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Outstaffing agreement: how and when it is concluded

Posted: Sun Dec 22, 2024 10:18 am
by Mimakte
What are we talking about? An outstaffing agreement is an agreement with an accredited company to provide employees to perform work. By law, people can be leased in this way for a period of no more than nine months.

When to conclude? Concluding such an agreement is advisable when it is necessary to replace a temporarily absent employee or perform one-time work for which there is no point in expanding the company's staff. Outstaffing is often confused with outsourcing, but these are different services.



The article explains:

The essence of the outstaffing agreement
Pros and cons of an outstaffing agreement
Differences between an outstaffing agreement and outsourcing
Legal features of the outstaffing agreement in 2024
Justification of the economic attractiveness indonesia number list of concluding an outstaffing agreement
Contents of the outsourcing agreement
Examples of concluding an outstaffing agreement
Examples of using an outstaffing agreement with settlements
Frequently asked questions about the outsourcing agreement

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The essence of the outstaffing agreement
Outstaffing is a document on temporary lease of personnel. This type of agreement, also known as an outstaffing agreement, is regulated by Article 341.2 of the Labor Code of the Russian Federation.

There are three parties involved:

An employee is an individual who has entered into an employment contract with a specialized company.

A private employment agency is an organization that has a license to carry out its activities.

A customer who hires a worker to perform certain job duties. May be an individual entrepreneur or a company.

The essence of the outstaffing agreement

Source: shutterstock.com

In the practice of outstaffing the following occurs:

A private agency forms a staff of various specialists, acting as an employer, paying salaries, maintaining records of personnel documents and reporting to tax authorities, the Pension Fund and the Social Insurance Fund.

The organization then enters into agreements with clients on the provision of personnel labor. This is a civil-law contract, for which the agency receives payment for the services provided.

Employees work for other sole proprietors or companies, performing their duties in the interests of the client. Their wages are paid by the employing agency.

This approach is convenient in that a specialized organization takes on all personnel and tax responsibilities, while the employer gains access to the necessary labor resources – the knowledge and skills of the necessary specialists.

It should not be forgotten that hiring personnel through an outstaffing agreement can really help companies or individual entrepreneurs save on taxes and fees. However, this approach is associated with many requirements and restrictions under the law. For example, to form an agency, the authorized capital must not be less than 1,000,000 ₽. Also, this organization must not have debts on taxes and fees, otherwise its accreditation may be revoked.

A specialized company is required to submit reports on its activities to Rostrud every year. In case of delay or absence of the document, it risks losing its accreditation.