From October 1, fines for employers for violations of military registration rules will increase
In 2023, there were significant changes in legislation regarding the maintenance of military registration. This applies to all employers who are legal entities.
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Changes in personal income taxation of payments to remote workers
Since 01.01.2024, payments when an employee performs labor functions remotely under a contract with an employer that is a Russian organization or with a separate subdivision of a foreign organization registered in the territory of the Russian Federation, is recognized as income from sources in the Russian Federation [1]. Such income is subject to personal income tax at the rate of 13% (15% for payments exceeding 5 million rubles per year).
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Is it necessary for companies to conduct salary indexation in 2023 and what factors should they take into account?
What is indexation
Salary indexing is the increase in employee wages in accordance with the rise in prices. Indexing the salary level is an obligation, not a right, of the company. This is stated in Article 130 of the Labor Code. The Supreme Court also indicates this in the definition of 08.04.2019 No. 89-KG18-14.
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Immunization of foreign workers against measles
Legal entities, individual entrepreneurs, and citizens are obliged to comply with the requirements of sanitary legislation, as well as with the provisions and orders of officials exercising federal state sanitary and epidemiological supervision (Article 11 of the Law No. 52-FZ "On the sanitary and epidemiological welfare of the population" of March 30, 1999).
Changes in requirements to special assessment of working conditions
The draft law to amend the Federal Law "On special assessment of working conditions" has been publishedRead more
Special assessment of working conditions – terms and procedure
Article 212 of the Russian Labor Code requires employers to conduct a special assessment of working conditions. The relations, obligations and rights of employers and employees associated with special assessments of working conditions are regulated by Federal Law N 426-FZ dated December 28, 2013.
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How many foreign employees can a company hire in Russia?
Government of the Russian Federation determines the permissible share of foreign employees annually (clause 5 of Article 18.1 of Federal Law No. 115-FZ of July 25, 2002 "On the Legal Status of Foreign Citizens in the Russian Federation") to regulate the attraction of foreign labor in certain types of economic activities, taking into account regional specifics of the labor market and employment of Russian citizens as a priority. In 2023, the permissible share of foreign employees engaged in certain types of activities in the territory of the Russian Federation will be the following number in the spheres (Resolution of the Government of the Russian Federation No. 1751 dated October 03, 2022):
- Vegetable growing - 50% of the total number of employees used by economic entities (this norm does not apply to the territory of the Udmurt Republic - 0%, Primorsky Krai - 40%, Astrakhan Oblast and Volgograd Oblast);
- Forestry and logging - 50% of the total number of employees used by economic entities (this norm does not apply to the territory of Primorsky Krai - 20%);
- Wood processing and production of wood and cork products, except furniture, straw products and weaving materials - 50% of the total number of employees used by economic entities;
- Construction - 80% of the total number of employees (this norm does not apply to the Republic of Buryatia, the Amur Region, the Republic of Dagestan - 50%, the Krasnodar Territory - 50% and the city of Moscow);
- Wholesale trade in wood raw materials and unprocessed timber - 50% of the total number of employees used by economic entities;
- Wholesale trade in lumber - 50% of the total number of employees used by business entities;
- Retail trade in alcoholic beverages and tobacco products in specialized stores - 15% of the total number of employees;
- Retail trade in medicines in specialized stores (pharmacies) - 0% of the total number of employees used by economic entities;
- Retail trade in non-stationary trade facilities and markets, as well as other retail trade outside stores, tents and markets - 0% of the total number of employees used by economic entities;
- Activity of other land passenger transportation - 24% of the total number of employees (this norm does not apply to the territory of Krasnodar Krai - 0% and Primorsky Krai - 15%, to business entities operating in the territory of the Udmurt Republic according to OKVED 49.31, 49.32 - 0%);
- Cargo transportation activities - 24% (this norm does not apply to the territory of Krasnodar Krai - 0% and Primorsky Krai - 10%);
- Real estate management for remuneration or on a contractual basis, as well as building and territory maintenance activities - 70% of the total number of employees;
- Other activities in the field of sports - 25% of the total number of employees.
Separately for the Ryazan region is set the permissible share for activities in the sphere of manufacturing production - 90%. In accordance with these maximum permissible shares employers must streamline their staff until 01.01.2023.
Brief overview of mandatory COVID-19 vaccination for workers in Moscow
Based on the clarifications provided by Moscow Operation Headquarters and Rozpotrebnadzor, we provide an overview of compulsory immunization of workers in a number of industries (Moscow Chief Public Health Officer Order N 1 dated June 15, 2021 (as amended on June 23, 2021) for Preventive Vaccinations of Certain Groups of Individuals Based on Epidemic Evidence), an overview of how to calculate the percentage of vaccinated employees, whether it is possible to remove unvaccinated employees from work, and whether it is necessary to submit certificates of medical exemption.Read more
Provisions on remote work added in the Russian Labor Code
On December 8, the President signed Federal Law No. 407-FZ which amends the Russian Labor Code. These amendments will become effective on January 1, 2021. We have described them in this article as well as how employers should prepare for these changes.
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.
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