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The main and most significant disadvantage is that an employee hired under an outsourcing agreement can only work for a certain period of time:
In case of temporary absence of personnel, fo indonesia number list r example, in case of a business trip or vacation. However, it should be noted that outstaffing as a method of replacing temporarily absent employees is not popular among employers, since it is more profitable for the company to use internal resources. For example, to organize temporary combination, that is, to attract another employee of the company to replace the absent employee for an additional salary supplement.
For temporary expansion of production or volume of services provided. The maximum duration of such an employment relationship is 9 months, but the contract can be extended if there is a need for further expansion of production or increase in the volume of services provided.
The second disadvantage for the customer, i.e. the receiving party, is the control exercised by the private agency. As an employer, such an organization has the right to check the working conditions of its employees and control their work schedule. The customer has no right to refuse such a procedure. For example, the agency can check the actual employment of the employee, his/her compliance with the contract, as well as monitor compliance with safety regulations and request relevant documents to assess the working conditions.
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Another disadvantage for the customer is subsidiary liability. If employees do not receive wages from their actual employer, then the customer company may also be held liable for this.
Differences between an outstaffing agreement and outsourcing
Outsourcing is the transfer of certain functions to other contractors that are not core to the enterprise. Typically, these are tasks related to legal aspects, personnel issues, or accounting. Sometimes, part of the production processes, such as the manufacture of additional products or sales management, can be transferred within the framework of outsourcing.
Differences between an outstaffing agreement and outsourcing
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At first glance, outsourcing and outstaffing agreements may seem the same. However, these services differ significantly in terms of both their functions and legal validity.
Personnel outsourcing companies provide customers with the necessary employees for a period of 9 months or longer. It is important to note the legal side of the issue: these workers are formally part of the outstaffing company's staff. In fact, the outstaffing company enters into a temporary contract with the customer, which contains a description of the work that needs to be done and an agreement on the payment of the amount for the services.
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When outsourcing, a third-party company is assigned to perform a certain part of business processes, which is not included in the previous agreement. This is the main difference between these concepts, but not the only one. When outstaffing, an employee is allocated a workplace, he performs certain job responsibilities and receives a salary for this.
In other words, he works as a regular full-time employee, but for a certain period of time. And in the case of outsourcing, the employee's task is to perform only the a