Personnel leasing: benefits and differences from outsourcing and outstaffing

Recently, entrepreneurs, businessmen and ordinary people very often come across such concepts as outsourcing, outstaffing and personnel leasing. These foreign words seem complex and incomprehensible. They really imply quite complex and important processes in business. And which ones we will now look at together.

Content

• What does the expression “providing personnel for rent” mean?
• Why and who needs temporary staffing services?
• How is staff leasing carried out?
• Types of services that involve the use of hired personnel
• Personnel outsourcing
• Outstaffing of personnel
• Temporary staff services
• Personnel leasing
• Differences between HR outsourcing and HR outstaffing
• Legal and financial aspects of hiring temporary employees
• Pros and cons of providing temporary staff
• Advantages of leasing temporary staff for an employer
• Disadvantages of hiring temporary staff for an employer
• Benefits for the employee
• Disadvantages for workers
• Legislation and hired labor
• Prohibition on agency work
• Conclusion

Why is self-search ineffective?

Each employer, instead of running a business, will not be able to fully provide its own organization with numerous employees of various professions due to the following reasons:

• it is a time-consuming process;
• in order to select a professional in a particular field, you need to know it or additionally hire a specialist who understands the features of a particular position;
• Independently selecting a new employee may end in nothing. A person can easily let you down after an interview. There is no guarantee that the employee will show up for his shift on time. Because of this, the production process is disrupted, and the business itself suffers losses.

Personnel outsourcing is a service that allows you to achieve specific goals without introducing additional personnel into the main staff. In addition, you can form the necessary team of employees in the shortest possible time. Thanks to this, personnel and business management becomes more flexible.

What does the expression “providing personnel for rent” mean?

In our country, the majority of people work as permanent employees. For example, you come to get a job, you are accepted into some position where you work until you retire, get promoted, or of your own free will. That is, you occupy a permanent workplace.

But in many countries, in addition to permanent employees, there are also leased employees. They are hired for a certain period of time to perform certain tasks. This may be seasonal work, when at certain times of the year it is necessary to increase the number of employees, or, for example, a leased employee may replace a permanent employee who has gone on vacation.

In Russia, hired labor is becoming increasingly relevant. More and more entrepreneurs are resorting to it, because it is economically profitable and allows significant savings on the enterprise’s budget.

How to start providing HR outstaffing for employees?

Registering your leasing agency with the Tax Service

• "Limited Liability Company".
• Type of your activity: Recruitment services. OKVED 74.50.2
• Two taxation systems: General and simplified tax system.

Search for colleagues

The success of a company providing outstaffing services for personnel leasing depends directly on its employees. The more experience they have, the more successful your business will be. Therefore, be as vigilant as possible.

It is required that any leasing company must have two departments on staff:

• Personnel department (employees in this area must keep time sheets that company employees have worked, keep personnel records for employees and draw up employment contracts).
• Legal department (experienced lawyers).

Office

The office of a company providing HR outstaffing must be in the business part of the city, look appropriate, and have space for all employees.

Clients

First, you need to find companies in the region that would be interested in the services of an outstaffing company that provides personnel leasing. Next, you need to guide the robot to conclude contracts in order to cooperate.

For everything to be successful, you need to meet with the leaders in person. This will affect the result, 100 percent guarantee.

Why and who needs temporary staffing services?

At any enterprise, the largest expense item is the payment of wages to employees. Therefore, during the crisis, enterprising businessmen found a way out of the difficult situation and began to use the labor of hired workers.

Temporary workers are hired when:

• The work of the enterprise is seasonal and during the peak period it is necessary to attract more workers. For example, ice cream is very popular in the summer. It is eaten daily in large quantities. And with the onset of cold weather, this product is less in demand. Accordingly, in the warm season the production of the cooling treat increases, and in the winter it decreases;
• There is a project that needs to be completed. Sometimes a temporary worker is hired to perform a specific task or work on a project. After completion, which a specialist of this level is simply not needed;
• The company's staffing is limited to a certain number of employees. But in reality, there are not enough employees to complete the given amount of work;

The staffing table is a document that specifies all the positions required by the enterprise for normal functioning, the number of employees and the salary of each employee.

• Work related to temporary expansion of production;
• The company needs to conduct an advertising campaign, promotions, etc. In this case, they hire temporary staff for events;
• It is necessary to replace permanent employees who are temporarily absent (on annual leave, on sick leave, on maternity leave, etc.).

Main types of personnel outsourcing

In Russia, transport services, advertising, accounting, security, and so on are outsourced.

1) Outsourcing of working personnel

Do you know what services are most often outsourced? All those related to the company's service. Now we are talking about the positions of cleaners and general workers.

Let me clarify an important point: the customer company is provided with a “full set” of services. This means that the client company does not think about buying a washing vacuum cleaner or a hammer and file. If a cleaner comes to him, he comes with all the necessary tools. This is what outsourcing of workers is all about.

2) Outsourcing of warehouse personnel

Warehouse and logistics personnel are a special caste. Only a few companies can afford to equip a warehouse, purchase forklifts, pay for the work of a good logistician and employ a whole staff of general workers. It is not surprising that warehouse outsourcing is in demand for temporary projects.

This service includes the provision of not only workers, but also dispatching schemes, organizing a labor protection system, supplying people with special clothing, training, medical examinations and much more.

3) Outsourcing of construction personnel

Many construction companies cannot fully provide themselves with qualified personnel. It is too expensive to keep a permanent position as a tiler, finisher, electric welder, crane operator, or metal structure installer. From time to time you have to turn to an outsourcing company.

In addition to this obvious example, I will give one more. Let's imagine an English language school with peeled walls and a swollen floor. Closing and handing over the building to repairmen is more expensive for yourself. Clients will flee, profits will disappear. And I want to save money by hanging wallpaper, laying carpet, and painting doors myself.

But who will take care of leveling the walls and screeding the floor? This requires experienced hands. Outsourcing or leasing construction personnel will come to the rescue. While a builder is plastering the walls in one classroom, lessons are being taught in the next room. No company would take on a facility in which the work process continues. Hiring a temporary worker is another matter.

4) Outsourcing of production personnel

Unbelievable but true. A manufacturing company that produces teaspoons can order the production of these same spoons on the side! It is possible to outsource everything - from cleaning and accounting to production and packaging. The main thing is that the profit covers all expenses.

Outsourcing of production is a common phenomenon in Russia. The designer created and patented tea spoons for left-handers, but does not have the ability to manufacture them. What is he doing? Orders the production of cutlery from a third party company.

Production outsourcing is also popular among real manufacturers. For example, a machine-building plant orders the production of new bearings from another enterprise. Or a frying pan manufacturer enters into a contract to produce glass lids. There are a lot of options.

5) Outsourcing of sales personnel

The category of sales personnel includes: merchandisers, supervisors, salespeople, sales floor employees, consultants and other specialists.

Outsourcing of sales personnel is beneficial, since employees with relevant experience and medical records are involved in the work. This is also a good option for participating in exhibitions - when there are “not enough hands” to hold an event.

6) Other types of outsourcing

The financial sector is another popular area. This includes accounting services - reporting and financial documentation. Services can be one-time: for example, making an annual report. They can also be constant – up to daily interaction.

The site has a detailed article on the topic of outsourcing accounting services.

It is worth mentioning the rental of IT specialists - people involved in server hosting, working with applications, website support, and so on. In this case, outsourcing is a full-fledged service that comprehensively covers the customer’s IT service needs.

Concluding outsourcing agreements with Call centers – companies engaged in telemarketing and telephone surveys – is gaining popularity. It is impossible to cope with this on your own - the labor and time costs are too high.

Outsourcing of medical personnel is an area that will interest a narrow circle of people. But I will tell you about her too.

The fact is that private clinics, hospitals, and pharmacies often suffer from a shortage of staff during holidays and night shifts, during vacations and epidemics. Medical centers need not only doctors, but also nurses, midwives, and very often paramedics, caregivers, and orderlies.

Still, clinics must work around the clock - without delay, providing assistance to all who apply. This is where staff leasing comes in handy.

I will also mention the outsourcing of support staff: security, watchmen, couriers. We are already so accustomed to attracting third-party workers in this area that sometimes we forget that all this can also be classified as outsourcing.

We are reading an article on a related topic - “HR outsourcing”.

How is staff leasing carried out?

Temporary employees are hired through special agencies that specialize in personnel selection. If a company needs any specialist, they contact such an organization, enter into an agreement among themselves to provide these services, after which employees are selected for them.

The agency finds an employee, concludes an employment contract with him, maintains his documents (fills out a work book, makes tax deductions).

Before starting to perform certain work, an addition to the employment contract is drawn up between the hired worker and the organization where he performs the work, which spells out all the rights and obligations of the employee, his working conditions, etc.

During the performance of work, labor relations between the agency and the employee do not disappear, and they do not arise with the hired organization. That is, a legally leased employee is officially employed by the agency, but works in the organization to which he was sent.

Subtleties of accreditation of private employment agencies

All rules for accreditation of private employment agencies for personnel outstaffing - carrying out activities related to the provision of personnel labor - are given in Russian Government Decree No. 1165 of October 29, 2015.
First of all, recruitment agencies cannot be accredited in 2020 if the company does not meet the minimum requirements of the Federal Service for Labor and Employment.

Requirements for private employment agencies to obtain accreditation:

• The company must have an authorized capital of at least one million rubles;
• The company cannot have debts on tax payments and other contributions to the budget.
• The CEO of a company undergoing accreditation of a recruitment agency must be a certified specialist in the field of employment and personnel.
• The CEO of the company must have at least 2 years of experience in the field of employment and personnel management over the last 3 years;
• The general director cannot have a criminal record for crimes against the person or in the economic sphere.

Types of services that involve the use of hired personnel

There are several types of employees. They all involve different ways of managing temporary staff.

Personnel outsourcing

Outsourcing is when a company transfers part of its functional responsibilities to another organization that is a professional in this field.

For example, it is not profitable for an enterprise to have an accountant on its staff, or maybe this organization is still very small and consists of 1-2 employees who simply do not know how to do accounting, prepare reports, etc. Then for help you can contact a company that will conduct accounting affairs for a fee.

This type of contractual relationship is divided into the following categories:

• Outsourcing of working personnel . This is the most common type of outsourcing. Many organizations hire workers to clean their premises. Managers of customer companies believe that it is more profitable to pay a cleaning company than to keep a permanent employee on staff;
• Outsourcing of construction personnel . Most companies have production and office premises that periodically have to be repaired. It is for repair and construction work that they turn to the relevant companies. For a customer company, if its business is not related to construction, it is not profitable to have permanent employees with construction specialties on its staff;
• Outsourcing of accounting personnel. It is impractical and economically unprofitable for small enterprises to keep a permanent accountant on staff. Then they turn to a company for help, which helps maintain all the necessary documentation and reporting;
• Outsourcing of support staff . This is also a very common type of outsourcing, because... performing companies can provide security and courier services. Not every customer organization is ready to hire a security guard or courier as a permanent staff member. That is why they turn to specialized companies.

There are many categories and types of employees. This includes outsourcing of sales personnel, outsourcing of warehouse personnel, etc. In fact, you can order any service, from cleaning the premises to management positions. The main thing is to calculate in advance what is more profitable, to keep a permanent employee, or to use the services of professional companies.

Outsourcing of temporary staff involves a relationship between two parties, the customer and the performing company. They are the ones who enter into an agreement for the provision of services without the participation of third parties.

Outstaffing of personnel

Outstaffing is when an enterprise removes a permanent employee from its staff and places him in another organization. In fact, this means a change in management, but in reality the person worked in his position and still works.

Simply put, the agency officially recruits the client company’s personnel into its staff.

Personnel outstaffing services are provided by an accredited recruitment agency.

Temporary staff services

If a company needs to rent an employee for a short period of time (from 1 day to 3 months), then the customer company contacts a recruitment agency that recruits temporary staff. Such an agency quickly finds a temporary worker with the required qualifications who will carry out the tasks of the customer company.

The official documents on the basis of which temporary personnel are managed are the employment contract and the contract for the provision of personnel.

Depending on the work performed, the following types of use of temporary personnel can be distinguished:

• Working personnel for rent (cleaners);
• Rental of warehouse personnel (drivers, packers, etc.);
• Rental of production personnel (merchandisers, salespeople, etc.).

Sometimes temporary staff become permanent. If the head of the enterprise likes the hired employee, he can offer him a place on the staff.

However, it often happens that temporary staff are not interested in high-quality and fast work. He comes to a temporary job to work the allotted time, performing his duties poorly.

Sometimes this depends on human qualities, and sometimes it is due to the fact that the employee has not completed an internship, has not joined the team and has little idea of ​​exactly what responsibilities are assigned to him.

In order to prevent this from happening, the head of the enterprise must talk as clearly as possible about the responsibilities of such an employee, in addition to the employment contract, spell out all the situations that may arise between the parties, conduct internships and training, introduce permanent staff, and perhaps come up with a reward system for quality work performed. work.

Depending on the category of personnel hired, the employee may be qualified or unskilled. Very often the quality of the work performed depends on this.

For example, if you hired an experienced programmer to create a website for your organization, then with a high probability you can say that the work will be done efficiently. If a newbie takes on the task, the work may not be completed as professionally as you would like.

Personnel leasing

Personnel leasing is when an agency enters into an employment contract with an employee and places him at the disposal of the customer company for a long period of time. The maximum period of stay at one facility cannot exceed 9 months.

Personnel leasing should be carried out by special organizations that have been accredited and have permission to provide such services.

When ordering temporary staff leasing, the client company must enter into a staff leasing agreement with the recruiting agency. After which the hired employee can begin to perform his duties.

Outsourcing examples

1. To carry out an advertising campaign, the customer needs 10 promoters for 1 day. The customer contacts the recruitment agency with his requirements for employees. The agency selects employees for the specified day. On the specified day, employees go to work and perform the agreed functions. After the promotion, the customer pays the outsourcing agency for the work of the promoters for that day.
2. The customer needs daily 2-hour office cleaning, but at the same time he does not want to hire a full-time employee. The customer contacts an outsourcing company, which selects an employee from its staff and provides it to the customer. An employee comes to the customer’s office every day at the appointed time and performs the agreed functions. The customer, in turn, accepts the work and pays the outsourcing agency the agreed remuneration.

Differences between HR outsourcing and HR outstaffing

These two concepts have a number of differences, since they are completely different forms of contractual relations. In order to better understand how one differs from the other, we suggest considering the following table.

Table of comparative characteristics of outstaffing and outsourcing

№	Criteria	Outsourcing	Outstaffing
1.	Workplace	Workers perform their duties in the performing company. The customer receives the final result in the form of reports, projects, etc.	The personnel performs their duties directly on the territory of the customer enterprise. He is at the complete disposal of the management of this enterprise, subject to its charter, rules and labor regulations.
2.	Labor Relations	An employment contract is concluded between the performing company and the customer company. The customer does not make tax deductions for the performer, does not pay for his vacation, sick leave and does not pay bonuses.	An employment contract is not drawn up between the contractor and the customer. All deductions are paid by the agency that provides the employee.
3.	Payment	The customer company pays for the actual work done. He is not interested in whether the employee complied with the work schedule or discipline.	A temporary worker is paid for the work process. The customer can control the execution of work, delays, etc.
4.	Management	Since the customer pays for the work done and its quality, he cannot manage the personnel of the performing company	The customer is provided with labor resources in the form of workers, so he has the right to dispose of them himself.
5.	Agreement	A “Service Agreement” is drawn up. The contractor can be any organization (construction company, accounting company, cleaning agency, etc.).	An agreement for the provision of personnel or a rental agreement for personnel is drawn up. The performers can be any recruitment agencies.

What is the difference between personnel leasing and outstaffing and outsourcing?

Personnel leasing and outstaffing are the closest concepts, in contrast to outsourcing, which imply “renting” an employee for a certain time or to carry out certain work. In both leasing and outstaffing, the “lease” agreement is concluded between two companies.

The concept of leasing or renting an employee is conditional, since in the Russian legislative space it is impossible to legally issue a lease to a living person. Official leasing exists only for material resources, transport or means of production.

In fact, personnel leasing in simple words is:

• search by a staffing company for employees;
• registration of fixed-term employment contracts for employment in your company;
• provision of hired workers to the customer to complete a specific order.

Outstaffing can also be called “renting” employees, although the registration and hiring mechanism is different here.

Unlike personnel leasing, outstaffing is the removal of current employees of the customer company from the staff. They are officially employed by a staffing company. Moreover, all manipulations are carried out between two companies and the employee exclusively on paper. In fact, the employee continues his activities at his usual workplace. However, he will be included in the staff list and receive remuneration for his work already in the recruitment company.

Differences between outsourcing and leasing

Both forms of attracting workers do not provide for the official registration of personnel in the staff of the company for which they work. The fundamental difference is that leasing is the provision of people, and outsourcing is the provision of services.

Legal and financial aspects of hiring temporary employees

Until 2020, the rights and obligations of a leased employee were not spelled out in any way. This was taken advantage of by careless entrepreneurs who retained the status of a small enterprise and enjoyed preferential taxation.

At the moment, the registration of hired labor is prescribed by law, and an employee who is sent to perform certain work has, in addition to responsibilities, also rights.

Here are some of them that every employee should know:

• A temporary staff member is entitled to annual leave. The number of days is calculated as follows. For each month worked, you are entitled to 2 vacation days;
• An employee cannot be fired by a company where he is temporarily performing any work. If the customer is dissatisfied with the performance of the work, he presents his claims to the recruiting firms, and they, in turn, replace the unscrupulous employee with another;
• The probationary period of an employee should not exceed 2 weeks;
• The salary of a temporary employee should not be lower than that of a permanent worker of this qualification;
• Employment is formalized with the corresponding entries in the work book;
• Before leaving for a new facility, the rented employee must give his written consent to perform the work.

All financial contributions (including payment of wages to an employee), social benefits. the package is provided by the recruitment agency. If this organization delays payment of wages to an employee, then the company that rents the employee is obliged to pay him the debt. After which the current problem is resolved directly with the agency.

Persons who have reached the age of 14 can be employed. But the working hours of such young workers must be closely monitored, since they should not work more than 12 hours a week.

The difference between outsourcing and leasing

Workforce leasing - to Moscow is a type of outsourcing that is characterized by:

• ease of personnel search;
• reducing the costs of accounting and administrative affairs;
• searching for additional workers, monitoring the quality of work and labor discipline. The customer company receives good results and completion of a certain amount of work on time.

Leasing differs from outsourcing primarily in that a temporarily hired worker can be transferred to the staff of the lessee organization. With outsourcing, the employer, on the contrary, tries to move personnel outside the state, but get the necessary help.

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 attract 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.

Examples of outstaffing

1. The customer already has foreign workers at the enterprise, but its personnel service cannot cope with the huge migration document flow of these employees. Fearing errors in personnel management and huge fines for mistakes in registering migrants, the customer decides to remove migrants from the staff of his organization. The customer turns to a recruitment agency, which re-registers employees as its staff and becomes their official employer, which means it takes full responsibility for responsibility for these employees to government agencies for maintaining personnel documentation, tax, accounting and migration records. After which the outstaffing agency transfers employees under the management of the customer under an outstaffing agreement.
2. The customer needs new employees and wants to hire foreign citizens, but his staff does not have specialists with experience in managing foreigners. Then the customer turns to an outstaffing agency, which recruits workers into its staff and takes full responsibility for personnel management. After being re-registered as an outstaffing agency, the workers are provided to the customer at the site under an outstaffing agreement. At the same time, despite the fact that the employees work on the customer’s territory, the employer’s legal responsibility for them lies with the outstaffing agency where they were registered under an employment contract.

Legislation and hired labor

Until 2020, the legislation did not stipulate the working conditions of a temporary worker. He was a forced man who could do work for next to nothing. Now the amendment to the law contains clauses that make life easier for the employee.

Let's look at the main changes:

1. A temporary employee does not have the right to stay at one facility for more than 9 months. After this period, he must be given another job, or permanent employees must be hired;
2. Before sending an employee to a particular organization, the agency must obtain written consent from him;
3. If an employee works in harmful or dangerous work, he must receive appropriate payments;
4. Salaries should not be lower than those of workers at this level;
5. The number of hired workers should not exceed 10% of the number of permanent employees.

Prohibited:

1. Engage temporary personnel to perform work of Ι-ΙΙ hazard class and 3-4 degree of harm;
2. Engage an employee in the position of a freight forwarder and other professions related to land transportation;
3. Hire temporary staff for enterprises that are bankrupt;
4. Replace employees who are on strike or during downtime with temporary personnel.

The law also prohibits the provision of hiring services to the following companies:

1. Budget of less than 1 million rubles;
2. Bankrupt organizations;
3. Firms that enjoy preferential taxation;
4. If the manager has been convicted and has no experience in the field of employment.

Prohibition on agency work

However, you need to understand the difference between leased employees and agency labor. The use of agency labor has been officially prohibited since 2020, because... it does not imply the existence of rights and freedoms of workers. The work of leased workers is permitted and regulated. Therefore, do not be afraid of temporary staff. Nobody prohibited the provision of personnel for outsourcing, outstaffing and leasing.

What is personnel leasing

This phenomenon has nothing to do with the usual temporary registration under a fixed-term employment contract. An employee who independently enters into a trade agreement with an enterprise cannot be the subject or object of leasing (more details here) - he participates in completely different relationships that arise between him and the employer.

Personnel leasing is a form of cooperation between two business entities, in which one of them entrusts its full-time employee with performing work at another enterprise for a certain period of time.

The lessor can be a specialized recruitment agency or another company that has entered into an agreement with the counterparty to the appropriate content.

When and why it is used

Most Russian companies are wary of temporary employees. Each company has its own trade secrets, which management does not want to reveal to strangers. However, situations arise in which it is impossible to do without attracting external workers. For example:

• Short-term projects that require the participation of specialists who are not in the current staffing table. A company can receive a very profitable order that does not quite correspond to its main profile. This situation can be illustrated using the example of an aircraft factory, which is required to produce some specific component for a spacecraft. The main design documentation can be developed by our own engineers, but the designs of satellites and rockets have features that require the involvement of temporary qualified consultants.
• Temporary staff shortage. This happens during certain seasons or when organizing some special promotions. During a conference, exhibition or peak influx of tourists (especially in resort towns), the need for labor resources increases. In such cases, leasing of ordinary and administrative personnel is practiced, making up for the personnel shortage.
• The need to reduce the official number of personnel. The desire not to go beyond certain parameters that allow maintaining a favorable tax regime encourages the managers of some enterprises to resort to tricks: transfer their employees to the staff of other companies (affiliated or intermediary), and then “lease” them. At the same time, people actually continue to work as before, in their places.

As a result of this cooperation, the lessee company enjoys the following advantages:

• reduced number of personnel without loss of production capacity;
• the ability to implement various projects using temporary workers who are not registered as staff;
• simplification and reduction in cost of office work and accounting;
• reducing the financial burden of paying taxes and social obligations provided for by the legislation of the Russian Federation.

Functions of a recruitment agency engaged in personnel leasing:

• accepting employees into your staff under an employment contract with all the ensuing legal consequences;
• wages and tax deductions on wages;
• compliance with legislative requirements for social guarantees;
• compulsory health insurance;
• provision of certificates from the place of employment;
• interaction with employment agencies;
• documentary and other support for the production and labor activities of its employees, regardless of their actual place of work.

The legislative framework

In 2020, Federal Law 116-FZ came into force, regulating relations arising in the process of providing (leasing) temporary personnel. Its main provisions that you need to know about:

• Only companies accredited by the employment service and operating under the basic tax system (not the simplified tax system) can provide the service.
• The duration of the employee employment contract on a leasing basis cannot exceed nine months.
• The work of such an employee is paid according to the tariffs adopted at the lessee enterprise for the main personnel.
• In harmful and dangerous industries, compensation stipulated by law must be paid.

Federal Law 116-FZ is aimed at protecting the rights of employees performing labor duties under leasing conditions. In particular, they are prohibited from being involved in production of the third and fourth degree of harm.

The legal norm establishes the following restrictions:

• leasing agencies in the bankruptcy stage are deprived of the right to carry out activities;
• hired workers employed at other enterprises cannot be part of the crews of sea and river transport vessels;
• the use of leasing during strikes (as strikebreakers) or production downtime is prohibited;
• leasing operations with personnel cannot be carried out if there are free or not fully loaded own personnel;
• attracting third-party labor resources is unacceptable if it is obvious that such an action could lead to the forced dismissal of full-time employees.

Identification of non-compliance with the restrictions and prohibitions established by Law 116-FZ serves as the basis for the adoption of administrative sanctions against the enterprise as provided for by the Labor Code of the Russian Federation.