Hiring under an employment contract (step-by-step instructions)

Sooner or later, any business begins to develop, and then you need to hire additional employees. In this regard, the question of concluding an agreement arises. There is an employment contract and a civil contract. The latter have long been one of the most effective means of helping to optimize labor costs.

It is important to apply it correctly and competently in your field of activity. There are a number of rules and features for this, which will be discussed further. This material discusses what a GPC agreement is, deciphering its meaning, its design and advantages.

A civil contract is one of the highest priority contracts for customers

Mandatory requirements for drawing up an employment contract under the Labor Code of the Russian Federation

According to civil law, when hiring an employee, the employer must draw up an employment contract or a civil law agreement. The absence of any of these documents entails criminal or administrative liability for the employer.

Responsibility also lies with the person who allowed an employee to work without an employment contract, without agreeing on this fact with management.

Taxes and fees

The obligations imposed on the entrepreneur to make insurance contributions for hired employees continue to exist. The tax office collects such transfers.

The employer must pay for each employee:

• Personal income tax (rate 13 or 30%);
• contributions to the Pension Fund;
• contribution for medical and social insurance associated with the loss of the employee’s ability to work while performing work.

Duration of the employment contract

Important: The moment the employment relationship begins is the day when the employee began his duties. At the same time, the Labor Code gives the employer three days to formalize the resulting labor relationship.

Drawing up an employment contract between an employer and an employee is an indispensable condition for legal civil relations. The presence of a formalized agreement guarantees individuals the protection of their rights and regulates the responsibility of the parties.

Important: Sample forms for accounting and payment of labor activities can be found at the link.

The latest edition of the Code of Administrative Offenses (Code of the Russian Federation on Administrative Offenses) changes the employer’s liability for violation or improper execution of an employment contract for:

• entrepreneurs (not legal entities) - from 5 to 10 thousand rubles ;
• officials - from 10 to 20 thousand rubles ;
• for legal entities – from 50 to 100 thousand rubles .

Distant work

Remote or remote work is an option that is perfect for performing those jobs or services that do not require constant presence in the employer’s office: IT specialists, designers, analysts, translators, call center specialists, marketers, sales managers, etc. Remote Work today is possible within the framework of both an employment and civil law contract, but this was not always the case.

Remote work under an employment contract was legalized only last year, by Law 04/05/2013 No. 60-FZ, which added Chapter 49.1 to the Labor Code. According to it, remote work is considered to be the performance of a labor function outside the location of the employer, subject to interaction with the employer through public information and telecommunication networks, including the Internet.

Before this chapter of the Labor Code of the Russian Federation came into force, remote work was in fact already carried out by many workers, but it was registered either as home work (which is incorrect, since home work involves the production of certain products), or as a GPC agreement, or the employee was registered under the agreement in office, but was not there. Now all these questions have been resolved, and if the employer and the remote worker want to conclude an employment contract, then this is possible. Such an employee is subject to all guarantees of labor legislation.

Contents and rules for drawing up an employment contract

Legislative norms Art. 57 of the Labor Code of the Russian Federation provides for the following information to be indicated when drawing up an employment contract:

• data of the parties: information about the employee (passport data) and the company (details for individual entrepreneurs);
• TIN;
• place of conclusion of the contract;
• information about employer representatives, authorizing documents;
• address of the place of future work;
• information about the position (according to the staffing table);
• term of conclusion of contractual relations; when drawing up an open-ended contract, the date from which the employee must begin performing duties is noted;
• information on remuneration and payment procedure (salary, size and conditions, frequency of bonuses, allowances and incentives are indicated);
• labor schedule, working hours, vacation period;
• information about working conditions;
• in case of employment in hazardous industries - information about the compensation system;
• procedure for social support and insurance.

Drawing up and execution of an employment contract is the direct responsibility of the employer. The form of the contract in its strict form is not approved by law. All main points of the document are developed taking into account the Regulations on the establishment. For each specific position, the contract is formed based on the specifics of the activities of this staff unit.

How to conclude a contract with an employee

The GPA is concluded in writing between the customer and the contractor. An individual entrepreneur’s contract with an employee based on a standard form, based on the characteristics of the services ordered.

Download a Sample Individual Entrepreneur Agreement with an Employee (25.8 KiB, 2,895 hits)

The sequence of how to register an employee under a civil contract is as follows:

1. Indicate the date of conclusion and the name of the document.
2. Enter the details of the customer.
3. Describe the nature of the proposed work.
4. The amount of remuneration is fixed.
5. Enter information about the performers.

At the end of the document, the parties put signatures, and upon completion of the work, the acceptance certificate is signed.

For the period of validity of the document, the performer is recognized as part of the workforce, however, such employment under a civil law contract is not considered personnel records management and is not recorded according to labor law.

Procedure for drawing up an employment contract

The establishment of labor relations takes place in several stages. The applicant provides a list of documents for execution of the contract.

The list depends on:

• future position;
• requirements, job responsibilities.

Important: Some positions require a medical examination. The list of such positions is approved by regulations.

Basic list of documents for drawing up an employment contract

• passport;
• employment history;
• SNILS;
• military ID (for those liable for military service).

At the beginning of his working career, the candidate may not have a work book; in this case, the organization or employer is required to independently issue it.

Persons applying for remote work prepare the necessary documents themselves and then send them to the employer.

Employer Responsibilities

The employer, acting as a party to the labor relationship, bears a number of obligations, failure to fulfill which may become a reason for the application of liability measures.

Upon conclusion, the employer is assigned responsibilities for:

• compliance with labor legislation and the terms of the concluded contract;
• creating safe working conditions;
• providing workers with the required documentation, materials, tools, etc.;
• payment of wages;
• consideration of collective complaints, elimination of violations of the provisions of employment contracts;
• social insurance;
• providing material compensation;
• providing time for rest;
• conclusion, communication to employees and fulfillment of requirements.

Customers are obliged to accept the results of the work performed and pay for them in accordance with the conditions reached by the parties.

Additional documents

• application for admission;
• documents on existing education (certificates and diplomas, certificates, certificates of retraining and advanced training);
• TIN;
• marriage and birth certificates;
• Certificates 2-NDFL (for tax deductions for children);
• Certificates of wages for the last 2 years (for calculating sick leave);
• international passport;
• work permit (for migrants);
• information about the income of the second spouse;
• medical record (for certain positions), the result of a medical examination, certificate of absence of obstructive diseases;
• document confirming the absence or presence of outstanding criminal records.

Important: The last 3 points concern: municipal and state employees, employees of education systems, healthcare and law enforcement agencies.

Documents on the specifics of the work

Employers require special papers from people applying for certain positions. Additionally, when concluding an employment contract, the following must be presented at the request of management:

1. For minors: consent of one of the parents or written permission from the guardianship authorities, a certificate from the place of study about the educational regime, a medical certificate 086-U and a medical book, a referral for employment or participation in paid public work from the employment center.
2. For foreigners: passport and education papers with an official translation into Russian, documents certifying the right to reside in the Russian Federation (residence permit, temporary residence permit, mark in the passport), work permit, VHI policy. An exception applies to citizens of Armenia, Belarus, Kazakhstan, Kyrgyzstan - they do not require a work permit. Belarusians do not take out a voluntary health insurance policy (letter from the Ministry of Labor No. 16-4/B-823).
3. For civil servants: a special questionnaire, an application for admission to the civil service, an autobiography in any form, documents confirming the completion of a competition for a vacant position, color photos in a suit and tie, a medical report on the absence of diseases that impede civil service (form No. 001-GS/ y), certificate of income, expenses and property in the form approved by Presidential Decree No. 460 of June 23, 2014.

For teaching staff there are restrictions on access to work. It is impossible to conclude an agreement and hire teachers who have lost the right to teach by a court decision, who have been declared incompetent, with a criminal record under Articles 16–18, 20, 24, 25, 29 of the Criminal Code of the Russian Federation, patients with drug addiction and chronic contagious infections, and persons with severe mental disorders. All this is confirmed by certificates.

Areas of activity requiring mandatory medical examination

• public catering;
• food trade;
• healthcare;
• education;
• transport industry.

Categories of persons required to undergo a medical examination

• citizens under 18 years of age ;
• workers whose work takes place in hazardous industries, in dangerous conditions;
• shift workers;
• job seekers for work in the Far North.

Important: This list is not complete and is subject to relevant regulations.

Local regulatory documents are divided into basic (for each organization) and additional (required for review if available).

Vacation schedule for new employees

Last year, the vacation schedule should have been approved before December 17, 2020 (Part 1 of Article 123 of the Labor Code of the Russian Federation). The vacation schedule had to indicate all employees who were in labor relations with the organization on the day of its approval, even those who quit before the end of the year (Letter of the Ministry of Labor of Russia dated 04/09/2020 No. 14-2/B-395).

The employer is not obliged to make changes to the approved vacation schedule when hiring new employees , since such a procedure is not established by labor legislation, and the absence of such changes cannot be grounds for administrative liability.

In practice, this issue is resolved in two ways:

• no changes are made to the current vacation schedule, and a new employee, if he wishes to go on vacation, simply writes an application for leave and coordinates it with the manager (Part 1 of Article 123 of the Labor Code of the Russian Federation);
• To the current vacation schedule, an annex is drawn up according to the unified form No. T-7, which includes information about vacations for new employees. The application is approved in the same manner as the schedule.

You can enshrine the method you choose in a local legal act, but this is not necessary, since this is a right, not an obligation, of the employer.

New employees should be included in the vacation schedule only if such a procedure is established by a local act of your organization.

Documents and instructions for review:

• Job description;
• Additional agreement, conditions and procedure for liability;
• Collective agreement;
• Social security for employees.

The employee, having studied the acts and instructions, signs the introductory sheet. This document is also certified by an official and sealed and stored in the employee’s personal file.

• An agreement is concluded and all necessary documents are drawn up.

According to the rules of document flow, an employment contract is concluded in two copies: one is given to the employee, the second is kept by the employer.

Important: For joint-stock companies, certification of employment contracts with a seal is not provided.

Pros and cons of a civil contract for the customer

Duration of the employment contract

Employment contracts are divided into fixed-term ( up to 5 years ) and unlimited. Fixed-term agreements are concluded on the basis of Art. 59 of the Labor Code of the Russian Federation in the following cases:

• appointments for the period of temporary absence of another employee, with the transfer of his duties;
• performing temporary and seasonal work lasting no more than 2 months ;
• performing practical work, internships, professional training;
• employment in an elected position (or in an elected body);
• employment in a temporary organization for a certain period to perform established tasks.

The law provides for the conclusion of a fixed-term contract by agreement of the parties in relation to the following categories:

• pensioners;
• part-time workers;
• students (full-time students only);
• managers;
• cultural and creative figures.

Registration of an employment contract involves the formation of the necessary accompanying documents:

• The order of acceptance to work;
• accrual card;
• personal file (card) of the employee;
• income form.

The law obliges the employer to make entries in the employee’s work book. The exception is for part-time workers.

Types of employee registration for work

There are several options for formalizing the relationship between the company’s management and the specialist being hired. The rules for registering an employee for work, the rights, obligations of the parties, responsibilities, as well as the procedure for paying taxes, mandatory contributions, etc., depend on the method of employment.

In Russia, legislation provides for the following options for formalizing relations between an employee and an employer:

• employment contract;
• civil contract;
• distant work;
• agency labor.

Let's discuss all of the options listed in more detail.

An employment contract is an agreement between an employer and an employee, according to which the other party undertakes to permanently perform the functions assigned to it by this document and follow the work schedule. Whereas the employer, in turn, assumes the obligation, after registering an employee to work in an LLC or an organization of another legal form, to provide work, provide the conditions necessary for its implementation, and then pay wages on time and in full. At the same time, the Labor Code and the relevant Federal Laws establish relations within the framework of this agreement.

Main provisions of the employment contract:

• inclusion of an employee in the staff of the enterprise, assignment to him of a certain position requiring the performance of specific labor functions;
• compliance by the hired specialist with internal labor regulations and work schedule;
• inability to perform the work of a specialist by third parties;
• the employer's obligation to pay wages at specified intervals while ensuring decent working conditions.

After the employee is registered for work, the employer’s responsibilities include paying personal income tax and insurance contributions for him, providing tax, statistical, and other types of reporting in accordance with the laws of Russia. In addition, he must respect the rights and interests of the specialist.

A civil contract is an agreement between two or more persons signed for the purpose of performing work or services named in this document. This type of agreement is usually used in a number of situations: a one-time service is ordered or a small volume of them is ordered for a short period, insignificant for hiring for a permanent job.

There are several types of civil contract:

• contract;
• paid provision of services;
• commissions;
• transportation;
• transport expedition;
• trust management of property;
• instructions.

When registering an employee for work in an individual entrepreneur or organization under this agreement, the employer pays income tax and insurance contributions to the Pension Fund and the Compulsory Medical Insurance Fund for the hired citizen (funds are contributed to the Social Insurance Fund only when this provision is stipulated by the agreement).

Now let's compare the two types of contracts described:

Read the material on the topic: Employment of disabled people of group 3

Remote work is considered to be such activity that is carried out outside the stationary place of work, in other words, at home, in transport, cafes, abroad, etc. In this case, the employer sends the task to a specialist remotely: by mail, via the Internet or other means.

There are two types of remote work:

• home-based;
• remote.

The first option is associated with the production of certain material objects. So, this could be assembling pens, growing mushrooms, embroidery, knitting, etc. Whereas, as a result of remote work, the customer receives information, information, that is, various types of intellectual property.

Note: mandatory payments and contributions are paid or not paid depending on how the employee is registered and whether he has the status of an individual entrepreneur.

Agency labor is the work of an employee carried out by order of the employer in the interests, under the management and control of persons with whom he does not have an employment relationship. Since 2021, this type of work has been largely prohibited in Russia.

Agency labor can also be of two types:

• outsourcing;
• outstaffing.

The first is the transfer of certain functions or tasks to a third party (organization, individual entrepreneur, citizen). Typically, to register an employee for work in this case, a contract for paid services is used. Mostly, accounting, tax, personnel records (preparation, filing of declarations, reporting, etc.), and legal support are outsourced. Since this type of labor relationship does not involve the transfer of the contractor’s workers to the customer, this type of agency labor remains permitted. It is usually chosen by managers to reduce the cost of maintaining full-time specialists.

Outstaffing is a type of work in which the contractor transfers personnel to the customer. That is, employees, while continuing to be on the contractor’s staff, act in the interests of and are subordinate to a third party. As we have already mentioned, since 2021 this type has been included in the list of prohibited ones, so an employer may be held administratively liable for its use.

The only exception in this case is private employment agencies that meet certain conditions: accreditation, work according to OSNO. These may be legal entities that send personnel to their affiliates, subject to the conditions and procedure for providing employees approved by the relevant Federal Law. However, it is worth noting that the law necessary for this has not yet been adopted.

Read the material on the topic: How to hire an employee and avoid mistakes

Procedure for terminating an employment contract

Termination of an employment contract is regulated by Article 84.1 of the Labor Code of the Russian Federation. The employee signs the order to terminate the contract and receives a signed copy of the dismissal order. If the employee refuses to confirm consent to terminate the contract, a note about this fact is placed in the order.

On the last day of work - the day of dismissal - the employee receives a 2-NDFL for the last 2 years , a work book and a calculation (for example, compensation for days of unused vacation). Upon written request, an employee may request certified copies of work-related documentation.

When terminating an employment contract, the employer is also obliged to make a corresponding entry in the employee’s work book with reference to the article of the Labor Code of the Russian Federation . For example:

• by agreement of the parties - clause 1 of Art. 77 ;
• at the initiative of the employee - clause 3 of Art. 77;
• in connection with the end of the contract - clause 2 of Art. 77;
• in connection with liquidation (employer’s initiative) – clause 1, part 1 of art. 81;
• in connection with a reduction (number of employees, staff) - clause 2, part 1 of art. 81.

Outsourcing (outstaffing) or agency labor

This type of registration of labor relations is the most controversial and most recently regulated in a legal sense. It would seem like a sound idea - a recruitment agency hires workers under an employment contract who have the same social guarantees as ordinary employees. At the same time, they perform their labor function not with a direct employer, but with another person who is a customer of a recruitment agency.

Here it is necessary to distinguish between two concepts: outsourcing of services and outstaffing as personnel rental. Outsourcing of services refers to the transfer to third-party services of non-key functions of the organization, such as personnel and accounting, legal, advertising, transport and translation services, call centers, cleaning services, security, computer network support, and the like. Employees of the performing organization can go to the customer’s office and carry out their work functions there, while they only provide services and are not subordinate to the customer as an employer. This method of providing services is absolutely legal, and we considered the option of outsourcing accounting services in the article on accounting support with tariffs for 2021.

But outstaffing as the provision of personnel, in which employees come under direct subordination and disposal to the customer without concluding an employment contract with him, is an illegal way of formalizing labor relations.

In May 2014, Article 56.1 was added to the Labor Code of the Russian Federation, which prohibits agency work carried out in the interests, under the management and control of an individual or legal entity that is not the employer of the employee. At the same time, Chapter 53.1 was added to the Labor Code, regulating the specifics of the labor of workers sent temporarily by the employer to other persons under a contract for the provision of labor.

Private employment agencies will have the opportunity to send their workers to perform work for other persons if the workers are sent:

• to an individual who is not an individual entrepreneur for the purpose of personal service and assistance with housekeeping;
• to a legal entity or individual entrepreneur to temporarily perform the duties of absent employees who retain their place of work;
• to a legal entity or individual entrepreneur to carry out work related to a deliberately temporary (up to 9 months) expansion of production or the volume of services provided.

These innovations in the Labor Code of the Russian Federation come into force on January 1, 2016.