Personnel outsourcing agreement with the personnel center "Capital Personnel"

Outsourcing and its types: general overview

By the word itself you can understand that it is borrowed. It came into the Russian language from English, and this word consists of several, which in translation mean “resources from the outside” or “external source”.

It is important to know! In other words, outsourcing is the attraction of human resources outside the company for a certain time to complete assigned tasks. That is, the customer organization transfers part of its functions to the outsourcing company. This could be calculating wages, creating a vacation schedule, consulting on legal issues, and more.

Such an action, as is commonly believed, allows significant savings on salaries for employees who would work in the organization on a permanent basis.

There are two areas of specialization for outsourcing organizations:

• having a narrow specialization;
• providing specialists of different categories and professions.

Of course, the second option is more profitable than the first.

However, this is not an exhaustive classification of this phenomenon. Outsourcing can be divided according to the following criteria:

• The entity to whom the services are provided. The division here is simple: small, medium, large businesses.
• The nature of the service provided. This criterion can easily be confused with the previously described one (service sector), but in this case we mean the duration and regularity of service (seasonal work, temporary, short-term, permanent).
• According to the degree of influence on the customer’s activities. There is a distinction between functional (the impact on the employer’s affairs is minimal) and business process outsourcing (the hiring person involves a specialist in the company’s working algorithms as a partner).

This classification affects the drafting of a service agreement, so it is worth taking a closer look at what type of external resources will be involved in the company’s work.

There are many areas of specialization for outsourcers:

1. Accounting, analysis, accounting and audit, tax reporting.
2. Programming, administration.
3. Cleaning, in other words, cleaning of premises.
4. Legal services.
5. Advertising services.
6. Educational services.
7. Health care.
8. Private security.
9. Food sector.
10. Repair and other construction work.
11. Insurance.

The list goes on and on.

How is it different from an outsourcing agreement?

An outsourcing agreement (translated as “external source”) is the transfer of some functions of an organization to another company competent in their implementation. In this case, the subject of the contract is the result of the activities of the personnel of the company providing the service.

Provision of services

An outstaffing agreement (translated as “freelance”) implies the transfer of workers to perform temporary work. Therefore, the subject of the agreement is the dispatch of personnel to another company to perform labor duties specified in the agreement in favor of the customer.

Providing personnel

Contingent labor of workers under an outstaffing agreement occurs:

• by order of the employer and with their consent;
• under the management and control of the customer of the service, who is not their employer;
• in the interests of the customer.

The contractor under an outsourcing agreement can be any legal entity or individual. Requirements for performers under an outstaffing agreement are limited by law and may include:

• private recruitment and employment agencies that are registered and accredited for this type of activity in the Russian Federation;
• other legal entities that send employees, with their consent, to a legal entity affiliated with the contractor or that is a party to a shareholder agreement with the contractor.

As a result of outstaffing, the customer organization reduces the workload of its HR department, accountants, reduces its own wage costs, increases the efficiency of the work process, etc.

Legal grounds

The reasons for the operation of such a company are quite legal. In particular, the activities of such an organization are regulated by the Civil Code: this is Chapter 39 “Paid provision of services.” It is very important to comply with legal requirements when signing papers. Relations between companies are also regulated by the Labor Code, since the employer-employee categories are involved here. This point must also be taken into account when signing an outsourcing agreement.

In fact, Russian legislation does not regulate the activities of outsourcing companies in more detail. The main document that has legal force and regulates the relations of the parties is the contract.

Attention! Profit received under such an agreement, as under any other agreement, is subject to tax.

Who can be the performer

The executor under this type of contract is a company that provides the customer with a certain list of specialized property assets and personnel to perform contractual functions. At the same time, a restriction has been established on the composition of performers - outsourcing can only be carried out by a business entity.

Such entities include legal entities (including non-profit organizations), as well as entrepreneurs without forming a legal entity. To provide services under this type of contract, the contractor must independently formalize labor relations with specialists and legally purchase special equipment and technical means.

Preparation of contract

In order for the service required by the customer to be provided in full, it is necessary to conclude an agreement. There are a lot of examples of agreements on the Internet, but you need to keep in mind that each type of activity has its own template.

It is imperative that the contract stipulates all the nuances regarding the recruitment of personnel from outside. Such issues are usually dealt with by a full-time lawyer.

Purpose of the document

The document is intended to record all agreements between the parties and responsibility in case of violation of the agreement. In essence, this is a transaction for the provision of services for a fee.

There is nothing complicated in drawing up this document; the main thing is to spell out all the important nuances of the agreement.

https://youtu.be/tIXhwVCmDv4

Parties to the agreement

The parties to the agreement can be both individuals and legal entities. Again, it all depends on the type of services provided.

So, if you need to clean your apartment, the deal is concluded by an ordinary person and a legal entity. However, there are a number of subtleties here: an outsourcing agreement for the provision of services between an individual who is not conducting business activities and a legal entity can turn into a contract agreement. Therefore, these nuances must be taken into account when signing a deal.

But most often, a personnel outsourcing agreement is concluded between two legal entities. In this case, the document does not require changes or requalification. It may be necessary to make a number of adjustments to the test agreement, but this should only be done with the consent of both parties.

Contents of the agreement

The format of the agreement may vary, it all depends on the services provided by the outsourcing company. A contract is a document that contains the following details:

• date and place of compilation;
• parties to the agreement;
• subject and object of the agreement;
• responsibilities of each party;
• issue price;
• liability in case of violation of the agreement;
• method of accepting services provided;
• contact details of the parties and, if necessary, data of authorized persons.

These are the main points that are described in the contract.

When it comes to pricing, service companies can charge in two ways:

1. Hourly payment.
2. For the service rendered.

The option that is convenient for both parties is selected. However, in the second case, you will have to describe almost every action of the provided specialist. At first glance, there is nothing complicated about this if the hired employee knows his business. But a question may arise regarding the correctness of the description and evaluation of the services provided.

So, if a company is engaged in the assembly and installation of furniture, then everything is simple: they described the cost of assembling cabinets and installing them, described how much everything costs, and everything is clear. It is more difficult to describe the actions of a lawyer, since there are too many nuances in the work of a human rights defender.

Design rules

It is very important to draw up a contract correctly, otherwise it will not have legal force. When preparing the document, you need to consider the following:

• The text should not contain errors (spelling, punctuation, logical and stylistic).
• The requirements, rights and obligations of each party are clearly stated.
• There should be no controversial points or points that are not clear or have an ambiguous meaning.
• The contacts are real. It is better to indicate the legal and actual addresses of both companies, if they are different.
• If there is an organization form, then the agreement can be drawn up on formal paper.
• All necessary terms are written in the correct form and must be used.
• The wording in the text should be clear, literate, understandable, and the sentences should be short and without rearranging words.
• It is worthwhile to write down in a separate paragraph the data regarding payment for services provided. For quick orientation in the contract, these places should be highlighted in bold.
• Signing is done by both parties. It is also worth putting your signatures on each sheet of the agreement. This procedure is called refining; it protects the document from replacing individual pages and entering data that was not discussed.

These are the main points to consider when formulating a contract. Lawyers who draft such documents know how to properly prepare such an agreement.

Advice! Correct drafting is the key to a legal and valid transaction. Therefore, it is important to approach the preparation of the document responsibly.

Sample

A sample contract can be easily found on the Internet. Moreover, each type of activity has its own template. A typical contract would look like this:

These are all the points that a standard contract for personnel outsourcing contains. You can add or remove sections to it if you wish.

What is important to include in an agreement for outsourcing accounting services?

Maintaining trade secrets.

When drawing up an agreement for accounting outsourcing, pay attention to the clause on maintaining trade secrets. It is important to state that each of the parties agrees to consider the information transferred to each other when drawing up the contract and during the performance of obligations as confidential. You also need to specify the period during which this agreement will be valid. The best option is if the information is considered confidential not only for the duration of the agreement, but also for several years after termination of the agreement.

Risk insurance.

Do not forget to register financial risk insurance. The insurance itself looks like this.

Conflict resolution.

The agreement also needs to specify the procedure for resolving possible conflicts. The customer and the contractor must resolve conflicts pre-trial. It is worth clarifying how, where and in the presence of whom the parties will deal with difficult situations.

Outsourcing to foreign citizens: important points

Due to the increasing flow of migrants to Russia, outsourcing companies are appearing that accept foreigners into their ranks. This is, of course, commendable. But before you hire a migrant, you need to do the following:

1. Check availability of residence permit. A company that hires an illegal employee may face serious problems with the law.
2. Find out whether the migrant has permission to carry out labor activities in the area in which the organization is engaged.
3. The employer must have a quota for attracting foreign human resources.

These factors must be taken into account when hiring a foreigner.

Advantages of HR outsourcing

1. Saving money. The cost of an outsourcer’s services is an expense and does not force you to pay taxes, compared to staff salaries.
2. Saving work space.
3. Constant and trouble-free operation. The outsourcing company works constantly, without vacations.
4. Save time. The necessary technologies and qualified specialists are provided to you by an outsourcer.
5. Guaranteed quality. Thanks to a team of highly qualified workers and extensive experience in performing this type of work, the quality of services is guaranteed.

This is also important to know:
Measure of liability for services under the contract

Your company needs to increase production capacity, while reducing finances, then use outsourcing services. The main advantages of HR outsourcing: paying for outsourcing services is much cheaper than maintaining one full-time unit.

Advantages and disadvantages

Like any process, outsourcing has pros and cons.

Among the advantages of implementing outsourcing, it is worth highlighting:

• The opportunity to receive services of the highest quality and/or at a lower price;
• Contributes to the development of the organization through the introduction of innovative capabilities of the company, as it is possible to use the intellectual potential and experience of well-known companies;
• The company becomes more flexible if the market situation changes dramatically;
• It is much easier to find a supplier who has a lower price or higher technological capabilities. This ensures ease of liquidation of production facilities or their retraining;
• New resources and modern skills can be acquired faster;
• Relieves the burden on the enterprise and provides the opportunity to develop the company as efficiently as possible;
• Previously necessary resources for performing work transferred to an outsourcing company should be redistributed and additional investment in the business obtained;
• You can reduce your staff;
• Greater efficiency and quality of work performed.

Among the disadvantages:

• Not all services can be outsourced, as this threatens the company's confidentiality and reduces the speed of its work due to the need to request information from another organization. Leakage of important information can lead to loss of competitiveness;
• At the psychological level, trust in an outside organization is lower;
• The transfer of certain types of activities, which together with the target area led to success, may lead to a decrease in income;
• When introducing a large number of outsourcing services, the costs of paying for them increase;
• High risk of poor quality services.