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RU-The Law on Collectors and the Labour Code – is there a contradiction?

National Association of professional collection agencies (NAPCA) has written appeal to the head of the Ministry of labour and social protection (Ministry of labour) Maxim Topilin. In this appeal Association requests to remove contradictions between the requirements of the Law on debts collection from individuals (230-FZ) from the employees of collection agencies and the Labour Code (LC RF). In accordance with the relevant law employees that have committed, in particular, the failure of an enforceable judicial act about collecting of debts for a period of more than 30 working days (including child support, taxes, fines, etc.) are not allowed to work in the collection agencies.

According to the Director of HR Department of JSC “CEF” Natela Kuker, categorical contradiction between the LC RF and 230-FZ does not exist. Upon detection of outstanding enforcement proceedings on the employee of the collection company he might be dismissed “in connection with violation of rules of concluding an employment contract, according to Article 77 part 1 paragraph 11 of the Labour Code of the Russian Federation”.

Article 84 part 1 paragraph 5 of the LC RF states that the reason for the termination of the employment contract is “an employment contract in violation of the present Code, other Federal law restrictions on employment by certain kinds of labour activity”. Profile 230-FZ places prohibition to engage in collection activities the citizens having valid enforcement proceedings.

Thus, the existence of an enforceable judicial act about collecting of the debt, which is not executed within 30 working days, for the candidate for the position in a Collection Agency means the denial of his employment with reference to Article 84 part 1 paragraph 5 of the LC RF, and the presence of the said act, for the full-time employee of CA – leads for his dismissal under Article 77 part 1 paragraph 11 of the Labour Code of the Russian Federation.

Requirements of the 230-FZ have a logical basis. How can a CA officer, who himself does not fulfill in time his obligations, demand from the citizen to repay his debt?

Naturally, the collection companies do not tend to immediately dismiss an old and experienced employee, who committed the delay in the fulfillment of his obligations. A reasonable alternative to dismissal is the early performance by the employee of the decision of the court, that is, the payment of his debt and the end of the enforcement proceedings. Some companies, including JSC “CEF”, even give the employee a loan or financial assistance to solve his problems.

So, if you want to get a job at a collection company, I advise you to obtain a certificate of no criminal record, and pay off all your debts in advance. We are waiting for your resume!

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Should you have further questions on our company or need information about your case, on the management or purchase of debts, do not hesitate to contact our colleagues or the Client Service.
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