It doesn’t matter if you are starting a new company or are already an existing company, HR issues take up time and resources. Basically, these are “paper” issues: paperwork related to employment, payroll, vacations and sick leave. That is, these functions are not directly related to the goals of the company. Partnership with an outstaffing company will help you not to be distracted by working with staff.
Outstaffing and Belarusian legislation
Outstaffing is the optimization of the costs of the customer company by providing the outstaffer to the customer with personnel to perform the customer’s tasks, but without “paperwork”: the customer does not conduct paperwork related to the registration of employees, calculation and payment of wages, sick leave, vacations, dismissals. Since these issues are taken over by the outstaffer company.
There is no such thing as outstaffing in Belarusian legislation. But outstaffing relationships are not prohibited, they are formalized by an agreement between the customer and the outstaffer company. Such an agreement is aimed at providing services by an outstaffer company to the customer’s company for the provision of personnel or for the search and provision of personnel. The customer pays for such services to the outstaffer company.
The customer himself, the outstaffer and the employee whom the outstaffer hires to work are interested in such a design.
What does the relationship of stakeholders look like in outstaffing
Customer
The customer company needs employees. This company does not plan to hire these people, enter into employment contracts or work contracts with them. The customer has a question: how to formalize relationships with people who will perform such work, and sometimes — where to find such employees, how to select them, check their competencies. For many non-resident companies in Belarus, this becomes a solvable task when they turn to an outstaffing company for services as an intermediary between employees and the customer.
Outstaffer
The outstaffing company enters into an agreement with the customer company. The contract includes a number of points that are discussed in advance between the outstaffer and the customer.
An outstaffer can provide services with or without recruitment. The terms of the contract depend on this agreement. By providing recruitment services, an outstaffer can conduct interviews, tests, study and select resumes and characteristics, check criminal record documents, etc.
The outstaffer enters into employment contracts with the staff on his behalf, that is, employees are hired by the outstaffer company. The outstaffer takes care of all issues related to the registration of employment contracts, calculation and payment of wages, payroll taxes, payment of state compulsory insurance of employees, and termination of employment.
Employee
An employee is hired by an outstaffer company, and performs work for the customer, he also sets tasks for the employee. The employee is not bound by an employment relationship with the customer company, all issues related to his employment, vacations, sick leave, dismissal are resolved by the outstaffer company.
Benefits of staff outstaffing for the customer
- The load on the customer for the preparation of personnel documentation and accounting is reduced. In some cases, a company may completely get rid of its human resources department or not hire human resources specialists. After all, issues related to hiring, dismissal, vacations, sick leave and other aspects of personnel management can be solved by an outstaffer. He also deals with the calculation and payment of wages, insurance premiums, taxes and other financial aspects related to work.
- The customer avoids labor conflicts with the provided employees. After all, the customer is not an employer for the provided staff. The employer is an outstaffing company. This company is responsible to employees for compliance with labor laws.
- The customer engages temporary employees to carry out short-term projects without the need for registration. These specialists will act under the direct supervision and management of the customer.
- The customer will be able to hire foreign workers, avoiding difficulties with official registration. The involvement of such personnel may require additional permits. However, when concluding an outstaffing agreement, the client does not need to worry about these subtleties, since all registration issues are solved by the outstaffer.
- The customer will be able to flexibly manage cooperation with certain specialists. For example, in certain cases agreed with the outstaffer, the customer may abandon the employee or replace him with another specialist. These conditions are fixed in the outstaffing agreement and depend on the consent of the parties. While the Belarusian labor legislation provides clear grounds for termination of employment relations.
- The customer can find the right specialist faster. Sometimes companies need a high-level specialist to implement a project, which is difficult to find in the open labor market. In such cases, such a specialist may already be available from an outstaffing company. By signing a contract with an outstaffer, the customer will be able to provide himself with the right specialist and reduce the time to fill a vacancy.
Some outstaffing opportunities for existing customer companies
Many companies that order outstaffing services remove employees from the staff, then they are hired by an outstaffing company. In fact, these employees continue to perform the same functions that they performed before the customer was fired. We will help you make the necessary calculations to determine how profitable such a process will be for the customer. The withdrawal of employees from the staff is required to be formalized by reducing the number or staff of employees with the preparation of some documents. In particular, warnings for employees and payment of severance pay in the amount of at least three average monthly earnings.
Instead of reducing staff, you can transfer employees to another employer. The translation design also has its own specifics.
Our company has extensive experience in determining a profitable business model for customers and formalizing relationships with customers within the framework of this model in compliance with the law.
What we will ask for to conclude an outstaffing contract with recruitment
An outstaffing agreement can be concluded for a long time (we specify it in the contract) or for one-time services.
In order to select and direct the right and competent staff to you, we will ask you to formulate:
- Requirements for such employees. The requirements depend on how much skilled work is offered to the employee and on his work functions. For example, these may be requirements for the category, specialty, work experience, education, etc.
- The number of employees who are needed to perform work for the customer, for each specialty. For example: three movers, three sellers.
- What kind of work the employeeswill do.
- The address and place where employees are supposed to perform their functions.
- The working hours of employees.
This information is included in the contract or in the customer’s requests when the contract is concluded for a long time.
What are the terms of the outstaffing agreement to pay attention to
It is important not only to calculate the cost of the outstaffing company’s services, but also to determine the payment procedure. This can be an advance payment or a partial prepayment, when the customer pays part of the remuneration to the outstaffer before sending employees, and part after they complete the task. When an agreement is concluded with respect to office employees, monthly payment for services is most often calculated.
When an employee’s work is related to tools, equipment, office equipment, it is necessary to determine in the contract which party provides this property, or compensates for its rent or purchase.
Attention must be paid to the outstaffer’s order of service delivery and the customer’s acceptance of it. The act of delivering and accepting services is often required to be documented during the reporting period. It is might be a calendar month or the completion of one-time labor.
It is recommended to agree on the terms of when the customer can request the replacement of employees. There will be a different set of conditions for each case. Such coordination will help the outstaffer and the customer to build relationships without unexpected failures.
It is possible to coordinate the distribution of material damage, which theoretically can be caused to the customer’s property by an employee sent by an outstaffer.
The work under the outstaffing agreement should be transparent and understandable to the customer, so we answer all the customer’s questions and keep in touch at all stages of cooperation.
How to contact us
For more information or advice on staff outstaffing, do not hesitate to contact us. We are here to help and support you.
Phone and e-mail communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@spex.by.
