Russia – Penalties for Non-Compliance Defined

What has changed

Effective June 30, 2015, Russian Federal Law N199-FZ has defined non-compliance penalties for foreign nationals who are found to be carrying out productive work and activities that do not match the terms defined by their current work permit.

Although having foreign national employees work outside the authority of their work permit has always been a compliance issue, there were not defined penalties in place until now.

Who is affected?
What to expect

  • Foreign national employees and their employers

Employers and employees may both face fines if the activities being performed by the employee do not match those defined by their individual work permit.

Penalties for non-compliance outlined by Russia Federal Law N 199-FZ are as follows:

Employee

  • RUB 5,000 – RUB 7,000 (USD 88 – USD 123) if in Moscow, Saint Petersburg, Moscow region or Saint Petersburg region;
  • RUB 2,000 – RUB 5,000 (USD 35 – USD 88) for everywhere else in Russia.
  • The employee may also be subject to deportation from the country.

Senior Level Management

  • RUB 35,000 – RUB 70,000 (USD 617 – USD 1.234) if in Moscow, Saint Petersburg, Moscow region or Saint Petersburg region;
  • RUB 25,000 – RUB 50,000 (USD 441 – 881) for everywhere else in Russia.

Company (legal Entity)

  • RUB 400,000 – RUB 1,000,000 (USD 7,053 – USD 17,632) if in Moscow, Saint Petersburg, Moscow region or Saint Petersburg region;
  • RUB 250,000 – RUB 800,000 (USD 4,407 – 14,102) for everywhere else in Russia.

Additionally, if there are any changes in terms of the validity of the work permit or the foreign national’s personal details, the Federal Migration Services must be informed within seven (7) working days so that changes can be made to the permit. If changes occur while the foreign national is outside of Russia, the seven (7) working days starts from the date of re-entry.   If authorities are not informed of the changes, the foreign national will be subject to a penalty of between RUB 4,000 – RUB 5,000 (USD 70 – USD 88).

What you need to do
Planning ahead

  • To avoid possible penalties, employers must ensure that their employees’ work activities match those defined by their work permit.
  • The Federal Migration Service must be notified of any changes regarding the validity of a work permit or any changes to the foreign nationals personal details within seven (7) business days.
  • Contact your Emigra Worldwide attorney or representative for further details on how these updates may impact you or your client.

The information above was provided by Emigra Worldwide, our global network partners, and relevant government authorities. The information herein is for general purposes only and not intended as advice for a particular matter. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work.

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