Fine for foreign worker in LLC
- Possible sanctions due to infringement of law.
- Amount of fine in case of infringement of law.
- What shall be done if a fine was issued?
- Questions and answers
Hiring of the illegal foreign workers in private or public company without permitting instruments is a significant infringement of law on migration and employment in Russia. These violations may cause heavy legal or financial consequences for a company.
It is necessary to strictly follow the laws stipulated in different regulations in order to avoid involvement of LLC or officials thereof to punishment. Above all, it is related to obtaining of permission of work in Russia for non-resident.
Possible sanctions due to infringement of law.
- Fines. LLC’s may be obliged to pay fine amount of which will depend on the character of violation. Fines might be of significant amount and make up several hundreds of thousand rubles or more.
- Administrative punishment. Managers and employees of LLC involved in illegal employment of foreign workers may also be subject to administrative punishments. Generally, these are fines or arrest.
- Alienation of property. Executive state bodies may move to alienation of Company’s property to cover the debts in case of failure to perform obligations on paying of fines or compensations.
- Court consequences. Company and its management may face lawsuits filed by employees and other interested parties demanding damages on violations of laws on migration and employment.
- Annulment of license. Breach of law may result in taken away of license if Company has special licenses to execute the certain types of business (for example, sale or production of alcoholic beverages or executing the security activity.
- Criminal liability. Where the violations are considered especially serious, they may lead to criminal liability that might include criminal fines and even deprivation of liberty.
Management of a Company shall comply the laws and rules on migration and employment of foreign employees in order to avoid many of serious consequences. Also, it is vital to provide legal employment of all non-residents including obtaining the work permit and visa processing.
Amount of fine in case of infringement of law.
Fines for breaches in field of foreign workers employment for LLC may differ. Generally, fines may be imposed for following types of violations:
- Employment of foreigner without appropriate permit or without visa
- Violation of visa processing rules or temporary residence
- Breach of laws on employment of foreign workers concerning minimal wage, working hours, and working conditions.
- Violation of foreign workers registration rules in the state migration bodies.
Sanctions for employment of non-residents in Russia may be imposed for legal entities of any organizational and legal form in case of violation of laws on migration and employment of foreign citizens. The amount of fine depends on type of breach, for instance:
- Employment of foreign worker without work permit or temporary residence license. The amount of fine is varied from 250 000 to 800 000 rubles for Companies.
- Breach of notification terms on foreign worker employment. The amount is varied from 35 000 to 70 000 rubles.
- Absence of employment contract with foreign worker. The amount is varied from 35 000 to 70 000 rubles.
- Violation of foreign workers registration rules. The amount depends on certain violations.
What shall be done if a fine was issued?
Where a LLC was fined for illegal foreign worker employment, it is necessary to take certain actions to reduce legal and economical consequences. It is crucial to fix the case from the Company’s reputational point of view.
Action to be taken upon receiving the fine notification:
- To check the decision on fine. It is vital to carefully analyze the decision on fines to be aware of its grounds and amount.
- Consultation with experienced lawyer. We recommend consulting with experiences law consultant or attorney specializing in migration and employment issues. Lawyer will aide to clarify the rights and options and to develop the strategy of appealing a fine if necessary.
- Appeal of decision. Decision may be appealed and challenged duly if there are grounds to consider a decision as illegal or if a fine was applied in violation of procedures.
- Correction of violation. Violations related with illegal employment of foreigners shall be fixed immediately after the decision on fine becomes legal. This may include termination of employment contract of illegal worker or, otherwise, carrying out procedures for legal registration of his employment.
- Learning from experience and preventing future violations. This may ensure that company adheres all the laws and rules connected with foreign workers employment strictly.
- Study the settlement opportunities. Depending on consequences it can be considered the possibility of reaching an agreement with respective bodies on installment payment of fine or reducing its amount basing on agreement.
It is crucial to remember that every case is unique, and the actions will depend on certain consequences. That is why it is vital to contact for professional legal consults in order to develop a strategy most appropriate for your case.
Questions and answers
What violations are most often fined for by supervisory authorities?
Statistics portray that employers may be fined for following violations:
- Absence of full package of documents or lack of some legal instruments.
- Violation of patent registration terms or its complete absence.
- Failure to conclude an employment contract with an employee.
- Failure to comply with labor safety rules upon foreign worker hiring.
- Failure to issue the personal protective equipment for performing his duties.
It is necessary to understand, that punishment may not only consist of fine but also in the form of any of the influence measures – confiscation of property, administrative arrest.
How to check for fines?
Inspection reports are created by Federal Migration Service inspectors. You may contact FMS at the place of registration of a legal entity in order to find out the fact of imposing a fine. You may visit the court with legal instrument to challenge the results.