A party to UN Global Compact, LUKOIL is committed to the core principles of labor relations, established by conventions of UN and International Labor Organization (ILO).
The Company's commitment to avoid discrimination of any form, established by the Human Capital Management Policy, guarantees equal conditions and opportunities for all employees and applicants.
All job applicants and all employees are given equal opportunities for career growth and personal development. Women representation in various job grades is monitored on a regular basis. Understanding the importance of the balance between work and family, LUKOIL provides parental leaves both to men and to women.
The Company fully complies with labor legislations and working hours requirements of the countries where it operates. Most of the countries have specific requirements on weekly working hours and conditions.
Full time employment on a permanent contract is the most typical form of employment across LUKOIL Group.
Though a five days working week with two days off and scheduled work in shifts are the most common labor practices across LUKOIL's companies in Russia and abroad, individual schedules can be applied to certain categories of employees (e.g.: part-time employees or workers with shorter work weeks).
As for Russia, working schedule is regulated by Corporate Labor Policy that complies with labor legislation, Industry Agreement on Oil and Gas Companies and Construction of Oil and Gas Facilities in the Russian Federation, the Agreement between the Employer and Trade Union of LUKOIL Oil Company, as well as collective agreements.
As LUKOIL guarantees shorter work hours to all categories of employees who are entitled to the privilege according to the laws of the country where the Company operates, and an employee and the Company may agree on part-time work when the employment contract is signed or at any time later.
Flexible working hours may be introduced upon the initiative of the employer or the employee if necessary for family reasons, for instance: in this case, start of working time, its end and duration of working days or shifts are established upon agreement between the employee and the employer. This approach, guaranteeing a balance between the interests of the employee and the Company, provides for an increase in performance efficiency.
Shift work is introduced in instances where the duration of the production process exceeds the permitted number of daily working hours, as well as to ensure the most efficient use of equipment and to increase output or the volume of services. In shift work, each group of employees must perform their work during established working hours in accordance with the shift schedule. The employer drafts the shift schedule with due account of the opinion of the representative body of employees, and notifies employees against a signed receipt no later than one month before the schedule comes into force.
Rotation work is a particular type of work, performed at a significant distance from the place of permanent residence of employees (i.e., where daily return to the permanent place of residence of the employee cannot be guaranteed). Rotation work is established at LUKOIL Group subsidiaries at remote fields and continuous operation facilities. A rotation cannot last longer than one month.
The employer keeps record of working and leisure hours of each employee by months and for the entire report period. Working and leisure hours within the report period are regulated by the rotation work schedule, which is approved by the employer with due regard of the opinion of the elected body of the primary trade union organization, and is communicated to employees against a signed acknowledgment receipt no later than two months before it comes into force. When assembling rotation groups, the employer prioritizes local individuals with necessary qualification.
All rotation employees work and live in comfortable when on site: they live in accommodation camps or in furnished hostels paid for by the employer.
Fixed-term employment contracts are used by LUKOIL Group's companies in Russia in exceptional cases, in circumstances that are listed in the Labor Code of the Russian Federation, including hiring an employee as a substitute for a temporarily absent employee, or employing a retirement age worker, or company executives and their deputies. In overseas companies of the Group, fixed term employment contracts are concluded with seconded workers and workers, employed in line with local legal regulations.
Willing to attract, motivate and keep hold of the employees whose qualification and performance guarantee successful accomplishment of the Company's mission and achievement of its business objectives, the Company maintains an efficient remuneration system, based on equality, transparency, fairness and competitiveness of wages and their regular indexation in line with consumer price index and increase to recognize better performance.
The continuous monitoring of the labor market allows the Company to ensure timely response to changes in wages in the regions where it operates in order to ensure a competitive level of wages. The Company regularly analyzes the inflation rate and changes in the wage purchase capacity, based on the results of which prompt relevant management decisions are made.
The base salary and the variable component form the basis for the material component.
In Russia, the minimum subsistence level, the minimum wage, and how often it is paid, is regulated by law. The Agreement between the Employer and Trade Union of PJSC LUKOIL sets the minimum monthly wage for a first-class worker at no less than the minimum wage in the Russian Federation. Depending on its size, in accordance with the provisions on the remuneration of labor, employees receive additional pay and allowances, compensation, bonuses and one-time payments. The deadlines for paying salaries are specified in the Internal Labor Rules of the Group's entities and are regulated by the Labor Code of the Russian Federation.
In Uzbekistan, Bulgaria and Romania, the minimum monthly wage of an employee is set not lower than the legally defined minimum wage in the country, while in Italy it is not lower than that set out in national collective bargaining agreements depending on the profile of business activities. In Romania and Bulgaria, however, the minimum wage is determined after consultation with trade unions. Wage payment deadlines are established by collective bargaining agreements or other LRAs on the remuneration of the Group's entities, developed in accordance with local laws.
The amount of the base salary depends on the employee's position, complexity of challenges and responsibilities, and shall be determined for each employee with regard to educational background and work experience.
The variable component of the bonus amount comprises short- and long-term bonus payments. Aimed at accomplishment of corporate objectives, the incentive system is connected with the system of key performance indicators and additionally motivates employees for better performance. The Company seeks to ensure optimum balance between the variable component and financial and operational targets, the balance between efficiency indicators, appraisal of performance of employees and the Company in general, as well as financial and operational indicators.
Short-term bonuses are paid when monthly, quarterly and annual performance targets are reached, taking into account each employee's performance.
The Company has approved a long-term incentive program designed to provide incentives to increase the revenue, improve capitalization and investment appeal of the Company, and to attract and keep hold of qualified people.
The Company has also introduced various forms of non-financial rewards to recognize achievements of an employee. Non-financial rewards include state awards (titles, certificates of honor) and corporate awards (badges and prizes for winners of the Occupational Excellency Contests).
