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The main differences in simple terms from slava's blog
There are many forms of personnel subcontracting, and at first glance, they are quite similar. The most popular forms right now are outsourcing and outstaffing.
Definition
Outstaffing or contingent labor is the provision of workers by the employment agency to the client company. Under this form of labor relations an employee is on the payroll of the employment agency but actually works in the interests and under the direction of the client company.
Outsourcing means complete or partial transfer of non-core processes or functions from one company to another. In this case, the parties enter into a contract (usually a long one year or more) for the performance of work or provision of services.
Outsourcing and outstaffing can be used in almost any area of activity if the company needs to quickly and efficiently perform a task, but its own resources are not enough. However, there are significant differences between these two types of activity.
The subject of the contract
The main difference between these two phenomena is the subject of the contract. In the case of outsourcing, this or that service is in the required volume. In this case, it does not matter who will provide the service, or how many performers there will be, the specific execution time is also not important - the main thing is to comply with the terms of the contract. The contractor is not obliged to observe the client's work schedule; the client is not obliged to provide him with a workplace or tools.
At IT Outstaffing Model, the company orders an employee with certain characteristics: length of service, skills, and qualifications from the employment agency. This employee will have to comply with the client's work schedule and work under his supervision.
Even though the worker remains formally employed by the employment agency all the time, there must be a record in his labor book about the work for the company employer. In addition, his working conditions and wages must not be worse than those of regular employees.
Documents
-When outstaffing, an employment agency and the customer conclude a personnel contract, and also prepare an additional agreement to the employment contract of the employee, specifying the number of such contracts and the name / full name of the customer, information on the identification documents of the customer - physical person, the taxpayer identification number of the receiving party (except for the receiving party - a physical person who is not an individual entrepreneur), as well as information on the place and date of the contract. The employment agency remains the employer of the employee, and labor relations with the company-employer do not arise.
The relationship between the employment agency, its employee, and the client is regulated by the Labor Code. In the case of outsourcing, a service contract is concluded between the client and the outsourcer; a similar contract is concluded with a specific performer. This is a contract of civil law nature, hence the relationship is not labor, and it is regulated by the Civil Code of the Russian Federation.
Control and management
One more important criterion to distinguish outsourcing and outstaffing is under whose control the executor works.
Outstaffing is supervised by the client. The executor works on his territory, he is subordinated to his work regulations. The employment agency, being his actual employer, must pay all the necessary deductions and taxes for him and replace the employee if he goes on vacation or takes a sick leave.
In outsourcing, workers are controlled by the company providing the service, not the customer. If the contractor enters into a civil law contract with the outsourcer rather than an employment contract, neither the customer nor the outsourcer is required to provide the workplace or the necessary tools; there are no vacation or sick leave provisions.
Limitations
Laws impose certain restrictions on outstaffing. First of all only accredited private employment agencies with a registered capital of not less than 1 million rubles and without tax and levy debts are allowed to provide contingent labor. The manager of such an agency should have at least 2 years of work experience over the last 3 years, have a higher education, and should not have a record of conviction for any crimes against individuals or in the sphere of the economy.
Second, outstaffing is prohibited in certain cases. Here's a list of them:
Replacing striking workers;
Performance of work in the case of downtime, bankruptcy proceedings, the introduction of part-time work to save jobs under the threat of mass layoffs;
Replacement of employees who refuse to perform their duties, including due to salary delays of more than 15 days;
Performing certain types of work at facilities of hazard classes I and II (the list of such work is approved by Order of the Russian Ministry of Labor No. 858n, Rostechnadzor No. 455 of 11.11.2015);
Performing work at places where working conditions are classified as 3rd or 4th degree of hazard or particularly hazardous working conditions.
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