Changes in the regulation of labor in non-commercial (non-profit) organizations starting from 2021

 

Starting from 2021, the amendments to the Labor Code regarding the regulation of labor in non-commercial (non-profit) organizations have come into force:

 

1. Ability to conclude fixed-term employment contracts by agreement with employees

 

This opportunity is provided to non-commercial (non-profit) organizations with a maximum of 35 employees, except for the following types of non-commercial (non-profit) organizations:

 

• State and municipal institutions;

• State-owned corporations;

• State-owned companies;

• Public law companies;

• Political parties;

• Consumer cooperatives.

 

At the same time, for religious organizations, the Labor Code still allows the possibility of concluding fixed-term employment contracts, regardless of the number of their employees.

 

2. Possibility to refuse to adopt internal regulations and procedures

 

Starting from 2021, it is allowed to completely or partially reject the adoption of internal regulations and procedures for those non-commercial (non-profit) organizations that meet the following criteria¹:

 

A. The average number of employees and the amount of income of a  non-commercial (non-profit) organization for the previous calendar year do not exceed the corresponding limits set by the Government.

 

B. The non-commercial (non-profit) organization is not one of the following types:

 

• State or municipal institution;

• State-owned corporation;

• State-owned company;

• Public law company;

• Political party;

• Consumer cooperative;

• Religious organization.

 

In case of refusal to accept the relevant internal regulations and procedures, all the necessary provisions are to be included directly in the employment contracts with employees.

 

At the same time, this rule does not apply to the internal regulations on the temporary transfer of employees to remote work, adopted under Article 312.9 of the Labor Code. When concluding employment contracts, companies are guided by the standard form of the employment contract approved by the Government².