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What is the change? The Russian government has followed through on a ban of visa-free travel with Turkey and a suspension of new work permits for Turkish nationals as of Jan. 1, and announced additional new economic restrictions.
What does the change mean? The restrictions do not require Turkish nationals currently working in Russia to leave the country; however, companies should be aware that Turkish employees and assignees may have difficulties returning to Russia and may be refused entry. Renewal of work permits for Turkish nationals will also be difficult. With suspension of the visa waiver, Turkish nationals who do not hold a residence permit or temporary residence permit are now required to obtain a visa at a Russian consulate.
Background: Relations between the two countries have been strained since late November when Turkey shot down a Russian fighter jet which it claimed had violated its airspace. Some of the restrictions were announced in December. The following restrictions took effect Jan. 1, including:
BAL Analysis: Companies should consider contingency planning in the event that Turkish employees are not allowed to re-enter Russia or their work permits are not renewed.
This alert has been provided by the BAL Global Practice group and our network provider located in the Russian Federation. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – MEDIUM
What are the changes? The Christmas and New Year’s holidays will close many government and private offices around the world for at least two days, with many countries observing longer holiday periods at the end of the year and the beginning of 2016.
What does the change mean? Employers should file as early as possible for visas, work permits and other services to avoid delays during the holiday closures.
Background: Most countries will observe Dec. 25, 2015, and Jan. 1, 2016, and many countries will also reduce business hours in the days surrounding Christmas and New Year’s Day.
Some countries may close for extended periods in the coming months. Russia observes a New Year holiday and Orthodox Christmas Jan. 1-10, with offices reopening Jan. 11. China does not mark Dec. 25 as an official public holiday, but will close Jan. 1-3 for the New Year’s holiday and Feb. 7-13 for the Chinese lunar New Year. South Africa will close offices for varying periods between Dec. 22 and Jan. 11. Mexico’s immigration services will be closed for three weeks Dec. 18 – Jan. 6.
BAL Analysis: Companies should anticipate slower processing for visas, residence permits and work permits from now until offices reopen in early January and they should plan to file immigration-related applications as soon as possible.
This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.
IMPACT – HIGH
What is the change? Russian authorities have said they will suspend the country’s visa-free travel agreement with Turkey and stop issuing work permits to Turkish nationals beginning Jan. 1.
What does the change mean? The announcement comes after Turkey shot down a Russian fighter jet Nov. 24 in circumstances that remain disputed. The imposition of a visa regime and the cessation of work permits would have dramatic impacts on Turkish nationals traveling to Russia or seeking work there.
Background: Russia and Turkey have had close business ties and been important trade partners for years, but relations are near a boiling point after the Nov. 24 incident. Russia has said it will suspend a visa-free travel agreement between the two countries that currently provides for stays of up to 30 consecutive days without a visa. Russian authorities also say they intend to stop issuing work permits to Turkish nationals beginning Jan. 1. The Turkish government has not yet issued any formal statements regarding travel or immigration restrictions on Russian nationals.
BAL Analysis: While Russia has announced that it will impose a visa regime and stop issuing work permits to Turkish nationals, the Federal Migration Service has provided no clear indication as to how travel and immigration requests will be handled in practice after Jan. 1.
Turkish nationals traveling to Russia between now and Jan. 1 are advised to keep documents confirming the purpose of their visit, such as letters from the hosting party or a hotel confirmation. Turkish travelers are likewise advised to keep their passport, migration card and (if applicable) work and resident permits with them at all times.
At this point, it is still possible for Turkish nationals to apply for Russian work permits, but employers should prepare for the possibility that new applications may not be approved. Turkish nationals currently in Russia may not want to leave the country even if they have valid immigration documents, as there is no clear instruction from Russian authorities about how Turkish nationals would be treated upon trying to re-enter the country.
As it is an ongoing and developing situation, travelers are advised to contact their BAL representative for the latest update prior to travel.
This alert has been provided by the BAL Global Practice group and our network provider located in Russia. For additional information, please contact your BAL attorney.
What is the change? Employers are required to file reports by Oct. 30 on the salaries paid to highly qualified specialists during the third quarter of 2015 (July through September).
What does the change mean? The reports are required every quarter, and employers must meet the minimum salary payment level by the end of each quarter.
Background: Employers must meet quarterly salary thresholds and report them each quarter. Employers should make sure they have paid all required salaries by the end of each quarter. Companies that do not comply with the rules may be fined 400,000 to 1 million rubles. Individual company officers may also be fined 35,000 to 70,000 rubles.
BAL Analysis: Companies are reminded to submit the salary notifications no later than Oct. 30 and observe the mandatory salary minimums.
What is the change? Under a new rule, Russia has set a deadline of seven working days for employers to file for corrections to work permits when foreign employees’ names or passport information have changed.
What does the change mean? The new rule adds urgency when employers must file a correction to a work permit; late filing will constitute an administrative violation subject to fines.
Background: The rule applies to foreign workers whose name has changed or whose passport information that appears on their work permit (passport number, name) has changed. Previously, the law did not impose a deadline to file for work permit corrections. Under the new rule, those who fail to file within seven working days will have an administrative violation on their record and will be subject to a fine of 4,000 to 5,000 rubles (about US$70 to $90).
The rule officially took effect June 30. Employers who have not yet filed for corrections should do so without delay.
BAL Analysis: Foreign employees should review their work permits and patents and file for corrections if they are required. BAL can assist in the process.
What is the change? Russian employers have until July 31 to report the salaries of highly qualified specialists during the second quarter (April 1 to June 30).
What does the change mean? Employers who fail to report salaries face the possibility of steep fines.
Background: The quarterly salary reporting is not new, but under a law passed earlier this year employers must now meet salary minimums on a monthly, rather than yearly, basis. A new form has also been introduced that must be used when reporting salaries.
BAL Analysis: In preparing salary notifications, employers should make sure they are observing the new monthly minimum salary requirements.
What is the change? The Russian Federal Migration Service is introducing electronic letters of invitation (e-LOIs) into the work visa process.
What does the change mean? The FMS will transmit a letter of invitation in digital format directly to the appropriate consulate, eventually making the process more efficient for companies applying for work visas for foreign highly qualified specialists.
Background: Foreign highly qualified specialists who submit an initial visa application must obtain a letter of invitation from Russian migration authorities approving the application before they can obtain the visa from a Russian consulate. FMS is offering electronic letters of invitation for business and work.
BAL Analysis: Applicants may now opt for electronic transmission of letters of invitation in Moscow and other jurisdictions that have implemented the new procedure, but applicants should be aware that the system is still in the testing phase and there is a risk of complications if there is an error in the letter.
What is the change? Russia has begun accepting 2016 quota applications from companies aiming to secure foreign labor.
What does the change mean? If they have not already done so, employers should begin preparing applications to fill foreign-labor allocations for 2016.
Background: The application process for standard work permits has changed considerably. The CIS standard work permit process has been abolished; CIS nationals now apply for work patents, which do not require a quota. Quotas are also not required for HQS workers, regardless of nationality. The overall number of workers who will be admitted through the quota system for 2016 will likely be announced later this year.
Additional new rules require businesses to guarantee medical insurance and housing for foreign workers who are given jobs through the quota system. Russian officials have said a company’s guarantee of medical insurance and housing can be made in a single “guarantee letter” submitted with the application.
After companies have submitted applications electronically, they are required to file paper applications. Paper applications were accepted during a two-week period earlier this month and can be filed May 17-22 or June 15-30. Correction applications for the 2015 quota can be submitted July 13-24 and Aug. 10-31.
BAL Analysis: Russian companies aiming to secure foreign labor for 2016 should take note of the application dates and new rules requiring them to guarantee health insurance and housing accommodations.
What is the change? Employers must report the first quarter salaries of highly qualified specialists no later than April 30.
What does the change mean? While this is a regular quarterly requirement, employers should remember that under a new law, they must meet salary thresholds that are calculated monthly, not yearly.
Background: April 30 is the deadline for companies to report salaries paid to foreign highly qualified specialists during the first quarter, Jan. 1 through March 31.
Employers should also note that under new rules, HQS salaries must meet thresholds each month, rather than on a yearly basis. For example, employers must show that they are paying a 2-million-ruble annual minimum salary proportionately by paying the employee 167,000 rubles per month.
Companies that violate salary reporting requirements face administrative fines that range from 400,000 to 1 million rubles. Individual company officers may also be fined 35,000 to 70,000 rubles.
BAL Analysis: Companies are encouraged to work with their BAL attorney to prepare the salary notifications and observe the new monthly minimums.
What is the change? Russia is requiring foreign nationals applying for highly qualified specialist work permits to have at least 3 ½ years remaining on their passports.
What does the change mean? Foreign nationals who have less than 3 ½ years on their passports and who are in need of an HQS work permit should renew their passports as soon as possible.
Background: Russia’s recent move to enforce a 3 ½-year passport rule may be an effort to limit the number of applications it processes. HQS work permits are valid for three years; by requiring 3 ½ years of passport validity, Russian authorities can cut down on the number of foreign nationals who need to renew HQS work permits because of an expired passport.
BAL Analysis: Foreign nationals applying for HQS work permits should check their passports and renew them if necessary.