KPMG services with regards to the requirements of the Directive #140/20 dated 11 March 2022

KPMG Review

KPMG Review

In accordance with the Directive No. 140/20 of the General Prosecutor's Office of the Russian Federation dated 11 March 2022 "On the increase of the Prosecutor's Supervision over the compliance with legislation and respect of rights of the individuals in connection with the measures processed in the Russian Federation to support the economy and social sphere as well as in connection with introduction of certain restrictions on the performance of financial, business and other activities" the prosecutor's office received instructions to organize additional supervision with the respective authorities over the performance of branches and representative offices of foreign legal entities that have declared termination or suspension of operations in the Russian Federation, including compliance with the responsibilities stipulated by labor and tax legislation, prevention of abuse related to refusal by one side of relations to perform contractual, warranty and other obligations.

We are currently aware of cases when the legal entities in the Russian Federation receive written notification that an audit of the prosecutor's office will be performed in the upcoming months despite the fact that it was not planned in advance at the beginning of the calendar year due to the publications in the mass media on termination or suspension of operations in the Russian Federation by the parent companies of such legal entities.

In the current situation KPMG may assist the company which has received such notification of being present in the lists of the General Prosecutor's Office audits for the current months in the following areas:

1. Preparation for an external audit by performing a comprehensive diagnostics of HR document flow and compliance with legal requirements, including:

  • Diagnostics of internal policies regulating employment relations, employment contracts and other HR documents for compliance with the Russian labor legislation;
  • Diagnostics of primary individual HR documentation (based on a sample or for the whole Company) and company-wide documentation:
    • Review of employment contracts and addenda to them on compliance with Russian labor legislation;
    • Review of obligatory company-wide HR documents on compliance with Russian labor legislation (staffing schedule and order on its implementation; vacation schedules; shift schedules, timesheets; records to the labor book movement log);
    • Review of obligatory individual HR documents on compliance with Russian labor legislation (HR documents related to hiring, transfer, termination, business trips, vacations, bonus payment, overtime work and work on weekends and etc.; records in labor books; individual / collective liability agreements; other HR documents);
    • Review of procedure of maintaining and storage of labor books.
  • Diagnostics of the Company's compliance with labor safety requirements.

2. Preparation for an external audit by performing a diagnostics focusing only on the areas stated for review by the General Prosecutor's Office of the Russian Federation;

3. Provision of methodological support in structuring of changes in the employment relations.

We would be glad to discuss the opportunities for further cooperation in this area with you.

Should you have any questions, please do not hesitate to contact us.