AmCham Annual HR Conference October 17, 2008

1. AmCham Annual HR Conference October 17, 2008 Maternity and childcare leave – labor law and practice Ksenia Kamenskaya, Manager, Ernst & Young

2. What Is Being Guaranteed under Labor Law?

3. Maternity Leave Maternity leave is provided to mothers for 140 days – 70 days before childbirth and 70 days after childbirth In 2008 the maximum allowance is RUB 23,400 per full calendar month

4. Child Care Leave Women can be granted with a child care leave until the child reaches the age of 3 years Child care leave can be used by the father of a child or by other relatives taking care of the child Employee on child care leave may work on a part-time basis or at home During child care leave the position is retained Monthly child care allowance(up to the age of 1.5 years): 40% of the average monthly pay (no less than RUB 1,658 for the first child and RUB 3,315 for the second and third children; cap - RUB 6,630)

5. Pregnant Women • It is prohibited: • to refuse to conclude an employment agreement with women on grounds associated with pregnancy (art. 64 of Labor Code); • to send pregnant women on business trips (art. 259 of Labor Code); • to engage them for overtime work, night work, work on days of rest and non-working public holidays (art. 259 of Labor Code); • to terminate employment agreement with pregnant women on employer’s initiative, except in cases where an organization is liquidated (art. 261 of Labor Code) The employer shall be obliged: • to extend term of the fixed-term employment agreement until the end of the pregnancy upon woman’s written request and subject to presentation of a medical certificate confirming the pregnancy (art. 261 of Labor Code); • to retain average earnings at women’s place of work while undergoing compulsory clinical tests (art 254 of Labor Code); • to grant immediately before or immediately after maternity leave or after the end of child care leave an annual paid leave irrespective of her length of service with the employer

6. Working Women with Children • Working women with children under the age of eighteen months shall be granted additional breaks for the feeding of a child (children) at least once every three hours and lasting no less than 30 minutes (art. 258 of Labor Code) • Women who have children under the age of three years may be sent on business trips and engaged for overtime work, night work and work on days of rest and non-working public holidays only with their written consent and if it is not prohibited in accordance with medical report (art. 259 of Labor Code) • It is prohibited to terminate employment agreement at employer’s initiative with women who have children under 3 years (except several circumstances envisaged by article 81 and article 336 of Labor Code)

7. What Is Being Done in Practice?

8. Additional Paid Leave in Case of Child Birth *Based on the “General Industry Compensation and Benefits Survey 2008/2009” conducted by Ernst & Young.

9. Additional Maternity Leave Pay An average percentage of base salary is 95% Average amount of the lump-sum payment due to maternity leave is RUB24,754

10. Additional Child-Care Leave Pay An average percentage of base salary is 83% A fixedmonthly amount (average) is RUB7,442

11. Average Length of Additional Paid Child-care Leave

12. Additional Benefits in Case of Birth of a Child 45% of Companies offer their employees allowance in case of birth of a child 35% of Companies offer their employees additional paid days of absence in case of birth of a child

13. Allowance for the Birth of a Child (Oil & Gas Industry)* *Based on the “Oil & Gas Compensation & Benefits Survey 2008” conducted by Ernst & Young.