Foreign employee quotas for 2021

Russian Government Decree N 1823 dated November 12, 2020 has specified the number of types of activities for which a foreign employee quota has been set for 2021.

If the number of foreign employees exceeds the set quota, then it will be necessary to dismiss employees by before the beginning of 2021.

From next year onwards, the foreign employee quota for the following types of activities will be 50% of staff headcount:

• Forestry and logging;
• Wood processing and manufacturing of wood and cork products (except furniture), production of straw and platting materials;
• Wholesale trade of raw and unprocessed timber;
• Wholesale trade of lumber.

And 70% for the following types of activities:

• Maintenance of buildings and sites;
• Real estate property management for a fee under a contract.

The foreign employee quota for the following types of transport has been decreased from 26% to 24%:

• Other land passenger transport;
• Road haulage.

Other quotas remain the same as in 2020:

• Vegetable production – 50%;
• Construction – 80% (this quota does not apply to the Republic of Buryatia, the Republic of Dagestan, Amur Oblast, and Moscow). In the Republic of Dagestan, the foreign employee quota is set at 50% for the construction industry (Section F);
• Retail trade of alcoholic beverages, including beer, in specialized stores (code 47.25.1) – 15%;
• Retail trade of tobacco products in specialized stores (code 47.26) – 15%;
• Retail trade of medicines in specialized stores (pharmacies) (code 47.73) – 0%;
• Retail trade in non-stationary retail facilities and markets (code 47.8) – 0%;
• Other retail trade outside shops, stall, markets (code 47.99) – 0%;
• Other sports activities (code 93.19) – 25%.

Penalties

• For company officers – a fine from RUB 45,000 to RUB 50,000;
• For legal entities – a fine from RUB 800,000 to RUB 1,000,000 or suspension of activity from 14 to 90 days.