How to specify the terms of remuneration in a contract?

SALARY AMOUNT IS A MANDATORY CONDITION OF THE EMPLOYMENT CONTRACT

The terms of remuneration are among the mandatory conditions of the employment contract (paragraph 5, part 2, article 57 of the Labor Code of the Russian Federation). Labor legislation includes the following conditions:

• tariff rate or salary (official salary) of the employee;

• additional payments;

• allowances;

• incentive payments.

According to Part 1 of Art. 135 of the Labor Code of the Russian Federation, wages for a specific employee are established by an employment contract in accordance with the wage systems in force for a given employer. That is, it is of great importance what kind of remuneration system is applied to the employee (for example, time-based or piece-rate), whether additional payments, allowances, bonuses, etc. are established, as well as working conditions.

At the same time, remuneration systems are developed based on the requirements of labor legislation. That is, the wages of each employee must take into account the criteria established in the legislation, including working conditions[1].

As a rule, employers include in an employment contract with an employee a special section dedicated to the terms of remuneration for this employee (for example, “Wages”).

TIME-TIME WAGE SYSTEM

If the employee has only a tariff rate or official salary (salary), their specific amount in numerical terms (for example, 100 rubles per hour or 50,000 rubles per month). Such explanations are given by Rostrud[2].

The wording may be as follows:

3.1. For the performance of labor duties provided for in this employment contract, the Employee is set a salary of 50,000 (Fifty thousand) rubles per month.

3.1. For the performance of labor duties provided for in this employment contract, the Employee is set an hourly tariff rate of 100 (One Hundred) rubles per hour.

In this case, the employment contract cannot use the wording “Payment according to the staffing table” or “The employee’s official salary is established in accordance with the staffing table.” If the employer does not indicate a specific salary amount, this will violate the requirements of paragraph 5 of Part 2 of Art. 57 Labor Code of the Russian Federation.

Thus, referring to the staffing table instead of indicating the specific amount of the employee’s salary is a violation of the requirements of labor legislation, for which the employer may be brought to administrative liability under Part 1 of Art. 5.27 of the Code of the Russian Federation on Administrative Offenses (CAO RF).

Therefore, when paying time-based labor, the employment contract must indicate the specific amount of the tariff rate or official salary of the employee, as well as additional payments, allowances and incentive payments.

How to reflect payment in an employment contract

Article 57 of the Labor Code directly talks about remuneration in an employment contract, and how to register it - indicate a specific amount. The components of the salary are listed. This:

• official salary;
• additional payments;
• encouragement.

If the salary is indicated accurately, then the law does not oblige you to describe in detail other payments and allowances in the employment contract. They can be mentioned by referring to the local regulatory act, where they are described in detail.

The employer sets bonuses, incentives and compensation payments, as provided for by the laws of the Russian Federation and local regulations of the organization. It is necessary to indicate which ones exactly.

Article 136 of the Labor Code obliges employees to pay wages twice a month, but does not require the dates of payment to be specified in the employment contract with the employee. If the dates are established by a collective agreement or included in the internal labor regulations, indicate this in the employment agreement and refer to this LNA, indicating its name. If there is no trade union at the enterprise, the collective agreement does not specify salary dates, they must be entered into the text of the employment contract.

PIECE WAGE SYSTEM

If, in accordance with the employer’s current remuneration system for the employee, a piece-rate remuneration system is established, the corresponding condition must be included in the employment contract.

At the same time, labor legislation does not oblige the employer to indicate in the employment contract the specific amount of piece rates or labor standards provided for in Art. 160 Labor Code of the Russian Federation.

Therefore, in an employment contract with an employee, whose earnings will depend on the number of units of product produced (work performed), it is necessary to indicate that wages are piecework. You must also provide a link to the employer’s local regulations establishing:

• piece rates, time standards, production standards;

• the procedure for recording production output and the volume of work performed (for example, regulations on remuneration of employees or an order from the employer).

The employee must be familiarized with the specified local regulatory act against signature.

The wording in the employment contract may be as follows:

3.1. The worker is established with a direct piece-rate wage system and is paid for the amount of product he produces. Piece rates, time standards, production standards, as well as the procedure for recording production output and the volume of work performed are established by the Regulations on the remuneration of employees of Specialist LLC.

It is also necessary to take into account that there are several types of piecework wages:

• direct piecework;

• piecework-bonus;

• piecework-progressive;

• indirect piecework.

Hourly form of remuneration

Employment contract with a teacher

Moscow August 13, 2021
Limited Liability Company "Smart Children" (short name LLC "Smart Children"), hereinafter referred to as the "Employer", represented by General Director Alexey Stepanovich Razumentsev, acting on the basis of the Charter, on the one hand , and citizen Polyglotov Arkady Konstantinovich, hereinafter referred to as the “Employee,” on the other hand, have entered into this employment agreement, hereinafter referred to as the “Agreement,” as follows.

1. The Subject of the Agreement

1.1. Under the Agreement, the Employer undertakes to provide the Employee with work according to the labor function stipulated in this agreement: teaching activities in a children's early development center, provide working conditions provided for by the current labor legislation, local regulations of the Employer, pay the Employee wages in a timely manner and in full, and The Employee undertakes to personally perform the labor function defined by this Agreement - to provide teaching services, to comply with the internal labor regulations in force in the organization, other local regulations of the Employer, as well as to perform other duties provided for by the Agreement, as well as additional agreements thereto.

1.2. The employment contract with the employee is drawn up in accordance with current legislation and is a mandatory document for the Parties, including when resolving labor disputes between the Employee and the Employer in judicial and other bodies.

2. Basic provisions

2.1. The Employer instructs, and the Employee accepts, the performance of labor duties as a teacher of English and German for children aged 4-7 years at the “Smart Children” early development school.

2.2. Work under the Contract is the main job for the Employee and is paid by the hour, in accordance with the approved and agreed upon schedule.

2.3. The Employee’s place of work is a branch of the “Smart Children” school, located at the address: Moscow, Zavaruevsky Lane, 12.

3. Duration of the contract

3.1. An employment contract with an employee comes into force from the moment it is signed and is valid for six months. The employee must begin performing his job duties on September 1, 2016.

4. Terms of payment

4.1. The Employee's official salary is 250 rubles per hour.

4.2. The Employee's salary is paid by transferring funds to the Employee's debit (credit) card twice a month, on the 13th and 28th, or by paying cash at the organization's cash desk.

4.3. Deductions may be made from the Employee's salary in cases provided for by the legislation of the Russian Federation.

4.4. The employer establishes incentives and compensation payments (additional payments, allowances, bonuses, etc.). The conditions for such payments and their amounts are determined in the Regulations on the payment of allowances and bonuses to employees of the company.

4.5. If the Employee, along with his main job, performs additional work in another position or performs the duties of a temporarily absent employee without being released from his main job, the Employee is paid additionally in accordance with the additional agreement.

5. Rights and obligations of the Employee

5.1. The employee is obliged:

5.1.1. Fulfill obligations in accordance with this Agreement in good faith.

5.1.2. Comply with the internal labor regulations of the organization and other local regulations of the Employer.

5.1.3. Maintain labor discipline.

5.1.4. Comply with labor standards if they are established by the Employer.

5.1.5. Comply with labor protection and occupational safety requirements.

5.1.6. Treats the property of the Employer and other employees with care.

5.1.7. Immediately notify the Employer of the occurrence of a situation that poses a threat to the life and health of children, or the safety of the Employer’s property.

5.2. The employee has the right to:

5.2.1. Providing him with work stipulated by this employment contract.

5.2.2. Timely and full payment of wages in accordance with your qualifications, complexity of work, quantity and quality of work performed.

5.2.3. Rest, including paid annual leave, weekly days off, non-working holidays.

5.2.4. Compulsory social insurance in cases provided for by federal laws.

5.2.5. Other rights established by the current legislation of the Russian Federation.

6. Rights and obligations of the Employer

6.1. The employer is obliged:

6.1.1. Comply with laws and other regulations, local regulations, and the terms of this employment contract.

6.1.2. Provide the Employee with work stipulated by the Agreement.

6.1.3. Provide the Employee with equipment, technical documentation and other means necessary to perform his job duties.

6.1.4. Pay the full amount of wages due to the Employee on time.

6.1.5. Carry out compulsory social insurance for the Employee in the manner established by federal laws.

6.1.7. Perform other duties established by the current legislation of the Russian Federation.

6.2. The employer has the right:

6.2.1. Encourage the Employee for conscientious, effective work.

6.2.2. Require the Employee to fulfill labor duties specified in the Agreement, to take care of the property of the Employer and other employees, to comply with laws and local regulations.

6.2.3. Bring the Employee to disciplinary and financial liability in the manner established by the current legislation of the Russian Federation.

6.2.4. Adopt local regulations.

6.2.5. Exercise other rights provided for by the current legislation of the Russian Federation and local regulations.

7. Guarantees and compensation

8. Responsibility of the parties

9. Final provisions

10. Details of the parties

Employer: Smart Children LLC, Taxpayer Identification Number: xxxxxxxxxxxxx legal entity. address: Moscow, Zavaruevsky lane, 12. account: xxxxxxxxxxxxx in Sberbank of Russia, account: xxxxxxxxxx, BIC: xxxxxxxxxxx.

Employee: Polyglotov Arkady Konstantinovich, registered at the address: Moscow, st. Zavetnaya, 9.18, kV. 135;:, passport: XX xxxxxxxxxx, issued “October 18, 1995, Basmanny Department of Internal Affairs of Moscow.

phone: 095-722-44-78.

From the Employer: General Director of Smart Children LLC (signature) Razumentsev A.S.

Employee: Polyglotov A.K (signature)

M.P.

ADDITIONAL PAYMENTS, ALLOWANCES, BONUSES

Norm of paragraph 5, part 2, art. 57 of the Labor Code of the Russian Federation allows you not to indicate in the employment contract the specific amounts of additional payments, allowances and bonuses.

If the employer has established additional payments, allowances and incentive (incentive) payments (including bonuses), then you can indicate their types and amounts:

a) directly in the employment contract;

b) in the form of a reference to the local regulatory act of the employer (for example, regulations on remuneration of employees, regulations on bonuses for employees) or the collective agreement by which they are established. Employees must be familiarized with the specified documents against signature (paragraph 10, part 2, article 22, part 3, article 68 of the Labor Code of the Russian Federation).

The fact that in this case it is possible to use reference norms in an employment contract is confirmed in its explanations by Rostrud2.

Extract from the letter of Rostrud dated March 22, 2012 No. 428-6-1 2. […] The specific amount of the tariff rate or official salary is indicated directly in the employment contract. As for additional payments, allowances and incentive payments due to an employee, they can be directly indicated in the employment contract or it can make a reference to the relevant local regulation or collective agreement, which provides the grounds and conditions for their payment. In the latter case, the employee must be familiarized with the content of local regulations and the collective agreement against signature.

The wording may be as follows:

3.1. For the performance of labor duties provided for in this employment contract, the Employee is paid a salary that includes: 3.1.1. Official salary in the amount of 50,000 (Fifty thousand) rubles per month. 3.1.2. Quarterly and annual bonuses that are accrued and paid to the Employee in the manner and on the terms established by the Regulations on bonus payments to employees of New Technologies LLC.

3.1. For the performance of labor duties provided for in this employment contract, the Employee is paid a salary that includes: 3.1.1. Official salary in the amount of 30,000 (Thirty thousand) rubles per month. 3.1.2. Personal bonus for high qualifications in the amount of 10,000 (Ten thousand) rubles per month.

Please note that in an employment contract with an employee who will work in the Far North or equivalent areas[3], you must indicate the regional coefficient and percentage increase in wages. If the employer violates this rule and does not include such conditions in the employment contract, the employee will still be able to demand their payment. This position is confirmed by judicial practice[4].