On August 9, 2013 changes took effect in respect of the Code of Administrative Offences of the Russian Federation (the “Administrative Offences Code”), which provides stricter liability for violating the regime for foreigners and stateless persons staying in Russia.

1.    Administrative liability in several Russian regions for violating migration laws

Liability for foreigners and stateless persons, as well as legal entities and officials in several regions of the Russian Federation (including in Moscow and St. Petersburg) has increased for breaching the regime for foreigners and stateless persons staying in Russia (Part 3 Article 18.8, Part 2 Article 18.10, Part 4 Article 18.15, Part 3 Article 18.16 of the Administrative Offences Code).

2.    Administrative liability for employers for unlawfully employing foreigners and stateless persons

Administrative liability is introduced for violating the procedure and/or form for notifications regarding hiring foreigners and stateless persons (previously the Administrative Offences Code only provided liability for non-notification), if federal laws require notification of one of the following bodies:
i)    territorial body of the Federal Migration Service (the “FMS”);
ii)    state employment services body for the public of the relevant Russian region;
iii)    tax authority.

This norm of the Administrative Offences Code also provides liability for not notifying the above bodies if:
-    the work contract or civil law contract with a foreigner is terminated, or
-    the foreign worker is provided unpaid leave over one month long in the course of a year (Part 3 Article 18.15 of the Administrative Offences Code).

For violations as provided in this article legal entities may face liability in form of a fine in the amount up to 800,000 rubles or administrative suspension of activity for up to 90 days.

3.    Administrative liability for employers hiring highly qualified specialists (the “Specialists”)

Liability is introduced for legal entities employing Specialists for the following (Part 5 Article 18.15 of the Administrative Offences Code):

• not notifying the FMS or violating the procedure or form of notification (i) on performing obligations on paying salary/remuneration to a Specialist, (ii) on providing unpaid leave over one month long in the course of a year;
• not notifying the FMS or providing late notification on registering the Specialist with the tax authority;
• not notifying the FMS that the work contract or civil law contract with a Specialist is terminated.

In the event a legal entity violates provisions of this article, it may face liability in the amount of 1 million rubles.

Please note that administrative liability for all the above violations is established for each foreigner or stateless person separately.

Federal Law No.207-FZ “On amending certain legal acts of the Russian Federation for purposes of improving the migration legislation and liability for violation of same” dated July 23, 2013

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Tatiana Kandrina, St. Petersburg Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.