​Danger of outstaffing use in Ukraine: talk about the main thing

On June 12th, 2019 lawyers of Legal Alliance Company held HR-breakfast for companies members of EBA. Representatives of business – directors, chief accountants, lawyers, HR-managers and HR professionals of international manufacturing, trade, service and outstaffing companies gathered in One Philosophy Space to discuss topical matters devoted to outstaffing use in Ukraine.

Speakers – partner Illya Kostin and associate Yaroslav Furiaka focused on outstaffing issues covering the following:

• ambiguity of outstaffing in Ukraine, since there is no legislation today which would govern this process;
• consequences of improper outstaffing formalization in terms of labour and tax law;
• peculiarities and advantages of outstaffing in labour relations and personnel work;
• financial matters which distinguish it from other ways of labour organization;
• equation of outstaffing and labour relations and arising problems;
• tax agents’ view of outstaffing as a way of evading taxes, and what criminal responsibility is prescribed for this violation;
• how to minimize risks at outstaffing, what are the consequences of improper formalization of outstaffing relations.

Vivid interest in the topic, discussion of practical cases and a number of questions to the speakers prove that outstaffing has been actively used recently by Ukrainian companies, and there is a number of current requests for explanations.

“In case business needs services whose provision is not duly regulated by the law, controlling authorities start checking thoroughly each step of participants of such relations. As a consequence, our clients have to spend own resources on “fight” for justice instead of developing own business. A number of representatives of famous companies at the HR-breakfast attest to the fact that the issue of organization and use of outstaffing services is topical. We managed to systemize and offer the event participants mechanisms for minimization of risk of controlling authorities extra attention, as well as ways of documentary confirmation of bona fide use of outstaffing services. The audience seemed to be satisfied”, commented Illya Kostin.

Ask questions to the speakers: Illya Kostin, partner at Legal Alliance Company, kostin@l-a.com.ua; Yaroslav Furiaka, associate at Legal Alliance Company, furiaka@l-a.com.ua.