The oil and gas, construction, and manufacturing industries of Russia are in high demand for skilled foreign workers, and many businesses have turned to foreign employees as one of the main solutions for their businesses' growth, given the lack of skilled local employees to fill high-demand technical positions.

There is a lot of regulation associated with hiring foreign employees in Russia, and as such, employers must ensure they have laid out careful planning and abide by any applicable laws prior to hiring foreign employees to avoid any penalties, such as paying up to one million roubles in fines for errors made. Employers should only hire foreign employees once their company has complied with all Ministry of Internal Affairs and Ministry of Labour requirements.

DBS Group has completed 2,500 placements for companies throughout Russia with an overall retention rate of 93% in the first year. We have been helping employers throughout Russia hire legally, obtain documentation for foreign employees, and properly integrate those foreign employees into their businesses in Russia for over 15 years. The complete hiring process for a foreign worker is covered in this checklist, which is divided into simple sections to help your business stay legal and steer clear of expensive mistakes.

Pre-Hiring Legal Requirements

Employers typically have to confirm that, under Federal Law No. 115-FZ of the Russian Federation, they qualify to be able to hire foreign employees before they can even begin recruiting foreign employees. Preparing for the hiring process and obtaining the appropriate documents in advance of the hiring process is critical to avoiding rejected foreign employee applications due to incomplete or inaccurate application documents, which results in not being able to hire a foreign employee.

Employer Eligibility

Your company is not eligible to hire foreign employees unless it is active and in "good standing" with the Federal Tax Service System (this means you are registered with your local tax authority) and you have verified your company status with the Federal Tax Service by searching their Unified State Register of Legal Entities. If your company has failed to pay taxes or has any legal problems, Russian authorities will reject your application to hire foreign employees.

Companies located in large cities such as Moscow, or companies located in industrial cities such as Novosibirsk, are subject to a considerable amount of inspections for compliance with foreign hiring laws due to the high number of foreign employees in those areas. This means that all documents submitted to apply for work permissions for foreign employees will be closely inspected, and work permissions will only be granted to those companies that the Russian Government has determined comply with all applicable federal and local laws.

To avoid an application rejection, we perform an employer eligibility audit as an initial step in onboarding new clients. The employer eligibility audit consists of checking the client's registration status with the federal tax service, verifying the client's tax status, and confirming that the client has all documents ready to submit for work permission from the Russian Government (this significantly reduces the total time it takes to obtain work permissions for foreign employees).

Quota Considerations

Companies hiring foreign personnel will be restricted by the number of foreign labourers they can employ. The Quantity Ministry establishes limits (quotas) for each calendar year and publishes this information, usually in December. In order to be eligible for a quota, employers must apply to their regional employment centre before the end of the year.

For employer applications regarding foreign employees, they will be required to demonstrate the foreign employee's job duties, pay scale, and the rationale for not being able to find a local candidate. For jobs requiring certain skilled positions, the monthly pay is typically at least 50,000 RUB, depending on the region of employment.

It is important to note that certain categories of foreign employees will be exempt from the application quotas. For example, highly qualified specialists with an annual salary of no less than 167,000 RUB are exempt from the quotas. This exemption not only removes the quota approval process but also expedites the processing time and represents fewer restrictions.

Utilizing labor market data listings, DBS Group can assist employers in the preparation of a strong quota application. Our structured method helps to improve the chances of quota approval while also decreasing delays related to missing or incomplete paperwork. Where quotas are not available, we will provide suggestions for alternative hiring mechanisms, such as the highly qualified specialist process or recruiting citizens from countries that do not require a work visa.

Documentation and Work Permits

It is extremely important to have the proper documentation when employing foreign employees in the Russian Federation. The Russian Federation will process complete application packages ahead of incomplete documentation, which will result in an immediate denial.

Visa Categories

Employers should select the appropriate visa type based on the employee's job type and duration of employment. Standard work visas may be used for short-term assignments (generally receive a maximum validity period of either 90 days or 180 days). Multiple-entry work visas will be best for long-term projects because there is no additional paperwork required when re-entering Russia.

Highly qualified specialist work visas are available for three years and do not require approval or a quota. The time required by the Russian Federation to process a highly qualified specialist visa is generally less than that needed to process standard work visas.

All employers must issue official invitations on the Ministry of Internal Affairs Web Portal. In addition to including the employee's passport information, you also include a job description, salary, and work address on the invitation. After being issued a valid invitation from the Ministry of Internal Affairs, the foreign employee will submit the invitation with their visa application to the nearest Russian Consulate in their country of residence.

DBS Group will assist in preparing invitations that are in compliance with the requirements of the Ministry of Internal Affairs, and will also ensure that all five of the mandatory fields are complete prior to submission to the Ministry of External Affairs, thus reducing delays and improving approvals at the Russian Consulate.

Work Permit Process

After quota approval, employers must apply for a work permit through the migration portal. Required documents include passport copies, photographs, medical certificates confirming absence of tuberculosis and HIV, and official health examination results from approved clinics.

After receiving the permit, the original document must be presented to the Russian consulate for visa stamping. Highly qualified specialists follow a simplified process and receive permits faster than regular workers. However, all required medical tests and official documentation must still be completed properly.

DBS Group works with certified medical centres in several countries to ensure that workers complete required tests before arrival. This preparation reduces errors and avoids last-minute complications during permit processing.

Post Arrival Compliance

After a foreign employee arrives in Russia, employers must complete several important registration and reporting steps. There could be fines or inspections for missing deadlines. 

Registration and Reporting

Employers must register foreign workers at their official address within seven working days of arrival. Through the Ministry of Internal Affairs portal, registration can be finished. Required documents include passport copies, migration cards, and proof of accommodation.

Workers must also receive a tax identification number within three days of employment. This number allows legal salary payments and tax reporting. Employers must submit monthly reports detailing salary payments and working hours.

If a foreign employee leaves the company earlier than planned, the employer must notify the authorities within three days. Health insurance coverage is also mandatory for foreign workers and must be arranged immediately after arrival. 

DBS Group assists employers with post arrival documentation to prevent compliance errors. Our support reduces administrative stress and helps foreign employees adjust smoothly during their first weeks.

Employment Contracts

Under the Russian labour code, employers have an obligation to strictly follow the laws regarding employment contracts for foreigners. These contracts must be written in Russian and must accurately reflect the job description (position, salary), working hours, length of probationary period, and length of employment.

The standard work week in Russia consists of 40 hours. Probationary period cannot last longer than 3 months, and employees are entitled to a lump sum payment for all work done while being on probation.

In addition to the above, employment contracts are a means of providing clarity and mutual understanding between the employer and employee. Clear terms in employment contracts help to protect both the employer's and employee's rights, and to lessen miscommunications that can result in conflicts or an early dismissal. 

DBS Group offers assistance with a variety of employment contracts that are compliant with Russian Law and provide for the safety and provision of housing, if applicable. Well-written employment contracts improve employee retention and provide greater transparency in the workplace.

Partner with DBS Group for Reliable Hiring

Employers may feel overwhelmed by the difficulties of employing foreign workers in Russia, but the process can be streamlined and made easier with a little preparation. Employers that strictly comply with the legal requirements are less likely to incur expensive penalties and are better able to form successful international teams.

DBS Group is able to assist an employer through every stage of the hiring process, including eligibility verification, quota application, visa processing, and compliance after employee arrival. By taking a structured approach to the hiring of foreign employees, businesses can maximise new hire productivity in the shortest possible amount of time and minimise the number of new hires terminating shortly after hiring.

For assistance with the hiring process for foreign employees in Russia, the DBS Group team can assist you with all aspects of the employment process, including compliance checklists and workforce planning strategies. Contact us at clienservices@dbsgroup.ru for assistance with your employment needs, and a member of our team will get back to you within 24 to 48 hours with a timeline for deploying your employee (approximately 4-8 weeks).