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The Government Commission on Legislative Activities has endorsed an initiative from the Ministry of Economic Development of the Russian Federation, proposing to increase the annual limit on overtime work from 120 to 240 hours per employee. Amendments to the Labor Code could come into force as early as 2026, which will require businesses to revise their personnel policies and internal regulations.
Essence of the Changes and Their Impact on Business
The initiative aims to provide companies with greater operational flexibility in response to changing market demands. The key proposed change is a twofold increase in the maximum permissible annual overtime work duration.
Advantages for Business
- Operational Flexibility: the ability to promptly respond to seasonal demand spikes, urgent orders, or unforeseen circumstances without the immediate need to hire temporary staff.
- Reduction in Personnel Costs: in certain situations, engaging permanent employees for overtime work may be more economically efficient than expanding the workforce.
- Simplified Planning: a longer permitted limit allows for a more balanced distribution of additional workloads throughout the year.
Potential Risks and the Stance of Trade Unions
Simultaneously with the potential advantages, experts and trade union representatives point to associated risks:
- Increased Risk of Violations: there is a possibility of abuse by unscrupulous employers, particularly concerning the accurate recording and payment of additional hours.
- Increased Workload on Employees: careful monitoring is required to maintain the balance between operational necessity and occupational safety to prevent employee burnout.
- Legal Complexities: companies will need impeccable documentation of all instances of overtime work to minimize litigation and administrative risks.
Recommendations for Preparing for the Changes
To ensure a seamless adaptation to the new norms, companies are advised to take the following steps:
- Audit of Internal Documentation: review and update Internal Labor Regulations, remuneration policies, and collective bargaining agreements.
- Training for Managers and HR Specialists: ensure understanding of the new limits, the rules for obtaining employee consent, and the procedure for overtime pay.
- Configuration of Working Time Recording Systems: verify that timekeeping systems allow for precise recording of overtime hours worked.
- Development of Clear Internal Regulations: create transparent procedures for requesting and formalizing overtime work, eliminating ambiguities.
Implementing the forthcoming changes requires a balanced approach that combines business efficiency with unwavering compliance with employee rights. Acsour offers comprehensive solutions to adapt your company to the new regulations:
Timely and professional preparation will not only ensure compliance with the new legislative requirements but will also allow you to leverage the provided flexibility to strengthen your company's market position.
Submit a request, and our experts will prepare a customized action plan for you.
- Legal Audit: analysis of personnel documentation for compliance with the upcoming amendments and the general requirements of the Labor Code.
- Development and Updating of Regulations: preparation of internal policies, orders, and addenda to employment contracts.
- Consulting on Change Implementation: step-by-step support for adapting personnel policies.
Timely and professional preparation will not only ensure compliance with the new legislative requirements but will also allow you to leverage the provided flexibility to strengthen your company's market position.
Submit a request, and our experts will prepare a customized action plan for you.
