Prohibition of contracted work in Russia

10.05.2014

According to the Federal law, contracted work is prohibited in Russia from January 1, 2016.

The Labor Code introduces a definition of contracted labor - it is work that is carried out by an employee by order of the employer under the management and control of a natural person or juridical person that is not the employer of the employee.
Henceforth, the law provides a new procedure – providing employees’ work (temporary direction of employees with their consent to a natural person or juridical person that is not the employer of those employees) to perform work defined by their employment contracts on behalf, under the management and control of the host side.

This activity is carried out under a contract to provide employees, and it is performed by private employment agencies and other entities, including foreign juridical persons and their affiliates (except individual persons).

It is settled that the procedure of accreditation of private employment agencies for provision of workers should include the order of suspension or revocation of accreditation and rules of order for keeping a register of accredited private employment agencies.

Accreditation requirements for private employment agencies include the presence of the authorized capital not less than 1 million rubles, the absence of debts for tax, dues and other mandatory payments to the budgets of the budgetary system of the Russian Federation.