1. LEASING OF PERSONNEL IN RUSSIA Is leasing of personnel prohibited in Russia since 01.01.2014 ?

2. Legislation by the end of 2013 ILO Convention 181 (Private Employment Agencies Convention) has not been ratified by Russia Art. 56 of Labour Code: Parties of labour agreement are employer and employee. Labour legislation does not forbid leasing of personnel directly, but does not give a legal possibility to lease either. The only reference to leasing of personal is in Art. 264 of Tax Code

3. PROBLEMS WITH LEASING 3rd party’s existance (art. 56) ”Double” employment (art. 67) Place of work/employment (art. 57) Working conditions (art. 56) Position is not fixed in the contract Obedience of real employer’s orders (art. 56) Payment for downtime (art. 257) Social benefits under risc Problems with appealing Weakness of trade unions

4. The Federal State Act from 28.12.2013 # 421-FZ Article 15 of the Labour Code is supplemented by the part 2: “Conclusion of civil contracts, factually regulating labour relations between employer and employee, is not allowed” Article 5.27 of the Code of Administrative Wrongs is amended: “Conclusion of civil contracts, factually regulating labour relations between employer and employee, is fined: 10-20 thousand RUR for officials, 50-100 thousand RUR for legal persons”

5. Arguments pro option 1: Employee factually works for lessor, uses lessor’s premises

6. Arguments pro option 2: Employee has employment contract with the formal employer Employee does not have any civil contract with the lessee Article 264 of the Tax Code still exists

7. Conclusion Leasing of personnel is not prohibited. The Act is focused on 2-side civil contracts concluded with natural persons instead of employment contracts. In other words, the Act is a stronger version already existing article 11 of the Labour code (saying that civil contracts factually regulating labour relations can be determined as employment contracts).