Labor Code Is to Determine the Particularities of Foreign National Employment

Federal Law No. 409-FZ On the Legal Status of Foreign Nationals in the Russian Federation dated 01.12.2014, which introduces new rules regulating the labor of foreign citizens in Russia, entered into force on December 13, 2014.

Prior to these new rules, the Russian Labor Code did not use to regulate the particularities of foreign national employment in Russia, and this often gave rise to practical issues associated with the inability to factor in all particularities of the status of foreign nationals upon their employment.

You will find below the most important changes introduced to the regulation of foreign national labor.

1. The law provides that employment contracts with foreign nationals must be entered into for an indefinite period (except for the general exceptions where it is possible to enter into a fixed-term employment contract under Article 59 of the Russian Labor Code). Employment contracts with foreign nationals used to be entered into for the same term as that of their work permit, but this amendment renders this practice unlawful.
2. Foreign employees must have a voluntary medical insurance cover before signing their employment contracts. If foreign employees have no medical cover, their employer may decide whether they provide them a medical insurance or ensure that employees receive medical care under a contract entered into between employers and a medical organization.
3. Employers must include additional provisions in employment contracts with foreign employees. Such employment contracts must, among others, specify the employee’s work permit number.
4. Employers are entitled to temporarily transfer a foreign employee to another position within the same company.Earlier immigration law prohibited such transfer as foreign employees were not allowed to hold a position other than that specified in their work permit.
5. The list of grounds for terminating employment with foreign nationals has been extended. For example, employment contracts are to be terminated upon expiration of work permits. The dismissal of foreign employees after expiration of their work permit was not a clear-cut issue before this new amendment.

Recommendations

In view of the newly-introduced amendments, we recommend:

• Including in the employment contracts with foreign nationals the mandatory information provided by the amendments to the Labor Code. Employers are also required to amend the employment contracts already entered into with foreign nationals. We recommend amending such employment contracts as prescribed by the Labor Code.
• If foreign employees have no medical insurance cover, we recommend making arrangements to get one or entering into a contract with a medical organization providing medical care for foreign nationals.

At your request, Awara would be pleased to assist in reviewing and amending employment contracts with foreign nationals where necessary, as well as answering any questions you may have.

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