In the context of a foreign worker, what is the difference between an employment contract and a civil law contract?

In the event that you are in the business of employing foreign workers, you are aware of how challenging it may be to fulfill all of the legal criteria while negotiating an employment contract with them. The use of a contract governed by civil law is an option. When is it appropriate to make use of it? In terms of the employer, what are the benefits and drawbacks of this situation? Explanations may be found on the World Immigration Hub.

For the employee, are there any permission papers that are required?

The Act does not impose a limitation on the conclusion of civil law contracts (CLC) with foreign citizens, regardless of the citizenship and legal status of the foreign residents in the Russian Federation. At the same time, permission papers for the right to work in Russia are only necessary for foreign residents in the event that they have concluded a contract under civil law for the purpose of doing works (providing services).

Let us not forget that the Civil Code also differentiates between a transport contract (Chapter 40 of the Civil Code of the Russian Federation), a freight forwarding contract (Chapter 41 of the Civil Code of the Russian Federation), storage (Chapter 47 of the Civil Code of the Russian Federation), and a number of other types of contracts. For these types of contracts, neither the employer nor the foreign employee is required to obtain authorization documents.

The benefits of entering into a contract with a foreigner under civil law

When compared to an employment contract, a civil law contract offers a number of benefits.

Just the contract itself and acts of completed works (delivered services) are the only pieces of documents that are required.
In a civil law contract, it is not needed to include information about the employee's permission papers or the reasons for providing medical treatment to them (including information about VHI policy). This means that there are no specific requirements for the content of the contract that is completed with a foreign person.
There is no duty to pay a minimum payment (the amount of remuneration is chosen by the client and the contractor, and it may be less than the minimum wage).
It is possible to get an agreement on a "dormant" contract, which is a contract in which the contractor is participating not on a permanent basis but rather on an episodic basis. When there is no working time sheet, it is more difficult for regulatory authorities to demonstrate that they have access to work during a disputed period. This provides for flexibility in the event that there is a problem with regulatory authorities.
In the event that the foreign citizen's documentation (patent, work permit, VHI insurance, temporary residence permit, residency permit) expire, there is no need to end the contract. To put it simply, the contractor is not permitted to carry out the work that is specified in the contract and does not need the issuing of administrative orders.
The validity duration of the VHI insurance does not need any control on your part. Considering that the expiry of the VHI policy results in the suspension of the employee, which is then followed by dismissal and required notice to the Ministry of Internal Affairs units, this is of the utmost importance when it comes to the conclusion of an employment contract.
There is no issue with "missing employees" since, up to the conclusion of the contract time, either zero actions are closed or the contract is canceled unilaterally.

This article is a comparison of the minimal list of papers that are necessary for formalizing ties when employment contracts and civil law contracts are being finalized.

A list of the papers that must be submitted in order to finalize an employment contract:

• identification document;
• a record book documenting employment and information on job history;
• The SNILS;
When applying for a job that requires specific knowledge or training, you are required to provide a document that demonstrates your education, qualifications, or evidence of special knowledge (for further information, see Article 65 of the Labor Code of the Russian Federation);
In the event that it is necessary, a document granting permission to operate in the Russian Federation;
• VHI insurance (if you are obliged to have one; for further information, see Article 327.3 of the Russian Federation's Labor Code).

When entering into a contract governed by civil law, the following papers are required:

• identification document;
Please refer to paragraph 1 of Article 7 of the Federal Law "On Mandatory Pension Insurance" for further information on SNILS.
• a document that provides permission for the right to work in the Russian Federation (if this is necessary; for further information, see paragraph 4 of Article 13 of the Federal Law "On the Legal Status of Foreign Citizens in the Russian Federation");
See the Federal Law "On the Legal Status of Foreign Citizens in the Russian Federation" for further information on the VHI policy, which is applicable in the event that it is necessary (see paragraph 13, clause 1, Article 2 and clause 10, Article 13).

In addition, a contract governed by civil law is established with people who are self-employed and those who are conducting labor outside of the Russian Federation (for further information, see the letter issued by the Ministry of Labor on November 5, 2015, number 17-3/B-534).

What is the difference between a contract governed by civil law and one that is governed by employment law?

Various sorts of labor, such as building, housing and community services, loading and unloading operations, educational courses, marketing research, website advertising, courier services, and so on, are examples of some of the types of work that originally imply the execution of a civil law contract. On the other hand, the majority of human resources and accounting personnel view civil law contracts with a healthy amount of skepticism.

The substance and content of the contract are of the utmost significance in this context; the name of the contract itself cannot serve as a sufficient basis for defining it as either an employment contract or a civil law contract.

The examination will take into consideration the following circumstances:

• a method of payment in accordance with contracts;
• the kind of job that is being done;
• the existence of jobs in the organization's personnel schedule that correspond to the work that is done under contracts;
• safety considerations for workers;
The question that has to be answered is whether the nature of the job requires the contractor to comply with labor discipline and internal standards.
• whether or whether the corporation supplied contractors with various methods, including but not limited to equipment, tools, and technical documents;
This includes the provision of social guarantees.

In the practice of the judiciary, the substance of the agreement that was reached with the employee is used to identify signals that indicate the existence of an employment contract. One of them is:

• the inclusion of phrases such as "position," "specialty," "salary," "dismissal," and "work schedule";
adherence to the rules governing the internal labor market;
• submission to the requirements and directives of the employer;
• conformity with the regulations governing the protection of workers and safety;
• the responsibility of supplying the worker with the devices, supplies, and instruments that are required for their job;
• the extension of a long-term contract;
• the distribution of directives and commands about the work process;
• successfully completing safety and labor protection training, as well as medical exams that have been ordered by the employer;
• the simultaneous payment of salaries, regardless of the amount of labor performed or the type of the task;
The distribution of payslips that include the personnel number and salary information.

An objective fact of the labor market is the fulfillment of civil law contracts that include individuals who are not citizens of the United States. On the other hand, the formulation of the substance of the contract in each individual instance had to be carried out by legal specialists.