To the issue of reforming the Russian legislation on employer's insolvency

One of the most serious consequences of the employer's financial instability is the aggravation of the situation with on time payment of salary to employees. Amid the global financial crisis this problem becomes pressing more than ever before. Contemporary conditions make taking immediate measures to protect workers' claims the most necessary step on the way of the development of the Russian legislation in this field. The author of the article analyses the main directions of the reforming of the Russian legislation, concerning employer's insolvency. All the attempts of reforming are divided into two groups. The first group includes the protection of workers' claims by means of privilege. The second one covers the protection of workers' claims by guarantee institutions. Censorious remarks on the effectiveness of some regarded measures are expressed. The author of the article draws attention on the legislative proposal on the vesting the workers the right to initiate the procedure of bankruptcy of the employer. In spite of some expectable positive effect of this novelty, regarded draft law has some essential weaknesses, which can be harmful for workers and make their position in the case of employer's insolvency worse. Among the most serious weak points of the regarded draft law is the conflict between Labour Code and insolvency legislation on the understanding of some terminology, the absence of protection of workers from judicial expenses on the case of their employer's insolvency. Moreover regarded draft law still doesn't contains any provisions on the right of workers to take active participation in their employer's bankruptcy procedure by mean of right to vote on the creditors' meetings. On the bases of analyzing current legislation and probable changes the following conclusion is made: adoption of guarantee mechanism is the most effective variant of the protection of employees' rights in the case of employer's insolvency. It is offered to organize the guarantee system on the analogy with reserve funds which nowadays exist in organizations for some extraordinary item. Anyway, the responsibility for the insolvency should be rested on the employer itself but not upon its employees.