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Around the web – Russia threat to staffing firms

17 April 2013

The current law on the use of temporary agency workers in Russia is hazy, but staffing firms are, once again, facing a threat from politicians who plan to impose a ban on recruiters, the Moscow Times writes.

In May 2011, a bill prohibiting temporary agency work was passed unanimously by the Duma at its first reading, however, the bill was subsequently watered down.

A ban could have severe implications not only for the local staffing industry, but also for the wider business world as an economic recovery could be hindered and firms would have to make do with less flexibility.

The newspaper writes that so-called personnel leasing and out-staffing firms legally employ around 100,000 workers in Russia although there is a sizeable black market in the country. This leads to some companies ducking tax and social payments. According to one recruiter, many well-known Western firms make use of such illegal staffing providers. Staffing Industry Analysts estimates that the black market in Russian staffing provision is approximately the same size as the legal market.

But there is still room for hope as parliament could take the opportunity to change the law for the better by tightening enforcement on illegal operators and removing obstacles to staffing companies. Read the whole article here

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