What the Law Says
The Russian Labour Code sets out an exhaustive list of disciplinary sanctions (Article 192):
- Reprimand (замечание)
- Official reprimand (выговор)
- Dismissal on appropriate grounds
A fine is not on this list. Consequently, an employer has no right to fine an employee — for lateness, for a work error, for missing a sales target, or for any other breach.
Any order imposing fines or deducting amounts from wages for disciplinary offences is unlawful and can be challenged.
What Employers Call “Fines”
Many employers circumvent the prohibition by introducing a system of “bonus clawbacks” — reducing or withholding the variable element of pay (bonuses, commissions). Formally, this is not a fine; it is a change to the bonus arrangement.
Key distinctions:
- If the bonus amount is fixed in the employment contract, it cannot be withheld without following the procedure for changing material terms of employment.
- If the bonus is at the employer’s discretion and paid under a bonus policy, the employer may withhold it in the event of disciplinary sanctions — but only if this is explicitly provided for in the internal policy document.
The boundary is significant: you need to look at exactly what is written in the employment contract and the bonus policy.
Which Salary Deductions Are Permitted
Article 137 of the Labour Code permits deductions only in strictly defined circumstances:
- to recover an advance paid to the employee,
- to recover an unspent travel advance,
- to recover amounts overpaid due to an accounting error,
- on termination, to recover pay for unused leave days taken in advance,
- pursuant to a court order or enforcement document.
All other deductions — for errors, lateness, or damage to property — require either the employee’s written consent or a court order. Unilateral deductions are unlawful.
How to Recover Unlawfully Withheld Amounts
Step 1. Submit a written demand to the employer requesting payment of the withheld amount, citing Article 137 of the Labour Code.
Step 2. If the employer refuses or does not respond within a reasonable period, file a complaint with the State Labour Inspectorate (GIT). The inspectorate may issue a compliance order requiring the employer to remedy the breach.
Step 3. Concurrently or instead of the GIT complaint, file a court claim. The limitation period for wage claims is one year from the date the payment was due (Article 392 of the Labour Code).
In addition to the principal amount, the employee is entitled to claim interest for delayed payment under Article 236 of the Labour Code (not less than 1/150 of the Central Bank key rate per day of delay) and compensation for non-pecuniary harm (moral damages).
Frequently Asked Questions
Can the employer deduct from wages for damaged equipment or lost goods? Only with the employee’s written consent or pursuant to a court order (Article 137 of the Labour Code). Unilateral deduction is unlawful. Individual financial liability is capped at one month’s average earnings (Article 241 of the Labour Code) unless wilful intent is proved.
What is the maximum deduction from wages per pay period? No more than 20% of the amount due for payment (Article 138 of the Labour Code). For specific enforcement categories (child support, personal injury awards) the ceiling rises to 50–70%.
The employer withheld my bonus after a disciplinary breach — is this lawful? It depends on the employment contract. If the bonus is a fixed contractual term, it cannot be withheld without following the procedure for changing material terms of employment. If the bonus is paid at the employer’s discretion under an internal bonus policy, withholding is permissible — but only if the policy expressly so provides and a disciplinary sanction is in place.
Where do I report unlawful deductions? File a complaint with the State Labour Inspectorate (GIT) citing a violation of Article 137 of the Labour Code, or bring a court claim. The limitation period for wage claims is one year from the date the payment was due (Article 392 of the Labour Code).
Read Also
- Workplace Mobbing: What It Is Under Russian Law and How to Defend Yourself
- The 30-Hour Working Week for Parents with Many Children: How the Benefit Works
- Warehouse Fire: Rights of Staff, GPC, and Self-Employed
Has your employer unlawfully withheld money or introduced a system of workplace fines? Contact us for a consultation — we will help you claim back the withheld amounts and hold the employer accountable.