Responsibility of the head of the organization

The head shall take a decision on all important areas of the activity of the organization: on financial and business and administrative questions; on the questions, related to employment and work of the staff and etc. That is why, for the head, and for the chief accountant, the question of his personal responsibility for the adopted decisions is not less important.

Let us consider below what are the risks for the head.

Disciplinary responsibility of the head

The head of the organization can be brought to disciplinary responsibility  for violation of the labor law and other acts, containing the norms of the labor law, terms and conditions of the collective contract, agreement. For example, a disciplinary action can be applied to the head for refusal to inform the applicant of the reason, for which he is not employed, or for oral information of the reasons for rejection.

The ground for bringing of the head to responsibility shall be the application of the representative body of employees. This application shall be subject to consideration by the employer. In this case as per the provisions of the charter of the organization the authorized body shall act as a representative of the employer.

In case, if the fact of violation is confirmed, the employer shall apply a disciplinary action to the head up to dismissal. The labor law also refers admonition and reprimand to disciplinary actions. 

Administrative/criminal responsibility for violation of the norms of the Labor Code of the Russian Federation

In continuation of the above let us note that for violation of the requirements of the labor law the head can be brought both to administration and to criminal responsibility.

For example, the head shall be brought to responsibility in the form of an administrative fine at the rate of three thousand to five thousand rubles for non-fulfillment of obligations, provided for by the collective contract, agreement.

For violation of the deadlines for payment of the salary and other amounts due to the employee the head can also be subject to the administrative fine at the rate of one thousand to five thousand rubles.

The head shall be brought to criminal responsibility for non-payment of the salary and other fees. Responsibility comes in the form of the fine, or deprivation of rights to hold certain positions or to be engaged into certain activity, or compulsory labor, or imprisonment.

Material responsibility of the head

Material responsibility of the head of the organization is also provided for by the Labor Code of the Russian Federation.

It follows from the provisions of the labor law that the head of the organization shall bear full material responsibility for direct actual damage, inflicted to the organization.

In cases, provided for by the federal laws, the head of the organization shall reimburse the organization for the losses, inflicted by his guilty actions.

Calculation of the losses shall be made in accordance with the norms provided for by the civil law.

Full material responsibility of the head for the damage, inflicted to the organization, occurs by virtue of the law. That is why, the employer is entitled to claim reimbursement of damage to the full extent irrespective of the fact, whether there is a condition on full material responsibility in the employment contract with the head.

Administrative/criminal responsibility for violation of the norms of accounting and tax law

The head of the organization can be brought to administrative and even criminal responsibility for violation of the requirements of accounting and tax law.

According to the common rule in case of emergence of a conflict situation between the head and accountant the head  shall bear responsibility for disputable actions. The head is not obliged to taken into consideration the opinion of the chief accountant. If the head gave an order to the chief accountant on execution of some unlawful operation, the chief accountant cannot be brought to responsibility for fulfillment of this order. Responsibility for reliability of data of accounting and statements in this case shall also be borne by the head.

There are no clear provisions on responsibility for formation of the accounting policy, keeping accounts, timely submission of full and reliable accounting statements in the law. 

That is why, if the local acts determine that the listed duties are imposed on the head, he can be brought:

- to administrative responsibility (for violation of the deadlines for submission of the tax declaration, non-provision of information, required for execution of the tax control, gross violation of the rules of accounting and submission of the accounting statements);

- to criminal responsibility (for evasion of payment of taxes and (or) dues on the organization, non-fulfillment of the duties of the tax agent).

This is by far not a complete list of measures of administrative/criminal responsibility, applicable in respect of the head of the organization. The law of Russia also provides for other types responsibility in respect of the head depending on the elements of the offence/crime.

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Liability of the head can be insured.

Insurance of liability of the head is voluntary. It shall be made in order to protect him and reimburse expenses incurred by him on the claims, presented to him in connection with the adopted incorrect decision.

Within this type of insurance not only damage shall be reimbursed, which shall be compensated by the head to the injured party, but also expenses for consulting services of lawyers and judicial representation.


 ©The material is prepared by Gavrilova S.V., expert lawyer of «RosCo»

November 13, 2013

Date of foundation
company «ROSCO»
Membership in professional organizations:
SRO NP «Audit Chamber of Russia»
(Certificate No 1809 dated 28.12.2009)
Chamber of Tax
(Certificate No 78)
NP «Partnership of RSE»
(Russian Society of Evaluators)
Membership in public association:
Moscow Chamber
of Commerce and Industry
(Certificate No 123-973 dated 21.12.2009)
Partnership of Turkish Entrepreneurs (RTIB)
(as per the results of 2009 -
is included in the register of reliable enterprises of Moscow
Certificates of conformity:
Certificate of conformity to the requirements of GOST R ISO 9001-2008 (ISO 9001:2008)
is insured