DECISION OF ECONOMIC COURT OF COMMONWEALTH OF INDEPENDENT STATES

of January 26, 1996 No. 09/95/C-1/2-96

Economic Court of the Commonwealth of Independent States in structure: the chairman - the Chairman of Economic Court Dashuk L. A., judges of Economic Court of Abdrakhmanov S. S., Apostle D.D., Begaliyev M. A., Bekenova R. A., Vylkova I. K., Kerimbayeva A. Sh., Makhmudova L. Sh., Miroshnik V. I., Simonyana G. V., Tolibova X.,

in case of Madudina T. I. secretary.,

with participation:

General adviser of Economic Court of Kapylsky M.P.,

representative of General Confederation of Labor unions Zanko N. P.,

having considered case on request of General Confederation of Labor unions on interpretation in proceeding in open court,

Established:

In request of General Confederation of Labor unions the following is specified.

On September 9, 1994 by heads of governments of the Commonwealth the Agreement on mutual recognition of the rights to indemnification, caused to workers by the mutilation, occupational disease or other damage of health connected with execution of labor obligations by them is signed. According to article 6 of this Agreement, the State Parties assumed liability to provide in first-priority procedure free transfer and payment of money for indemnification to workers, constantly or temporarily staying in their territory, through banks and (or) organizations of mail service.

Because there are facts of delays of transfers and payments of money for indemnification to the employee categories specified in article 6 of the Agreement on the reasons of suspension of non-commercial payments in the State Parties of the Agreement owing to introduction of national currencies, insolvency of the companies - causers of harm and on other bases. The general Confederation of Labor unions asks to give interpretation of article 6 of the specified Agreement for the purpose of its uniform application.

Having heard the judge-speaker Miroshnik V. I., the representative of General Confederation of Labor unions Zanko N. P., having analyzed the conclusion of the General adviser of Economic Court of Kapylsky M.P. and having researched the documents which are available in case, the Economic Court came to the following conclusions.

According to article 13 of the Agreement on mutual recognition of the rights to indemnification caused to workers by the mutilation, occupational disease or other damage of health connected with use of labor obligations by them of September 9, 1994 it becomes effective from the date of delivery to depositary from three Parties of the notifications confirming accomplishment by the State Parties of the Agreement of interstate procedures.

As of January 20, 1996 the notification (instruments of ratification) are provided: The Russian Federation - on August 2, 1995, the Republic of Tajikistan - on August 8, 1995, Ukraine - on October 6, 1995, the Republic of Moldova - on October 7, 1995, the Republic of Uzbekistan - on October 12, 1995, the Republic of Armenia - on October 27, 1995, the Republic of Belarus - on December 28, 1995, the Kyrgyz Republic - on December 28, 1995.

Therefore, the specified Agreement became effective since October 6, 1995: for the Russian Federation, the Republic of Tajikistan and Ukraine; for each of other participants - from the date of delivery of the notification (the ratification letter) confirming accomplishment of necessary interstate procedures.

This circumstance gives the grounds to claim that the specified states shall fulfill obligations assumed by them under the Agreement on mutual recognition of the rights to indemnification, caused to workers by the mutilation, occupational disease or other damage of health connected with execution of labor obligations by them of September 9, 1994.

It should be noted that first priority of transfer and payment of money for indemnification is dictated by social policy of each of the State Parties of the Agreement which proclaimed in the constitutions care of the person as the supreme value of society.

In the field of social protection this principle found fixing in the guaranteed social security of citizens in case of disease, disability, loss of the supporter, etc. The appropriate rights of citizens are provided through system of social insurance (benefit, disability pension, other forms of social protection).

Understanding importance of social protection of persons who sustained the labor injuries, occupational disease or other damage of health connected with execution by them of labor obligations, the government of the State Parties of the Agreement regulating the specified questions signed also on September 9, 1994 the Agreement on procedure for money transfer to citizens on socially important non-commercial payments in which provided creation of the special mechanism providing first priority and timeliness of payments on indemnification.

First of all the Parties of this Agreement, considering need of overcoming the developed difficulties for the organization of calculations for uncommercial transactions, established procedure for free transfer and payment of money through banks and (or) organizations of mail service (Article 1).

For realization of these purposes of the Party undertook the obligation to provide complete and timely converting of the national currencies according to the procedure, established by bilateral agreements (Article 2).

Besides, the governments of the State Parties of the Agreement on procedure for money transfer to citizens on socially important non-commercial payments authorized the Ministries of Communications to sign the free standing agreement about the mechanism and conditions of money transfer to citizens on socially important non-commercial payments with calculations through authorized banks (Article 3).

Owing to article 6 of the Agreement on mutual recognition of the rights to indemnification caused to workers by the mutilation, occupational disease or other damage of health connected with execution of labor obligations by them free money transfer on indemnification in priority procedure it can be provided only in the conditions of single continuous process of movement of these payments from the company - the causer of harm in the territory of one State Party of the Agreement to the injured worker staying in the territory of other State Party through system of organizations of mail service and (or) banks of these states.

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