1. Wednesday, October 26, 2011 M T C O N F E R E N C E S The Moscow Times v 9
HR NETWORKING
Employment for Foreign Citizens With Temporary or Permanent Residency in Russia
By Julia Yakhina
Director, Migration Department
LEVINE Bridge
F
oreign citizens, upon receiving per- 4) The issuing or extension of work per- by the Law on Foreign Citizens (Article 7), porary residence status for a period equal
mits for temporary residence in the mits of temporary residents does not re- a foreign citizen must then depart from the to the period of validity of the specialist’s
Russian Federation for a period up to quire medical documentation showing the territory of the Russian Federation within 15 work permit — up to three years (Paragraph
three years, have the legal status of tem- absence of any illness in accordance with working days. Herewith the employment re- 27 of Article 13.2 of the Law on Foreign Cit-
porary residents in Russia. To legally work the list established by the government of lations with the employer are terminated, izens). At the same time, a permanent res-
in Russia, they must obtain a work per- Russia; and the work permit is also canceled on the idence status of a foreign employee does
mit. But according to Federal Law No. 115- 5) An employer is permitted to hire such basis that a foreign citizen is leaving Russia not relieve the employer from the necessary
FZ “on the legal status of foreign citizens a foreign citizen regardless the employer’s for his/her permanent place of residence filing quarterly income reports to the Fed-
in the Russian Federation,” dated June 25, quota on hiring foreign employees. An em- (Subparagraph 8, Paragraph 9 of Article 18 eral Migration Service on payment of wages
2002 (hereinafter — “Law on Foreign Cit- ployer also is exempt from the preliminary of the Law on Foreign Citizens). to the specialist, fulfilling other migration
izens”), foreigners temporarily residing in applying to employment authorities with in- One of the grounds for the cancellation procedures that go along with employing
Russia are not considered foreign workers. formation on the need for workers and he of a temporary residence permit, with some and dismissal of highly qualified specialists
In this regard, for them, there are a num- does not need to obtain a permission for exceptions, is absence of employment of in Russia.
ber of features in the process of obtaining a hiring foreign workers, as soon as these ob- the foreign citizen in Russia for a period ex- If the employment relationship is termi-
work permit: ligations are referred to the process of at- ceeding 180 days during the current year nated prematurely and the specialist is un-
1) Foreigners holding temporary resi- tracting and hiring foreign workers, but by from the date of issuance of the temporary willing to continue the cooperation with new
dence status can independently, or through law temporary residents are not considered residence status or due to the absence of employment in Russia, highly qualified spe-
their representative, apply to the regional as foreign workers; sufficient employment wages or enough in- cialist permanent residence status is valid
migration authority for a work permit. 6) Upon concluding an employment come to be self-sufficient or failing to sup- for 60 working days from the date of termi-
A work permit is issued for the period of agreement with such a foreigner, the em- port a family at the level not lower than the nation.
employment or civil contract’s validity, but ployer is not obligated to notify the state minimum living standard in the region for If a specialist finds a new employer within
not longer than one year. In case there is no authorities on the hiring, in so much as a which the temporary residency status was 30 working days from the date of dismissal
employment or civil agreement, a work per- foreign citizen holding temporary residence issued. from his previous place of employment, the
mit can be issued for a period of one year. status in Russia is not classified as a for- After a year of residing in the Russian permanent residence permit remains valid
The period for which a work permit is valid eign worker; Federation with the status of temporary res- throughout the period that the Federal Mi-
can be extended to equal the period of va- 7) Temporary residents can work only in ident, a foreign citizen can receive perma- gration Service is processing the request of
lidity of the temporary residency permit. the region of Russia for which their tempo- nent residence in Russia for a period up to the new employer to obtain a work permit
Herewith the law does not determine the rary residence status was issued. five years and thus achieve the status of a for the foreign citizen. If the foreigner con-
exact time frame within which the extension Foreign citizens are not permitted to in- permanent resident in the Russian Feder- tinues working as a highly qualified special-
of the work permit should be applied for be- dependently change the region for which ation. In accordance with Subparagraph 1, ist, he should have the relevant permanent
fore the current one expires. Thus, such ex- their temporary residency status and, ac- Paragraph 4 of Article 13 on the Law of For- residence permit reissued for the period of
tension can be realized at once after issuing cordingly, their work permit are valid. In eign Citizens, an employer can hire such a validity of the new work permit.
of the work permit valid for one year in case case of a necessity to move to another re- foreigner without the preliminary process of Thus, when considering the effect tempo-
of an existing employment or the presence gion for work, the foreigner must apply to obtaining permission for the hiring and em- rary and permanent residence status in the
of a civil contract; the appropriate state authority for migra- ployment of foreign workers and personal Russian Federation on the procedure of em-
2) A work permit is issued within 10 tion to make changes to the residence per- work permit of foreign citizen. The employ- ployment of a foreign citizen who is not clas-
working days, instead of 30 calendar days; mit. After that he should provide the state ment relationship with this category of em- sified as a highly qualified specialist, we see
3) A work permit can be issued for any authorities with documentation to confirm ployees is the same as with citizens of Rus- a simplification in the procedures or, in fact,
requested position that is included in the an agreement with the new employer re- sia, therefore the employer is not obligated see no need for them at all, and at the same
national classification of positions. Here- garding conditions of employment and res- to notify federal authorities on the hiring of a time simplifying the acceptance of a foreign
with the administrative regulations for the idence (employment agreement, leasing/ foreign citizen having this distinction. employee to work in Russia. But for special-
issuance by the Federal Migration Service rental agreement for place of residence in But a permanent residence of a highly ists, it has an inverse relationship. A foreign-
of a work permit do not require foreign citi- the region in which the foreigner is to be qualified specialists in the Russian Federa- er’s status of highly qualified specialist and
zens to provide confirming documentation employed, etc). tion (Article 13.2 of the Law on Foreign Cit- the availability of the appropriate work per-
of relevant educational or professional qual- In case of cancellation of temporary res- izens) has some particular features. It can mit depend on the possibility of obtaining a
ifications; idence status on the grounds established be obtained without prior approval of tem- permanent residence permit in Russia.
The Chief Accountant in Russia: A Critical Moment
By Ulf Schneider
Managing Director
RUSSIA CONSULTING
T
here is hardly another position in tremely difficult or even impossible to find. For example, to the question “What rental framework of the current legislation. In other
Russia that arouses so many differ- Let’s see separate aspects of this type. expenses did we have in the third quarter?” words, the conservative accountants who
ent associations as the position of you will get the sum amount with VAT. This is avoid trying to discuss disputable situations
a chief accountant. Let’s begin with the ACCOUNTANT AS A CONSULTANT not typical for Western accounting, but it is with the inspector will not help their com-
facts: From a legal point of view, a chief ac- The aim of an accounting department is to widespread in Russia. Here it is necessary pany make a tax audit check easier. Legal
countant is the second most important per- make about 15 reports per quarter and sub- to remember that communication should not interpretation and reasonable tax planning
son in a company after the general direc- mit them to tax authorities. But the chief ac- be one-sided. look absolutely different.
tor. Besides, with little exception, the pro- countant who thinks like that is a loser. Now-
fession of an accountant in Russia is occu- adays, it is more important to be able to TECHNICAL SKILLS TAX LEGISLATION VS. ACCOUNTING
pied by women. consult company’s management (which in- Accounting is not only preparing docu- For a long time, accountants thought
The notion of a “Soviet accountant” can- cludes not only the general director). Con- ments and making reports. Technical skills that it is more important to be experts in
not be regarded as a compliment, but it sultations are important because, on one are in big demand, such as, for example, tax accounting rather than statutory ac-
does not always have a negative mean- hand, the document flow in the company the ability to allocate types of expenses and counting. Such point of view is very hard to
ing. While many directors prefer to have a must be organized in such way that the ac- project items in accounting programs (it is change, but it must be done because this
dragon-secretary in their reception to pro- counting department gets the necessary usually 1C). New configurations, such as 1C year the number of differences between
vide themselves with good safety, others documents without overloading the employ- UPP (the answer to the Western ERP sys- accounting legislation and tax legislation
employ with pleasure an accountant of the ees. On the other hand, consultations can tems) also demand certain technical prep- has increased. Thus, in statutory account-
“Soviet” type so that she applies her forces help in situations when statutory and tax ac- aration. ing it is necessary to include reserves into
to extract documents from colleagues and counting legislations foresee the possibili- reports (on warranty expenses, vacation,
partners. Nevertheless, this type is gradu- ties of choice. TO WEIGH ARGUMENTS etc.), but in tax accounting it is not neces-
ally slipping into the past. Everybody is familiar with the following sary or cannot be accepted at all. Also, the
At present, there is a demand for those COMMUNICATION situation: The accountant has some idea in role of tax and accounting planning of the
accounting and tax experts who are able to Universities that teach accounting nor- her mind, and she will fight for this until the financial result is becoming more impor-
give advice, are amiable in communication, mally do not specialize in teaching commu- end. At that, the private opinion of one tax tant. In this sense, the position of an ac-
have necessary technical skills and who nication techniques. Those people who will inspector is treated as a law and is being countant is becoming more prestigious.
treat the accounting with reasonable flexibil- have to communicate with a Russian ac- struggled for with great passion. Today, we The changes of the chief accountant’s
ity. It seems an unachievable ideal that is ex- countant must try to understand her logic. need the accountants who are able to take image are in full bloom now. Good special-
into consideration different arguments and ists in this sphere are hard to find but, nev-
The MT Conferences section did not involve the reporting or the editorial staff of The Moscow Times. who are ready to take some risks within the ertheless, possible.

2. 10 v Wednesday, October 26, 2011 M T C O N F E R E N C E S The Moscow Times
HR Outsourcing: Key Trends and Perspectives
By Irina Lyamina
Accounting Process Management
ANCOR
A
ttitude to staffing issues has con- currently can be outsourced. At the same quire new human resources. employer-employee relationships. A con-
siderably changed over the last de- time, conceptual personnel development (in siderable staff of internal HR record-keeping
cades. It is becoming increasingly accordance with the strategy and cultural DEVELOPMENT OF PERSONNEL specialists and record-keeping automation
more evident that efficiency, motivation and profile of a company) is considered to be the The goal of development is to ensure the software are required to support this func-
creativity of the personnel are the key com- area of activities for HR specialists. best match of employees’ capabilities and tion. Payroll requires specialists to be in-
petitive advantages that contribute to the The current HR outsourcing trends are as requirements to his/her performance. As- volved and nonproduction costs for acquisi-
success of an enterprise value enhance- follows: sessment of personnel qualification require- tion and maintenance of special equipment
ment strategy. ments became more complicated due to and software. Outsourcing of these func-
Wide usage of such concepts as staff RECRUITMENT frequent organizational changes. The labor tions has a considerable economic effect
management, HR management evidences Specialized recruiters, in this case AN- market of global companies is expanding, and provides extra time for HR specialists to
that HR issues are part of the general or- COR Holding, extensively carry out labor but it is not becoming more transparent. The develop a general organizational manage-
ganizational management system, they are market research. A careful analysis of soci- same situation is observed in the education ment system.
closely interrelated with other managerial el- ety’s demographic development is required market, which currently cannot be fully stud- Many HR management issues should be
ements (for example, company goals set- to more efficiently use human resources of ied even by the largest companies. Special- reviewed taking into consideration that com-
ting, strategy development, planning, orga- older age and define the bottleneck for the ized providers of personnel assessment ser- panies are expected to be more client-ori-
nization, etc.). younger generation. Services rendered by vices help HR specialists reveal employees’ ented. The issue of which HR management
HR specialists face an issue that is be- a professional provider of recruitment pro- talents and correlate development of em- functions are to be outsourced should be re-
coming more acute for them: which prob- cess outsourcing allow avoiding extra time ployees and a company as a whole. solved. Generally, expenses and produc-
lems they can resolve using their own re- and cashing expenses required to support tion costs for companies will be more trans-
sources and which can be outsourced. the process and to focus on image building HR RECORD MANAGEMENT AND parent, internal demand issues will be more
Herewith, junction points for different func- both in the external labor market and within PAYROLL PROCESSING flexible, and a base will be developed that
tions within a company should be defined. a company. It is the image that is consid- The current Russian labor legislation re- will comprise efficient solutions for out-
Thus, payroll that has been traditionally con- ered to be the major factor of a company’s quires managing HR records and process- sourcing certain functions from HR man-
sidered as one of the key HR functions that attractiveness that ensures chances to ac- ing a large number of documents that record agement.
Today’s Business Challenges Are All About People. Is HR Ready to Lead the Dance?
By Derk Koole
General Director Russia and a Global Partner
Hay Group
N
obody knows today whether there work life balance and competitive pay. In basics are done right. HR will only be trusted sues and take ownership of them. HR needs
will be a next wave of the crisis soon most companies, the natural reaction to the if the basic processes are perfectly run. Op- to have an opinion on how to increase pro-
and in what way it will impact our above-listed items would be that HR should timize the processes and see where (e-) ductivity, to manage risks, to create safe and
businesses. Most companies are preparing ensure this kind of climate. The reality is that tools or outsourcing partners can help you motivating work environments, to build the
multiple scenarios for next year’s budgets. line managers are the dominant factor in or- to more effectively manage the processes right structures and how to attract the right
Whatever the scenario will be, companies ganizational climate, but they will need pro- around the employee life cycle. people to fill it. All of this preferably before
need to get higher levels of productivity and fessional support, coaching and advice. Secondly, HR needs to be the craftsman, the manager even starts asking questions.
innovation, while there will not be enough If any role is dependent on the trust by being ready to do the “detail” work when Last but not least, HR needs to be the
experts and managers. Obviously people its leadership, then it will be HR. The prob- the business leaders need it. Not the nicest change agent. Manage and implementing
are top of mind for the business leaders. Hay lem for most companies is how to cre- part, but it will need to be done for manag- change is all about changing the hearts and
Group’s research shows that those compa- ate a situation where line management will ers to feel supported. minds of the employees and needs strong
nies that continued to grow throughout the trust HR to give advice and not only to re- Thirdly, HR will need to be a champion of orchestration throughout the whole com-
previous crisis continued to invest in their act on tasks given by management. Unfortu- their profession. This is a hard one, since pany. By nature, this is the domain of HR.
people and manage their performance. HR nately, trust does not come easy. It is some- all managers will claim they know all about The business environment will not be easy
was leading the dance. thing you need to earn and prove every day. management and the way to motivate their for the next few years, and especially not on
To perform at a higher level, employees HR will need to plant the seeds before it will people. HR needs to understand people is- the people side. If the crisis will not hit hard,
will need to be engaged and enabled. Mean- be able to harvest, it can lead the dance or sues better and deeper to show the way. there will be growth in a world where skilled
ing they will need leaders that have a clear wait to be asked. Here are some ideas of Critical to becoming the adviser is not and experienced resources are extremely
direction, (crisis) plans and expectations, what seeds need to be planted to build the only to understand the business issues, scarce. HR will be accepted to lead if man-
translated in effective structures and doable trust, so the strategic adviser role can be but also to know what keeps the managers agement trusts them as their strategic ad-
and exciting jobs. In return, people will ask harvested. awake at night. In other words, HR needs visers. To be trusted, HR will need to per-
for an interesting future (career), reasonable At first, HR will need to ensure that the to think business, to address business is- form on all five aspects at the same time.
Innovations in Recruitment
By Natalia Fridrikova
General Manager
Beagle Recruitment Company
T
he business environment today is people who were born in 1984-2000. dom. The Internet has become an important speed has become a crucial issue. At this
such that commitment to HR is be- Y’s differ considerably from their precur- information source for recruiters. Surfing moment in time, videorecruitment needs
coming an increasingly important is- sors because they are focused on horizon- the Web, we can now rapidly gather infor- greater investments in equipment and ded-
sue necessary for any company’s develop- tal growth, giving priority to personal skills mation on targeted candidates and select icated links, the development of video job
ment. The labor market dictates its terms, development and stimulating work activi- those we would like to work with further. Ac- interview guidelines and privacy protection.
and HR experts need to be dynamic and ties over a long standing career. They are cess to information has become easier, and Thus, it is not yet widely used. But it is likely
proactive in order to match it at the highest flexible and result- and efficiency-oriented. the speed of obtaining it has increased. that reference offers may be created to be
possible level. Today the representatives of Generation Y Currently, the number of social network bought and implemented by other compa-
One of the most crucial reasons for im- have begun searching for job, but compa- users is 10 times those who use job sites — nies.
plementing new HR programs is the an- nies are not ready to work with such candi- HeadHunter has 5 million current CVs, while The third trend in recruitment and HR
ticipated personnel shortage, attributed dates, since they require a level of custom- Odnoklassniki.ru has registered 45 million management is the flexibility that employ-
directly to the demographic collapse of ization in business activities and in the com- profiles. The popularity of the Internet has ers need to apply regarding their staff. The
the 1990s. In general we will have an ag- pany in general, in accordance with their resulted in a situation where job fairs have number of companies that meet their work-
ing population, with an increase in retire- needs. This is a fundamental issue for HR also become virtual. Moreover, job sites ers halfway, by allowing working from home,
ment age, and the load on the labor pool divisions. In the view of the aforementioned have developed mobile applications avail- shifting schedules and extended leaves,
will grow. All these factors will result in high issues facing the labor market, it is worth able to their clients and candidates. has increased. Undoubtedly, all these as-
competition among employers for gaining noting the major trends in professional HR The second trend is technological ef- pects affect a company’s HR brand, the
young qualified personnel. approach. In pursuit of a qualified worker, fectiveness. One efficient tool in HR re- development of which has been shown to
Another major problem in the modern la- those employers who are responsive, sponding to this trend is the development be one of the trends in HR management in
bor market is the discrepancy between the adaptable to work, flexible and promote of videorecruitment. This is a new recruit- 2011. Today, it is not enough simply to be
experience and the skills of candidates and their own benefits are always in the lead. ment method involving video job interviews responsive, adaptable and flexible. It is also
the actual business requirements. Further- The first trend is speed. Continuous tech- that allow for a more effective way of deal- important to show that a company is at-
more, after graduating, young profession- nological improvements result in acceler- ing with personnel shortage. Videorecruit- tracting potential candidates, and keeping
als have considerably high salary expecta- ation in business and in recruitment. In the ment is becoming more and more vital, as and motivating those who are already em-
tions, which do not comply with the level of last four years, the number of the Internet foreign companies open offices in Russia ployed. As practice shows, today the major-
their work performance. These are the typ- users has increased fivefold. Global inte- and relocation develops within the coun- ity of the candidates prefer a company with
ical representatives of Generation Y — ac- gration into the Internet and social networks try. For this reason, the demand for long- a well-developed HR brand regardless of
cording to generational theory, these are has resulted in wider sociability and free- distance job interviews is growing, and compensation offered.