Outstaffing of packers

Outstaffing involves delegating the management of personnel to a professional contractor. The format of the employment relationship is changed due to staff dismissal and their re-registration with another organization. The workers enter into formal labour relations with a new employer, but perform some official functions as before.

The outstaffing of packers is the transfer of administrative and financial functions to a professional contractor, who registers employees and calculates and pays out the salary, as well as making social contributions.The employee is assigned to the agency, where they perform similar job functions as prior to dismissal and the signing of new employment agreements.

Benefits of outstaffing

Personnel outstaffing and the transfer of responsibilities for their management to the contractor provides significant benefits:

• Reduced number of permanent employees. The size of the permanent staff of the company is reduced, as officially the packers are re-registered with the agency;
• Simpified HR administration. The reduced number of employees eliminates multiple concerns for instance: their registration, settlement of accounts, and payment of salary, thus freeing up the company’s own resources;
• Reduced ongoing costs. A decreased number of staff leads to a reduction in the aggregate Labour Compensation Fund (LCF), hence, the base for deduction of taxes and social contribution decreases;
• Salary calculations per each employee are replaced with periodical payments to the outstaffer in accordance with the contract;
• Desired tax category is preserved. A company’s legal status directly depends on the number of permanent employees. The reduced number of permanent staff allows the company to apply the most beneficial tax scheme;
• No problems with employees. In the event of potential disagreements with employees, the contractor is responsible for solving them.

The outstaffing of packers is a modern management tool that provides the company with multiple benefits. On the one hand, the costs are optimized, on the other hand – the burden on one’s own departments is reduced. Furthermore, the company preserves its ‘small business’ status regardless of the actual number of employees.

But most importantly, the available labour, time and financial resources of the enterprise are allocated to the development of the main activity. This results in an increase in performance and profitability!