Problems relating to Trade and Investment on Russia
16. Employment |
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Issue |
Issue details |
Requests |
Reference |
| (1) Difficulty in Visa Acquisition | - Stay Registration (SR) required for each entry into Russia must be completed within 7-days from the entry date. Complex application procedures must be completed for SR in a short period. - It is expected that GOR will introduce the Russian language test relative to issuance of work permit for a foreign national, which will affect expatriates' stay in Russia in future. - Visa Renewal Application accepted up to the moment of expiry must be filed minimum 45-days before expiry, beginning 2013. What this means is that one-year validity for normal visa is reduced to less than 1-year in substance. - It is time consuming and extremely heavy in expenses and workload to obtain in Russia, work permit, work visas, and other licences and approvals necessary for doing business in Russia. The procedures and implementation methods are ambiguous. Their interpretation now and then differs among sections and departments. Moreover, the views and announcements on regulations, etc. frequently vary.Recently GOR simplified visa acquisition procedures. This is a step forward. However, due to "procedures now undergoing changes", there are cases in which 3-years-visa issuance, etc. are held in abeyance. - Work permit acquisition has been made more difficult by questions on the applicant's knowledge about Russia: its language, history, legal systems, etc. - Since January 2015, for acquisition of work permit, it has become necessary to show applicant's proficiency in the Russian language, history, and legal systems. Russian visa for Highly Qualified Specialist (HQS) is also available subject to annual income of 2 million rubles. =>PROBLEMS: Testing the Russian language expertise to Japanese applicant, with a special industrial expertise anxious to contribute to the Russian industry in various fields, is a factor that curbs new investments into Russia by Japanese enterprises with possibility of broadening the scope of the Russian industry. The income of candidate expatriates from the Japan headquarters neither necessarily reaches the 2 million rouble threshold nor the satisfactory level of the Russian language expertise, barring acquisition of work permit. Consequently, withdrawal of the Japanese expatriates from Russia directly results in shrinkage of the joint venture operation. On the other hand, the 2 million rouble threshold can obstruct new entry of JV operation into Russia, closing the door to inflow into Russia of new high-technology/know-how from Japan. - To apply for an entry visa for making business trip to Russia, it takes about one-month in total. It is necessary to obtain an invitation letter from the ministry of foreign affairs in Russia for submission to Russian embassy in Japan that issues the entry visa. - It now takes more than 2-weeks to get a Business Visa issued. |
- It is requested that GOR extends the application period (to around 30 to 45-days). - It is requested that GOR expands the scope of application for high skill workers' system. - It is requested that GOR takes steps to: -- handle the business routine expressed in the rule in compliant to the same understanding by and among sections and departments, -- spare no efforts for elimination of arbitrariness in all respects (in other words, doing matter of course as matter of course in business), and -- ensure further streamlining of visa acquisition procedures. - It is requested that GOJ takes step to request GOR to facilitate work permit acquisition procedures. - It is requested that GOR considers removing the requirements for proficiency in the Russian language, history, and legal systems, as well as the annual income threshold, in regard to issuance of work permit to Japanese expatriates. - It is requested that GOR: -- introduces emergency visa system, and -- simplifies the visa issuance procedures. - It is requested that GOR: -- introduces a simplified Visa Issuance System to meet the emergency needs, and -- streamlines the Visa Issuance Procedures. |
- Immigration Law - Federal Law No. 115-FZ, etc. - Federal Law No.74 - Federal Law No. 106 |
| (Info) - Please see the website of Visa Issuance, Consular Section, Embassy of The Russian Federation in Japan at: (http://tokyo.mid.ru/ja_JP/web/tokyo-ja/o-vizah-v-rossijskuu-federaciu). |
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| (2) Customary Practice on Legal Leave and Bonus | - Labour law provides for 28-days of legal paid-holidays including one sequence of 14-days holidays, which could interfere with the business operation. | - It is requested that GOR takes steps to amend the labour law as soon as possible, in order to allow a flexible adjustment of the sequent acquisition of paid-holidays between employers and employees. | - Labour Law - "Labour Code of the Russian Federation" No.197-FZ, Chapter 19. Leave |
| (3) Stringent and Overprotective Labour Legislative Scheme | - The following restrictions are provided in the Russian labour law: (1) Documental requirement: Prikaz (order, a written decision) signed by the president (needed each time on entry, retirement, intra- company transfer, business trip, paid leave, overtime work, certificate for business trip stamped at the business trip location, paid-leave schedule, staff list, company rules, ledgers, etc.), giving rise to an extra heavy administrative burden. (2) Assumption of expenses from compulsion of substitute staff/means due to the severe overtime restrictions of 120-hours/year, and 4-hours or less in 2-consecutive days. (3) Substantial administrative expenses result from having to pay wages more than twice a month, while the complex work arises from the wage related payments, such as reduction in basic pay and allowances (that vary each time from having to calculate from the past 12-months average revenue, varying each time) in paid-leave, business trip, sickness leave. (4) In addition to restrictions on rubles only, for expression and payment of the wage amount, it has become difficult to implement a flexible personnel policy for the local staff. (5) Huge administrative expenses arise from the extremely severe demand relative to "labour protection" (including without limitation, compulsory employment of special officer on enterprises employing 50 workers or more regardless of business category, preparation of vast amount of documents such as various guidelines, manuals, ledgers, etc., compulsory execution/provision of education at educational institutions, office environment research, health checkup, etc. (6) 28days paid-leave and moreover, consecutive 2-weeks paid-leave are compulsory. In addition, treatment of public holiday is uncertain as the number of paid-leave is based not on business (work) days but on calendar days. If a worker takes paid-leave only on business days, it becomes possible to take paid leave for 5-weeks or more. Employers must go into great expenses of having to secure substitute workers. (7) Disallowance of reduction in the base wage interferes with establishment of a flexible wage scale, commensurate with the job responsibility and personal ability. - Under the labour law, basically wages are interlocked with the inflation rate, while it has become possible to set the wage raise rate at the level lower than the inflation rate due to business performance, etc., However, wage reduction cannot be enforced unless with the presence of undue fault on the part of employees. In that event it is necessary to sign agreement between employers and employees. Consequently, wages tend to trace the ever-increasing curve. - There is no provision for retirement at age-limit in the Russian labour law. A worker can continue working indefinitely, unless he/she voluntarily retires. An employer is unable to enforce dismissal without the existence of the employee's refusal for correction after the employer's repeated warnings, or serious damages given by the employee to the employer. Retirement or dismissal basically requires written agreement between employer and employee. - MFS pays wages twice a month to each employee pursuant to the labour law. This requirement doubles the workload, apparently unproductive, including calculations of wages and individual income tax, etc., compared to the general practice of once a month payment, including Japan, U.S. and EU. Prepayment scheme attached to vacation leave appears to be overly protecting workers, in as much as it is up to individual workers to manage within each income. The Scheme should be repealed, as it seems to serve no purpose other than simply obstructing independence of individual workers. |
- It is requested that GOR takes steps to amend the labour law that incorporates the following issues: (1) Reduction in requisite documents (2) Deregulation of overtime work restrictions (3) Simplification of work concerning wage payment (4) Payment of foreign workers' wage in currencies other than ruble, and approval of reduction in the ratio of payment in ruble. (5) Deregulation in the labour protective demands (6) Paid-leave only on business days, repeal of compulsion of the consecutive 2-weeks paid-leave (7) Approval of basic wage reduction on employees. - While the Russian labour law has gone through changes bit by bit, basically, the concept from the USSR days colourfully remains. It is requested that GOR takes steps to put in the law clearly the age limit of workers in the situation described in the left column in order to attract foreign capitals. - While the Russian labour law has gone through changes bit by bit, basically, the concept from the USSR days colourfully remains. It is requested that GOR takes steps to put in the law clearly the age limit of workers in the situation described in the left column in order to attract foreign capitals. - It is requested that GOR takes steps to: amend the labour law as soon as possible. |
- Labour Law - "Labour Code of the Russian Federation" No.197-FZ, Chapter 21. The Wage, etc. |
| (4) Tightened Restrictions upon Foreigners | - In regard to tightening of control upon foreigners, GOR could possibly deny entry of foreigners with two or more violations of administrative laws, including the road traffic law, in the past three years. | - It is requested that GOR takes steps to deregulate restrictions. | - Immigration Law |
| (5) Foreign Workers Work Visa/Rules of Employment | - Since January 2015, it has become possible for expatriates to representative office to file application for "Highly Qualified Specialist (HQS) work visa", just the same as locally incorporated corporations, and branch offices. However, as of the end of January, at the windows of supervisory ministries and agencies, acceptance of application under HQS had not been commenced, and confusion continues. - Expatriates to locally incorporated firm's subsidiary or branch office may obtain work permit / work visa in the capacity of Highly Qualified Specialist (HQS). However, no HQS qualification is recognised on expatriates working in representative offices with the resulting inconveniences and disadvantages as follows: (1) Restriction in the number of days for business trip outside the location of representative office (RO). (2) Vexatiously complex procedures required for acquisition of work permit and work visa. In addition, implementation is ambiguous such as variances in interpretation of legislation between the capital city and the district cities. |
- It is requested that GOR takes measures to rectify the confusion as soon as possible. - It is requested that GOR expands the scope of HQS work permit to the expatriates in RO. |
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| (6) Absence of Employment Subsidy for Temporary Shutdown | - No government subsidy scheme is available to continue employment for temporary shutdown, when faced with the Russian economic crisis. | - It is requested that GOR provides employment subsidy (such as 60%) for temporary shutdown. | |
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