Borrowed labor takes place when a citizen concludes a contract with a private personnel office, according to which his work is given to the employer "on loan", "for rent." Usually an urgent agreement is made with such an employee. This significantly lowers job security. A fixed-term contract can be terminated at any time. From its terms, among other things, it is completely unclear who will be responsible for the regime and working conditions, compliance with labor protection rules, and charging. Borrowed labor implies worse conditions than those employees who work on a permanent basis, lower salaries, and the absence of guarantees. 
Outstaffing
This is one of the forms in which borrowed labor is used. The client company transfers to the provider some of its personnel on specific conditions. The latter accepts employees to the state and assumes obligations to comply with legislative norms (tax, labor, civil codes, as well as other regulatory acts related to the manufacturing sector). At the same time, employees go to the provider only formally. In the order of transfer, they are dismissed from the previous enterprise, but actually continue to fulfill their professional duties in the previous place. Simply put, in this case, there is a staff rental. Sometimes the provider selects staff to launch the project and draws up staff for themselves as regular employees. In this case, leasing takes place.
Translation scheme
First of all, customer needs are identified, they are determined, included in the contract. The outstaffing agreement, among other things, sets the cost, terms of service, and validity. The staff leaves the place of work and enters the staff of the provider. The latter provides employees to the client in accordance with the contract. In fact, workers perform work in the new enterprise, while the provider conducts paperwork and calculates salaries.
Outsourcing
This process is a search for resources outside the organization. Non-core functions (lines of activity, processes) are transferred to third parties on a contractual basis. The latter possess relevant managerial or technical knowledge and tools in a particular field. For example, it can be personnel management, calculation and payment of salaries, tax deductions.
Confrontation of trade unions
To conduct an effective fight against this phenomenon, clear and coordinated actions of trade unions are required. Professional associations should conduct explanatory, informational work among employees, explain what is contingent labor, what are its consequences. Along with this, it is necessary to carry out activities aimed at including provisions in contracts that would protect personnel from outstaffing and outsourcing. Regulation, among other things, should be carried out through the adoption of restrictions to attract both third-party organizations in general and their employees in particular to work, the performance of which is possible with existing staff.
Higher-level social guarantees should be included in contracts for those who quit due to staff reductions. When using outstaffing and outsourcing, the employer reduces the number of staff units, followed by layoffs. It is necessary to make such manipulations cost the employer dearly.The emergence of the need to pay significant compensation to employees dismissed by the reduction may be a powerful argument against outsourcing and outstaffing. An indispensable condition must be that obliges the employer to inform the unions as soon as possible that it is planned to employ borrowed labor at the enterprise. 
Tripartite relationship
Their application leads to crowding out the principles and norms of social partnership. Together with this, trade unions and representative offices are relegated to the background. Borrowed labor in Russia does not allow employees to organize in professional associations. Using tools of outstaffing and outsourcing, the employer shares the personnel of one enterprise. The system of fixed-term contracts is widely used in foreign countries. Through such agreements, the employee is simply faced with the choice of either staying at work or in a union. Freelance employees are a fairly effective way to deal with unions and strikes. Such employees can always replace strikers. As a result, protests lose their meaning.
Legal aspect
The State Duma in several readings made changes to the existing regulatory framework. According to many experts, these amendments do not directly imply a ban on borrowed labor. They only limit the intensity of its use, and also change certain conditions. For example, employees who came from an HR agency cannot occupy more than 10% of the staff. The ban on borrowed labor is valid if the main employees at the enterprise go on strike or refuse to continue their activities legally. For example, these may be cases of non-payment of salaries. The ban on borrowed labor applies to hazardous facilities. An important aspect of innovation is the equalization of working conditions and pay for regular and non-staff employees.
Law
The ban on borrowed labor in the country has been talked about for a long time. The most opposed to its use, of course, are trade unions. The Law on Contracted Labor was signed in 2014. According to many experts, this circumstance is very symbolic. The fact is that the economic system is currently in a transitional state. The use of contingent labor after the publication of a normative act should be carried out more clearly and definitely.
The provisions not only define this phenomenon, but introduce special measures that prevent employers from evading the signing of full-fledged contracts with freelancers. Agencies that will search for employees will have to undergo state accreditation. In accordance with the norms, legal entities and entrepreneurs who pay taxes in a preferential manner are not allowed to form such structures. Such an agency should not have a charter capital of less than 1 million rubles; the director must necessarily have a higher education. 
The origins of the legal initiative
The first steps in order to promulgate a rule establishing a ban on contingent labor in Russia were taken back in 2011. From the State Duma Committee, the head of issues related to production relations and social policy, a working group was formed. She was called upon to prepare a bill regarding the abolition of outstaffing. In the process, various social and political institutions, as well as the employers themselves, were involved in the discussion.
At first it was supposed that the bill would lead production relations within the framework of outstaffing to a status similar to labor through state bodies. The employer would inform the appropriate inspectorate that he was recruiting non-staff employees. At the same time, the state agency would order him to bring the labor contract in accordance with the norms. During the consideration of the draft normative act, this function lay on the ships.And the deputies, making the above proposal, proposed to give the Labor Inspectorate additional powers. 
Regulation of labor
Before changes to the regulatory framework were made, relations between the employee and the employer in a format close to outstaffing were almost not regulated. There was no clear order, even despite the fairly widespread use of contingent labor in the country. This direction in the personnel market system, according to experts, began to take shape in the early 2000s.
For example, in 2004, in the Russian Federation, according to several analysts, the volume of the outstaffing segment was above $ 80 million. For a fairly long period, Russian lawmakers were in no hurry to fix the rules governing the field in question. In this regard, uncertainty in the working sector developed quite intensively. On the one hand, employees seemed to be working, and on the other, in a not very clear status. 
History reference
Where was borrowing prohibited? It should be said that in history there are a lot of such cases when the government took restrictive measures aimed at eliminating the relationship between the employee and the employer, close to outstaffing. For example, in 1934, recruitment agencies were banned in the United States. This measure, however, did not last long - about three years. Repeatedly this restriction was introduced in 1948 and was valid until 1997. Forbidden labor in Turkey. In 2007, restrictions were adopted in Namibia. But after 2 years, borrowed work was again allowed. According to some experts, a similar scenario is not excluded for the Russian Federation.
Ambiguity of norms
Some analysts have suggested that the government’s prohibition of contingent labor is only partial. More likely, experts say, it is allowed, but not in a completely clear way. The adoption of the new Law allowed the state to work in a civilized form, different from the previous conditions. The normative act allows employees to perform work functions at the enterprise where they will be directed by the head. One more condition is accepted. In particular, an employee who is registered in the state with one legal entity may conduct business with another if the former controls the latter, and vice versa. The normative act also determines that in some cases the execution of labor contracts as part of outstaffing should be carried out taking into account the opinion of the trade union. For example, such a need may arise if the freelancers alleged to be outstaffed are more than 10% of the state. 
Employer Responsibility
The adopted law, or more precisely, amendments to the Labor Code, formulates several criteria according to which certain obligations are imposed on the employer in areas related to outstaffing. In addition to the above restrictions regarding hazardous conditions (Grades 1 and 2), this form of attracting employees in hazardous work does not apply for personal gain (for example, to obtain any kind of permit document: certificate, license, and so on).
Finally
In accordance with applicable law, any property, not a person, can act as a leasing (rental) object. Speaking on the topic, trade unions are categorical in their conclusions. Associations advocate not so much for regulation as for the prohibition of contingent labor. According to representatives of workers' associations, regulations should eliminate this form of attraction from the manufacturing sector and punish violators to the fullest extent possible.
