One recent example is the presidential decree dated Dec. 16, 1993 which seeks to impose controls on employment of foreign staff. Until this decree came into force, the main obstacle a foreigner wanting to work in Russia had to overcome was to obtain a visa, especially a coveted multi-entry visa. Once he had the green form, he could work without any other permission, and was required only to register the visa with the Department of Visas and Registration.


The decree creates a system of work permits and a two-stage application procedure. The first stage is an application for permission to employ foreign staff. The employer will have to justify the need for foreign staff, i.e. specialist skills, and provide a draft contract of employment. If authorization is granted, it will specify the total number of foreign employees by category and will be valid for a year although it can be extended.


The second stage is an application on behalf of each individual foreign employee for a work permit. It must contain detailed information about the employer, the nature of the work, the period of time for which the employee is required and the reasons why the permit should be granted.


The regulations clearly apply to Russian legal entities, eg. wholly Russian or wholly foreign-owned companies, but exempt companies with foreign investment, i.e. joint ventures. The exemption covers senior managers and specialists, but in their case the employer has to obtain confirmation that no work permit is necessary. Accredited representations of foreign companies are not Russian legal entities but branches of their parent companies. The application for accreditation has to state the number of foreign employees who will work in the office and accreditation will be granted for an office with that number of staff. An employer who wants to increase his foreign staff has to supply information about the growth of the representation office's activities in Russia. Foreign employees who are covered by accreditation of the office receive personal accreditation and should not need further work permits but may need to obtain confirmation that they are not necessary.


Companies which already employ foreign staff have until March 16 to comply with the regulations. Penalties for non-compliance may include deportation. This seems draconian, especially as the regulations are not fully worked out. But try applying for a work permit for Britain, America or France -- that is certainly difficult.





Marcia Levy, an attorney at Norton Rose, has been practicing law in Moscow for two years.