IMPACT – HIGH

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.

  • Implementation timeframe: Jan. 1, 2015.
  • Visas/permits affected: All work permit categories.
  • Who is affected: Companies hiring or terminating foreign nationals in all work permit categories.
  • Business impact: Companies face steep fines for violations of the new notification requirements.
  • Next steps: Employers should have a system in place to report to FMS immediately upon signing or terminating a labor contract with foreign employees.

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.

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.