November-December 2013
NEWSLETTER

Resolutions of the Constitutional Court of Ukraine on Wages Recovery Disputes

The Constitutional Court of Ukraine (the "CCU") has clarified, which disputes on recovery of payments due to employees are not subject to statute of limitations.

The CCU has found that such payments comprise the wages that are due to employee, i.e., all payments, to which employee is entitled pursuant to his/her employment contract or government guarantees. These include, among others, payments for the period of production downtime that has occurred by no fault of employee, as well as amounts of wages indexation and reimbursement to employees of the part of wages lost due to delay in their payment. Statute of limitations is not applicable to disputes on recovery by employee of such amounts regardless of whether employer has accrued them or not.

The CCU opined on the above issues in its Resolutions dated 15 October 2013 No. 8-rp/2013 in case No. 1-13/2013 under constitutional claim of L. M. Prysiazhniuk seeking official interpretation of Section 2 of Article 233 of the Labour Code of Ukraine (the "Code") and Articles 1 and 12 of the Law of Ukraine "On Labour Remuneration" ("Resolution No. 8-rp/2013") and No. 9-rp/2013 in case No. 1-18/2013 under constitutional claim of Yu. V. Dzioba seeking official interpretation of Section 2 of Article 233 of the Code ("Resolution No. 9-rp/2013").

Pursuant to Resolution No. 8-rp/2013, statute of limitations shall not apply to an employee's court claim seeking recovery of all payments that are due to the employee under his/her employment contract or government guarantees provided for under Ukrainian law.

The CCU has noted that apart from the obligation to pay for results of employee's work, employer also has other financial obligations, including, but not limited to, payments for the period of production downtime that has occurred by no fault of employee. Therefore, employee wages encompass remuneration for performed work, as well as payments guaranteed by the government, as envisaged by labour remuneration law.

In its Resolution No. 9-rp/2013, the CCU has opined that wages indexation and reimbursement to employees of the part of wages lost due to delay in their payment represent steps intended to secure real wages and are compensatory in nature. Therefore, such amounts qualify as components of wages that are due to employee.

In view of this, the CCU has found that the unlimited period for bringing a court claim to recover due wages also covers employee claims seeking recovery of amounts of wages indexation, as well as reimbursement of the part of wages lost due to delay in their payment.



For further information please contact
counsel Svitlana Chepurna and associate Inesa Letych

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