Wages Indexation: Some Legal Problems of Implementation of Art. 134 of the Labour Code of the Russian Federation

Abstract

The article analyzes the legal problems of implementation of Art. 134 of the Labor Code of the Russian Federation in terms of imperative obligation of employers to adjust wages. On the basis of the interpretation of the provisions of the Labour Code, the analysis of the legal standings of the Constitutional Court of the Russian Federation, the Supreme Court of the Russian Federation, and other court decisions, the authors have determined the legal mechanisms that ensure, on the one hand, implementation of a socially necessary result for employees, and, on the other hand, does not violate the balance of rights and legally protected interests of employees and employers as a condition for harmonization of labor relationships. The article emphasizes that the employer should have legal mechanisms to protect his economic interests. However, consideration of such interests should not negate the statutory obligations of the employer that include the obligation to increase the real wage levels. The authors of the article focus on the problem of indexation of wages of employees of state bodies, bodies of local self-government, state and municipal institutions. The general conclusion is made about a declarative character of Art. 134 of the Labour Code of the Russian Federation, which does not allow establishing effective working mechanisms aimed to increase the level of employees' real wages.