Unpaid wages and final settlement

What is happening

The company is going through a difficult patch: wages are paid in instalments, payment is always "any day now", and the debt keeps growing. People put up with it until they leave, and then find that nobody intends to pay the final settlement either.

Another situation is a dispute over the amount. The employer says the bonus is not due, does not pay for overtime, or has miscalculated holiday pay or pay in lieu of untaken leave. The employment contract, the pay policy and timesheets decide these cases.

The third is off-the-books pay: the minimum salary on paper, the rest in cash. The unofficial part is the hardest to recover, but even here there is often evidence: messages, pay sheets, transfers, witnesses.

What the law says

• Wages must be paid at least every half month, and on dismissal everything owed must be paid on the last day of employment (the Labour Code).
• For late payment the employer must pay monetary compensation for each day of delay regardless of fault; the rate is set by the Labour Code and linked to the Bank of Russia key rate.
• If wages are more than 15 days late, the employee may, after notifying the employer in writing, suspend work until the arrears are paid.
• For claims over unpaid or underpaid wages and other sums due to the employee, including on dismissal, the time limit for going to court is one year from the date payment was due.
• Where the accrued wages are not in dispute, they can be recovered by court order in summary proceedings; a dispute over the amount goes through a full action (the Code of Civil Procedure). The state labour inspectorate may also order the employer to remedy breaches.
• The bailiffs enforce under Federal Law No. 229-FZ of 2 October 2007 "On Enforcement Proceedings", and if the employer goes bankrupt, wage claims are paid in a priority class under Federal Law No. 127-FZ of 26 October 2002 "On Insolvency (Bankruptcy)".

What we do

• We calculate the debt month by month: wages, final settlement, holiday pay and compensation for late payment.
• We check the employment contract, pay and bonus policies, timesheets and payslips for underpayment.
• We prepare a written demand to the employer and, if you decide to stop work, the notice of suspension.
• We file a complaint with the state labour inspectorate and, where delays affect many staff, with the prosecutor's office.
• We obtain a court order or prepare a claim, including compensation for distress, and represent you in court.
• We follow enforcement and, if the employer goes bankrupt, lodge your claim in the register of creditors.

What we will need from you

• Your employment contract, supplementary agreements, and hiring and dismissal orders.
• Payslips, income statements and statements for your salary card.
• Timesheets, rotas and memos on extra hours if overtime is in dispute.
• Correspondence with the accounts department and management in which the debt is acknowledged or payments are discussed.
• For off-the-books pay: pay sheets, transfers, the job advert showing the salary, and colleagues' contact details.