Hiring workers from India: What will change for Russian employers?

Russian companies hiring Indian employees will receive more specific rules in the event of staff reductions or employer closure. New agreements between the countries allow for the transfer of foreign workers to another employer, subject to certain conditions.

For businesses, this isn’t just a matter of immigration clearance. The new rules affect personnel planning, dismissal procedures, and the division of responsibilities between employer and employee.

Changing employers – under which conditions it is possible:

1. employment contract is terminated due to company closure or staff reduction
2. current work permit must have at least three months remaining on its expiration date
3. new employer must have permit to hire foreign workers

However, the ability to transfer does not mean that the employee gains an unlimited right to change jobs. The mechanism is designed for specific situations and requires compliance with established requirements.

For employers, this means that when laying off foreign employees, it is important to consider not only the procedure for terminating employment, but also the opportunities for future employment.

How does this affect personnel decisions?

Previously, Russian companies could already face situations where a foreign employee lost the opportunity to continue working after terminating their relationship with their employer. The new agreements specifically consider staff reductions as grounds for transferring to another employer.

This could make labour relations more flexible, particularly in industries where companies actively recruit foreign workers and regularly review headcount.

However, businesses still need to assess the migration implications of personnel decisions in advance. It cannot be assumed that every dismissal automatically allows an employee to transfer to another company under the same terms.

What guarantees do employees retain?

The new rules affect not only the ability to continue working, but also guarantees upon termination of employment.

When dismissed due to layoffs or the employer’s closure, employees are entitled to the prescribed compensation. Generally, compensation conditions must not be less favorable than those for local workers performing similar work.

In addition, the employee may request a document confirming the duration and nature of the work, as well as information on wages for individual months.

For the employer, this means the need to carefully process dismissals, make payments in a timely manner , and keep documents confirming the employment relationship.

What companies should check

Organizations hiring Indian citizens would be well advised to consider several issues in advance:

• How are dismissals and layoffs of foreign employees processed?
• What documents are required for an employee to transfer to another employer?
• does the employee retain the right to work within the limits of the current permit;
• What compensation and documents must be provided upon dismissal;
• Who within the company is responsible for checking migration requirements?

Particular attention should be paid to the interaction between HR, legal, and migration specialists. Lack of coordination between these departments can lead to delays in document processing and errors in the dismissal process.

When will the new rules come into effect?

The new agreements do not automatically enter into force upon completion of the approval process. For them to enter into force, both countries must complete the necessary internal procedures and exchange the relevant notifications.

Until then, employers should rely on current regulations and check the current status of new provisions separately.

The new rules are aimed at simplifying the continued employment of foreign citizens in certain situations where they lose their jobs through no fault of their own. This creates a more defined procedure for employers in the event of staff reductions or company closure.

However, migration requirements do not disappear: the possibility of transfer depends on the circumstances of dismissal, the validity of the permit, and the status of the new employer.

Companies hiring foreign workers should consider migration implications from the planning stage of personnel changes. This will allow for proper dismissal management, avoid document errors, and reduce the risk of violating employment requirements for foreign nationals.