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9 December 20212 minute read

Joining the Federal Industry Agreement on Agriculture in the Russian Federation for 2021-2023

On 30 November 2021, the Russian Ministry of Labour published a proposal in the Russian Gazette for employers to join the Federal Industry Agreement on Agriculture in the Russian Federation for 2021-2023 ("Agreement").

Employers operating in the agricultural sector who have not yet signed up to the collective agreement now have until 29 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 the following:

  • Increased payment for nightwork (from 10pm to 6am) – at least 25% of the hourly wage (salary).
  • Increased remuneration for work performed in hazardous and dangerous conditions ("вредные и опасные условия труда"):
    • at least 8% of the wage (salary) for dangerous working conditions;
    • at least 6% of the wage (salary) for hazardous working conditions of the 4th degree;
    • at least 5% of the wage (salary) for hazardous working conditions of the 3rd degree;
    • at least 4% of the wage (salary) for hazardous working conditions of the 1st and 2nd degree.
  • Additional leave for employees performing work in hazardous and dangerous conditions:
    • at least 10 calendar days for dangerous working conditions;
    • at least nine calendar days for hazardous working conditions of the 4th degree;
    • at least eight calendar days for hazardous working conditions of the 3rd degree;
    • at least seven calendar days for hazardous working conditions of the 2nd degree.
  • More specific criteria for mass layoffs, used in respect of determining the period of giving notice of a decision to start a reduction-in-force procedure in mass layoffs
    • redundancy of more than 10 employees holding equal positions in one or various separate business units (branch or representative office) within 30 calendar days;
    • redundancy of more than 10% of employees holding different positions in one separate business unit (branch or representative office) within 30 calendar days;
    • redundancy due to the shutdown of a separate business unit (branch or representative office).

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

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