The Industry Agreement on Chemical, Petrochemical, Biotechnological and Chemical-Pharmaceutical Organisations to be extended in Russia

On 11 November 2021, the Russian Ministry of Labour published in the Russian Gazette the Additional Agreement on the Prolongation for 2022-2024 of the Industry Agreement on Chemical, Petrochemical, Biotechnological and Chemical-Pharmaceutical Organisations (Agreement).

Employers operating in the chemical sector who have not yet signed up to the collective agreement now have until 11 December 2021 to submit to the Russian Ministry of Labour a reasoned refusal to join the Agreement. Otherwise, the provisions of the Agreement will apply automatically.

Key provisions of the Agreement include.

• Remuneration. All employees are entitled to a minimum wage of at least 1.4 times the living wage (prozhitochnyy minimum). The minimum wage differs across regions and so, for instance, in Moscow such rate is established at RUB20,589 per month (approximately USD 275), which makes the minimal monthly salary for the chemical sector employees RUB28,824 (approximately USD385).
• Additional social benefits. In the event of occupational accidents or illnesses, employees or their close relatives are entitled to additional payments of the employee's salary for up to two years (for a fatal accident) made at the employer's expense.
• An obligation on employers to provide employees being made redundant with paid time off (at least one day a week) to search for alternative employment in the event of the reorganisation or liquidation of the organisation, as well as in the event of redundancies.
• Engagement of foreign employees is permitted only upon consultation with the relevant industrial trade union (Roshimprofsoyuz).

A breach of any of the obligations in the Agreement could result in administrative fines of between RUB3,000 and RUB5,000.