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Changes in the procedures of recruiting and using foreign employees 06.09.2013

On September 4, 2013 Moscow Labor Department has developed draft amendments to the legislation regulating labor migration in Russia. Relevant information has been sent to the Russian business community for its response.

Draft amendments are to introduce a series of changes to the federal law "On the Legal Status of Foreign Citizens in the Russian Federation" and the Order of the Government of Russia "On Determining by the executive authorities the need to hire foreign employees and the formation of quotas for foreign labor hire in the Russian Federation".

Here are the main proposals:

  1. To amend the Law № 115- FZ with regulations establishing the necessity for a foreign employee to have a voluntary health insurance.
  2. To amend articles 13, 13.1 of the Law № 115-FZ: to eliminate the possibility for employers to recruit foreign nationals arriving in Russia from visa-free countries without a permission to hire foreign employees, making the procedure of the hiring of this category similar to procedure of hiring foreign nationals from visa countries. It is proposed to transfer the authorities to issue these permits (for visa-free segment) to state employment service (thus no notifications on conclusion and termination of labor contracts will be needed).
  3. To amend paragraph 7.5 article 13.1 of the Law № 115-FZ:
    • a. to eliminate the possibility for a foreign employee to conclude a new labor or civil contract with another employer after an early termination of a labor contract or a civil contract with his/her employer;
    • b. to assign to the employer the right to hire another foreign citizen within the established quota for the remained period of the foreign labor hire permit in case of an early termination of the labor or civil contract.
  4. To amend the article 13.3 of the Law № 115 - FZ (hiring foreign employees by individuals on the basis of a Patent):
    • a. to make it obligatory for the Russian citizens recruiting foreign employees on the basis of a Patent to get a positive conclusion of the respective local state employment service for hiring a foreign employee (hereinafter - the conclusion);
    • b. to add the conclusion and medical certificate confirming that a foreign employee has no socially dangerous diseases to the list of documents necessary for the submission by a foreign employee to the regional office of the federal body of executive authority in migration sphere to obtain a patent (paragraph 2 article 13.3 Law № 115 - FZ)
  5. To amend article 18 of resolution № 783 with a statement granting regions of Russia the right to  establish additional grounds for complete or partial rejection of employers’ applications for foreign labor hire (in Moscow it is proposed to consider the violation by employers of the law of Moscow from 22.12.2004 № 90 "On the employment quotas", the agreement on the minimum wage in Moscow, the absence of organization in the register of recipients of government services on the selection of suitable employees among such grounds).
  6. To make it obligatory for a foreign employee to confirm his/her level of education and qualification by standardized documents in order to obtain a work permit.
  7. To make it obligatory for all foreign employees to present documents confirming the basic level of Russian language proficiency.
  8. To make it obligatory for a foreign citizen upon entering Russia to deposit money in a special account designated to reimburse his/her deportation (at the end of the period of stay the money will be returned).
  9. To increase the period of time for placing information on job vacancies from one to two months (after this time, the employer has the right to hire a foreign employee) - during the first month  vacancies are intended only for the region of Russia, during the second month - for the entire territory of Russia.
  10. To make it obligatory for organizations to present original registration documents while applying for foreign labor hire permit (in order to avoid falsification of applications).
  11. To introduce the norm, according to which applications for foreign labor hire permit will be accepted only from organizations engaged in economic activity for at least three years.
  12. To set the allowable share of foreign employees in the organization.
  13. To increase the state fee paid by the organization for issuing a permit to hire a foreign employee, from 6 thousand up to 12 thousand rubles for each foreign employee.
  14. To ensure technical interoperability of electronic resources AIC "Migration quotas" and software package "Catharsis".

Confidence Group lawyers consider the adoption of most of the proposals of the Moscow Labor Department, as well as the respective amendments to the laws to be highly probable. Moreover we are expected to come into force in the nearest future.

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