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The procedure for concluding an outstaffing contract

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Sobianina Olena
Sobianina Olena
Lawyer
Ukraine / Odessa region
Sobianina Olena

i

Reading time: 9 minutes Total views: 79
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Publication date: 05.06.2024

lawyer, 23 years of experience in enforcement.

The outstaffing contract defines the rights, duties and responsibilities of each party in this partnership, as a result, it is an important legal document that provides clarity and stability in the relationship between the company and the customer, as well as the company and the contractor.

Contractual price of outstaffing

Today, the cost of an outstaffing contract can vary greatly depending on various factors, such as:

Scope of services: the cost may be affected by the scope of services required. The more time or effort involved, the more expensive or difficult it is. For example: if the customer company wants to receive additional specialized services, this can change the cost of the contract.

Contract duration: The duration of the contract also plays a role in determining the price. As a rule, long-term agreements have more favorable terms.

Difficulty of the task: If the task is specialized or requires expertise, this can affect the price, as resources with this type of ability are more expensive.

Regional features: Prices may vary depending on the region and the state of the labor market. Yes, the costs of hiring employees may differ depending on the location of the contractor: companies that provide services in different areas have different costs.

Responsiveness: This is also reflected in the price if you need a fast start-up or priority tasks.

Additional services: If the outsourced company adds additional services, such as project management or consulting, this may also affect the price.

Therefore, it is important for the client company to first discuss all important aspects and details with the contractor company to avoid confusion and establish clear terms.

What standards must a contracting company adhere to in order to provide outsourcing services and subsequently enter into a contract with the outsourcer?
A company that hires outstaffing professionals should have specific guidelines that ensure the quality and efficiency of their work, as well as a positive experience with clients, namely:

Experience and knowledge: the company must have sufficient experience and knowledge in its field. This will contribute to the provision of quality services and the achievement of customer satisfaction.

Adaptability and flexibility: the company must be able to adapt to customer requirements and changes to project requirements.

Resources: A company must have the necessary resources, such as professionals with appropriate skills and technical equipment, to undertake various projects.

Quality of service: It is important that the company provides the highest level of service to its customers, meeting the defined deadlines and quality standards.

Communication: Effective communication with clients is key to successful collaboration. A corporation must be able to communicate effectively with customers, understand their needs, and respond to their requests.
Legal Sanction: The company must have all necessary licenses, permits and insurance to provide outsourcing services as required by law.

In addition, to avoid the risk of the company, the outstaffing contract must meet the following requirements:

- The contractor must have officially recognized KVEDs, which are:

78.10 activities of employment agencies;

78.20 activities of temporary employment agencies;

78.30 Other activities related to the provision of labor resources.

- The contracting company must be listed as a business entity that provides employment consulting, and another that hires workers to perform their work in Ukraine for other employers.

- The contractor must have documents that prove that they and the employees they have contracted with have created a relationship that provides for confirmation of employment (eg: reproduction of the employment order; reproduction of the employment contract).

After the contracting company meets these requirements, the final conclusion of the contract requires the creation of formal rules regarding the scope of work, price, timing and other aspects of cooperation. It is very important that the agreement is beneficial for both parties and takes into account their wishes and needs.

Conversely, during court practice regarding the execution of an outsourcing contract at an enterprise, we advise the customer, if it is part of the contract, to create the following documents between the parties:

- task (end), which will be performed by the customer company.

- the request of the employee to familiarize himself with the working conditions and the contract;

- tacit consent of employees to change their workplace and start fulfilling the orders of the corporation - the customer;

"Addendum" to the contract, which describes the employees who will be allowed to perform the duties of the customer corporation.

Procedure for forming the price of outsourcing services;

- actions of services provided;

- an act of receiving and handing over documents.

As a result, during an unscheduled inspection by the State Labor Office regarding compliance with labor legislation, the customer company and the contractor company must have a specified list of documents confirming the truthfulness of the employees involved (documents about their employment).

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