The expert warned about the hidden risks of agency labor in Russia

The desire of businesses to reduce personnel costs and quickly fill staffing needs increases the demand for various models of attracting employees, from which not only the company, but also the employee may suffer. Arsen Badalyan, Deputy General Director of the private employment agency “Personnel Capital”, described the hidden risks of agency work to Lente.ru.

According to the expert, the practice of attracting personnel using the outsourcing model has spread in Russia, when a recruitment agency provides personnel to work for a customer, be it a production facility, a warehouse or a catering establishment.

“Outsourcing itself is a convenient and popular scheme. But it’s one thing when an intermediary provides a service, that is, undertakes to perform certain work, and another thing when a contract for the provision of services is used to formalize a relationship that, by its characteristics, is labor,” the expert noted.

In practice, the boundary between these types of employment relationships may not be obvious. The situation when a person constantly works on the customer’s premises, obeys his internal regulations, follows the instructions of his employees and uses the company’s equipment, but is registered through a contractor, is economically attractive. Businesses have the opportunity to quickly find the required number of employees without increasing their own staff or dealing with personnel processes. However, if the actual relationship is recognized as an employment relationship, the company will face claims from the Federal Tax Service, which will result in additional taxes, fines and penalties, as well as the need to reconsider relations with employees.

At the same time, the employee may lose paid leave and sick leave, bonuses, voluntary health insurance and other benefits provided for them. In addition, it will be more difficult for him to determine who is actually responsible for working conditions, pay and compliance with his rights, Badalyan warned.