Russia mulls ban on overseas temp firms
18 December 2012
A proposed amendment to Russian labour law could see foreign-owned providers of temporary staff banned from operating in the country.
Tue, 18 Dec 2012
A proposed amendment to Russian labour law could see foreign-owned providers of temporary staff banned from operating in the country.
The potential ban has been instigated by the chairman of the State Duma [parliament] commitee on labour law, Andrei Isayev, who has prepared an amendment to the law in retaliation for US lawmakers passing the Magnitsky Act, designed to penalise Russian officials suspected of violating human rights.However, recruiters familiar with the Russian political landscape contend that the proposal is far from a done deal and could pose little threat to global staffing firms.
Nick Rees, local general director of SThree Russia tells Recruiter: “Obviously the uncertainty is never good as it could possibly persuade some other international businesses (non-recruitment) from setting up in Russia, but I hope and believe that the correct decision will be made eventually.”
However, he suggests that the risk to SThree is likely to be limited, as "SThree Russia is a limited liability Russian company so we are therefore a lot less at risk but, of course, there are several other agencies that are in a very different situation to us”.
Rees adds: “Having lived and worked in Russia for almost 18 years, I have seen many similar situations arise but resolved eventually, to the benefit of all.
“Although news like this isn't good for any industry, we hope it will be an opportunity for the staffing industry to be cleaned up a little and more laws brought in to help the employees who have been and are still being exploited through "grey" schemes. These employees are at the lower end of the food chain and I genuinely hope that more can be done to protect their interests in the future.”
Denis Pennel (left), managing director of the European Confederation of Private Employment Agencies (Eurociett) tells Recruiter that he is concerned about the situation, firstly because a number of Eurociett members operate in Russia, and secondly because of the potential broader effect on the industry. He add that any ban would also be “very bad” for companies that want to access talent in Russia.
However, he cautions that the legislation is only at the draft stage, and he points out that the proposal has yet to get the support of the Russian Ministry of Labour, or President Putin. He says it is regrettable that the recruitment industry has been caught up in high-level politics between the US and Russia that he points out “has nothing to do with the recruitment industry”.
A spokesperson for Hays comments: “Hays Russia is aware of the proposed amendment to Russian labour law that may lead to only national recruitment agencies being allowed to operate in the temporary staffing market in Russia.
“Hays Russia operates exclusively in the permanent staffing market, across 14 specialist sectors, working with both local and international clients and we do not currently see that this amendment to the law will impact our business in Russia.”
Other multinational recruiters operating in Russia include Hudson, Kelly Services and PageGroup, as well as Manpower, and Antal Russia, part of the FiveTen Group, both of whom declined to comment.
A proposed amendment to Russian labour law could see foreign-owned providers of temporary staff banned from operating in the country.
The potential ban has been instigated by the chairman of the State Duma [parliament] commitee on labour law, Andrei Isayev, who has prepared an amendment to the law in retaliation for US lawmakers passing the Magnitsky Act, designed to penalise Russian officials suspected of violating human rights.However, recruiters familiar with the Russian political landscape contend that the proposal is far from a done deal and could pose little threat to global staffing firms.
Nick Rees, local general director of SThree Russia tells Recruiter: “Obviously the uncertainty is never good as it could possibly persuade some other international businesses (non-recruitment) from setting up in Russia, but I hope and believe that the correct decision will be made eventually.”
However, he suggests that the risk to SThree is likely to be limited, as "SThree Russia is a limited liability Russian company so we are therefore a lot less at risk but, of course, there are several other agencies that are in a very different situation to us”.
Rees adds: “Having lived and worked in Russia for almost 18 years, I have seen many similar situations arise but resolved eventually, to the benefit of all.
“Although news like this isn't good for any industry, we hope it will be an opportunity for the staffing industry to be cleaned up a little and more laws brought in to help the employees who have been and are still being exploited through "grey" schemes. These employees are at the lower end of the food chain and I genuinely hope that more can be done to protect their interests in the future.”
Denis Pennel (left), managing director of the European Confederation of Private Employment Agencies (Eurociett) tells Recruiter that he is concerned about the situation, firstly because a number of Eurociett members operate in Russia, and secondly because of the potential broader effect on the industry. He add that any ban would also be “very bad” for companies that want to access talent in Russia.
However, he cautions that the legislation is only at the draft stage, and he points out that the proposal has yet to get the support of the Russian Ministry of Labour, or President Putin. He says it is regrettable that the recruitment industry has been caught up in high-level politics between the US and Russia that he points out “has nothing to do with the recruitment industry”.
A spokesperson for Hays comments: “Hays Russia is aware of the proposed amendment to Russian labour law that may lead to only national recruitment agencies being allowed to operate in the temporary staffing market in Russia.
“Hays Russia operates exclusively in the permanent staffing market, across 14 specialist sectors, working with both local and international clients and we do not currently see that this amendment to the law will impact our business in Russia.”
Other multinational recruiters operating in Russia include Hudson, Kelly Services and PageGroup, as well as Manpower, and Antal Russia, part of the FiveTen Group, both of whom declined to comment.
