Sunday 19 April 2009

Foreigners’ work visa hassles grow

Getting work permits for foreigners in Russia has traditionally been a thorny issue, mired in red tape and confusing, constantly-changing rules.
But that confusion appears to be getting worse during the current economic crisis - not least because government agencies are tightening rules, as they come under increasing pressure to provNear the end of 2008, there seemed to be much more hiccups than usual for companies trying to hire and retain foreign employees, whether those companies were trying to fumble through the red tape themselves, or pay law firms and agencies to take care of their problems.
People who thought that everything should be ready in two and a half months realized that things were taking much longer, and those with work permits expiring at the end of 2008 found themselves forced to leave the country as their papers were not ready on time.
The procedure is especially multi-layered for a representative office of a foreign firm.
To open a representative office in Russia, the firm first needs to be accredited in Russia, usually by the Chamber of Commerce and Industry, or by the State Registration Chamber. A few other companies are accredited elsewhere - banks, for example, are accredited by the Central Bank. The representative office is issued a permit - usually valid for two years - where it is also stated how many foreign employees the representative office may hire.
Basically, a representative office may hire foreigners within this limit, and the employee is issued not a work permit, but an accreditation card from the accrediting body which becomes the basis for applying for a multiple-entry visa. Until recently, this was the standard, but there have been cases of police officers harassing such employed foreigners during their routine document checks in the streets, and the Japan Business Club and Association of European Businesses instruct their members to obtain work permits for accredited foreign employees working in representative offices.
One major problem was encountered late last year when the Transport Ministry said it would no longer give out any accreditations. Airlines had traditionally been accredited by the Transport Ministry, but they suddenly faced the need to be accredited elsewhere, while their employees' work permits were fast expiring.
Getting hard information about the real situation regarding work permits, quotas and visas can prove elusive.
Telephone, e-mail and faxed enquiries to the Federal Migration Service and various foreign business associations for this article over a period of several weeks turned up little, with the only responses coming from people who declined to be identified, citing the sensitive nature of ongoing discussions on the issue.
Everyone agrees that a major problem is that the rules are constantly changing. Even Russian companies, which do not have the hassle of accreditations, often come up against problems. Quotas for foreign employees must be filed far in advance - applications for 2010 are accepted until May 1, 2009. Quotas are specified by nationality and profession, so employers have to plan a year ahead, which is not always possible.
The Federal Migration Service has become stricter in enforcing rules, as well. Two years ago, diplomas attesting to the applicant's qualifications were necessary only for language teachers, but since October 2008, the rule is being enforced for all professions. One Russian company in the automotive sector immediately ran into some problems. While most of their foreign employees were able to produce appropriate diplomas, the plant manager had only a high school diploma, while another employee, a translator, had applied for the position of "equipment engineer" because the company had not filed for a quota for a translator, and one specialist engineer didn't even go to high school.
"I've been in this job for almost 45 years," he said, on condition of anonymity. "No one ever asked me if I finished school." After posting a vacancy for plant manager at the employment centre for a month and failing to find an appropriate candidate, the migration service issued a work permit for the manager.
Meanwhile, the translator was told that without a diploma in engineering, there would be no work permit for 2009 and that the company should apply for an appropriate translator quota for 2010. The specialist engineer is still waiting.
"One of the problems is that we really don't know what's going on. Some companies have problems, some in the same circumstances don't. There are several FMS branches in Moscow, and they each seem to have different interpretations of the rules. Most foreign companies pay agencies to deal with this, and the result appears to vary depending on the agent's expertise. There is no definite guideline, and that leaves us unsure how to proceed," commented the director of a foreign business association, who asked not to be identified, citing ongoing talks with the authorities about visa issues.
An associate working at an international law firm confirmed that procedures are taking longer, mainly due to the mandatory one-month waiting period while the vacancy is posted at the employment centre. This is to ensure that a suitable candidate cannot be found amongst Russian citizens. Vitaly Dianov, a lawyer at Capital Legal Services, said that the entire procedure can take up to six months.
Spending six months on getting a work permit valid for a year doesn't make anyone happy, but there seems no alternative at the moment.
Asked if the government is squeezing out foreigners to help unemployed Russians get back into work, Dianov said: "De facto, the Moscow immigration authorities have frozen examining the quota applications until they are provided with guidelines from their superiors regarding further development of the immigration policy in Russia. We do not expect the authorities will simplify these procedures. Moreover, we foresee a reduction in the quota for 2009 and probably for 2010."
The FMS, the Association of Euro­pean Businesses and the American Chamber of Commerce declined to comment for this report. The AEB said, intriguingly, that they might be willing to disclose more information by the end of April or early May.
One longstanding idea that may be finally making progress is to give some white-collar professionals from the European Union, the United States and Japan "green cards", which would allow their holders to avoid bureaucratic hassle with quotas.
A Federal Migration Service-drafted bill may be introduced to the Duma in July.

No comments: