Ban on agency labor: how outsourcing and outstaffing will change from 2016

First, let's remember the concepts that are familiar to us all, and many use in their activities. These are “outsourcing” and “outstaffing”.

Outsourcing is the transfer by an organization of certain business processes, functions or tasks (usually non-core) to another company specialized in this area. The transferred functions are carried out by the performing company on the basis of a contract and by its employees, that is, it provides a service to the customer. The process of providing it is not important for the customer - what is important is the result. The workers are under the control of the performing company; there is no relationship between them and the customer company. In particular, non-core functions such as accounting, IT, and cleaning are most often outsourced.

The situation is different with outstaffing. Its essence is as follows. The contractor (organization or entrepreneur) transfers a certain number of employees to the customer (another organization or entrepreneur). Employees work for the customer, but the employer is the contractor who concludes employment contracts, maintains personnel records, pays wages and benefits, etc. That is, employees work in an organization outside of labor or civil law relations. As a rule, the subject of an outstaffing agreement is the rental of personnel. In essence, agency labor is the form of labor that is used under an outstaffing agreement.

Outsourcing-related relationships do not fall under the new rules governing the provision of personnel.

As for outstaffing contracts, it is better to terminate ongoing contracts that carry over into 2021, because agency labor (“staff leasing”) is prohibited from January 1, 2021.

Outstaffing and outsourcing: basic concepts

Outstaffing is traditionally understood as agency work - the work of an employee at the direction of the employer in the interests, under the management and control of an individual or legal entity that is not the employer for this person. This type of activity was not previously regulated by law and was a set of labor and civil law standards, which in practice caused many controversial issues and claims from regulatory authorities. Now outstaffing, as an alternative to prohibited activities, is the possibility of temporary (by concluding a contract for the provision of personnel, sample 2021 is presented below) exploitation of employees of one enterprise by another person in their own interests. The features of this process are established by Chapter 53.1 of the Labor Code.

The law does not prohibit outstaffing as a phenomenon, but imposes new requirements on it:

• determines who can use the personnel provided;
• specifies who can provide personnel;
• records the contents of the agreement between the company that uses such a service and the company that provides the personnel.

Outsourcing is the transfer of certain processes to another company specializing in the relevant field. In fact, the work will be performed by employees of another organization, and the customer receives the results of their activities, and not the personnel themselves.

You can distinguish an outstaffing agreement (a sample is presented below) from an outsourcing agreement by its subject matter. If the subject is the implementation of activities on the instructions of the customer, then this is an outsourcing agreement for the provision of personnel in 2021. If the subject of the contract is the transfer of workers “for rent,” then we are talking about outstaffing.

Practical conclusions

In order not to fear being held administratively liable for the use of agency labor, it is better, in our opinion, to terminate previously concluded outstaffing agreements if their validity extends to the next year. At the same time, please note that the innovations will not affect outsourcing services, in which organizations or individual entrepreneurs outsource some of their functions rather than renting someone else’s staff. An outstaffing agreement can be distinguished from an outsourcing agreement by such a criterion as the subject of the agreement. If the subject of the contract is the implementation of certain activities on the instructions of the customer, we have an outsourcing contract. If the subject of the agreement is the transfer of personnel for rent, then we are talking about an outstaffing agreement.

I would also like to note that some companies and entrepreneurs enter into outstaffing agreements only in order to relieve themselves of the responsibilities of maintaining personnel records, calculating salaries and taxes, and submitting reports. Most likely, starting next year they will have to employ the necessary workers. In this situation, it will be possible to maintain personnel records, calculate salaries, vacation pay and benefits, as well as submit reports on contributions and personal income tax using modern web services that help perform these tasks.

Agency work: what is it and why is it prohibited?

In 2021, Article 56.1 appeared in the Labor Code of the Russian Federation, which provides a clear definition of the concept of “agency labor,” or labor at the direction of a nominal employer, but under the direction and in the interests of another company. Such work has been banned in Russia since 2021.

The essence of agency labor is as follows: one company or entrepreneur (contractor) transfers a certain number of workers to another organization or entrepreneur (customer). As a result, employees work for the customer, and the contractor is the employer. The contractor, in turn, enters into employment contracts with them, pays them wages and benefits, and maintains personnel records. Thus, employees work in an organization with which they are not connected either by labor or civil law relations (see the diagram below).

The state of affairs in outstaffing that existed before 2021 was unfavorable for the employee. An employee was hired to work for one company, and he worked for another. The employer did not bear any responsibility for the employee. Most often this concerned work in hazardous industries, where no payment was provided for hazardous work. Organizations with harmful and dangerous working conditions thus saved on insurance premiums for injuries. These conditions served as the reason for the adoption of a new article 56.1 in the Labor Code of the Russian Federation.

It is possible to lease employees of another company, but now outstaffing has changed and is regulated by the new Chapter 53.1 of the Labor Code of the Russian Federation.

Ways to provide outstaffing services

There are two main ways to remove staff from the staff (or use freelance workers), which are equally legitimate for outstaffing purposes:

1. An outstaffer officially hires employees whom the main company has duly fired. While registered with the provider's company, employees do not change their usual work activities in any way, continuing to work there in the same way as before dismissal. The provider company and the source organization determine their relationship within the framework of the outstaffing agreement.
2. “Body shopping” - the original company turns to the provider to search for “freelance” personnel with the necessary characteristics, and the outstaffer looks for the necessary employees or provides them from its database.

Who has the right to outstaff

Outstaffing has been replaced by official activities to provide labor to employees, which are clearly regulated by law and are carried out in cases limited by law. Private employment agencies that have undergone special accreditation and individual legal entities can provide the labor of employees to other organizations and entrepreneurs, that is, temporarily lease personnel.

The main requirements for them are the following (clause 6 of article 18.1 of the Federal Law of April 19, 1991 No. 1032-1 “On Employment of the Population in the Russian Federation”):

• presence of an authorized capital of at least 1 million rubles;
• absence of arrears in taxes, fees and other obligatory payments;
• The head of a higher education agency has at least two years of experience in the field of employment or promotion of employment in the Russian Federation for the last three years.

Organizations applying special tax regimes cannot be private employment agencies (Clause 6, Article 18.1 of Law No. 1032-1).

A private employment agency is obliged to conclude an employment contract with an employee who will be temporarily sent to work for another company or individual and make an entry in his work book.

The employment contract must stipulate that the employee will work under the management and control of an individual or organization that is not his employer. But such a condition can be included if the employee is sent (Article 341.2 of the Labor Code of the Russian Federation):

• to an individual who is not an individual entrepreneur to provide assistance with housekeeping;
• to a company or individual entrepreneur to temporarily perform the duties of absent employees, who retain their place of work;
• to an organization or individual entrepreneur to carry out work related to a deliberately temporary (up to nine months) expansion.

Legislators have identified three categories of workers who can be sent to work for the receiving party not only in the listed cases, but also in cases where fixed-term employment contracts are allowed. These categories include:

• persons studying full-time;
• single and large parents;
• persons released from institutions executing a sentence of imprisonment.

Other legal entities, including foreign ones, may provide workers (with their consent) to perform work:

• in an affiliated organization;
• in a JSC, if the sending party has previously entered into a shareholder agreement;
• in companies that are a party to a shareholder agreement with the sending party (clause 3 of article 18.1 of law No. 1032-1).

Payment of personal income tax and insurance premiums

Since for employees sent under a contract for the provision of personnel, the transferring party remains the employer, it is she who must calculate, withhold and transfer personal income tax on the remuneration paid to them.

Submit all tax agent personal income tax reports online for free

Also, the employer (for example, a private employment agency) must calculate and pay insurance premiums from the remuneration of such employees based on the tariffs it applies.

The specifics are established only for calculating insurance premiums “for injuries”. The innovation is as follows: employers who temporarily send their employees to work in other organizations or individual entrepreneurs must pay insurance premiums “for injuries” based on the insurance rate determined in accordance with the main type of economic activity of the receiving party. This takes into account premiums to the insurance rate and discounts from it, established taking into account the results of a special assessment of working conditions at the workplaces to which workers are actually assigned. The receiving party will be obliged to provide the employer with information about the main type of activity and the results of a special assessment of working conditions. Such rules are spelled out in the new paragraph 2.1 of Article 22 of the Federal Law of July 24, 1998 No. 125-FZ “On compulsory social insurance against industrial accidents and occupational diseases.”

We also note that accidents that occur with employees who are sent to work under a contract for the provision of personnel labor are investigated by a commission created by the receiving party. This may include introducing the employer of this employee (Article 341.4 of the Labor Code of the Russian Federation).

Advantages and disadvantages of outstaffing

Among the advantages of outstaffing, one can definitely highlight a reduction in the costs of personnel administration (the executing company deals with these problems), the absence of problems with recruiting and finding suitable employees, and a reduction in the costs of attracting and retaining personnel.

Disadvantages of outstaffing:

• lack of staff loyalty;
• low impact on processes related to personnel performance - motivation, development, personnel reserve;
• frequent changes of workers;
• the need to quickly adapt and train new employees.

Outstaffing or outsourcing - how not to make mistakes in documents

The concepts of “outstaffing” and “outsourcing” are different. Outstaffing, if everything is done within the framework of the law, is acceptable. Outsourcing has not been canceled. All that remains is to prepare the documents correctly so that neither the customer nor the contractor are held liable for violations related to the registration and use of agency personnel.

Personnel outstaffing agreement, sample

Outsourcing agreement for the provision of personnel in 2021 (agreements for the provision of legal services are available free of charge)

Final provisions

The final provisions specify the duration of the contract. It is advisable to indicate that, regardless of the period specified in the contract, the obligations arising from the contract continue to exist until they are fulfilled (for example, the obligation to pay for services).

This section also specifies the procedure for sending legally significant communications (letters, claims).

As noted, you can obtain a fully drafted contract, similar to the above steps, by using the ConsultantPlus “Contract Designer” program.

The author thanks the legal adviser of JSC IFZ Nadezhda Braginets for her assistance in preparing the material.

Situation in which the Contract for the provision of personnel to perform work is applicable:

The current legislation does not contain the concept of an agreement on the provision of personnel to perform work. However, guided by the principle of freedom of contract, the Parties have the right to enter into any agreement that does not contradict the Law. Under the Agreement for the provision of personnel to perform work, the Customer selects personnel that meet its qualification requirements, and the Contractor acts as the formal employer for such personnel. The employer in this situation will be the Contractor organization, and the employees provided by it to the Customer will be on the staff of the providing organization. Despite the fact that the subject of a contract for the provision of paid services must indicate the specific activities carried out by the Contractor, the Agreement on the provision of personnel to perform work is qualified by most courts as a contract for the provision of paid services. In this regard, the said Agreement should reflect all the essential terms of the contract for the provision of paid services.

Terms of service provision

In this section of the contract, the parties agree on the time frame within which the contractor must select personnel and send personnel to the customer. It should be noted that if the parties have not agreed on the period for providing the relevant services, then they must be provided within a reasonable time, i.e. the term condition is not considered essential. However, in practice there are situations when courts consider the period of provision of services to be an essential condition of the contract. In this case, the consequence of non-agreement on the term for the provision of services will be the non-conclusion of the contract. The beginning of the period can be determined by a calendar date or by an indication of a specific event (for example, the conclusion of a contract for the provision of personnel). The end of the period may be associated with the expiration of a period of time, the occurrence of an event, or determined by a calendar date.

The parties must also determine the period during which the contractor’s employees must perform their labor functions in the interests and under the control of the customer. It is necessary to note that if the purpose of providing personnel is to temporarily expand production or the volume of services provided by the customer, then the contract must specify the period for which the personnel are involved. From January 1, 2021, this period cannot exceed 9 months.

Parties to the Agreement for the provision of personnel to perform work:

• Customer - individuals and legal entities and individual entrepreneurs who cannot, for any reason, employ employees;
• Contractor - legal entities and individual entrepreneurs who provide the Customer with employees on their staff.

Essential terms of the Contract for the provision of personnel to perform work:

• subject of the contract, i.e. an indication that the Contractor provides personnel services to the Customer;
• condition on the number of attracted workers of a certain profession and qualifications,
• the cost of the Contractor's services and the procedure for payment for these services by the Customer;
• the procedure for interaction between the Parties;
• procedure for accepting services provided;
• contract time.

It is also advisable to establish in the Agreement for the provision of personnel to perform work the following rights and obligations of the Customer and the employee provided to him:

• the Customer’s right to demand that the assigned employee perform his job duties and take care of the Customer’s property, comply with internal labor regulations, etc.;
• the Customer’s right to remove from work or not allow the assigned employee to work in the cases specified in Part 1 of Article 76 of the Labor Code. At the same time, the Customer is obliged to immediately notify the Contractor about cases of removal from work or exclusion from work of the assigned employee;
• the Customer’s obligation to provide the assigned employee with equipment, tools, personal protective equipment and other means necessary to perform his job duties.

Usual terms of the Contract for the provision of personnel to perform work:

• rights and obligations of the parties;
• liability arising from improper fulfillment by the Parties of the obligations assumed under the Agreement;
• settlement of disputes;
• procedure for termination of the Agreement;
• other conditions that the Parties may specify based on the essence of legal relations and business customs.

Pros and cons of providing temporary staff

Each party to such a contractual relationship has its own positive and negative sides. Let's take a closer look at the advantages of staff outstaffing, staff outsourcing, as well as the pros and cons of temporary workers.

Advantages of leasing temporary staff for an employer

• Quickly attracting the required number of employees for a certain period of time;
• Reducing enterprise costs. The entrepreneur does not pay tax deductions for these employees. Thus, it can maintain the status of a small business, and this entails additional government subsidies and simplified taxation. There is also no need to waste time and money searching for personnel and specialists. Often, an independent search for personnel is more expensive than recruiting personnel through a recruitment agency;
• No downtime. Recruiting firms, thanks to their extensive database of employees, can select an employee with the required qualifications in a matter of hours. This saves a lot of time for the client company, for which it is important that the work is completed on time;
• A hired employee can become a permanent employee. If you like how the hired employee performs his duties, then you can offer him a place on a permanent staff. Thanks to outstaffing and leasing, you can create a team of professionals and trusted people;
• Increased internship time. Many entrepreneurs perceive temporary hiring as an internship for individual employees. Legally, any employee must train for no more than 2 weeks. But often this time is not enough to understand a person and adequately assess his abilities. An employee will work at a certain enterprise for no more than 9 months, and this time is enough for him to prove himself;
• The advantage of personnel outsourcing, outstaffing and leasing is to reduce the load on the accounting and HR departments. Due to the fact that all personal documentation and deductions for the employee are maintained by the recruitment agency, the accounting and personnel departments maintain less documentation;
• The staff is being reduced without losing qualified employees. Thanks to outstaffing, you can significantly reduce the number of employees after a formal transfer to another company. In reality, a person does not feel any changes and continues to fulfill his duties;
• Replacement of key employees during vacations, sick leave, etc. Every employee is entitled to vacation, but during this period someone will have to do his work. This is where a temporary employee comes to the rescue.

Disadvantages of hiring temporary staff for an employer

• Wage. According to current legislation, the salary of a temporary worker should not be lower than that of a full-time employee of this qualification;
• Unfair attitude of the leased employee. Very often, temporary staff do their work carelessly. Such employees understand that this work is temporary and do not overwork themselves. Although it depends on the human qualities of the employee;
• Limited period of stay of a temporary employee at the enterprise. A temporary worker cannot work in one organization for more than 9 months, so after this time he will have to be hired as a permanent employee or replaced with another leased one (possibly less experienced);
• Information leak. If an enterprise with a high level of secrecy uses the services of outsourcing companies, then you need to be sure that these are trusted people who will not take advantage of their official position. Therefore, you need to carefully choose a company that provides personnel outsourcing services;
• Also, with outsourcing, no one is immune from poor quality work. In this case, the company that transfers part of the functional tasks cannot properly control the execution of the work, because does not have the necessary leverage.

Benefits for the employee

• Flexible work schedule. A hired employee, depending on the work performed, may have a flexible schedule;
• Employment in large companies. A leased employee has the opportunity to work in large organizations, while he gains invaluable experience, and all places of work are recorded in the work book;
• Continuous experience. By changing places of work, the length of service is not interrupted, because the person is officially employed by a recruitment agency;
• Regular salary is not lower than that of employees of the same qualifications;
• Opportunity to get a permanent job.

Disadvantages for workers

• The main disadvantage of being an employee is the constant change of jobs. It is because of this that many people do not like to “jump” from one place to another.

How to draw up a contract for the provision of personnel

Employees who are temporarily sent to another organization perform in the new place only those job functions that are described in their job description. Based on the contract for the provision of personnel labor, labor relations do not arise between specialists and the receiving party. However, for the duration of the contract, the right to control the work of the involved employees passes to the customer.

For a staff provision agreement to be effective, it should describe the following points in as much detail as possible:

• a list of works that specialists must perform according to the customer’s instructions;
• cost of services (hourly tariff rate);
• duration of the agreement;
• liability of the parties for improper fulfillment of the terms of the transaction;
• confidentiality;
• procedure for resolving conflicts;
• circumstances under which the parties may terminate the agreement before its expiration.

The section “Subject of the agreement” should detail what exactly the employees have to do, what work and rest schedule is established for them, and where the organization is located.

Based on the agreement, the customer may request from the contractor copies of employment contracts with all assigned employees, as well as copies of additional agreements. All costs associated with maintaining staff are borne by their official employer.

It is worth noting that an employer can send employees to temporary work in another organization only with their consent. If the specialist does not object, an additional agreement is concluded with him.

Responsibility

Administrative responsibility

In case of violation of the new rules, including the provision banning the use of agency labor, the following measures of administrative liability may occur (Part 1 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation):

• for organizations - a fine from 30,000 to 50,000 rubles;
• for individual entrepreneurs - a fine from 1000 to 5000 rubles;
• for officials - a warning or a fine from 1000 to 5000 rubles.

A repeated violation committed within one year from the date of prosecution for a previous similar violation faces more serious sanctions (Part 4 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation):

• for organizations - a fine from 50,000 to 70,000 rubles;
• for individual entrepreneurs - a fine from 10,000 to 20,000 rubles;
• for officials - a fine of 10,000 to 20,000 rubles or disqualification for a period of one to three years.

Vicarious liability

The new article 341.5 of the Labor Code of the Russian Federation provides that for the obligations of the employer, including obligations related to the payment of wages and other amounts due to an employee who is sent under a contract for the provision of personnel, the receiving party bears subsidiary liability.

This means that if, for example, a private employment agency has a debt to employees that it cannot repay, then funds can be recovered from the organization or individual entrepreneur that used the labor of these workers. In this regard, the receiving party becomes interested in ensuring that the employer who sent its employees complies with labor laws and pays all amounts due to them.

Please note: the terms of remuneration for workers sent under a personnel supply agreement must be no worse than those of employees of the receiving party performing the same functions and having the same qualifications. This is what the norm in Article 341.1 of the Labor Code of the Russian Federation says.

AGREEMENT

provision of personnel

G.

"" 2021

in a person acting on the basis, hereinafter referred to as “ Customer”

", on the one hand, and in the person acting on the basis, hereinafter referred to as the "
Contractor
", on the other hand, hereinafter referred to as the "Parties", have entered into this agreement, hereinafter the "
Agreement
", as follows:

SUBJECT OF THE AGREEMENT

1.1. The Contractor is obliged to provide services for the provision of workers (personnel) to the customer, and the customer undertakes to accept the services and pay for them.

1.2. The Contractor selects and provides the customer with the following personnel: .

1.3. The specified workers are sent to the Customer "" 2020.

1.4. The Contractor is obliged to ensure compliance with the labor rights and obligations of employees assigned to the Customer.

1.5. The place of work of workers sent to the Customer will be.

1.6. Employees assigned to the Customer will have the following working hours: .

1.7. The Contractor ensures that employees have an appropriate place of work and working hours.

1.8. The place of work and working hours of employees assigned to the Customer can be changed only with the consent of the Contractor. In this case, the Contractor is obliged to ensure that employees are provided with a new place of work and a new work schedule in the manner prescribed by labor legislation.

RIGHTS AND OBLIGATIONS OF THE PARTIES

2.1. The customer has the right:

• use the labor of workers assigned to him for his own benefit;
• give employees mandatory instructions regarding the performance of their labor functions in the manner prescribed by the local regulations of the Contractor, on the basis of a power of attorney issued by the Contractor. At the same time, the Customer cannot change the place and mode of work of the employees assigned to him, send them on business trips, transfer them to another job, fire them, or take any other actions that entail a change or termination of the employment relationship;
• require the Contractor to issue an order or instruction on overtime work of assigned employees or their work on weekends and holidays in cases where such work, in accordance with labor legislation, is permitted without the consent of the employee;
• demand from the Contractor the dismissal of an employee who has committed guilty actions that provide grounds for termination of employment relations with him on the initiative of the employer;
• refuse to perform the contract in the cases provided for in this Agreement.

2.2. The customer is obliged:

• accept workers sent to him and provide them with work in the positions specified in clause 1.2 of this Agreement during the term of the agreement;
• comply with labor legislation and other regulatory legal acts containing labor law norms, local regulations, the terms of a collective agreement, agreements and employment contracts that apply to employees assigned to him, insofar as they relate to his mandatory instructions for employees regarding the performance of their labor functions;
• ensure compliance with labor protection requirements in relation to workers assigned to him;
• provide employees with equipment, tools, technical documentation and other means necessary to perform their job duties;
• provide the Contractor with the documents necessary to regulate labor relations with employees;
• inform the Contractor about all cases of absence of employees assigned to him from work.

2.3. The performer has the right:

• at any time control the performance of labor functions by employees assigned to the Customer;
• at any time monitor the safety of work performed by workers assigned to the Customer;
• replace workers assigned to the Customer in compliance with clause 1.2 of this Agreement.

2.4. The performer is obliged:

• send to the Customer the workers specified in clause 1.2 of this Agreement;
• provide the Customer with copies of employment contracts with all employees sent to him;
• ensure compliance with the labor rights of employees sent to the Customer;
• issue, at the request of the Customer, an order or instruction on overtime work of assigned employees or their work on weekends and holidays in cases where such work, in accordance with labor legislation, is permitted without the consent of the employee;
• bear all costs associated with maintaining employees assigned to the Customer;
• promptly inform the Customer about the dismissal of employees assigned to the Customer;
• promptly send to the Customer another employee to replace the absent one within days.

CONDITIONS OF PROVIDING EMPLOYEES

3.1. The provided employees do not provide any services and do not carry out any actions on behalf of the Contractor. None of the workers provided by the Contractor is an employee of the Customer and is not in civil and/or labor relations with the latter in connection with the conclusion of this Agreement.

3.2. The provided employees are in an employment relationship with the Contractor, and therefore are subject to the internal labor regulations and all orders of the Contractor. However, the provided workers are required to comply with the Customer’s requirements for the organization of work, labor protection, fire safety and other requirements necessary for the safe and high-quality performance of work.

3.3. An employment contract between the Contractor and the employee may provide for the employee’s obligation to obey the internal labor regulations in force for the Customer, as well as the corresponding job description in force for the Customer’s staffing position.

In the event of a contradiction between a local regulatory act and job description in force at the Contractor and a local regulatory act and job description in force at the Customer, for the purposes of this paragraph the local regulatory act and job description in force at the Contractor shall be applied.

3.4. The Contractor does not create stationary workplaces (own or rented) on the Customer’s territory. The workers provided to the Customer under this Agreement are considered to be sent on a business trip with temporary accommodation in premises provided by the Customer as part of the implementation of this Agreement.

3.5. If it is necessary to provide the Customer with employees who bear full financial responsibility for the Customer’s property entrusted to them, the Parties shall draw up an additional agreement to this Agreement on the procedure for transfer, return, liability for shortages and the procedure for compensation of lost property. At the same time, the Contractor enters into agreements with the relevant employees on full financial responsibility.

AMOUNT OF REMUNERATION AND PAYMENT PROCEDURE

4.1. The amount of the Contractor's remuneration under this Agreement is agreed upon by the Parties in the Price Agreement Protocol (Appendix No. 1).

4.2. The Customer shall monthly pay the amount of remuneration due to the Contractor for the services of providing employees no later than the ___________ date of the current month.

4.3. The amount of remuneration may be changed by the Parties by concluding an additional agreement to this Agreement.

4.4. In case of impossibility of performance due to the fault of the Customer, services are subject to payment in full.

4.5. In the event that the impossibility of performance arose due to circumstances for which neither of the Parties is responsible, the Customer shall reimburse the Contractor for the actual expenses incurred.

LIABILITY UNDER THIS AGREEMENT

5.1. In the event of failure or improper performance by one of the Parties of its obligations under this Agreement, it is obliged to compensate the other Party for losses caused by such failure.

5.2. In case of delay in transferring to the Contractor the sums of money due to him on account of remuneration, he has the right to collect from the Customer a penalty in the amount of ___% of the amount of debt for each day of delay.

FORCE MAJEURE

6.1. The Parties are released from liability for partial or complete failure to fulfill obligations under this Agreement if this failure was the result of force majeure circumstances that arose after the conclusion of this Agreement and which the Parties could not foresee or prevent.

6.2. If the circumstances specified in clause 6.1 of this Agreement occur, each Party must immediately notify the other Party about them in writing. The notice must contain information about the nature of the circumstances, as well as official documents certifying the existence of these circumstances and, if possible, assessing their impact on the Party’s ability to fulfill its obligations under this Agreement.

6.3. If a Party does not send or untimely sends the notice provided for in clause 6.2 of this Agreement, then it is obliged to compensate the other Party for the losses it has incurred.

6.4. In cases of the occurrence of the circumstances provided for in clause 6.1 of this Agreement, the period for the Party to fulfill its obligations under this Agreement is postponed in proportion to the time during which these circumstances and their consequences apply.

6.5. If the circumstances listed in clause 6.1 of this Agreement and their consequences continue to apply for more than two months, the Parties shall conduct additional negotiations to identify acceptable alternative methods of execution of this Agreement.

CONFIDENTIALITY

7.1. The terms of this Agreement and agreements (protocols, etc.) thereto are confidential and are not subject to disclosure.

7.2. The Parties take all necessary measures to ensure that their employees, agents, successors, without the prior consent of the other Party, do not inform third parties about the details of this Agreement and its annexes.

DISPUTE RESOLUTION

8.1. All disputes and disagreements that may arise between the Parties on issues that are not resolved in the text of this Agreement will be resolved through negotiations.

8.2. If controversial issues are not resolved during negotiations, disputes are resolved in the manner established by the current legislation of the Russian Federation.

CHANGE AND TERMINATION OF THE AGREEMENT

9.1. This Agreement may be amended or terminated by written agreement of the Parties, as well as in other cases provided for by the legislation of the Russian Federation.

FINAL PROVISIONS

10.1. In all other respects that are not provided for in this Agreement, the Parties are guided by the current legislation of the Russian Federation.

10.2. Any changes and additions to this Agreement are valid provided that they are made in writing and signed by duly authorized representatives of the Parties.

10.3. All notices and communications under this Agreement must be sent by the Parties to each other in writing. Messages will be considered duly executed if they are sent by registered mail, by telegraph, teletype, telex, telefax or delivered personally to the legal (postal) addresses of the Parties with receipt against receipt by the relevant officials.

10.4. This Agreement comes into force from the moment it is signed by the Parties and is valid until “___”__________ ____.

10.5. This Agreement is drawn up in two copies having equal legal force, one copy for each of the Parties.

10.6. Applications:

1. Price agreement protocol (Appendix No. 1).

2. ________________________________________.

SIGNATURES OF THE PARTIES

Customer_________________

Performer _________________

Please note that the employment contract was drawn up and checked by lawyers and is exemplary; it can be modified taking into account the specific conditions of the transaction. The Site Administration is not responsible for the validity of this agreement, as well as for its compliance with the requirements of the legislation of the Russian Federation.

Dispute Resolution

In this section, the parties determine the procedure for resolving emerging contradictions. The parties indicate the court authorized to consider all arising disputes. The parties may establish a condition for the consideration of arising disputes by an arbitration court. When agreeing on an arbitration clause, the parties must indicate whether the arbitrator's decision is final for the parties to the dispute.

The contract for the provision of personnel to perform work is governed by:

• Chapter 39 (Paid provision of services) of the Civil Code of the Russian Federation>;
• paragraph 1 (General provisions on contracting) of Chapter 37 (Contracting) of the Civil Code of the Russian Federation.

With this document you will definitely need

• Documentation

  Application (Appendix to the contract for the provision of personnel to perform work)

• Documentation

  Certificate of services rendered (Appendix to the contract for the provision of personnel to perform work)

• Documentation

  Contract for the provision of recruitment services

• Documentation

  Customer's application for the selection of a specialist (Appendix No. 1 to the Agreement for the provision of personnel selection services)

• Documentation

  Certificate of services rendered (Appendix to the contract for the provision of personnel selection services)

• Documentation

  Contract for paid services (general)

• Documentation

  Contract for paid services with an individual (one-time services)

• Documentation

  Contract for paid services (one-time services)

• Documentation

  Contract for paid services (regular and (or) upon request)

• Documentation

  Agreement for paid services with an individual (regular and (or) on request)

Quality of services

The parties have the right to define in the contract the requirements for the quality of services provided by the contractor to the customer, as well as the consequences of providing services of inadequate quality. In the latter case, the customer may be given the opportunity to choose one of the following methods of protection: free elimination of defects, a proportionate reduction in the price agreed upon by the parties, reimbursement of the customer’s expenses for eliminating defects.

When describing the methods of protection, it is necessary to establish a period during which the contractor is obliged to eliminate the identified violations, as well as a period during which the contractor is obliged to compensate the customer for the costs of eliminating the deficiencies.

We draw the customer’s attention to the fact that if in the contract the parties have provided for various methods of protecting the interests of the customer when services are provided of inadequate quality, then the choice of one of the methods (for example, free elimination of defects) excludes the simultaneous use of other methods of protection.

Agency labor will become more accessible

The Ministry of Economic Development wants to allow employers - legal entities other than employment agencies - to transfer their employees to others. To this end, officials have added Chapter 53.1 of the Labor Code of the Russian Federation, and the corresponding bill is being prepared for consideration by the government.

The Ministry of Economic Development proposed to update the Labor Code of the Russian Federation due to the fact that since 2016 the rules for providing workers with labor “for rent” have changed. The law states that outstaffing is permitted for private employment agencies and legal entities that do not have such status, subject to certain conditions. At the same time, the Labor Code of the Russian Federation stipulates a mechanism for providing workers only for agencies, but for other legal entities this issue is not resolved.

The rules governing outstaffing for agencies will remain. As for employers-legal entities that are not private employment agencies, they will be able to temporarily release employees only under contracts for the provision of personnel with the host party. With each employee, the employer will have to enter into an additional agreement to the employment contract, which must contain information:

• about the receiving party (name, place, date of conclusion, number and validity period of the contract for the provision of personnel);
• conditions for performing the labor function in the interests, under the management and control of the receiving party;
• the duration of the employee’s “lease”;
• place of work;
• working and rest conditions;
• conditions of remuneration during the period of work with the receiving party;
• distribution of responsibilities between the employer and the receiving party during the period the employee performs his labor function in the partner company.

The additional agreement must be drawn up in 2 copies, and both must be signed by both the employee and the employer. Moreover, when sending an employee to the receiving party, the employer will have to control how the labor of his subordinate is actually used.

The new edition of Chapter 53.1 of the Labor Code of the Russian Federation also stipulates that agency work is prohibited in the following situations:

• to replace striking workers;
• to perform work in the event of downtime (temporary suspension of work), bankruptcy proceedings, introduction of a part-time working day (shift) and (or) part-time working week;
• to replace workers who refused to perform work due to a delay in wages of 15 days or more;
• to perform work at facilities classified as hazardous production facilities of hazard classes I and II;
• to perform certain types of work that do not require certification (knowledge testing) in the field of industrial safety, the lists of which are approved by the Government.

The Ministry of Economic Development emphasizes that clarifying the rules of outstaffing is extremely important for Russian business. As an analysis of the experience of other countries has shown, temporary employment of labor resources is especially popular for manufacturing and trading companies, companies in the oil and gas sector, when implementing various projects. Senior managers, highly qualified specialists and technical personnel are usually sent under a personnel contract. These employees accompany investments, participate in the transfer of experience to subsidiaries, and help introduce new technologies.

Foreign practices need to be introduced in Russia, especially since before the ban was introduced, about 5% of companies used agency labor, officials say. This will allow not only to solve business problems more quickly, but also to do this with the help of employees of foreign companies. After all, during the period of work in the Russian Federation, they will maintain an employment relationship with the employer, and at the same time they will be protected in their country of permanent residence.

Sources

• https://clubtk.ru/chto-takoe-zaemnyy-trud-i-pochemu-zapreshchen-autstaffing
• https://dogovor24.ru/document/dogovor-na-predostavlenie-personala-dlya-vypolneniya-rabot
• https://www.freshdoc.ru/dogovor/vozmezdnogo_okazaniya_uslug/predostavlenie_personal_vypolnenie_rabot/
• https://dbsd.ru/contracts/labor-contract/1581.html
• https://blank-obrazets.ru/dogovor_ob_okazanii_uslug_po_predostavleniyu_personala_dogovor_autstaffinga.htm

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When will it be prohibited to use third party workers?

The conclusion of contracts for the provision of personnel labor is not allowed in the following cases (clause 12 of article 18.1 of Law No. 1032-1):

• if the host team went on strike;
• to perform work in case of downtime or part-time work, announced in order to preserve jobs in the face of the threat of mass layoffs of workers of the receiving party;
• if the receiving party is in bankruptcy;
• to replace employees of the receiving party who refused to work in cases established by labor legislation, in particular if their salary payment was delayed for more than 15 days.

In addition, private employment agencies will not be able to send their workers to perform certain categories of work, as well as to certain jobs and positions (clause 13 of article 18.1 of Law No. 1032-1):

• for work at hazardous production facilities of hazard classes I and II,
• to workplaces where working conditions are classified as hazardous working conditions of degrees 3 and 4 or dangerous;
• for positions that are associated with obtaining a license or other special permit to carry out a certain type of activity, a condition for membership in an SRO or the issuance of a certificate of admission to a certain type of work;
• to perform work as crew members of sea vessels and mixed (river-sea) navigation vessels.