Approval of Companies CEO’s and Enhancing of Executive Committees Heads Roles

News, 25 February 2025
AI generated

On February 21, 2025, the Presedential Edict No. 74 “On Enhancing the Role of Chairpersons of Basic-Level Executive Committees in Regional Development” has been published.

This Edict, effective from March 1, 2025, grants district and city executive committee chairpersons additional powers, including the authority to approve appointments of heads of companies of all forms of ownership.

Which positions require approval?

  • Heads of legal entities of all ownership forms, branches, and other separate subdivisions of organizations, as listed by the executive committee in the respective territory.

  • Exception: Heads of private unitary enterprises who are sole owners of the organization.

The approval procedure also applies to certain other categories of employees: deputy heads of communal property organizations and chief specialists of agricultural organizations.

In which cases is approval necessary?

  • Appointment to a position.

  • Extension of employment contracts.

  • Termination of employment contracts.

What is the approval procedure?

Approval must be granted no later than 10 working days from the date the relevant documents are submitted to the executive committee. Details of the procedure have not yet been defined; a bylaws is expected to be adopted.

Does the approval procedure apply to all companies?

The approval requirement applies to companies in all economic sectors.

However, the procedure is applicable only if the company is included in the list determined by the executive committee in the respective territory.

For example, regarding companies located in Minsk, such a list will be approved by the Minsk City Executive Committee. It is not clear yet on what principle these lists will be formed.

As of the date of publication of the Edict, the lists have not been approved.

Libility

The chairmen of executive committees are empowered to issue orders to heads of companies to impose disciplinary liability on employees of companies, to eliminate violations of the procedure for appointment to a position, etc.

Failure of heads of companies and other employees to comply with decisions of executive committees is a gross violation of labor duties and also entails administrative liability.

Other changes

Upon approval with the executive committees, decisions are made in the territories of cities of regional subordination, districts:

  • on termination of activities of individual facilities, including catering, consumer services, trade, pharmacies, cultural and entertainment facilities, bank branches and ATMs;
  • on suspension of activities of company (its branch or other division) or the transfer of more than 25 percent of the companies employees to part-time work, the provision of more than 25 percent of employees with or without pay at the initiative of the employer, as well as in the event that the specified number of employees are idle.

If you have any questions or need advice, please contact us.