Russia now accepting quota applications, applying stricter rules

IMPACT – MEDIUM

What is the change? Russia is accepting quota applications for securing foreign labor for 2015. Recently, the government updated its application requirements with several stricter rules.

What does the change mean? Employers may file applications to fill foreign-labor allocations for 2015 and for 2014 “corrections.”

• Implementation timeframe: Applications are accepted beginning April 7. The deadlines are July 1 for 2015 quota applications and Sept. 1 for the 2014 “correction” applications.
• Visas/permits affected: Work permits and work visas.
• Who is affected: Companies seeking to hire foreign workers for 2015 and companies that require 2014 quota “corrections.”
• Impact on processing times: The procedure may take several months.
• Business impact: Under new rules, businesses must meet stricter application and documentation requirements.

Background: The Moscow Center for Labor Exchange has set new requirements for employers applying for foreign workers. Companies must guarantee medical insurance and accommodations for foreign employees. In addition, quota allocations may be rejected based on various grounds. An employer will be denied a quota position if it:

• Failed to register;
• Submitted false documents;
• Is in bankruptcy proceedings;
• Could hire local workers to fill the quota positions;
• Does not pay the foreign worker a salary that meets the living standard of the region;
• Fails to provide medical insurance and accommodations to foreign workers;
• Is charged with labor, immigration, tax or social security violations; or it
• Failed to follow quotas for a certain industry.

Russia has set the numerical limit of foreign workers at 1.6 million in 2014, down from 1.7 million in 2013. The quota for next year has not been announced.

BAL Analysis: Employers should plan to submit quota applications as soon as possible, and plan for heightened scrutiny under more stringent application rules.

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.

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