Russia – Government Acts to Curtail Turkish Nationals Working in Russia

Russia – Government Acts to Curtail Turkish Nationals

This GMS Flash Alert reports that new Russian rules new rules aim to restrict and perhaps preclude certain Russian employers from hiring or engaging the services of employees who are Turkish nationals.

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As of 1 January 2016, employers that are not on a list that is to be approved by the Russian government are:

  • not allowed to employ Turkish nationals1.
  • only allowed to conclude (renew, prolong) employment and individual service contracts with Turkish nationals which are valid as at 31 December 2015.2

WHY THIS MATTERS

These new rules will restrict and perhaps preclude certain Russian employers from hiring or engaging the services of employees who are Turkish nationals.

Russian employers who are Russian companies (as defined by the law) and representative offices and branches of foreign companies in Russia with Turkish national employees or intending to hire Turkish national employees will need to consider whether they are in compliance with the new rules.  

KPMG NOTE

According to representatives from the Association of European Businesses in Russia, the Russian Ministry of Labour is currently drafting the list of companies which will be allowed to employ Turkish nationals in 2016. 

Closer Scrutiny of Turkish Nationals Traveling into and out of Russia

Currently, when Turkish nationals cross the border with Russia, their documents are subject to very close inspection.  There have been cases when they have been prohibited from entering Russia (even when holding valid Russian work permits).  

Also, there have been cases in which they have been deported from Russia (even when holding valid Russian work permits). 

KPMG RUSSIA NOTE

ACTION STEPS FOR EMPLOYERS

We recommend that employers take the following actions in respect of their Turkish employees (who are individual service providers):

• Advise them to refrain from travelling into/out of Russia. 

• If there is still a need to cross the Russian border, advise them to have the full package of employment (immigration) authorization documents in hand, particularly:     

  • A reference letter from their company confirming their current employment;
  • Their original employment contract (individual service contract), or a copy of it that has been certified by the company;       
  • Their original Russian work permit;     
  • Their original, valid, voluntary medical insurance certificate;     
  • Their original Russian migration card;     
  • A copy of the notification on the arrival of a foreign citizen confirming registration address in Russia (even for employees with “Highly-qualified specialist” status).

• If there is still a need to cross the Russian border, then it is advisable that a company representative accompanies the employee at the Russian border.

FOOTNOTES

1  Presidential Order of 28 November 2015 No 583 “On measures to ensure the national security of the Russian Federation against criminal and other unlawful actions and on implementing special economic measures against the Republic of Turkey.”

2  Resolution of the Russian Government of 30 November 2015 No 1296 “On measures to implement the Presidential Order N 583 dated 28 November 2015 “On measures to ensure the national security of the Russian Federation against criminal and other unlawful actions and on implementing special economic measures against the Republic of Turkey.”

CONTACTS

For further information or assistance, please contact your local KPMG Global Mobility Services (GMS) or People Services professional, or one of the following professionals with the KPMG International member firm in Russia:

Alevtina Borisova, Partner

Aborisova@kpmg.ru

tel. +7 (495) 937 44 77 (ext. 12987)

 

Donat Podnyek, Director

Dpodnyek@kpmg.ru

tel. +7 (495) 937 44 77 (ext. 14214)

The information contained in this newsletter was submitted by the KPMG International member firm in Russia. 

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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