The government of Belarus adopted a decree №1285, which is aimed to improve the conditions of remuneration for top-managers. Thus, the document expands rights of property owner and employer in the formation of remuneration conditions for top-managers and workers of organizations, reduces administrative control over wages, simplifies procedure for calculation and payment of bonuses to officials of commercial organizations.
As stated in the Council of Ministers, the decree №1285, adopted in accordance with the decree of the president of Belarus from August 6, 2010 № 405, is another step towards further liberalization of doing business in the Republic of Belarus.
Among the innovations, contained in the document, the government underlined the reduction of a number of organizations, in respect of which managers the decree norms on the terms of remuneration of the heads of state organizations and organizations with the share of state ownership in their property are mandatory.
Earlier, the decision № 1003 recommended property owners of non-state organizations to apply the rules of this decree when forming conditions of remuneration for their top-managers. From now, along with these organizations there also gained recommendation status in the application of the Regulation organizations with state ownership in statutory fund amounting to less than 50%.
Furthermore, the decision takes into account the norm under which that heads of effective organizations, received in result of restructuring, acquisition (donation) of an enterprise as property right and obligation of unprofitable organizations, may fix bonuses for the increase of managerial work in the amount not more than 30% of the salary for a period not exceeding two years.
However, the decree excludes the condition setting mentioned bonus, as well as bonus to top-manager for excellence in work, lost economic sense with the adoption of the presidential decree № 405.
The changes affected the decision of the Council of Ministers № 1651 on December 27, 2004.
This document was approves the base limit standard of first-class tariff rate for commercial organizations of state ownership and with the state ownership in their property in the amount of living wage for able-bodied population.
However, the decree sets differentiated rates to the maximum norm, depending on the main economic activity in the organization from 1 to 1.5.
After the entry into force of the decision № 1285 — that is, September 1, 2010 — maximum standard and differentiated rates will be applied only to organizations, included in the State register of natural monopolies.
In addition, the decree №1651 determines that all costs of production and sales of products (works, services) accounted by business organizations in pricing and taxation, regardless of ownership (except companies with foreign investments), include payments on piece-rate prices taking the implementation of labor standards be not more than 200% into account.
These norms are excluded from the decision № 1651, and the decision № 738 and its supplements have been abrogated.
The third, the decision №1285 makes adjustments to the decree of the Council of Ministers№ 555 on April 27, 2006. This document sets that remuneration of top-managers (their deputies) and senior specialists of commercial organizations, in the previous year having loss on sales of products (works, services), is carried out on the results of the quarter’s work. At the same time, 30% of bonuses is reserved and paid in the absence of losses growth from the sale of products (works, services): for the first and second quarters — on the results of the H1, and for the third and fourth quarters — basing on the work over the whole year .
Now, the decision № 555 is supplemented with a norm, according to which the bonuses for top-managers (their deputies), and senior specialists in H2 may be carried out without reservation of accrued bonuses, if basing on the results of the organization during the H1 there is a profit from sales of products (works, services). This measure will allow employers to take operational decisions to remunerate top-managers of organizations for improving the performance of financial and economic activity, and top-managers may take similar decision in respect of their deputies and senior specialists.
