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Outstaffing

Outstaffing is very popular nowadays. It is an effective way to minimize the enterprise’s expenses on account of tax optimization. Outstaffing means the detachment of workers from their regular organization for temporary assignment elsewhere. The special-purpose outstaffing company deals with their assignment. The operation scheme of such company is quite simple.

OUTSTAFFING SERVICES

The side that orders outstaffing services signs the agreement with oustaffing company, which becomes the employer of every employee, who was withdrawn from the company. As a result the staff have labour and civil-law rights and duties towards the outstaffing company. The company deals with full personnel and accounting support.

Employees work in the former company but legally they are on the staff of completely different enterprise. The client and outstaffing company cooperate on the basis of civil-law agreement and the personnel have to carry out certain functions, which are indicated in the agreement. Outstaffing services may actually be called staff leasing.

The term ”outstaffing” is often mixed with outsourcing. Outsourcing means that the customer company passes the part of its functions to the executive. As a rule these functions are not connected to the core activities of the client. On the other hand, outstaffing means the transmission of certain workers. They are taken on to the staff of oustaffing company. Their transmission is based on the agreement of staff assignment.

In the Western countries outstaffing has been developing in leaps and bounds, but in our country it is not that common. It is rarely used in practice. The reason for that lies in the fact that our current legislation is imperfect. In the past, relations connected to staff leasing were not regulated by law.

It should be stated that until quite recently the term ”outstaffing” was not indicated in acts of legislation. But nowadays, outstaffing, as a service for staff providing, received the legal support. Now it may be used in everyday practice legally. Outstaffing services become more and more popular, since they may be advantageous for business.