Reebok accused of paying «grey» wages
Russia: Reebok accused of paying «grey» wages
A News item from the Business Respect newsletter No. 74, dated 21 May 2004 Reebok Russia is being sued by a former employee for having sacked him after he complained that it paid wages off the books.
Sergei Suchkov, a former store designer, had told his employment agency of the practice. Suchkov is suing for moral damages and seeking reinstatement. The practice of companies keeping employees out of the official sphere in order to save on social security contributions is widespread in Russia, according to the Moscow Times.
However, for a global brand such as Reebok, the revelation is an extreme embarrassment. According to Suchkov, after he had complained about the situation with salaries, he was set an impossible task to complete - the full design of a Reebok store in just four hours and without proper tools. When he failed to achieve it, he was fired for incompetence.
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