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Personnel Outsourcing and Work Permits in Russia

This is because today it is the plastic permit that gives citizens of other states the official right to carry out legal labor activities on the territory of the Russian Federation, and various organizations, accordingly, the right to hire and use paid services of workers from abroad.

In general, a work permit is a document in the form of a plastic card that is issued personally to the applicant at any branch of the Federal Migration Service of Russia. Such a plastic work permit confirms the right of a foreign citizen to carry out any legal labor activity in a specific region of the Russian Federation.

The permit is issued for one year, with the term counted from the date of entry into the country indicated on the migration card. This same permit confirms the right of a foreigner to engage in individual labor activity, including commercial activity, and to receive income in accordance with Article 2 of Federal Law No. 115-FZ, which regulates the legal status of foreign citizens on the territory of the Russian Federation. As already mentioned above, the permit is valid only in the region of Moscow or the Moscow Region where it was issued.

In recent years, employers are increasingly using personnel outsourcing. In this case, under an outsourcing agreement, an organization engages a relevant specialist with the necessary professional knowledge and experience to carry out a single project, without including them in the company's main staff. That is, employees of the client organization are officially on the payroll of the company providing outsourcing services.

At the same time, employees are at the client's workplace and fully perform their job duties, but officially they are, as it were, seconded to their actual place of work. Despite the fact that the concept of outsourcing has not yet been reflected in the country's legislation, there are already cases in judicial practice where its use was recognized as not contrary to the law, and possible risks were mainly associated with justifying expenses in official taxation.

According to the established form of a personnel services agreement, the provider organization undertakes, for a corresponding fee, to provide the client with professional workers for the purpose of using their labor in a particular production process. Simultaneously, an agreement is concluded between the worker and the provider, under which the latter becomes the employer. The worker, according to the terms of the agreement, gives consent to perform labor functions for other business entities.

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