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General Director of Leader Group LLC Poluektova Ekaterina Andreevna
Official employment of a foreigner can result in serious problems for the company. The admission of migrants to the state has a lot of nuances, and with the slightest violations, the organization risks receiving a large fine. Therefore, many legal entities use the service of outstaffing, that is, they remove employees from the staff and relieve themselves of responsibility for the foreign employee. Your organization can do this too. We tell you exactly how in the article together with the General Director of LEADER GROUP LLC Ekaterina Andreevna Poluektova.
What companies need outstaffing?
Outstaffing is very convenient for employers who hire migrants. The fact is that migration legislation is quite strict: you need to properly register an employee, submit a notification to the migration authorities, monitor the timely payment of patents and the renewal of migration registration. There are many nuances, and fines even for minor violations reach up to one million rubles.
Outstaffing of personnel allows the company to completely relieve itself of responsibility for possible non-compliance with migration legislation. The company retains its employees, but personnel issues fall on the shoulders of the provider company.
“We, as the official employer of your employees, exclude the very possibility of risks associated with the prescribed fines, which reach up to 1,000,000 rubles for one illegal employee. Due to the nature of their activities, our employees visit the migration authorities of the Ministry of Internal Affairs every day, we vigilantly monitor changes in migration legislation, so we are the first to learn and put into practice various innovations,”
— told in “LEADER GROUP”
Employer risks during outstaffing
When transferring foreign workers to the agency staff, you, as an employer, completely get rid of all personnel and migration risks, as well as fines and legal liability of the employer for migrants.
Being the official employer of your migrants, the outstaffing agency completely takes over the entire tedious procedure of registering foreign citizens as employees, conducts a migration audit of their documents, submits a notification to the Main Directorate for Migration Affairs of the Ministry of Internal Affairs about the conclusion of labor relations with foreign workers, deals with the renewal of registrations of migrants at the place of work, and also carefully monitors the validity of their documents.
If government services come to you with an inspection, it will be enough to simply show the outstaffing agreement, and all questions will automatically be redirected to the outstaffing company where your foreign workers are registered.
If the audit nevertheless manages to detect any errors in the migration or personnel records of workers, a fine will only be imposed on the agency - the official employer of the transferred personnel; you will not bear any responsibility, because the personnel were provided to you for use.
Thus, by registering employees as outstaffing, the employer 100% protects himself from the close attention of inspection services, employer liability and all kinds of fines and risks.
Is outstaffing prohibited in Russia?
In 2021, indeed, amendments were made to the legislation regarding the removal of employees from the staff. But the outstaffing service was not prohibited, the conditions for its provision were simply changed.
“Only legal entities accredited by the employment service as private employment agencies can provide outstaffing services to other legal entities.
We are accredited to supply workers with labor. Included in the register of accredited private agencies of the Federal Service for Labor and Employment Rostrud - No. 749 dated July 26, 2017.” — explained in “LEADER GROUP ”
What benefits does a company get from outstaffing?
Legal entities can use the services of companies providing personnel outstaffing services. We’ll tell you what benefits a partnership with one of the top companies in this area, LEADER GROUP, provides:
- the company maintains complete personnel records of employees and is the first to respond to changes in migration legislation;
- calculates and pays taxes and contributions for employees;
- monitors the validity of migration documents;
- warns in advance about the need to prolong documents;
- submits reports, submits documents and notifications to government agencies;
- Due to the existing number of outstaffing employees, LEADER GROUP employees visit migration authorities every day. During this time, the company has earned an excellent reputation and good administrative resources for quickly resolving issues related to tax and labor inspection.
In general, the outstaffing company bears full responsibility for its employees to government agencies. You use the legal labor of a foreigner and you no longer need to worry about migration legislation and the documents of each migrant. You devote your attention and time to the truly important aspects of your business, while your partner company deals with personnel and bureaucratic issues.
Professional team "LEADER GROUP"
If you decide to use outstaffing, here is how the cooperation will take place:
- A specialist comes to your organization, or, conversely, one of your employees comes to the LEADER GROUP office. A migration audit of employee documents is carried out.
- At the next stage, the partner company will conclude employment contracts with your employees, prepare work books and other necessary documents for them.
- Next, notifications are submitted to the Ministry of Internal Affairs about the hiring of foreigners.
- If employees are provided with housing, the company is ready to support the process of registering foreigners for migration registration at your address.
- A fully legalized migrant with all documents in hand continues to work calmly and efficiently for the benefit of your enterprise.
As a result of such cooperation, you receive a qualified, comprehensive and absolutely legal service at a low cost.
Basic information
To understand how important changes have been made to the Labor Code of the Russian Federation, you first need to understand what outstaffing itself is and how it affects the relationship between the employer and “leased” employees.
Concept
The type of outstaffing relationship is such circumstances when employees are employed at an enterprise, but their employment contract is concluded with another company.
The company that employs this employee provides him to perform duties on the basis of an agreement with the employer organization. She pays him a salary, pays social benefits, resolves personnel issues, provides vacations, pays contributions to budget funds, but he performs his direct duties for the benefit of the production of another institution.
In direct text, the concept of outstaffing implies the removal of workers outside the company’s staff.
Thus, an intermediary company (outstaffer) appears between the worker and his employer.
Today, this high method of management technology is being used more and more often.
Direct employers try to use the labor of their employees through outstaffers, thanks to which they get rid of the social issues of the working staff and save money on payments to state funds.
And production tasks, just as they were carried out in direct relationships, continue to be implemented by the same people.
Who benefits and when?
Circumstances when the labor of specialists is used through an intermediary company is beneficial to the production enterprise and the outstaffer.
Since now the official employer according to the worker’s papers is the outstaffing company, which has registered him on its staff under an employment contract, then it performs the duties of a personnel officer and payment of wages in relation to hired workers.
Its activities include the following activities:
- maintaining personnel records;
- registration of documentation on work books and personal files;
- calculation and payment of taxes and contributions from wages;
- resolves issues of workers in interaction with government agencies, etc.;
- payment of salaries and social compensation for sick leave, vacations, etc.;
- resolving issues in violation of labor, migration or tax laws.
In this case, the recipient of services is a manufacturing enterprise:
- exempt from fines for the use of migrants, which sometimes reach up to 800 thousand rubles for each foreign employee;
- relieves the workload of the HR department and accounting department, saving money on the maintenance of administrative personnel.
This allows a manufacturing enterprise to save time and money on working resources, because it pays only fixed amounts to the outstaffer in accordance with the contract concluded with him.
Moreover, if an employee is sick or on vacation, the intermediary company replaces him with another specialist during his absence.
Production that uses such services is exempt from dealing with issues of layoffs and staff reductions if it suddenly needs to reduce the number of employees.
At any time, it can easily increase or decrease the number of full-time employees, while being exempt from paying compensation for staff reductions and from resolving controversial issues regarding labor relations with workers, which is a big plus.
The outstaffer, in turn, also has benefits, because earns by concluding contracts with production institutions for the specialists provided to them.
This type of labor relationship is the most disadvantageous for workers for many reasons:
- the employee is deprived of certain benefits and privileges;
- there is no payment for hazardous working conditions;
- it is impossible to build a career;
- the level of wages is greatly reduced;
- has difficulty proving that he worked in a prestigious institution due to the lack of entry in the work book or other similar documents;
- there is an opportunity to get to an illegal outstaffer who will not pay taxes to budget funds.
Specialists need to know what they are risking when formalizing an employment relationship with an outstaffer.
It is especially important to pay attention to the legality of a given company before applying for a job.
Is it true that outstaffing is prohibited from 2021? Information is in our article. What is the purpose of staff onboarding? Find out here.
Is this legal?
Many employers in Russia do not clearly understand how legal it is to use agency labor through outstaffing agreements starting in 2021.
The first mention of the prohibition of such labor relations appeared during the discussion of the draft submitted for consideration on the regulatory and legislative conditions for the use of agency labor. The legislative act that came into force in 2020 was perceived as prohibiting the use of staffing agreements.
But this is not entirely true, since Federal Law No. 116 “On Amendments to Certain Legislative Acts” dated 05/05/2014, which has gained legal force, became the first official definition for legal relations among enterprises and recruitment agencies, which provide for the use of agency labor of specialists from outstaffers.
Thanks to him, outstaffing is now regulated in a regulatory act in force on the territory of the Russian Federation, from January 1, 2020.
Labor Code of the Russian Federation
Federal Law of 05.05.2014 N 116-FZ
Thus, when concluding outstaffing agreements, it is now necessary to focus on labor legislation, which has approved standards for the use of services from legal entities on the issue of “renting” personnel for the purpose of involving agency labor in production.
Therefore, this legislative act is not a categorical ban on the use of outstaffing agreements in Russia, but only introduces restrictive adjustments to the scope of such relations to protect the rights of workers whose labor is used through intermediary firms.
Regulatory regulation
Before 2021, the labor legislation did not mention the concept of agency labor, and therefore there was no regulatory regulation of this issue, but now everything has changed.
A clear definition has already been adopted regarding the use of the labor of freelance specialists, which the employer can dispose of by managing them through a recruitment agency or another company. Starting from 2021, it is prohibited to use agency labor in the interests and under the direction of another company.
But the opportunity to send workers to perform production duties to another employer remained subject to compliance with many conditions stipulated in the newly adopted Chapter 53.1 of the Labor Code of the Russian Federation.
What has changed in outstaffing during the coronavirus period?
At the beginning of the quarantine, there was a slight decline in requests from new clients. Many companies were forced to suspend their activities and recruitment of new employees.
Today, demand has increased compared to the pre-quarantine period. Now, as businesses begin to return to work, accountants and HR staff are faced with difficulties in registering new employees and keeping records of previously hired ones. This is due to the issuance of a Presidential Decree, according to which the deadlines for registrations, patents and other documents of foreigners were extended, without providing clear regulations to the Decree.
“During the pandemic, our employees switched to remote work, the company’s activities did not stop and we fully fulfilled our obligations to our partners.
Due to the easing of quarantine measures from June 15, 2021, the office switched to normal operation,” said LEADER GROUP specialists
