Outsourcing is an English term which means delegating specific tasks to units and people who are not a part of a company. One can try to establish the meaning of the ‘labour outsourcing’ term in the context of the abovementioned definition.
Labour outsourcing as a term in the light of labour law
The term ‘labour outsourcing’ is in a certain sense included in the article no. 231 of Labour Law. It states that if a company (or its part) is taken over by a different subject, it automatically becomes a side in current labour relations and takes over employees by law. Both the new employer and the hitherto employer take responsibility over obligations present in labour relations which have been present before a part of a company has been taken over. As part of outsourcing, an agreement is made which states that the original employer relays his employees to the new employer and that the workers become his subordinates.
What’s important is the fact that there are usually no changes in the field of work for the already employed workers. Their areas of expertise, workplace, conditions of employment and organizational hierarchy stay the same most of the time.
How to overtake employees within labour outsourcing?
According to the article no. 231 of Labour Law, in order for the process of taking over employees to take place, a company or its part has to be handed over and become a property of a new subject. Due to this procedure a new subject becomes an employer for the subordinates to be taken over.
As a consequence, it comes to:
- the change of the employer and the purchaser undertaking the role of a new employer towards the employees of the acquired company.
- the purchaser overtaking the rights and duties of the seller, the former employer, who is a side in the labour relations.
Outsourcing in the field of managing employees
Outsourcing companies can only take over the service of employees in terms of their documentation regarding employment and salary. Their role may be to pay ensure payment to the employees, which was previously charged and settled with the tax office and the Social Insurance Institution (pl. ZUS) by the former employer.
The main employer, who remains the side in the labour relations, supervises the employees in his workplace, grants leaves and decides about employing staff and extending or severing contracts with subordinates. Such labour outsourcing is meant to cut down on the costs of employing and managing workers and carrying out the HR work.
Labour outsourcing vs. temporary jobs and labour relations
The basic factor that distinguishes labour outsourcing from employing workers under a contract of employment or from providing work by temporary employees is the lack of direct legal and actual contracting of contractors in relation to the entity in which such services or work are performed in practice.