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What Will Be the Temporary Staffing Market in 2016?

A new edition of the Russian Labour Code will come into force on January 1st, 2016. The main purpose is to eliminate tax evasion and protect the rights of temporary staff. Pure outsourcing will come in the stead of outstaffing.

Usually temporary staff involved for seasonal or project work. However, the new law will make it more difficult. Under the law tenure of temporary employment should not exceed 9 months. In addition, the law gives employers the opportunity to attract temporary staff in an amount that shall not exceed 10% of company's general staff.

Previously companies could use temporary employees as permanents, repeatedly extending the contract with the recruiting agency. Beginning from 2016 employers it will be required to conclude permanent contracts with such category of employees.

From 2016 rectuiting agencies will be required to accreditation. Their share capital will be no less than 1 million rubles. Only those agencies will be able to lease temporary staff. So the cost of services will greatly grow.

Companies and recruitment agencies will be required to enter into agreements not to provide temporary staff but to provide the execution of works. The agency will decide, how many employees will be needed for a particular work. Outstaffing market will probably disappear and outsourcing market will grow rapidly.