What are legal grounds for compensation of moral damages in labor relations?

Up until recently, there was no obligation to compensate for moral damages under labor law, as the payment for a "person's dignity" in monies was unthinkable in the socialist society.

As long as the Fundamentals of the Civil Legislation were enacted, the liability for causing moral damages was first provided for in the Civil Law, which was also applicable to relations governed by the labor legislation.

In this connection, the Plenum of the Supreme Court of the RF under the Regulation of 20.12.94 ¿ 10 "On Certain Issues of Application of Legislation on Compensation of Moral Damages" has established that the liability for causing moral damages arises if the employee was caused ethical or physical damage when he was unlawfully laid off, transferred to another job or in the case of other illegal actions of the administration. The plenum stressed that moral damages caused to the individual shall be recovered if the case occurred after August 3, 1992 as this type of material accountability was not provided for by law.

Further legislation on the employee's right to compensation for moral damages was fixed in the Federal Law of 17.03.97 No 59-FZ "On Introducing Amendments and Alterations to Article 213 of the Labor Code of the RF". In compliance with modifications introduced, the employee who has labor relations with the employer pursuant to clause 5 Article 213, should the obligations in the labor Reference be violated, may apply to court with the claim for compensation for moral damages. The court will consider the following: the nature and volume of ethical and physical distress caused, the degree of the employer's fault, if the fault is the ground for compensation of moral damages, individual performance of the employee, and also actual circumstances under which moral damages were caused. In compliance with the requirements of reasonableness and fairness the court will determine the size of compensation.

Pursuant to the Civil Code from January 1, 1995 compensation shall be made only in monies. However, it seems that for ensuring the interests of the sufferer a material equivalent is possible. Let's say if the parties agreed that the employee will be granted an apartment as an offset against the obligation pertaining to compensation of moral damages.

As a rule, compensation of moral damages and compensation of damages to property are independent effects of damages caused, therefore only one of the said may be recovered. Concurrently, there are some exceptions. And namely, if an incapable wife was a personal dependent of the earner and he died, then she has the right to claim compensation of property damage (loss of the share in the husband's wages) and compensation of moral damages.