Labor agreement

Hiring an employee provides for the conclusion of a labor agreement, drawn up by the order and notification of the State Tax Service. The conclusion of a high-quality labor agreement allows you to minimize property and labor risks, as well as defend your rights in disputable situations.

A labor agreement is an agreement between an employee and the owner of an enterprise, institution, organization or a body authorized by him or an individual, according to which the employee undertakes to perform the work defined by this agreement, and the owner of an enterprise, institution, organization or a body authorized by him or an individual undertakes to pay wages to the employee and ensure the working conditions necessary for the performance of work, provided for by the labor legislation, the collective agreement and the agreement of the parties.

In accordance with the current legislation, an employee cannot be allowed to work without concluding a labor agreement.

For the actual admission of employees to work without their registration, the employer may be subject to a fine in the amount of ten times the minimum wage established by law at the time the violation was detected, charged for each employee not registered for work.

A labor agreement is concluded orally or in writing. The labor legislation provides for the cases where compliance with the written form is mandatory. This applies in particular to organized recruitment; conclusion of a contract; cases when the employee insists on concluding a labor agreement in writing; conclusion of a labor agreement for remote work or home work.

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As a rule, a labor agreement is drawn up by the parties in writing, since it provides the following advantages:

  1. Detailing the individual duties of an employee, a specific definition of his or her tasks and functions.
  2. Designation of the work rules and a clear definition of the workplace, which is especially important for remote/home work.
  3. Individualization of working and rest conditions for an employee, for example, by establishing additional vacation days, conditions for paying an additional bonus.
  4. Determination of specific conditions that depend on the direction of work of a particular company and may relate to the procedure for using property provided to an employee, the rules for transferring rights to objects of intellectual property rights created by him or her in the course of performing his or her labor function, etc.

The practice of providing services by VigoLex specialists shows that most companies are inclined to conclude a contract in writing, even if there is no legal requirement for this.

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