Employment Contract with a Foreigner: Key Features of Conclusion

An employment contract is an agreement between an employer and an employee that regulates their working relationship. A contract with a foreign citizen has its own specifics, defined by the Labor Code and other Russian laws.

Main Requirements for Signing a Contract

To be legally employed, a foreign worker must be at least 18 years old. The employment contract must be drawn up in Russian, but it can also be translated into a language understood by the employee. This ensures mutual understanding and protects both parties’ rights.

The contract must include details about the work permit or patent, unless otherwise provided by law. This document confirms the foreign worker’s right to be employed in Russia. Its number and validity period must be explicitly stated in the agreement.

When hiring foreign employees, the following factors must be considered:

• Work restrictions. Foreigners cannot hold certain positions in government or law enforcement agencies.
• Age limits. Employment contracts cannot be signed with persons under 18 years of age.
• Work permits and patents. Employers must ensure that visa-free foreigners hold a valid work patent. Certain categories are exempt from this requirement, including residence permit holders, full-time students at Russian universities, citizens of EAEU countries, and visa holders with special authorization.
• Quota system. The number of available positions for foreign workers varies by region and sector. In some industries, hiring foreigners is restricted or prohibited entirely.
• Regional limitation of patents. A patent is valid only in the region and position for which it was issued. Employers cannot hire workers with patents from other regions.
• Notification to the Ministry of Internal Affairs (MVD). Employers must report the hiring of a foreign citizen within three business days.
• Insurance contributions. Since 2023, employers have been required to pay insurance contributions for foreign workers under the same conditions as for Russian citizens.
• Contract duration. The contract may be indefinite or fixed-term. A fixed-term contract is often used for seasonal jobs or to replace temporarily absent employees.

Documents Required for Employment

To employ a foreign citizen in Russia, the following documents are required:

1. Identity document. This may be a foreign passport, refugee ID, or temporary asylum certificate. Stateless persons must present a residence permit or temporary residence authorization.
2. Employment record book. Russia recognizes two formats (1974 and 2004). If the presented record book is invalid in Russia, a new Russian-format one must be issued.
3. SNILS (Insurance Number). Mandatory for all foreign workers regardless of status.
4. Educational or qualification certificate. If the job requires special knowledge, the foreigner must present a diploma or certificate. This document must undergo nostrification — official recognition in Russia.
5. Work permit or patent. Visa holders must present a work permit; visa-free workers must present a patent. Citizens of EAEU countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan) do not need either.

Foreigners temporarily residing in Russia no longer need to present a voluntary health insurance policy (DMS) when getting a job. They are now eligible for mandatory health insurance, except for highly qualified specialists.

Specifics of Drafting the Employment Contract

The employment contract must include the following information:

• Full name of the employee and employer;
• Identification details of both parties;
• Employer’s taxpayer identification number (except for individuals not registered as entrepreneurs);
• Details of the employer’s representative authorized to sign the contract;
• Place and date of signing;
• Workplace and job function;
• Start date of employment;
• Salary and payment terms;
• Working hours and rest schedule;
• Benefits for hazardous or difficult working conditions (if applicable);
• Job characteristics and workplace conditions;
• Information about mandatory social insurance;
• Work permit or patent details;
• Temporary or permanent residence details;
• Other relevant conditions.

Rights of Foreign Employees

Foreign citizens employed under a labor contract enjoy the same rights as Russian employees, including:

• The right to conclude, amend, and terminate an employment contract;
• The right to perform the work specified in the contract;
• The right to a safe and compliant workplace;
• The right to timely and full wage payment;
• The right to rest, standard working hours, weekends, and holidays;
• The right to paid annual leave;
• The right to receive truthful information about working conditions and safety standards;
• The right to professional training and education;
• The right to form or join trade unions;
• The right to participate in organizational management;
• The right to resolve labor disputes;
• The right to compensation for injury or moral harm;
• The right to mandatory social insurance under federal law.

Key Conditions and Obligations

An employment contract with a foreign citizen may be indefinite or fixed-term. A fixed-term contract cannot exceed five years or last longer than the validity of the worker’s permit. Once the permit expires, the contract must be terminated.

Employers must notify the relevant authorities when a labor contract with a foreigner is concluded or terminated. They are also responsible for monitoring the validity of the worker’s documents and renewing them on time.

Workers in education, trade, services, and construction must confirm their proficiency in the Russian language. Without a language certificate, employers cannot obtain a work permit for such employees.

Employers must verify all documents’ authenticity and report any changes to migration authorities promptly. Failure to comply can lead to heavy fines, which vary depending on the type of violation.

All wages must be paid through official bank transfers; cash payments are prohibited. Banks report such transfers to tax authorities to prevent illegal salary schemes. Employers must also file quarterly reports on payments made to foreign employees.

Conclusion

An employment contract with a foreign citizen is an official legal document with specific requirements. It defines the rights and obligations of both parties while considering the employee’s legal status and migration laws. Proper documentation and compliance ensure lawful employment and protect both employer and employee.

Source:

• Article 327.2 of the Russian Labor Code — Specifics of concluding an employment contract with a foreign citizen