The labor ministry has approved a new provision that allows for the repayment of wages owed by bankrupt companies to employees to be funded from the federal budget. A report from Rossiyskaya Gazeta confirms the existence of this document and outlines the key details.
The policy enables wages unpaid for up to three months prior to a company’s bankruptcy to be compensated through federal funds. Importantly, the payment amount is capped at the regional average three-month wage where the employer is located, ensuring a standardized ceiling across different regions.
Experts note that pre-bankruptcy debt commonly averages around 30 percent of payroll in many cases. Banks of money tied up in bankruptcy procedures are typically hard to recover due to lengthy processing times and inflation eroding the value of funds. The new mechanism aims to deliver timely payments to workers, bypassing the long wait for the formal settlement, thereby preserving the purchasing power of their earnings.
Reports indicate that at the end of 2021, employers owed employees a substantial sum, while a comparatively small portion had been paid. This new approach is framed as a practical response to that imbalance, prioritizing worker relief as insolvency proceedings unfold.
In parallel, a leading European legal professional noted that if an employer mistakenly overpays an employee, the recipient is not automatically obligated to return the excess funds. The attorney cautioned that while employers may request repayment, such actions must align with legal provisions and may not always be embraced by the employee or permitted by the law.
The report emphasizes the intent to stabilize workers’ income during corporate distress, while also highlighting the risks and legal nuances involved in post-payment adjustments and refunds.