Legal features of the outstaffing agreement in 2024

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Currently, many believe that in Russia in 2016, outstaffing employment contracts were banned and hiring employees through outstaffing companies was made illegal.

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

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Since the beginning of 2016, a law dominican republic email list 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 introduce a ban. The new legislation did not prohibit either outstaffing in general or temporary labor in particular. This change in 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.