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Law on increasing penalties for non-payment of salaries, pensions, scholarships and benefits

December 23, 2010

Dmitry Medvedev signed Federal Law amending the Criminal Code of the Russian Federation to guarantee better protection to individuals from the unlawful practice of deferred payment of salaries, pensions, scholarships and benefits.

The Russian Constitution guarantees the right of every citizen to adequate labour remuneration and therefore it is the state’s responsibility to ensure that salaries and social benefits are paid promptly and timely, in particular, by applying where required disciplinary and administrative measures of compulsion, as well as criminal prosecution.

The Federal Law increases the fines for failure to fully or partially pay social benefits.

As per the Federal Law, a penalty for partial or complete non-payment of salaries and benefits will be a large fine or imprisonment for a term of up to three years. The law also increases the range of executives who may be held liable for non-payment of salaries and benefits.



December 23, 2010