Changing Employment Contract

Posted in News on August 14th, 2011

According to Article 2 of the Labor Code of the Russian Federation (RF LC), one of the basic principles of legal regulation of labor relations in the Russian Federation is the responsibility of the parties abide by the terms of the employment contract of the contract. Terms of payment of the employee must be included in the contract of employment by virtue of Article 57 of the Labour Code. The dimensions of the fixed payments such as salary or wage rate must be specified directly in the text of the employment contract. Meanwhile, entrepreneurs often an objective need to change the existing conditions of compensation of employees for their business. This need is due to different reasons.

For example, it can be caused by the crisis in the business, such as difficulties with the sale of goods, works or services, lower returns and other negative processes. In such circumstances, preservation conditions of remuneration unchanged highly difficult to move to resolve the crisis or even threaten the very existence of the company. Ultimately, this can damage both the entrepreneur and employees. At the same time change the conditions of payment may be required in situations where a business is functioning quite well, in order to make it even more successful. Either way, labor laws Russian Federation gives the employer the right to his initiative to change the terms of compensation of employees. In this regard, the first part of Article 74 of the Labour Code contains the following rule. In the case where, for reasons related to organizational change or technological conditions (changes in technology and production technology, structural reorganization of production, other reasons), some parties are not conditions of employment can be saved, be allowed to change by the employer, except for changes in work function of the employee.

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