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How can a foreign company organize outstaffing process in Ukraine?

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Today we wanted to share our practical experience in helping to organize outstaffing company work in Ukraine. 

Our Client is an outstaffing company from Europe, not located in Ukraine, and therefore needs qualified legal assistance on its territory to conduct its activities.

We will talk about the nuances of conducting outstaffing activity in Ukraine and how the lawyer can facilitate for you the whole organization of the process.

Related article: Alternatives of the outstaffing in Ukraine

The case: the start of outstaffing activities in Ukraine

We were approached by a Client - contractor in terms of recruitment and provision of engineering personnel for an international energy company, which has invested in the renewable energy project in Ukraine, namely the construction of solar power plants.

Why he chose Ukraine to do his business:

  • the Ukrainian energy market is in a state of active development;
  • Ukraine is conducting state programs that provide certain advantages in this area. For example, the green tariff;
  • Ukraine provides great opportunities in a wide range of business development spheres.

The questions that have come up before our Client:

First of all, the Client understood that for successful work in Ukraine, he will need a fully functioning legal entity, the founder of which would be a European parent company.

The Client approached us because he needed a whole range of services.:

  • he needed advice on all aspects of outstaffing activities in Ukraine, its possibilities and nuances;
  • after the consultation and clarification of all possible nuances, a particular legal entity had to be registered;
  • the Client also needed assistance in dealing with a variety of legal issues arising from starting a business.

On the basis of the presented facts, the Client has made a choice in favour of outstaffing activity, as it could provide successful selection of personnel and work at the client during the term of the project, which fully corresponded to the specifics of the Client.

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What problems may arise in connection with outstaffing activities in Ukraine?

Unambiguous status of outstaffing in Ukraine. 

At present, outstaffing is not clearly regulated in Ukraine, which may cause some problems in the process of registration.

How we propose to solve this problem:
on the basis of our experience and knowledge of Ukrainian legislation, we offer to develop a detailed contract on personnel services and the formation of appropriate applications for personnel. 

It is important to understand that in such a situation it is necessary to comply with the requirements both in terms of contractual registration, and in terms of labor organization.

Prohibition on outstaffing personnel to dangerous jobs.

Construction and commissioning of solar power plants, which is the direction of our Customer's work, refers to these.

How we propose to solve this problem:
we offered to organize supervision without the physical presence of employees hired by our Client at the objects of high risk.

Our actions: what did we offer the Client

Summing up all the above and taking into account the needs of our Client, we offered him to act as follows:

  • to register a business entity where the founder is a European parent company;
  • develop a scheme of financing activities at the initial stages before the Ukrainian LLC starts generating its own income;
  • assistance in developing outstaffing agreements;
  • maintenance of salary projects, personnel documentation, termination of employment in the course of project implementation;
  • assistance with business accounting in Ukraine;
  • advising on various labor, tax and other legal issues.

The Client has been successfully operating for more than six months.

If you want to learn more about outstaffing opportunities in Ukraine - call us!

Views: 782
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