What is the employer's liability in case of violation of the terms of payment of wages under the simplified regulatory regime?

In the simplified regime of labour relations regulation, the employer's liability for delayed payment of wages is determined by the terms of the employment contract. The agreement must contain the amount of compensation to be paid by the employer to the employee for each day of delay.

If the employment agreement does not contain provisions on the employer's liability for violation of the terms of payment of wages, the general rules of labour law apply:

Financial liability of the employer in accordance with labour legislation:

• Fines for delaying payment of wages by more than one month or not paying them in full are three times the minimum wage.

Administrative liability of officials in accordance with the legislation on administrative offenses:

• Fines on company officials for violation of the established terms of payment of wages and payment of wages in full - in the amount of 30 to 100 non-taxable minimum incomes (repeated violation, or committed in relation to particularly vulnerable categories of the population, in the amount of 100-300 NTMI).

Criminal liability of the manager in accordance with the Criminal Code:

• The penalty for unjustified non-payment of wages for more than one month committed intentionally by a director of an enterprise is a fine of 500 to 1000 NTMI or correctional labour/imprisonment for up to two years with a ban on management activities for up to three years.

In addition, employees are entitled to compensation for the loss of part of their income due to the violation of the terms of payment. The amount of compensation is determined in accordance with the law and depends on the length of the delay in payment.