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Moscow Employers Have To Compensate For Salary Delays

 08.02.09 Employers will be obligated to pay 1/200 of the refinancing rate per day on the amount owed.
In accordance to this year’s trilateral agreement between Moscow governments, labor unions and employers, if an employer plans collective layoffs, he must inform Moscow’s Department of Employment three months prior to the date the layoffs are to take place. "Collective layoffs" are those where 15 or more employees are let go due to a company's liquidation, or staff is reduced by 50 or more people for 30 days or more, or up to 200 people or more for 60 days, and up to 500 people or more for 90 days.
Also, in case of salary delays, the employer must compensate employees in the amount of 1/200 of refinancing rate (current 13%) of the amount owed per day. This compensation is tax-exempt.
Though this document is approved by Moscow authorities (resolution of Moscow government # 1152-ÏÏ from December 16, 2008), it is obligatory only for employers who are members of the Moscow Union of Industrialists and Entrepreneurs. However, it is not impossible that labor inspectors and local officials will be actively encourage all employers to keep agreement’s regulations.
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