The Workers Rights 
Russia has made big overhauls to its labour laws, increasing the limit of overtime to 120 hours to 240 per worker each year. The reform is welcome amid a steep physical shortage of labour for manufacturing, agricultural, defence and logistics companies in the country.
The change will introduce more flexibility for employers to respond to staff recruitment challenges and offer a number of current protections. Companies will have to create amendments to an agreement, payroll systems and overtime recording work practices to remain compliant.
How the New 240-Hour Limit Works?
The ceiling is mentioned in the 240 hours, but this does not apply to all employers. Requirements for an exception for an extension to the 120 hours per year limit must be satisfied under a collective bargaining agreement or industry-wide labour agreement.
An employee can normally not be required to work over four hours in two adjacent working days. Employers should also have an employee’s prior written permission to over-claim hours of overtime, except in legally defined cases of emergency and defence.
Overtime Pay and Additional Benefits
The amended scheme retains higher pay for overtime worked. The initial two overtime hours are paid at 1.5 times the basic wage, then it is at double.
Overtime is paid at double the rate for employees who work 121-240 hours per year. The rules also allow the granting of an extra paid day off for medical screenings, thereby putting a greater focus on health-related protections at high rates of annual overtime.
Employers are responsible for ensuring that such overtime be calculated taking into consideration any applicable variable element of pay such as allowances, bonuses and regional coefficients if relevant under the law.
Vacation and Employee Protection
There are also some changes to the leave and vulnerable employees regulations being made part of the reforms. The new regulations could allow employees to get called in from annual holidays in cases of emergencies or when there are critical production requirements in hazardous industries.
Pregnant workers and employees younger than 18, and certain categories of medical conditions, may not be used to work overtime, even if an agreement between employers and employees would allow this.
What Employers Should Do?
In assessing collective agreements, companies should see if they authorize overtime of up to 240 hours. In addition, HR needs to review and adjust the overtime tracking and payroll systems for annual overtime usage and pay-rate applications.
Employers need to keep clear records of consent of employees and overtime. Good documentation will need to form an important part of the evidence of compliance that will be instrumental in pointing to compliance during labour inspection and internal audits.
FAQs
What is the new maximum number of hours of overtime that Russia will allow a year?
Some revision of the limit to 240 hours per employee per year has been approved, subject to the availability of the necessary collective or industry agreement.
Does the employee have to give permission?
Yes. Generally, written consent of employees is required for overtime with statutory exceptions in place.
What are the consequences of taking overtime?
The first two overtime hours are given the same rate (1.5 times the regular rate), the rest of overtime hours are paid at double the applicable rate.
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