Government proposes banning foreign workers in retail
According to Kommersant, the government has submitted amendments to the Law on the legal status of foreigners in Russia to the Duma. It proposes completely banning the employment of migrants in retail, irrespective of store assortment, size and other forms of organisation. The only exception is for the top management.
The amendment cancels out the previous suggestions to lift the quota for migrants in the retail workforce to 25% (from 0% at present). Furthermore, the proposal completely bans their employment and eliminates quota system introduced in 2007. According to industry experts, migrants account for 25% of food retail personnel, however employees are hired through outsourcing companies. Thus, we think the potential development would maintain the status quo without having any material negative impact on the retail segment.
Maria Kolbina, Ivan Kushch, Nikolay Kovalev
VTB Capital analyst
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