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Personnel records for foreign business in Russia - how to organize?

30 April 2021

Any foreign company doing business in Russia, regardless of whether it opens a representative office or just a branch, is faced with personnel records. In Russia, there is rather strict legislation on employment protection,  so you need to be very careful about for employees' documents, because violations can lead to large fines and additional checks

Personnel records includes registration of vacations, tax deductions, hiring and dismissal. Personnel records are mandatory for any company, without exceptions in terms of legal form and staff size.

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Personnel records in Russia can be organized in several ways. The choice depends on the financial capabilities and personal preferences of the company's management: 

Hiring a HR specialist or creating a HR department

This method allows you to organize the work of an employee in accordance with company's principles / requirements. The manager will be able to independently monitor the department's or employee's activities, but you need to organize hiring, workplace, control.

Deligating personnel records to the secretary or accountant

In some companies, one employee can combine the duties of a secretary, accountant, lawyer, HR specialist. The main problem of this method is the high probability of errors, lack of highly specialized knowledge or the necessary documents.

Transfer of personnel records to outsourcing

The most convenient and budgetary option for small businesses and branches in Russia. An "external" specialist takes over the maintenance of personnel records on a service agreement basis. He is engaged in organizational work, personnel management, completely or partially removing all these tasks from you.

Benefits of outsourcing HR records to specialists:
  • Cost reduction. The organization pays a fixed amount and does not spend additional funds on personnel services (you save on finding and hiring your own employees, organizing their jobs, social benefits, etc.)
  • Risk reduction. Due to the transfer of personel records to specialists, the organization may not follow the innovations in the Russian legislation that are not obvious to non-professionals
  • Quality of work. Qualified specialists use proven and effective methods in their work; 
  • Consistency of work. As a rule, several specialists are involved in your company at the same time, including lawyers and financiers, which provides an integrated approach to solving problems
  • Continuous work. As we said above, several specialists are engaged in maintaining the personnel records of a company at the same time, in such typical situations as an employee's illness, unscheduled leave, the need for advanced training, etc. there will be no downtime. The absent specialist will be temporarily replaced by another, and the work will continue as usual.
It must be remembered that the personnel records of migrant workers (not Russian citizens) is very complicated and requires a number of documents: work permits, residence permits and many others. The RAUIE Migration Center helps foreign companies to resolve these issues in Russia.
Any interaction between a company and its personnel in Russia must be documented in order to do it correctly and not create problems for yourself - knowledge, experience and constant law monitoring are needed. Trust your personnel records only to experienced specialists!

For more than 10 years the RAUIE has been helping foreign business to enter the Russian market and effectively solve any problems arise. We have already helped to establish personnel records and accounting for more than 50 companies with foreign capital.

If you still have questions or need advice, you can leave a request in the feedback form or contact our specialists:

Maxim Kuznetsov - vice-president of the RAUIE
investment@raspp.ru
WeChat: maximkuznetsov
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