Remuneration and Bonuses for Employees

Legal support for issues related to remuneration and bonuses for employees

Article 15 of the Labor Code of the Russian Federation defines labor relations as relations based on an agreement between an employee and an employer on the personal performance by the employee for pay of a labor function in the interests, under the management and control of the employer, the subordination of the employee to the internal labor regulations while the employer provides working conditions stipulated by labor legislation and other regulatory legal acts containing labor law standards, a collective agreement, agreements, local regulations, and an employment contract.

At the same time, wages (remuneration of the employee) are remuneration for work depending on the qualifications of the employee, the complexity, quantity, quality and conditions of the work performed, as well as compensation payments (additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal, work in special climatic conditions and in areas exposed to radioactive contamination, and other payments of a compensatory nature) and incentive payments (additional payments and allowances of an incentive nature, bonuses and other incentive payments). In this case, the employee's salary is established by the employment contract in accordance with the current remuneration systems of the given employer, which, including the amounts of tariff rates, salaries (official salaries), additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal, systems of additional payments and allowances of an incentive nature and bonus systems, are established by collective agreements, agreements, local regulations in accordance with labor legislation and other regulatory legal acts containing labor law standards.

Consulting on remuneration of employees

The issue of remuneration of company employees is an important aspect of labor activity, both for the employer and for employees. As a rule, the employer has a whole group of specialists dealing with this issue, which includes lawyers, HR employees, labor protection specialists, financial specialists. However, even if the company has experienced and competent specialists on staff, situations may arise when the remuneration system does not meet the requirements of the current legislation and violates the rights of employees, which can adversely affect the work of the entire company. At the same time, it is even more difficult for an employee, without special knowledge, to navigate all the intricacies of wages, various coefficients, tariff rates, points and conditions for their accrual, etc. In this regard, legal advice on wages can be useful for both the employer and employees. The employer, receiving such advice, gains the opportunity to exclude violations of labor legislation in the company's work, avoid labor disputes and courts, as well as fines for possible violations. For the employee, such advice allows you to understand all issues of calculating wages and bonuses.

Bonus consulting

Incentivizing company employees through bonuses is one of the ways to increase employee productivity and, as a result, improve the organization's performance as a whole. The conditions for receiving bonuses should be reflected in the remuneration system so that employees can be familiar with this and understand upon reaching which indicators they can expect to receive a bonus.

The possibility of awarding bonuses to employees, as a rule, depends on the financial indicators of the company, and should be clear not only to the employer, but also to all employees, in order to avoid misunderstandings between the parties to the employment contract. Often, the bonus regulations reflect the following sections:

1. conditions or indicators for receiving bonuses;
2. types of bonuses and their amounts;
3. categories of employees receiving bonuses;
4. terms and procedure for paying bonuses;
5. other bonus provisions.

Bonuses, as a means of encouraging employees, are quite often used by company managers, and therefore the bonus system should be clear to the employer and employees.

Developing a regulation on remuneration and bonuses for employees

If we analyze the labor legislation, there is no direct indication of the law on the need for a regulation on remuneration, however, in this case, the necessary conditions for determining the remuneration system must be reflected in the employment contract with each employee.

To optimize the work related to the remuneration system in each specific company, management, as a rule, chooses to develop a single local regulatory act that reflects all the conditions related to the remuneration of employees. This allows you to collect all the conditions for calculating and accruing remuneration in a single document, simplifies the dissemination of this information to the company's employees for review.

The regulation on remuneration and bonuses may contain the following sections:

1. general provisions, terms and definitions;
2. remuneration system;
3. remuneration of employees whose conditions deviate from normal;
4. a section on bonuses for company employees;
5. conditions for indexing wages;
6. other conditions.

Considering that organizations can have different focuses and different working conditions for employees, the use of standard provisions on remuneration can lead to incorrect calculation of wages and corresponding consequences in the form of labor disputes and unscheduled inspections by regulatory authorities. To exclude adverse consequences associated with the remuneration of employees, it is important to correctly reflect all aspects of the calculation of wages.

Remuneration and bonuses of employees are inextricably linked with the need to determine the conditions for their calculation and accrual, this allows you to avoid labor disputes with employees and inspections by regulatory authorities. Incorrect calculations of wages lead to the need to correct the calculation of wages, additional charges of all necessary fees and payments, and do not exclude the possibility of liability for violations of current legislation.

Involving qualified and experienced lawyers to develop a regulation on remuneration allows you to take into account all aspects of the company's work, the working conditions of employees, the norms of current legislation, and also exclude possible adverse consequences for the employer.

Legal services

1. Consulting on issues of remuneration and bonuses for employees of the organization
2. Analysis of the existing remuneration system in the company and checking it for compliance with the requirements established by labor legislation
3. Development of regulations on remuneration and bonuses for employees of the company, taking into account the specifics of work and working conditions
4. Implementation of the developed remuneration system in compliance with the requirements of labor legislation