Russia: Stricter Visa Monitoring Obligations and an Increased Pension Age Go Into Effect

The new year heralded new obligations for employers to monitor visa compliance as well as an increase to retirement ages—both of which went into effect in January 2019.

New obligations for companies sponsoring foreign nationals to work in Russia

Amendments to the Russian migration legislation impose obligations on companies inviting foreign nationals to work in Russia. Now, companies that obtain or issue “invitation letters” used to sponsor visas for foreign nationals in Russia must (1) track compliance with the purposes of arrival, (2) monitor the period of stay in Russia, and (3) ensure timely departure from Russia.

Companies that do not comply with these obligations may be subject to the following fines:

1. For individuals: from RUB 2,000 (approximately, EUR 26) to RUB 4,000 (approximately EUR 52);
2. For officials of legal entities (e.g., company directors): from RUB 45,000 (approximately EUR 584) to RUB 50,000 (approximately EUR 649);
3. For legal entities: from RUB 400,000 (approximately EUR 5,195) to RUB 500,000 (approximately, EUR 6,490).

Pension reform

Amendments to Russian pension legislation have increased retirement ages to 65 for men and 60 for women. The changes are being phased in, with the current ages being increased by one year during each year of the transition period until they reach this level.

In addition, men who have reached 60 years of age and have 42 years of work experience and women who have reached 55 years of age with 37 years of work experience are entitled to retire earlier—24 months earlier than the standard retirement age.

There are some further modifications to this rule as follows:

1. Women aged 56 with at least 15 years of work experience may retire early if they gave birth to at least four children and raised them until they reached eight years old;
2. Women aged 57 with at least 15 years of work experience may retire early if they gave birth to three children and raised them until they reached eight years old.

The new reforms have also introduced a new category of individual— “persons of pre-retirement age.” These are people within five years of retirement age. Persons of pre-retirement age are afforded additional protections against dismissal or refusal to hire if due to age and not justified. Criminal liability can be imposed on authorized officers of the legal entity (e.g., general manager, human resources manager, etc.).

Persons of pre-retirement age who are undergoing medical examinations are entitled to be released from work for two working days (once a year) without jeopardizing their job or earnings.

Written by Maria Gnutova and Irina Anyukhina of ALRUD Law Firm and Roger James of Ogletree Deakins

© 2019 ALRUD Law Firm and Ogletree, Deakins, Nash, Smoak and Stewart, P.C.