Registration of personnel under an outstaffing agreement: what is it, sample (2020)

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Contract for the provision of personnel services

(outstaffing agreement)
_______________ "___"__________ _____

_______________________, hereinafter referred to as the “Contractor”, represented by _____________________________________________, acting on the basis of the Charter, on the one hand, _____________________________, hereinafter referred to as the “Client”, represented by ____________________________, acting on the basis of ___________________________________________, on the other hand, hereinafter referred to as “ The Parties have entered into this Agreement as follows:

SUBJECT OF THE AGREEMENT

1.1. The Contractor undertakes to provide, at the Client’s request, services to provide the Client with employees (hereinafter referred to as the Contractor’s employees) to participate in the production process, production management or to perform other functions related to the production and (or) sale of products (goods, works) , services), on the terms and conditions specified in this Agreement.

1.2. Qualification requirements for employees are determined by the Client in a written application sent by him to the Contractor.

OBLIGATIONS AND RIGHTS OF THE PARTIES

2.1. The Contractor assumes the following obligations:

2.1.1. Based on the Client’s written application, the Contractor selects and places at the Client’s disposal qualified employees whose qualification parameters and standards are specified in the Client’s application. If, after 7 (seven) working days from the date of receipt of the application, the Contractor does not send the Client his motivated comments on the application, the application is considered accepted by the Contractor and is subject to execution in accordance with the terms of this Agreement.

2.1.2. The Contractor is obliged to provide the Client with copies of documents confirming the qualifications and work experience of the provided employees.

2.1.3. The Contractor bears full responsibility for paying wages and other benefits to the employees provided, as well as for providing employees with social and labor guarantees and benefits provided for by current labor legislation, including compensation for damages in the event of a work injury or other damage to health through the fault of the employer, for payment benefits for state and social insurance, for maintaining the average salary for the period of study.

2.1.4. The calculation, accrual and payment of taxes and other obligatory payments to budgets of all levels accrued in connection with the payment of remuneration to employees is carried out by the Contractor.

The performer is:

- a taxpayer of the unified social tax in relation to payments to employees - in the event that the Contractor applies a general taxation system;

- the policyholder for compulsory pension insurance and accident insurance in relation to payments to employees - in the event that the Contractor applies a simplified taxation system.

The Contractor is a tax agent in relation to personal income tax on payments to employees.

2.1.5. When a request is received from the Client to replace an employee in accordance with clause 2.4.2 of this Agreement, the Contractor makes such a replacement within 3 (three) business days from the date of receipt of the request. This period may be increased unilaterally by the Contractor if the staff member being replaced has qualification requirements that do not allow searching for the required candidate in a short time. The Contractor informs the Client about the extension of the period immediately after he becomes aware of the difficulty of finding a suitable candidate.

2.1.6. The Contractor undertakes to properly maintain personnel records for all employees. The responsibility for properly executing employment contracts with employees rests entirely with the Contractor.

2.1.7. If it is revealed that damage to the Client’s property has been caused by the employee’s actions, the Contractor, on the basis of a properly executed report on damage to the Client’s property and a report on the assessment of the damage caused, will compensate the Client for the damage caused. In this case, the right of claim against the employee is transferred to the Contractor by way of recourse.

If the Contractor disagrees with the fact of damage caused by the employee’s actions and (or) the amount of damage caused, the Contractor has the right to conduct an internal investigation. The internal investigation is carried out by a commission formed by the Contractor, which includes at least one representative from the Client. If the Client refuses to send a representative (failure to send a representative) to participate in the commission, the commission is formed without the Client’s representative.

The total time of the official investigation does not exceed one calendar month from the date of formation of the commission. The Commission has the right to conduct a survey of employees, persons who have information about the fact of damage, involve independent appraisers, enter the Client’s territory, receive explanations from the Client, and take other actions aimed at establishing the fact and extent of damage.

2.2. The performer has the right:

2.2.1. Replace a specific individual from the list of provided employees in cases where such a replacement meets the qualification requirements, that is, does not have a significant impact on the quality of the work performed by the provided employees. This right of the Contractor does not apply to employees provided to the Client on the recommendation of the Client in accordance with clause 2.4.1 of this Agreement, except in cases where such a replacement is caused by the dismissal of the employee on his own initiative.

2.2.2. Exercise control over the Client’s compliance with the terms of this Agreement, including the Client’s obligation to create safe working conditions for the provided workers, including in the form of the direct presence of the Contractor’s representative on the Client’s territory.

2.2.3. Set wages for employees and the amount of other payments to employees at its own discretion, taking into account the requirements of current legislation.

2.2.4. Require that employees assigned to the Client comply with the terms of employment contracts, job descriptions and local regulatory legal acts in force with the Contractor.

2.2.5. Bring employees to disciplinary and financial liability in cases provided for by law, employment contracts, and local regulations in force for the Contractor.

2.3. The Client assumes the following obligations:

2.3.1. Within 10 (ten) working days from the date of signing this Agreement, send to the Contractor an application for the provision of workers indicating the number and required qualifications of workers, including by level, profile of education, work experience, skills and abilities in a certain field, security necessary licenses, certifications, permits (permits).

2.3.2. Ensure timely reception of workers provided by the Contractor and provide them with work.

2.3.3. Provide workers with adequate, safe conditions that comply with the Labor Code of the Russian Federation for performing labor functions.

2.3.4. Introduce the provided employees and conduct initial training on compliance with safety and labor protection requirements, indicating the norms and rules in force in the Client’s territory.

2.3.5. The Client independently, at his own expense, provides the employees with all the necessary documents, materials, tools and tools, premises and everything necessary related to the employees’ professional activities in the interests of the Client.

2.3.6. Pay for the services provided by the Contractor for the provision of employees in full and within the terms provided for in this Agreement.

2.3.7. Familiarize employees with local regulatory legal acts in force at the Client if such acts affect issues of organization of work, labor protection, fire safety and other requirements necessary for the safe and high-quality performance of work.

2.3.8. Ensure compliance with the non-material benefits of employees listed in Art. 150 of the Civil Code of the Russian Federation: life and health, personal dignity, personal integrity, honor and good name, business reputation, privacy, personal and family secrets, the right to free movement, choice of place of stay and residence, etc.

2.3.9. If it is discovered that the Client’s property has been stolen by an employee, the Client is obliged to independently contact the relevant authorities with a statement. In this case, the Contractor provides assistance to the Client in relations with the employee and government authorities. At the end of the trial, the Client is obliged to provide the Contractor with a copy of the court verdict that has entered into legal force, certified by the court.

2.4. The client has the right:

2.4.1. Recommend specific candidates to the Contractor for concluding employment contracts with them and sending them to the Client in the manner and under the terms of this Agreement.

2.4.2. At any time, require the Contractor to replace a specific employee without giving reasons. This right can be exercised by the Client if the total number of employees replaced within one month does not exceed 10% of the total number of employees provided.

2.4.3. Refuse an employee at any time without explanation. In this case, the Client pays only for the time worked by the employee, with the exception of the first month of his work. The Client pays for the employee’s first month of work before his first working day.

2.4.4. Contact the Contractor with a proposal to reward one of the provided employees who conscientiously performs the duties assigned to him.

2.4.5. In the event of the dismissal of one of the Contractor’s employees, demand that the Contractor provide him with another employee to replace the one with whom the employment contract was terminated.

2.4.6. In the event of a violation of discipline by any of the employees, properly document the violation of discipline and contact the contractor with a proposal to apply appropriate disciplinary measures to the violating employee.

2.4.7. In case of violation of discipline by any of the employees or absence from work due to illness, vacation and/or other reasons, the Contractor's remuneration specified in clause 4.1 of this Agreement will be reduced. The amount of remuneration reduction is determined by agreement of the Parties.

2.4.8. Demand the replacement of an employee who does not meet the stated qualifications. To do this, the Client turns to the Contractor with a reasoned request to replace the employee.

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 employees provided by the Contractor is an employee of the Client 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 Client’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 Client, as well as the corresponding job description in force for the Client’s staff unit.

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

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

3.5. If it is necessary to provide the Client with employees who bear full financial responsibility for the Client’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 for lost property. At the same time, the Contractor enters into agreements with the relevant employees on full financial liability.

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.

4.2. The Client pays monthly the amount of remuneration due to the Contractor for services in 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.

LIABILITY UNDER THIS AGREEMENT

5.1. In the event of non-fulfillment or improper fulfillment of obligations by one of the Parties under this agreement, it is obliged to compensate the other Party for the losses caused by such non-fulfillment.

5.2. In case of delay in transferring to the Contractor the amounts due to him as remuneration, he has the right to collect from the Client a penalty in the amount of 0.3% of the debt amount 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 a consequence 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 data on 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 ways of fulfilling this agreement.

CONFIDENTIALITY

7.1. The terms of this agreement and agreements (protocols, etc.) thereto are confidential and 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 prescribed by current legislation.

CHANGE AND TERMINATION OF THE AGREEMENT

9.1. This agreement may be modified or terminated by written agreement of the parties, as well as in other cases provided for by law and this agreement.

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 has been drawn up in two copies having equal legal force, one copy for each of the Parties.

DETAILS AND SIGNATURES:

Download the document “Agreement for the provision of personnel services (outstaffing agreement)”

Entry in the work book - a right or an obligation?

Labor legislation clearly states that upon employment, the employer is obliged to make an entry in the employee’s work book if the latter has worked in the organization for more than 5 days . But there is an exception - formalization of relations through a civil contract.

It is advisable to conclude a rental agreement in the case of one-time work, for example, the creation of an object of copyright (literary, artistic or musical work).

Concluding a rental agreement has several advantages (no need to make payments to funds, comply with mandatory guarantees, etc.), but you should still remember that if an employee works for a long time under such an agreement, he can go to court for so that the form of the contract is changed. And if the court’s decision is positive, the employer will be obliged to compensate the employee for all payments, such as vacation pay, sick leave, etc.

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.

Employment contract with an individual

Organizations and entrepreneurs specializing in the production of goods, provision of services to the population or legal entities, often feel the need to supplement their staff with employees hired to perform a specific type of work, or for the short-term performance of certain duties.

This is important to know: Order to terminate an employment contract with an employee at his own request: sample 2020

When hiring such workers, an employment contract must be concluded with them, regulating the relationship between the employer and the employee. As a type of agreement between the parties, the rental agreement has some features.

What are they, and how does an employment contract with an individual differ from a standard employment contract?

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Outstaffing of personnel: sample contract and nuances of conclusion