Delay in wages, pensions and social benefits. When to expect compensation under the new rules?

Labor Law
Ishutko Sergey
26.02.2021
Law Services - Delay in wages, pensions and social benefits. When to expect compensation under the new rules?

  Recently, namely on February 23, 2021, the President of Ukraine signed the Law “On Amendments to the Law of Ukraine” On Compensation to Citizens for Loss of Income Due to Violation of their Payment Terms “» 1214-IX, which the Verkhovna Rada adopted on February 4, 2021.

    In connection with the violation of the established terms of payment of wages, enterprises, institutions and organizations of all forms of ownership must accrue amounts of compensation to employees in case of late payment.

    The amount of compensation is calculated as the product of accrued but unpaid cash income for the month (after taxes and mandatory payments) and the growth of the consumer price index as a percentage to determine the amount of compensation.

    On the positive side, the new law establishes an exhaustive list of types of cash income for which citizens are entitled to compensation, and removes the word “other” from the article, which will greatly facilitate its application by both citizens and employers and other entities. payments, and reduce the corruption risks associated with the lack of specificity in the Law, which allowed unscrupulous payees to abuse this.

    Another positive point is that the Law has increased the list of types of income for violation of which citizens should be compensated and added to pensions, social benefits, scholarships, wages such types of income as: the amount of indexation of citizens’ incomes; the amount of compensation for damage caused to an individual by injury or other damage to health; funds paid to persons entitled to compensation in case of loss of a breadwinner.

    On the positive side of the changes, the legislator stressed that the country guarantees an adequate level of social security and a transparent mechanism for calculating compensation to persons who have suffered health or injury and persons entitled to compensation in case of loss of a breadwinner.

    On the negative side, it can be attributed to the fact that during the adoption of this Law, the legislator ignored other types of income, for violation of which citizens should be compensated, for example: damage caused to a citizen by illegal actions of investigative bodies, pre-trial investigation bodies, prosecutor’s office and court. This is in fact a violation of the principle of equality of citizens, which is declared in the Constitution of Ukraine.

    However, in general, the implementation of amendments to the Law of Ukraine “On compensation to citizens for loss of income due to violation of the terms of their payment” will have a significant positive impact on the interests of persons with disabilities or persons entitled to for damages in case of loss of a breadwinner.

 

 

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