Search
Contact
Login
Share this article
IMPACT – MEDIUM
What is the change? Under a new law that just passed the State Duma, foreign highly qualified specialists must be paid minimum salaries that conform to a monthly schedule, rather than a yearly cumulative total.
What does the change mean? Employers will be required to pay a minimum salary every month. While this does not change the overall annual minimum salaries for highly qualified specialists, it does require that the minimums be observed on a monthly basis.
Background: The law targets employers who avoided the minimum salary requirements, which were set as an annual minimum, by paying HQS workers minimum wage and terminating them before a full year of work.
Accordingly, employers who were required to pay certain HQS workers 2 million rubles per year must now pay them a minimum of 167,000 rubles (about US$2,755) per month. The minimum salary of 1 million rubles per year must now be paid monthly at the rate of 83,500 rubles, and the minimum salary of 700,000 rubles per year must now be paid monthly at the rate of 58,500 rubles.
The law also requires payment of the minimum monthly salary even if the foreign HQS employee had unpaid periods due to illness, unpaid leave, or other reasons.
The law, which amends the Legal Status of Foreign Citizens in the Russian Federation, was approved by the Federal Council March 4 and will take effect March 18.
BAL Analysis: Companies must now pay foreign highly qualified specialists according to the monthly minimums if they are not already doing so.
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.
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.
What is the change? Ukraine will suspend travel for all Russian citizens who hold only domestic identification known as internal passports as well as for Russian children under 14 who hold only birth certificates.
What does the change mean? All Russian nationals, including children, must hold international passports to enter Ukraine.
Background: A bilateral treaty allows travel between the two countries using domestic passports (for all Russian citizens) and birth certificates (for Russian children under 14). On Jan. 30, Ukraine’s prime minister, Arseniy Yatsenyuk, signed a resolution suspending that provision, announcing that the restriction would increase border security and reciprocate Russian President Vladimir Putin’s request for Ukrainian citizens to use only international passports when crossing the border.
Fighting between Ukrainian forces and pro-Russian rebels in eastern Ukraine has recently surged despite a September ceasefire in a conflict that began last April, following the ouster of Ukraine’s president. More than 5,300 people have been killed and more than one million displaced, according to new United Nations statistics.
Travelers holding diplomatic and official passports are not affected by the new restrictions.
BAL Analysis: While the official implementation date is March 1, Russian citizens should expect that border officials may enforce the travel restrictions at any time.
This alert has been provided by the BAL Global Practice group and our network provider located in Ukraine. For additional information, please contact your BAL attorney.
IMPACT – HIGH
What is the change? Employers must report the income of highly qualified foreign specialists on a quarterly basis.
What does the change mean? Reporting for the fourth quarter of 2014 is due no later than Jan. 31.
Background: The reports are required quarterly. The deadline is Jan. 31 for reporting the salaries of highly qualified specialist foreign employees for the period Oct. 1, 2014 to Dec. 31, 2014.
Companies that fail to comply face administrative fines ranging from 400,000 to 1 million rubles (about US $6,000 to $15,000). Company officials may also be fined 35,000 to 70,000 rubles (about US $530 to $1,060).
BAL Analysis: Employers are encouraged to track salaries regularly to make it easier to collect and report the data by the quarterly deadlines. Employers should work with their BAL attorney to prepare reports by the deadline.
What is the change? Amendments to the Russian Labor Code that change employers’ duties toward foreign employees took effect Dec. 12.
What does the change mean? Employers must sign labor agreements of an unlimited, not fixed, term with foreign employees and must provide medical insurance that includes treatment and prevention as well as urgent medical care.
Background: The amendments, passed Dec. 1 in Federal Law No. 409-FL, make it clear that the labor agreements between employers and foreign employees must be for an unlimited term rather than a fixed term. Among the exceptions are branch offices of a foreign company, general directors and chief accountants. The labor agreement must contain provisions specifying the type of work permit and medical insurance covering the employee for disease prevention and treatment and emergency medical care.
For their part, employers will have more flexibility with foreign employees in certain circumstances. If an employee is changing jobs within the company, the employer may transfer the employee for up to a month before amending the work permit. If an employee’s work permit expires, an employer may suspend, rather than terminate, the employee for up to one month.
BAL Analysis: The legislation provides guidance to employers of foreign nationals and more flexible options when a foreign employee changes jobs within the company or a work permit expires.
What is the change? Russia’s Federal Migration Service will change the notification rules for employers of foreign workers.
What does the change mean? Employers must report the hiring or termination of a foreign employee within three business days or face fines up to 1 million rubles.
Background: Beginning Jan. 1, new notification rules apply to companies employing foreign workers in all categories. Employers must notify the FMS within three business days of the date an employment contract is signed or terminated. Violations are punishable by fines up to 1 million rubles.
Also as of Jan. 1, employers no longer need to notify the Tax Authority of the hiring or dismissal of foreign workers holding standard work permits.
In addition, employers will no longer have to notify authorities when they grant unpaid leave to highly qualified specialist work permit holders.
BAL Analysis: In addition to the new notification requirements, employers should remember that as of Jan. 1, all standard work permit applicants must prove that they are proficient in the language, history and basic laws of Russia. Highly qualified specialist work permit applicants are exempt from the proficiency tests.
What is the change? Beginning Jan. 1, Russia will overhaul its work permit regime for companies employing nationals of the Commonwealth of Independent States.
What does the change mean? Standard work permits will be replaced by “work patents” governing CIS nationals’ stays and employment in Russia. Employers will not have to sponsor a CIS national’s initial work patent application and they will not be subject to quotas.
Background: Under the new system that takes effect Jan. 1, CIS nationals will no longer be required to apply for standard work permits. Instead, upon entering Russia they must declare that their purpose is to work. They will then have to observe strict deadlines for work patent applications (30 days) and finding a job (60 days). Violation of the deadlines will result in fines or cancellation of the work patent.
Work patents will be valid for a maximum of 12 months and may be extended only once. Work permits give CIS nationals the right to work in only one particular region of Russia, but they can work for any employer within the region, do not need an employer to sponsor the initial work patent and can change jobs without having to obtain a new work patent. CIS nationals must undergo medical testing, pass Russian language and history tests, provide fingerprints, purchase insurance from designated providers and appear in person to submit the application and pick up the work patent.
The new system also transfers significant powers over work patents to regional governors, who can decide that work patents must denote job positions, ban work patents for certain job categories or dismiss all work patent holders in certain job categories.
BAL Analysis: The work patent regime will have a significant impact for companies employing large numbers of CIS nationals and may eventually incentivize employers to replace those workers with Highly Qualified Specialist permits since some criteria for HQS work permits have been eased.
What is the change? Russia will soon begin requiring visa applicants at consular posts in five countries to undergo fingerprinting. Fingerprinting will also be implemented for visa applicants at Moscow’s Vnukovo International Airport.
What does the change mean? People applying for Russian visas in Denmark, Ireland, Myanmar, Namibia, the U.K., or at Vnukovo International Airport should allow extra time to account for fingerprinting.
Background: The fingerprinting requirement came about as a result of an order signed by President Vladimir Putin. Putin’s order is a first step in a government program, announced in February, to require fingerprinting at all consular posts.
BAL Analysis: Visa applicants at consular posts that will require fingerprinting or at the airport should expect possible delays and allow sufficient time for the extra process.
What are the changes? Russia’s Federal Migration Service has banned entry to 700,000 foreign nationals since a little over a year ago when it passed legislation making even minor violations offenses that can put a foreign national on the “banned” list. On top of that, more than 97,000 foreign nationals were subject to administrative deportation in the first six months of 2014 alone for violations of the administrative code. In addition, the Russian Duma is considering lengthening one type of entry ban from five years to 10 years.
What does the change mean? Foreign nationals should be extremely careful about any administrative violations, including traffic violations, parking tickets or untimely address registration. Even paying administrative fines does not erase a foreigner’s name from the “banned” list.
Background: In July 2013, Russia tightened rules on banning the entry of foreigners for violations of the law. Under Federal Law FL-114, Art. 27, Sect. 11, a foreigner who commits two or more administrative violations in one year will be banned entry for five years. “Administrative violations” include violations of rules governing public order and public security (mostly traffic offenses), stays for foreign citizens and permissible work activities in Russia. The Russian State Duma is weighing a bill that would lengthen this ban’s duration to 10 years.
A foreigner who commits two or more administrative violations in Russia within a three-year period may be banned entry to Russia for three years. A foreigner who commits a deliberate crime will also be banned entry for an unspecified term. Foreigners who commit a crime outside of Russia may also be banned, but only if the crime is deliberate and recognized by Russian law as a crime. Some administrative violations are also deportable offenses.
According to the recent statistics, most of the foreigners who were banned entry violated traffic rules and the vast majority of those who were deported violated their terms of stay or worked illegally.
BAL Analysis: Foreign citizens are on notice that Russia is taking any violation of administrative or criminal laws very seriously.
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.
What is the change? Before the end of the month, companies must report the salaries paid to highly qualified specialists during the third quarter of 2014.
What does the change mean? Companies and company officials that fail to comply with the reporting requirements face hefty fines.
Background: The Federal Migration Service requires that companies report salaries paid to HQS workers for the third quarter (July 1 to Sept. 30) no later than Oct. 30.
Employers who do not comply with these requirements face administrative fines ranging from 400,000 rubles to 1 million rubles (approximately US $10,000 to $25,000) against the company and from 35,000 rubles to 70,000 rubles (approximately US $870 to $1,750) against company officials.
BAL Analysis: Any violations of the salary reporting requirement are punishable by administrative fines under Russian law. Employers should work with their BAL attorney to complete their reporting requirements.
What is the change? Russia has removed quota restrictions on Ukrainian citizens who have fled because of the conflict there.
What does the change mean? Companies may employ Ukrainian nationals in foreign quota positions without approval, but they must still obtain work permits.
Background: The Russian government issued a decree on Sept. 2 amending its earlier quota restrictions on Ukrainian workers to allow Russian companies to employ Ukrainian citizens who left urgently. While “urgency” has not been defined, a Ukrainian national may need to prove he or she left because of the armed conflict. It is also unclear whether the removal of quotas applies only to Ukrainians from the conflict areas of Donetskaya and Luganskaya.
The Federal Migration Service (FMS) has indicated that these will be processed similar to other non-Highly Qualified Specialist applications. However, these applications will be screened by a senior FMS official before processing.
BAL Analysis: Employers should note the filing deadline for these cases. Authorities have not defined “urgency” or stated the documents needed to meet that standard. As further regulations are not expected, the rules will become clearer only as these special cases are adjudicated.