works, professional sportsmen in accordance with the lists of professions approved by the Russian Federation Government with account for the opinion of the Russian tripartite commission for regulating socio-labor relations;
with researchers, teachers and lecturers, with other personnel concluding labor contracts for a definite term as a result of the competition held in the manner set by the law or another normative legal act of a state authority or a local self-government body;
in case of election for a predetermined term to an elective body or to an elective position as paid job as well as in case of enrolling in the work directly connected with supporting activities of elective body members or officials in state authority and local self-government bodies as well as in political parties and other public associations;
with heads, deputy heads and chief accountants of organizations irrespective of their organizational and legal status and form of ownership;
with persons assigned to temporary jobs by official employment agencies, including public works;
in other cases stipulated by federal laws.

Article 60. Prohibition to require performance of the work not specified by the labor contract

It shall be prohibited to require the employee to perform work not specified by the labor contract except in the cases stipulated by this Code and other federal laws.

Article 61. Coming into effect of the labor contract

The labor contract shall come into effect on the day of its signing by the employee and the employer, unless otherwise set by federal laws, other normative legal acts or the labor contract, or on the day of the employee actually starting the work with the knowledge or on instructions of the employer or its representative.

The employee shall start performing his/her work functions as of the day specified in the labor contract.

Should no specific work commencement date be mentioned in the labor contract, the employee shall start his/her work on the next working day after coming into effect of the labor contract.

Should the employee fail to start his/her work without any valid reasons for a week after the due time, the labor contract shall be cancelled.

Article 62. Issuance of the work record book and copies of documents connected with the job

On the employee's written request the employer shall, not later than three days after submission of said request, issue to the employee copies of the documents connected with the job (hiring order copy, copy of job reassignment orders, dismissal order copy; excerpts from the work record book; records of wages, of the working term for the employer, etc.). Copies of the documents connected with the job shall be duly verified and issued to the employee free of charge.

At termination of the labor contract the employer sha