A series of essential amendments to labor legislation has already been adopted in 2017. These amendments concern restrictions on audits conducted by labor inspectorates, as well as more strict requirements for complying with personal data legislation. Please find below a review of the above-mentioned innovations.

1. Risk-oriented approach for state supervision in labor law

The Russian Government amended the procedure for conducting routine labor audits starting from March 1, 2017. From now on, their frequency will depend on the risk category assigned to the Company’s activities – the higher the risk category, the higher the frequency of audits of the Company. This category is assigned based on the potential risk of harm to employees’ life and health, as well as to other labor-related values.

•   High risk – once in two years;
•   Considerable risk – once in three years;
•   Medium risk – no more than once in five years;
•   Moderate risk – no more than once in six years;
•   Low risk – no routine audits.

Previously, routine audits were conducted no more than once in three years.

In order to find out its risk category, a company needs to file with the Federal Labor Inspectorate (“Rostrud”) a request for a risk category to be assigned to it. The Labor Inspectorate has 15 days to respond.

Unfortunately, the innovations do not decrease the company’s risks related to extraordinary audits, which can be held at any time based on a complaint from an employee.

Document: Decree No.197 of the Russian Government dated 16.02.2017

2. State Labor Inspectorate can check compliance with legal acts – list approved

On December 30, 2016, Rostrud issued a Decree containing an exhaustive list of legal acts the compliance with which the State Labor Inspectorate will check. Rostrud also specified the clauses, parts and articles to be checked by inspectors.

If the labor inspectorate goes beyond such list in the course of an audit, from now on, the company can use this fact to contest the audit report and/or labor inspectorate’s orders. In our opinion, introducing this restriction on the labor inspectorate’s activity allows to eliminate existing abuse on its part.

Please note that the current list also contains acts from the USSR and the RSFSR. Compliance with them will be checked only until 01.07.2017. After that date, the State Labor Inspectorate will be deprived of these powers (Federal Law No.277-FZ dated 03.07.2016).

Document: Decree No.538 dated 30.12.2016

3. Fines for violations related to personal data processing are increased to 75,000 rubles

Fines for violating the rules for personal data processing will be increased several-fold starting from July 1, 2017. Previously fines ranged from 5,000 to 10,000 rubles, and starting from July 2017, the minimum fine will amount to 15,000 rubles and the maximum fine will amount to 75,000 rubles.

This is one more argument in favor of running an internal check as to compliance with data processing legislation.

Document: Federal Law No.13-FZ “On amendments to the Code of Administrative Offences of the Russian Federation” dated 07.02.2017

Irina Onikienko   Partner   St. Petersburg   Тel.: +7 (812) 346 79 90

Anastasiya Mergasova   Associate   St. Petersburg   Теl.: +7 (812) 346 79 90

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Irina Onikienko or Anastasiya Mergasova, Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues. 

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