WORK AND INCOME DURING RUSSIAN BANKRUPTCY
Downtime pay does not automatically become an untouchable benefit when an employee is bankrupt. First check the employer’s calculation, then establish how the money is received in the proceedings. Two thirds of average earnings and two thirds of contractual salary are different calculations.
Cause of downtime
This determines the minimum payment rule. The label “downtime” alone is insufficient.
Period covered
Separate the hours or days of stoppage from time actually worked.
Lower income
Send the financial manager the order and revised calculation, not just an oral notification.
Downtime is not dismissal or forced absence
Article 72.2 of the Labour Code describes downtime as a temporary work stoppage for economic, technological, technical or organisational reasons. It does not itself terminate employment. This guide concerns the employee’s personal bankruptcy, not the organisation’s insolvency.
Do not confuse this stoppage with the period following unlawful dismissal, covered separately in our guide to forced-absence pay. Unpaid leave should not be used as a substitute for downtime without understanding the effect on pay.
How much must the employer accrue?
The general rules appear in Article 157 of the Labour Code. Check any special Code provisions and more favourable payment terms that apply.
| Situation | General rule | What to check |
|---|---|---|
| Employer at fault | At least 2/3 of average earnings, subject to Code exceptions | Whether average earnings were incorrectly replaced by basic salary alone |
| Reasons beyond both parties’ control | At least 2/3 of the tariff rate or salary, proportionate to downtime | The cause, rate and time recorded |
| Employee at fault | Downtime is unpaid | Evidence supporting attribution of fault to the employee |
| Downtime for part of a month | The stoppage period is assessed separately from time worked | Time records and accrual breakdown, not one percentage of all monthly pay |
The same article requires the employee to notify a supervisor or another employer representative of equipment failure or other circumstances preventing continued work. Keep evidence of notification. The employer’s description of the cause does not prevent the employee from challenging it.
Recording the money during asset realisation
Under Article 213.25 of the Bankruptcy Law, income and monetary rights are accounted for subject to statutory exemptions. Downtime pay is not automatically protected in full merely because the employee temporarily performed no work.
Essential living funds are assessed under Article 446 of the Civil Procedure Code and paragraphs 1–2 of Supreme Court Plenum Resolution No. 48. Notify the manager of the new income level and clarify the calculation of funds available to you. A dispute is resolved by the court handling the bankruptcy.
An income shortfall does not itself require the manager to top it up from personal funds. Establish what money is actually available, which protections apply and what evidence supports additional essential needs.
Five steps after downtime is announced
- Obtain the documents. Request the order or other record of the stoppage, including dates, cause and payment terms.
- Check accruals. Compare time records, the payslip and calculation basis. Separately identify working days, downtime and other payments.
- Notify the manager. State when income fell and attach the order, calculation and statement. If the end date is unknown, say so explicitly.
- Clarify access to funds. Request a written calculation for the relevant month, accounting for other receipts and amounts already released. Do not open another account to bypass the applicable process.
- Separate disputes. Address an incorrect accrual to the employer; address retention of money received to the manager and, if necessary, the bankruptcy court. Keep responses and evidence of delivery.
For the general process, see wages during Russian personal bankruptcy. If money remains unpaid, first establish the amount owed rather than treating the account balance as proof that accruals are correct.
Illustrative example: a stoppage for part of a month
An employee works part of the month before the enterprise declares downtime for reasons beyond both parties’ control. Payroll shows worked time and downtime pay separately. The employee provides the manager with the complete calculation and bank statement, not just the downtime line. If the cause is disputed, the correct payment basis is addressed separately: bankruptcy does not make the employer’s calculation indisputable.
Frequently asked questions
Is downtime always paid at two thirds of basic salary?
No. The general employer-fault rule uses average earnings; reasons beyond both parties’ control use the rate or salary adjusted for time. Identify the basis first.
Should I wait until downtime ends before telling the manager?
No. Report the income reduction once the documents are available. Update the information when work resumes or pay changes.
Do two transfers mean two protected allowances?
The number of transfers does not itself create a repeated entitlement. Match receipts to the month, other income and funds already released.
Does downtime automatically change a debt restructuring plan?
No. Do not apply the asset-realisation process to an approved restructuring plan. Document and disclose the income reduction, then separately assess further performance of the plan. Reducing a payment unilaterally merely because downtime was ordered is risky.
Has your income fallen during bankruptcy?
An initial consultation can review the downtime documents, payment calculation and procedural stage. We will identify the appropriate requests to the employer and financial manager without promising a guaranteed outcome.
Book an initial consultationChecked on 7 September 2026. Information concerns Russian law; an individual conclusion depends on documents and circumstances.