Outstaffing of foreign workers

What is outstaffing?

Outstaffing is an organizational decision of an enterprise, which involves the admission of new employees to the organization without being enrolled in the staff, or the formal withdrawal of their own employees from the staff. In other words, outstaffing is the use of physical or intellectual labor of workers officially employed in another enterprise. To do this, the employer turns to a specialized outstaffing agency, which is engaged in the search and employment of employees in its own staff with their subsequent transfer to the customer company. In addition, the outstaffing agency provides services for the transfer of employees from the balance of the employer to the balance of the recruitment agency.

Such a staffing solution allows the customer to have a full-fledged staff of employees working on its territory. At the same time, they will be formally registered in another organization.

It is important to note that the outstaffing agency also provides support services such as:

• search for necessary employees;
• registration of foreign specialists;
• performing a personnel audit;
• maintenance of personnel documents;
• sending notifications to the Federal Migration Service;
• Providing legal protection and more.

A full list of services provided can be found in the appropriate section on the company's website.

At the same time, the activity of an outstaffing agency is absolutely legal. Therefore, in case of inspections by control and supervisory services, it is enough for the employer to provide the latter with an outstaffing agreement. This circumstance will automatically redirect the entire audit procedure to a recruitment agency, because the employees are officially employed by the outstaffer. It is important to add that the outstaffing agency also bears the legal responsibility for the personnel, as well as the payment of fines issued by public services.

What are the benefits of outstaffing?

Making a personnel decision to transfer the staff of an enterprise to outstaffing gives the employer many advantages, most of which are mainly related to legal aspects.

Therefore, we can highlight the key benefits for the employer when using the services of an outstaffing agency:

• there is no need to maintain document management for employees, as a result of which the load on the personnel department is significantly reduced;
• when hiring foreign outstaffing specialists, there is no supervision from the migration services;
• protection from inspections by control and supervisory services;
• 100% no fines or sanctions.

In addition, the employment of specialists under the outstaffing scheme relieves you of the obligation to conduct quarterly briefings on labor protection and fire safety, as well as to submit various types of reports to civil services. Moreover, in the case of foreign employees, you do not need to notify the migration service about the employment of a foreign citizen and his dismissal.

But still, the main problem faced by all employers with foreign employees is related to tracking innovations in migration legislation. In addition, not all business leaders have the opportunity to receive up-to-date legal information in a timely manner. However, ignorance of the law does not relieve responsibility. Therefore, in case of making any mistakes in the work, most likely, you will have to pay fines.

Also, the transition to outstaffing improves production and financial performance. Namely:

• costs for the maintenance of an accountant and a personnel specialist are reduced;
• the company's capital is protected from large fines;
• improves the efficiency of the enterprise, based on the calculation of profit / profitability per employee;
• you can work under a simplified taxation system with a reduced income tax rate.

It should be noted that the management of outstaffing personnel is no different from the management of full-time employees. Even if, for example, you are not satisfied with the work of any specialist, you can promptly and legally dismiss him.

Who is outstaffing suitable for?

The outstaffing service can be relevant for almost all employers. However, the adoption of such personnel decisions can be based on several reasons:

• if the employer has no experience or is afraid to employ foreign specialists, since the procedure for registering migrants is complex and requires certain knowledge;
• The company's strategy is to increase profits by reducing the costs of staff salaries;
• there are no specialists in the field of jurisprudence and personnel records in the staff of the enterprise, or there is no specialist who understands migration legislation;
• bThere have been bad experiences with inspections resulting in large fines or sanctions;
• it is planned to increase the staff of the enterprise, but it is important to stay on the simplified tax system;
• The employer wants to get rid of the documentary routine associated with personnel records of migrants.

And this is only part of the reasons for the employer to switch to outstaffing.

Scheme of work

The outstaffing service is not only beneficial for the employer, but also the scheme of work for it is very simple. Our work plan can be divided into 5 preparatory stages and 3 work processes that are carried out monthly.

Training:

1. You contact us or send an application for outstaffing to our company;
2. We discuss all issues and agree on the price of the service;
3. Your representative sends electronic copies of documents to employees of your company;
4. We prepare an outstaffing agreement and a package of personnel documents;
5. Sign the contract.

Collaboration process:

1. At the end of the month, we issue an invoice for services;
2. You pay your bills monthly;
3. From the money transfers we make, we calculate the salaries of your freelancers.

In the event that an inspection arrives at one of the facilities of your enterprise, we will immediately visit you to provide all the necessary documents and provide legal protection.

Frequently asked questions

What is employee outstaffing? Where to go?

Outstaffing of employees is the withdrawal of employees of the enterprise from the staff, or the hiring of freelance specialists. This procedure is beneficial to the employer for many reasons. One of the most important is the removal of legal responsibility for personnel. In order to use the outstaffing service, you need to contact an accredited recruitment agency. After that, you conclude an agreement with an outstaffing organization, the subject of which is the provision of services by the agency for the employment of specialists and the transfer of workers to your state under a staffing agreement. Thus, outstaffing will allow you to optimize document flow, as well as reduce labor costs.

What services does an outstaffing agency provide?

The main activity of the outstaffing agency is the solution of personnel problems of the organization. However, this activity is very multitasking, in connection with which the agency also provides support services:

• maintenance of personnel and migration documents;
• maintaining the updating of registration documents, as well as their prolongation;
• sending notifications to government agencies;
• HR accounting;
• legal protection of the employer on personnel matters and more.

To get acquainted with the full list of services, as well as their prices, we recommend on our website.

What is the difference between outstaffing and outsourcing?

Outstaffing and outsourcing are two completely different services that have significant differences. So outstaffing involves the transfer of personnel under the contract. While outsourcing is a service for the acceptance and performance of any functional duties transferred from the customer company to the executing company.

What documents are required for employment of CIS citizens for outstaffing?

To employ a foreign specialist for outstaffing, our recruitment agency will need the following documents:

• passport or other identity document;
• registration;
• SNILS;
• TIN;
• migration card.

What documents are required for the transfer of foreign specialists of the organization to outstaffing?

In order to conclude an agreement with our organization for the provision of outstaffing services, as well as to transfer employees to the staff of the agency, you will need to send us electronic copies of documents for employees. The package of documents includes:

• passport or other identity document;
• migration card;
• SNILS;
• TIN;
• patent for work;
• patent payment check

How is the withdrawal of employees from the staff?

The withdrawal of employees from the staff of the enterprise is not a complicated formal procedure. First you need to conclude an agreement with an outstaffing agency. After that, the agency undertakes to accept your staff in its staff. In turn, the procedure for enrolling employees on the balance sheet of a recruitment agency is carried out under an employment contract. Together with him, for each employee transferred to us, a reverse contract for the provision of personnel is created. Thus, you will only have to pay the bills issued by the agency and carelessly use the work of freelancers. At the same time, legal liability, as well as possible riskki is taken over by our organization.

What is the principle of personnel outstaffing?

The process of transition of the customer organization to outstaffing can be carried out in two ways:

1. The customer transfers his own staff to outstaffing;
2. The agency provides hired employees under the outstaffing scheme.

With any type of cooperation, the employer initially concludes a bilateral agreement with the outstaffing agency. Only after a legal agreement is the procedure for the transfer of personnel.

In the first option, when the employer removes staff from the staff of the organization, the employees formally go through the dismissal procedure in the customer company, after which they are drawn up according to the Labor Code of the Russian Federation, but already in the agency. Further, the agency transfers the employees back to the customer, but already under the contract for the provision of personnel.

In the second option, when the agency provides hired employees, the scheme is slightly different, since the outstaffing company searches for personnel on its own. At the same time, the procedure for employing employees and transferring personnel to the customer is similar to the first option.

Also, the outstaffing scheme includes the calculation and payroll of employees. In this regard, the agency issues an invoice to the client company on a monthly basis.

Does outstaffing have any risks?

The tax legislation of the Russian Federation provides for the taxation of services provided under a contract for the provision of personnel. Namely, as a tax base, it is worth considering the expenses that go to pay staff, which are on the balance sheet of a third-party organization. In this case, all tax deductions are made by the agency. In addition, the outstaffing agreement stipulates the obligations of the executing company with possible compensation in case of their violation. Therefore, from the legal side, the customer is also protected.

Outstaffing banned in Russia?

In 2016, the law “On agency work” was passed, which, as many believe, prohibits the activities of outstaffing companies. However, the law was adopted only for the purpose of regulating this area, since at the time of its inception many fraudulent firms were formed. Therefore, in accordance with the law of 2016 “On Agency Labor”, only those private agencies that have been accredited and also received a license from Rostrud can provide outstaffing services. Our company is one of them.