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Registration of Foreign Citizens on the Territory of the Russian Federation

The employer will compensate the employee relocation costs to other regions

06.11.2014

The Russian government has submitted to the State Duma a bill that provides compensation for the costs of relocating employees to other regions.

The initiative is linked to changes in the RF Law "On Employment in the Russian Federation” with regards to increasing labor mobility of citizens of the Russian Federation. The Russian government will establish regions that need to attract manpower and implement support programs in order to enhance labor mobility through special investment projects

Employers that become participants in the program of improvement of labor mobility will conclude an agreement with the executive bodies, which will provide measures to support workers and order reimbursement of the employer. Then, these employers will be able to enter into employment agreements with an employee from another region of the Russian Federation for a period not less than three years and receive a special certificate which will confirm the amount of compensation from the state. An employer may receive compensation no earlier than three months from the date of conclusion of the employment agreement, subject to the payment of all applicable taxes and fees in respect of the employee.

Moreover, as members of subjects and local authorities, they will have the right to assert its own program to improve labor mobility: the experts believe that in this case it is possible to establish other compensation and benefits for employers who promote labor mobility.

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