However, the ban was not formalized; only draft legislation was developed, which mentioned the concept of temporary labor for the first time.
Legal features of the outstaffing agreement in 2024
Source: shutterstock.com
Since the beginning of 2016, a law has come into effect that many perceived as a ban on outsourcing and the use of temporary labor.
But in fact, the regulatory legal act did not indonesia number list introduce a ban. The new legislation did not prohibit either outstaffing in general or temporary labor in particular. This change to Federal Law No. 116 "On Amendments to Certain Legislative Acts" dated 05.05.2014 established an official definition of temporary labor and regulated its application in Russia.
Thus, the law did not prohibit companies from using outstaffing, but only established rules for its use as a service.
It is important to note that there is no complete ban on outstaffing in Russia. However, its provision and use is permitted only in compliance with the statutory rules and taking into account certain restrictions.
Let's look at this issue in more detail to clear up any possible misunderstandings regarding the ban on outsourcing agreements, which is said to have been in effect since 2016.
Since the beginning of 2016, Law No. 116 "On Amendments to Certain Legislative Acts" dated 05.05.2014 has come into force. For the first time, it has established a legislative definition of temporary labor and established rules governing the personnel outsourcing agreement.
Legal features of the outstaffing agreement in 2024
Source: shutterstock.com
This law states that agency work is an activity performed by an employee under an agreement with an employer, but for another person who directs and controls the process and is not the legal employer.
With regard to the outstaffing agreement, this law establishes the possibility of application. According to these restrictions, by 2024, outstaffing services may only be provided by:
Affiliated organizations.
Private staffing companies.
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This means that employees can be sent to perform work duties from one company to another only if these organizations are affiliated legal entities, participants in a common shareholders' agreement. Or the legal entity must be accredited by the employment service as a private agency to provide personnel outsourcing services to other legal entities.
Legal features of the outstaffing agreement in 2024
Source: shutterstock.com
At present, simply any company cannot carry out outstaffing, as it was before the introduction of the new law. Now such activity is available only to specialized employment agencies with state accreditation.
There are also several more mandatory rules regarding outstaffing that will be in effect by 2024:
The salary of an employee hired under an outsourcing agreement must be on par with the salary of other specialists performing similar work in the customer’s company.
Mandatory accounting of compensation for employees working through outsourcing in harmful or hazardous working conditions.
The maximum period during which an employee can be used by another company is 9 months.
The total number of employees hired through outsourcing should not exceed 10% of the total number of personnel in the customer’s company.
There are cases when it is absolutely forbidden to use a personnel outsourcing agreement. In 2024, it is forbidden to hire employees in this way in the following cases:
For performing work of hazard classes I and II or in workplaces with hazard levels 3 and 4.
For recruitment as a forwarder or crew member on seagoing vessels or mixed navigation vessels.
For temporary employment in place of employees absent from work due to a strike.
To work at the enterprise during a period of production downtime for any reason.
In case of bankruptcy of the employing company.
If the hiring company is experiencing economic difficulties and has introduced part-time work in order to avoid laying off its own employees and to preserve their jo