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‘Borrowed labour' is probited

Our legislation considers under the term ‘borrowed labour’ the use of "alien" personnel by third party individuals and organizations. Currently the Federal law dated 05.05.2014 N 116-FZ "On amendments to certain legislative acts of the Russian Federation" introduced a new scheme - provision of employees (personnel) on a temporary basis.


Who can provide staff

Only certain organizations would be able to provide staff.

These include:

  • specially accredited private employment agencies (except those who applies special tax regimes);
  • companies (including foreign) and their affiliates under certain conditions - if the staff is directed to an affiliate or if there is a concluded shareholders ' agreement.

The restriction on the use of "foreign" personnel

There is no ability to replace by "alien" workers individual categories of employees, including:

  • participants of a strike;
  • persons in lay-up;
  • workers employed for the execution of harmful (grade 3 and 4) and hazardous work;
  • when a Company is in a bankruptcy stage.

 Limitation in order to use "alien" personnel

The staff of the private employment agency could be used in particular for the following purposes:

  • by individuals - for personal maintenance, assistance in household,
  • by individual entrepreneurs/companies - for replacement of the absent employee who is recorded on his place of work (for example, during maternity leave), as well as for the work associated with a temporary (up to 9 months) expansion of production or volume of rendered services.

The above list of restrictions and prohibitions on the deployment of personnel to third parties is not complete. Federal laws may establish additional prohibitions and restrictions.


The procedure of providing staff

Beginning with 1st of January 2016 there is an obligation to conclude a special contract on granting of employees (personnel). For the conclusion of such an agreement the sending party should obtain the consent of the leased employee.

There are, for example, additional requirements to the private employment agency. When the agency directs an employee to the customer it should sign a supplementary agreement to the labour contract as well as to make a special record into the employee’s work-book about work for a third party.


Warranties granted to the "alien" personnel

The legislator provided that the conditions of remuneration of the ‘alien’ personnel  should not be worse than the conditions provided to the employees of the receiving party, with similar functions and qualifications.

 If the work is connected with harmful and (or) hazardous working conditions, the employee has the right for compensations calculated on the basis of information about characteristics of working conditions at the workplace provided by the receiving party.

Receiving party bears a subsidiary liability against the ‘alien’ personnel for the obligations, which should be performed by its direct employer (including salary and other amounts due such ‘alien’ personnel).

 You could contact our specialists for more detailed information and consultation


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