Ministry of Economic Development of the Russian Federation
Ministry of Economic Development of the Russian Federation
Certain labor law rules will apply to NPOs in the same way as micro and small enterprises
31 August 2020 15:42

The rules established by the Labor code for micro and small enterprises may be applied to non-profit organizations. The relevant draft law has been developed by the Ministry of Economic Development.

In accordance with the draft law, non-profit organizations, as well as microenterprises, will have the right to completely or partially refuse to adopt local regulations with labor law norms (internal labor regulations, regulations on remuneration, regulations on bonuses, shift schedules, and others). The relevant provisions will be included in employment contracts. This rule will be applied to non-profit organizations with similar to microenterprises average number of employees (up to 15 people) and income for the previous calendar year (up to 120 million rubles per year). 

Due to the fact that non-profit organizations often involve employees for the implementation of time-limited projects, another change proposed by the draft law is relevant - the non-profit organizations will have the possibility to conclude a fixed-term employment contract by analogy with employers - small businesses (Article 59 of the Labor Code of the Russian Federation).  

 The conclusion of a fixed-term employment contract will provide flexibility in attracting employees and will not entail negative consequences on the labor market. The norm is proposed to be extended to organizations that can be equated to small businesses (up to 35 people) by their average number of employees. 

The provisions of the draft law apply to non-profit organizations, which by their organizational and legal form can be classified as socially-oriented non-profit organizations.

Дата публикации: August 31, 2020
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