Employers who fall under the criteria of#nbsp;informal employment will be#nbsp;entered into the relevant registers. The presence in#nbsp;the registry will have consequences for the companies" - said Rostrud. More about the news in#nbsp;the text below.
Essence of#nbsp;the amendments
On#nbsp;January 1, 2024, a#nbsp;federal law came into force, which approved the creation and functioning of#nbsp;regional interdepartmental commissions to#nbsp;combat illegal employment. The commission consists of#nbsp;representatives of#nbsp;the Federal Tax Service, the Social Fund of#nbsp;Russia, the Prosecutor General’s Office, the Ministry of#nbsp;Internal Affairs, Rostrud and trade unions.
The purpose of#nbsp;the work of#nbsp;the commissions is#nbsp;to#nbsp;combat employers who commit violations in#nbsp;the field of#nbsp;labor and employment (for example, informal employment, avoidance of#nbsp;improper conclusion of#nbsp;employment contracts, etc.).
To#nbsp;achieve this goal, the commissions have the right to#nbsp;request information from government departments about all employers in#nbsp;whose activities certain factors of#nbsp;illegal employment are noticed.
Shadow employment signs
In#nbsp;the Order dated February 2, 2024, № 40n, the Ministry of#nbsp;Labor of#nbsp;the Russian Federation establishes the main signs of#nbsp;illegal employment. However, it#nbsp;is#nbsp;worth noting that this list is#nbsp;not exhaustive and the list of#nbsp;such factors may be#nbsp;broader if#nbsp;representatives of#nbsp;the regional commissions see such a#nbsp;need. The main signs of#nbsp;shadow employment can be#nbsp;distinguished:
the discrepancy between the information of#nbsp;the employment centers and the Social Fund of#nbsp;Russia about the work of#nbsp;a#nbsp;citizen (the availability of#nbsp;information about work, but the lack of#nbsp;data in#nbsp;the Social Fund of#nbsp;Russia);
the stated salary in#nbsp;the vacancy is#nbsp;below the minimum wage (can be#nbsp;tracked in#nbsp;open sources for vacancies and salaries);
payment of#nbsp;wages in#nbsp;an#nbsp;amount below the minimum wage for more than 10 employees, if#nbsp;the share of#nbsp;such employees is#nbsp;at#nbsp;least 10% of#nbsp;the total number of#nbsp;employees;
deviation of#nbsp;the average monthly salary paid to#nbsp;employees from the average industry salary in#nbsp;the region by#nbsp;more than 35%;
payment of#nbsp;insurance premiums from salaries is#nbsp;carried out below the regional minimum (revealed according to#nbsp;information from tax authorities);
a#nbsp;significant reduction in#nbsp;the average number of#nbsp;employees compared to#nbsp;the previous year and taking into account the financial and economic activities of#nbsp;the company (determined by#nbsp;comparing information from tax authorities and the social fund);
conclusion of#nbsp;civil law contracts with self-employed people who were previously full-time employees of#nbsp;the organization, or#nbsp;whose relationships are of#nbsp;an#nbsp;employment nature (you can check according to#nbsp;information from the Federal Tax Service);
the presence of#nbsp;more than 10 signed contracts with the self-employed, whose average monthly income exceeds 20,000 rubles, and whose average work duration is#nbsp;more than 3 months in#nbsp;one year;
Mass appeal of#nbsp;low-income workers for social benefits (determined on#nbsp;the basis of#nbsp;information from employment services).
Register of#nbsp;employers
If#nbsp;the company has signs of#nbsp;illegal employment, it#nbsp;will be#nbsp;included in#nbsp;the relevant register. Rostrud will keep such a#nbsp;register. Currently, the procedure for including and excluding companies from the register is#nbsp;under development, but it#nbsp;is#nbsp;assumed that:
in#nbsp;addition to#nbsp;the main reason, those companies that citizens have complained about or#nbsp;for which there are court decisions will also be#nbsp;included in#nbsp;the register
those companies that have never violated the requirements of#nbsp;labor legislation during 2 years of#nbsp;being on#nbsp;the register will be#nbsp;excluded from the register.
The new resource will start working on#nbsp;January 1, 2025, however, the commission began collecting information about companies in#nbsp;March of#nbsp;this year.
Responsibility of#nbsp;employers
If#nbsp;the facts of#nbsp;shadow employment are revealed, employers face administrative liability under the Code of#nbsp;Administrative Violations of#nbsp;the Russian Federation in#nbsp;the form of#nbsp;a#nbsp;fine.
For evasion or#nbsp;improper execution of#nbsp;employment contracts, the fine is:
for officials#nbsp;— a#nbsp;fine in#nbsp;the amount of#nbsp;10 000#nbsp;— 20 000 in#nbsp;case of#nbsp;repeated violation#nbsp;— disqualification for a#nbsp;period from 1 to#nbsp;3 years
for legal entities#nbsp;— a#nbsp;fine in#nbsp;the amount of#nbsp;50 000#nbsp;— 100 000 in#nbsp;case of#nbsp;repeated violation, the amount of#nbsp;the fine will increase and amount to#nbsp;100,000#nbsp;— 200 000 rubles.
The following responsibilities are provided for the payment of#nbsp;wages below the minimum wage:
for officials#nbsp;— a#nbsp;fine in#nbsp;the amount of#nbsp;10 000#nbsp;— 20 000 rubles, in#nbsp;case of#nbsp;repeated violation#nbsp;— a#nbsp;fine in#nbsp;the amount of#nbsp;20 000#nbsp;— 30 000 rubles or#nbsp;disqualification for a#nbsp;period from 1 to#nbsp;3 years
for legal entities#nbsp;— a#nbsp;fine in#nbsp;the amount of#nbsp;30 000#nbsp;— 50 000 rubles, if#nbsp;repeated if#nbsp;violated, the amount of#nbsp;the fine will increase and amount to#nbsp;50 000#nbsp;— 100 000 rubles.
In#nbsp;addition to#nbsp;fines, being blacklisted will face unscheduled inspections and other restrictions: on#nbsp;receiving subsidies, grants, preferential loans, tax preferences, participation in#nbsp;public procurement, and so#nbsp;on.
What should companies do?
In#nbsp;order to#nbsp;avoid fines and getting companies into the register, employers are advised to#nbsp;exclude all the above-mentioned signs of#nbsp;illegal employment from their activities.
First of#nbsp;all, it#nbsp;is#nbsp;necessary to#nbsp;take care of#nbsp;the proper and timely execution of#nbsp;employment contracts with those individuals with whom labor relations have developed.
In#nbsp;addition, when working with the self-employed under civil law contracts, it#nbsp;is#nbsp;recommended to#nbsp;check whether all the details are taken into account and the procedure for working with such a#nbsp;category of#nbsp;citizens is#nbsp;followed.
It#nbsp;is#nbsp;also required to#nbsp;conduct an#nbsp;audit of#nbsp;employee salaries and check whether there are those who receive salaries below the minimum wage. In#nbsp;addition to#nbsp;the minimum wage, employers should also focus on#nbsp;the average regional wage level operating in#nbsp;a#nbsp;particular area of#nbsp;the economy. Salaries paid to#nbsp;employees must at#nbsp;least correspond to#nbsp;this level and not deviate from it (downward) by#nbsp;more than 35%.
For compliance with the requirements of#nbsp;the labor legislation of#nbsp;the Russian Federation, as#nbsp;well as#nbsp;the organization of#nbsp;work with employees, please contact Acsour experts.