Starting from January 1, 2016, Federal Law No.116-FZ “On introducing amendments to certain legislative acts of the Russian Federation” (hereinafter “Law 116”) imposes a ban on outstaffing and entitles private employment agencies (“PEAs”) accredited in accordance with the law, to provide such services. However, the law itself does not establish the procedure for such accreditation. 

For this reason, on October 29, 2015 the Government of the Russian Federation issued Decree No.1165 that specifies the procedure and rules for granting PEAs accreditation to provide outstaffing services (the “Rules”).

Pursuant to the Rules, the Federal Service for Employment and Labor Relations (“Rostrud”) is the state authority entitled to perform accreditation. 

Accreditation will be provided only for PEAs that comply with requirements specified by legislation, for a period of up to 3 years (with an option of further extension). Rostrud issues a notification on accreditation that confirms accreditation of a PEA. 

It should be noted that starting from November 18, 2015 Rostrud has been accepting documentation for accreditation of PEAs. Meanwhile, the Rules, as well as Law 116 are to enter into force only starting from January 1, 2016, so at present Rostrud is formally not entitled to perform such procedure.   

As a result, if such procedure takes place prior to January 1, 2016, the validity of the procedure, as well as of the accreditation notification may be seen as disputable. We cannot but hope that lawmakers will clarify the status of such PEAs in the nearest future. Without such clarifications, the operation of duly accredited PEAs can be expected no sooner than February 9, 2016. 

It is recommended for companies planning their cooperation with PEAs, to ensure beforehand that the PEA had passed accreditation in accordance with the law. You will be able check this information through an open register of accredited PEAs posted on Rostrud’s official web site of (http://www.rostrud.ru).

Anastasia Fomicheva   Senior Associate   St. Petersburg    afomicheva@cls.ru   Tel.: +7 (812) 346 79 90

Anna Chaykina   Associate    St. Petersburg       Tel.: +7 (812) 346 79 90

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Anastasia Fomicheva  or Anna Chaykina , St. Petersburg Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.