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<P align="center"><font color="#660000"><b><font face="Arial, Helvetica, sans-serif" size="4" color="#990000">Frequent
Legal Issues for Contractors on <br>
Sakhalin Oil and Gas Projects<br>
</font></b></font><font size="2" face="Arial, Helvetica, sans-serif">(Appearing soon in the Russian Energy Law Journal)</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>XI.
Procedures for Obtaining Work Permits</strong></font></p>
<p align="left"><font size="2" face="Arial, Helvetica, sans-serif"><em>Presented
by <a href="../subpage/attorneys.html#rpg_vlad">Natalia Prisekina</a>, senior associate attorney and Director of the
Vladivostok branch office of Russin & Vecchi</em>.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Russian legislation
strictly regulates the manner in which foreign employees are engaged
to work in the Russian Federation. Pursuant to federal law,
an employer seeking to employ foreigners must first obtain: 1) consent
from the Ministry of Internal Affairs or its territorial body <font size="1">(133) </font>to
recruit and employ foreign workers, and 2) an individual work permit
on behalf
of each foreign employee before the employee engages in labor activity
in Russia. <font size="1">(134)</font> Both are valid for a maximum
of one year.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Law on Legal Status defines “labor activity” in this
context as a foreign citizen’s work in Russia pursuant to a labor
contract or a civil contract for rendering services or performing work.
The same procedures described in this article also apply to Russian entities
utilizing foreign employees pursuant to secondment agreements, even though
the direct labor contract in such cases is generally between the foreign
entity and the foreign employee.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The law does not contemplate an easier procedure for obtaining work
permits for foreign citizens employed as directors of companies with
foreign investments, as was the case under prior legislation, nor does
it contain any provisions on the employment of foreign employees by representative
offices of foreign companies. At a recent forum held by the American
Chamber of Commerce in Moscow, Russian government officials stated that
any foreign employee listed in the employment roster of a Russian legal
entity, including the general director, even if not located in Russia
full time, must obtain a work permit. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Thus, the general
procedure established by the Law on Legal Status for obtaining work
permits applies to all categories of foreign citizens,
with the following, limited exceptions: 1) foreigners with permanent
or temporary resident status in Russia who plan to reside in Russia for
six months out of each of three consecutive years. For employers, such
status may be beneficial as it replaces the need for consents to employ
such employees and application for individual work permits each year;
2) foreign employees performing assembly works, service and guarantee
maintenance, or post-guarantee repair of technical equipment previously
imported into Russia by their company; 3) employees of diplomatic representations,
journalists, teachers, and foreign students studying in Russia who work
part time. <font size="1">(135)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The first step in obtaining
a work permit is to obtain consent to recruit and employ foreigners.
In this procedure, first the territorial body
of the Ministry of Labor verifies the expediency and necessity of a Russian
legal entity’s recruitment and employment of foreigners, considering
the preference to employ Russian citizens. The Ministry of Labor also
considers the Employment Center’s proposal on the expediency of
recruitment and employment of foreigners, which takes into account the
availability of registered Russian candidates for the positions. Subsequently,
the regional and federal offices of the Migration Department consider
the Ministry of Labor decision and the application materials. Finally,
the Department of External Labor Migration of the RF Federal Migration
Service issues consent to recruit and employ foreigners.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Sakhalin Region Migration
Department currently requires submission of the following documents
in order to obtain consent to recruit and
employ foreigners: 1) Application; 2) Decision of Employment Department;
3) Model Labor Agreement; 4) Employer’s certificate on state registration;
5) Application to obtain a petition to the Department of External Labor
Migration, Federal Migration Service, Ministry of Internal Affairs to
issue consent; and 6) Receipt for payment of state fee. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The same documents and a separate application must be filed with the
Federal Migration Service.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Once consent to recruit and
employ foreigners has been received, an application for work permits
may be filed. The Ministry of Internal Affairs
issues work permits to the employer, based on the employer’s application
on behalf of the employee. Although issuance of a work permit is intended
to be subject to the employer’s deposit of funds sufficient to
arrange for the departure of the foreign worker from Russia, to date
the implementing legislation for this procedure has yet to be passed.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The work permit application should include the following documents: </font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">1. A copy of valid identification of the employee with a remaining term
of validity of at least six months;<br>
2. The original consent to recruit and employ foreign employees;<br>
3. A color photograph of the employee (30x40 mm);<br>
4. Copies of documents confirming his/her qualifications in cases required
by law;<br>
5. For an individual entrepreneur, a copy of the registration certificate;<br>
6. Copies of documents allowing access to territories, organizations
and objects with special status, if the foreigner is planning to work
at such locations, and <br>
7. Receipt showing payment of state fee in the amount of 1000 Rubles
(approximately 30 USD) for each employee.</font></p>
</blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">The territorial department
of internal affairs must consider an application within 30 business
days from the date of its filing with all of the necessary
documents. It may refuse to issue a work permit if it determines that
information in the application is false or that the employee poses a
threat based on activities, as set forth by law, such as advocating for
violent constitutional change in Russia, financing terrorist acts, testing
positive for HIV, etc. <font size="1">(136)</font> If the application
is rejected, the territorial department of internal affairs must indicate
the reason for rejection.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Upon receipt of a
work permit, the employer must transfer it to the respective employee.
Regulations
have recently been introduced, which
allow an employer to apply for the revocation of an employee’s
work permit if the foreign employee violates the terms and conditions
of employment. <font size="1">(137)</font><br>
</font><font size="1" face="Arial, Helvetica, sans-serif"><br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1">(133)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">On
Sakhalin, this is the Migration Department of Internal Affairs Department of
Sakhalin Region.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1">(134)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Federal
Law On the Legal Status of Foreign Citizens in the Russian Federation of July
25, 2002 No. 115-FZ (“Law on Legal Status”).<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1">(135)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Law
on Legal Status, Article 13, para. 4, <br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1">(136)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Law
on Legal Status, Article 7.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1">(137)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Law
on Legal Status, Article 32, para. 2,</font><br>
</p>
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<td width="29%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XII.html">Next</a></font></strong></div></td>
<td width="36%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_X.html">Previous</a></font></strong></div></td>
<td width="35%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="RusEnergyLaw_index.html">Table of Contents</a></font></strong></div></td>
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