Tuesday, May 25, 2010

No Unemployment Benefits for LLC Members

Russia’s Constitutional Court upheld the constitutionality of legislation that excludes owners of limited liability companies from unemployment benefits. Under current employment legislation, members of “organizations” (apparently including both LLCs and joint-stock companies) are deemed “employed.” Nikolay Gushchin lost his job and applied for unemployment compensation, but his application was denied on the grounds he was an LLC member (Gushchin’s investment was $20, and his annual dividend was $30). The Constitutional Court held that LLC members voluntarily assume “the burden of care for own welfare.”

http://www.ksrf.ru/News/Pages/ViewItem.aspx?ParamId=781

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