Payroll and HR
Administration in Russia
Russia– Payroll and HR administration services
Global Expansion Plus provides payroll and HR administration services in Ukraine. Use our solutions to take care of your people in Russia. We make sure that your people are being taken care of and your entity is safe from violating local legislation. Russian labor relationship is governed by Labor Code.
Hiring and onboarding employees in Russia
Onboarding ProcessEmployee onboarding is a regulated process. Labor code of Russia has a special closure that cover labor agreement, labor book, filling and maintaining data about the start, history and termination of an employment. Considering that Russian Federation have a socialistic past there are many regulations over the employment process, protecting rights of an employee. The listed bellow is the steps required for the onboarding:
Probation PeriodThe trial period under the Labor Code of the Russian Federation should not exceed:
Health and SafetyDirectors are responsible for organization and control the health and safety in the workplace, that is, in simple words, they have all the responsibility for the life and safety of workers, and if an accident occurs, the managing director will be personally responsible. It is required to have a written and documented health and safety policies after company has over 50 employees.
Generally Russian Labor legislation prohibits any discrimination based on a health or disability. The practice of medical checks are not common unless it is required by the law.
The Russian Labor law required certain categories of workers to go through mandatory preliminary medical examinations when concluding labor agreement. Preliminary medical examinations (examinations) upon admission to workplace are carried out in order to determine whether the health condition of the employee is suitable for a job. This is necessary to mitigate the risk of accidents and to prevent the spread of various diseases.
Work permits and Visas in Russia
Visa TypesForeign citizens while entering Russian Federation require Visa. If there is two party agreement between countries, entering Russia may not require a visa. To apply for a visa, a foreign citizen must apply to the Russian consular post at the place of his permanent residence. Visas are issued based on the purpose of the trip and length of stay. There are three types of visas in Ukraine:
Work PermitWork permits in Russia are required for foreign citizens. This permission is issued within 30 days from the date of application and filling of the relevant form and the supplementing documents. If there is any clarification needed for the submitted documents, the application processing period may be extended.
QuotasQuotas have been established for most positions, which makes it difficult to obtain work permits. At the same time, there are also unquoted occupations that are included in the special list, which is enforced by a government decree. It will be easier to accept a foreign employee to a post from such a list.
Permission to employ foreignerTo obtain permission to employ foreigner, the employer applies to the Ministry of Internal Affairs. Next, the employment service takes part, which decides on the need to attract foreign workers to the organization. The decision depends on whether it is possible to close the vacancies indicated by the employer by hiring workers from Russia. If this is not possible, then the company is issued a permit to employ foreigners.
Individual work permitSimultaneously with the submission of documents at the stage described above, the employer must submit a request to the Ministry of Internal Affairs for an invitation to enter Russia. At the same time, it is important to attach copies of the obtained permits for employment, if any already exist – this will speed up the process of receiving an invitation.
Entry VisaAfter a foreign worker receives an invitation to enter the Russian Federation, he turns to the Russian consulate in his country of permanent residence. A single-entry work visa is issued there. After the arrival of a foreigner, the employer is already extending the visa for the duration of the work permit.
Patent for workA labor patent for work for foreign citizens is a permission to work in Russia for visa-free foreign citizens. In other words, a patent for work for migrants is a document necessary for every foreign citizen who arrived in Russia without a visa, who plans to legally carry out labor activities in the Russian Federation.
Work permit for Eurasian Economic UnionThere is no need for any visas or work permits for citizens of Eurasian Economic Union (Belarus, Kazakhstan, Armenia and Kyrgyzstan). But, employees from these countries need to register at migration authorities every 90 days.
Working hours and leaves in Ukraine
Workhours and overtimeThe work week in Russia is fixed at 40 hours by Russian Labor Code. Employer can have a four, five- and six-day work week, with ten, eight and six-hour workday accordingly. Any work over 40 hours per week is considered overtime. Overtime hours cannot exceed 120 hours per year and four hours per day in two days in a row. If employee has a flexible work schedule overtime is not tracked. Overtime is paid double of a normal work hour
Vacation leaveThe annual vacation right is equal to 28 days. Vacation day are accrual monthly, but a new hired employee is eligible for his vacation after six months of employment. Vacation days can be split through the year but one vacation period shall not be smaller than 14 days. Unused vacation days are accumulated but cannot exceed 48 days. In such situation unused vacation in excess of the stipulated maximum will be paid to the employee.
Sick leaveThe first three days of sick leave is paid by employer. The rest is paid by the Social Security Fund. The compensation obtained from the state is calculated by the formula, that takes into account average salary and work experience:
Maternity and paternity leave70 days prior to the birth of a child, mother can get to a paid maternity leave. In addition, 70 days of maternity leave are also granted after the birth of a child. If the pregnancy and birth is complicated after birth maternity leave is extended to 86 days. Additional extension up to 110 days is granted in it was a twin baby.
Russian Holidays in 2020
Remuneration & Benefits
Employee termination and severance
Notice PeriodIf employer wants to terminate employment, it needs to provide 2 months’ notice period. Notification need to have a legal base for the termination of the employment. The base for the employment termination could be one of the following:
Severance paymentSeverance payment usually equal to two months’ salary and unused vacation.
Payroll related taxes
Employer taxesThere is only one employee tax – Personal Income Tax of 13%, calculated by multiplying to gross salary. Foreign employees paying 30% of personal income tax.
Employer is paying four mandatory security payments on top of the gross salary.