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Explanations on issuing voluntary medical insurance policies to foreign citizens in Russia 15.12.2014

On December 13, 2014 the Federal law as of 01.12.2014 № 409-FZ "On Amendments to the Labor Code of the Russian Federation and Article 13 of the Federal Law "On Legal Status of Foreign Citizens in the Russian Federation" came into force. These amendments are connected with the peculiarities of work regulation of foreign citizens or stateless persons.

Confidence Group is pleased to offer the overview of explanations on issuing voluntary medical insurance policies to foreign citizens in the Russian Federation.

According to the Clause 10 of Article 13 of the Federal Lawas of 25.07.2002 N 115-FZ "On the Legal Status of Foreign Citizens in the Russian Federation", which came into force on December 13, 2014 all working foreign citizens are obliged to have a voluntary health insurance policy or the right to receive medical aid on the basis of the contract of employer with a medical organization.

In addition, this law introduces some amendments to the Labor Code of Russia regarding the regulation of foreign labor. In particular:

  • Such terms and conditions as details of voluntary health insurance policy or the contract for provision of a foreign employee with paid medical services concluded by an employer with a medical organization must be specified in labor contract (except cases established by federal laws or international treaties of the Russian Federation);
  • In case of concluding a labor contract, a foreign citizen must present to an employer a voluntary medical insurance policy valid on the territory of Russia, except such cases when an employer provides a foreign citizen with the paid medical services provided by the medical organizations or cases established by federal laws or international treaties of the Russian Federation);
  • The basis for the termination of the labor contract or removal of a foreign citizen from work is the expiry of voluntary health insurance policy or a contract on paid medical aid. Moreover, the labor contract must be terminated after 1 month from the date of occurrence of the relevant event.

Thus, starting from December 13, 2014 in case of concluding new labor contracts with foreign citizens temporarily staying in Russia, employers must include in labor contracts such terms and conditions as details of voluntary health insurance policy or the contract paid medical services with a medical organization. For that:

  • a foreign citizen must provide an employer with a voluntary health insurance policy;
  • an employer must conclude (has already concluded) contract for paid medical services with a medical organization.

The main question of many employers in connection with the entry into force of the new laws is whether it is necessary for them to do anything with previously concluded valid labor contracts with foreign citizens?

Taking into account the following factors:

  • absence of administrative responsibility for the failure to meet the new requirements on voluntary health insurance policies;
  • the basis for the termination of the labor contract or removal of a foreign citizen from work can be only the expiry of voluntary health insurance policy or a contract on paid medical aid,

we came to the conclusion that before the approval of the administrative liability for the violation of the new law, employees hired before December 13, 2014 have no urgent need on getting voluntary health insurance policies and employers have also no urgent need on concluding contracts with medical organizations on of paid medical services.

However, Confidence Group strongly recommends to follow all the requirements introduced by the new law.

For additional information please contact consultants of Confidence Group. 

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