The government will allow small companies to cancel labor books

Prime Minister Dmitry Medvedev ordered to introduce to state Duma the draft amendments to the Labour code regulating employment relations in micro-enterprises, individual entrepreneurs, reported on the official website of the government.

According to the document, the entrepreneur with the agreement of the employee may not make it in the work book details of the work on his micro (in this case the employee and employer agree, who from them will be kept work-book) or not to issue a certificate of employment if the employee wasn’t there. In addition, the bill exempts the employer from the obligation to assert in micro, local normative acts containing norms of labour law (provisions on wages, on bonuses, etc.).

But in this case, according to the bill, the employer is obliged to prescribe the conditions regulated by local regulations in the employment contracts of employees who are on the basis of the government-approved standard form of employment contract. If people working in micro without registration of labour books, is dismissed, the employer must register the date and reason of termination of the employment contract directly in the contract and to assure the entry seal where it exists, follows from the text of the bill.

In case of changing the category of micro-enterprises the employer will be given four months to bring the labour relations with employees in accordance with Labor code is specified in the bill.

The bill will enhance the level of protection of labor rights of employees of micro-enterprises and reduce the risks of imposing on employers sanctions for violation of labour laws, the report says the government.

In April 2015, President Vladimir Putin instructed to prepare proposals for the use of standard forms of labour contract on the micro instead of the personnel office. After that, the Ministry developed a draft law on peculiarities of regulation of labor in microenterprises. The Agency issued a document on the Federal portal of normative legal acts, indicating the planned date of entry into force of the bill July 2016. Currently there is laid out the text of the bill that was submitted to the government (link to download). The government approved the bill on April 14, according to the website of the Cabinet of Ministers.

The Ministry also placed on the portal of normative legal acts, the draft model form of labor contract for employees of micro-enterprises. The standard form of employment contract will allow “to lower unreasonably high in some cases costs” of microenterprises, reducing the volume of flow from these employers, to improve the level of protection of workers ‘ rights as indicated in the document.

Micro enterprises are businesses employing up to 15 people and revenues of up to 120 million rubles per year. According to Rosstat, on January 1, 2015 there were 1.87 million micro — businesses- 41% of all small and medium-sized businesses. They employed nearly 5 million people.