PROBLEMS OF LEGAL REGULATION OF OUTSOURCING AND OUTSTAFFING

Abstract

Outsourcing and outstaffi ng are the ways ways to optimize the activities of doing business. Outsourcing is a form of inter-fi rm cooperation and involves concentrating efforts on the functions and activities that are fi eld-specifi c to the business and transferring incidental functions and activities to specialized legal entities - outsourcers. In the paper the historical and legal aspects of the formation and development of outsourcing and outstaffi ng in the world practice are considered, the types and forms of outsourcing used in practice are distinguished. In turn, “outstaffi ng” means also that the company employees are taken outside the company staff. When outstaffi ng, a staff enters into employment contracts not with a company that is not the actual employer, but with an intermediary organization or an outstaffer. Particular attention is drawn to the competitive advantages of implementing these business technologies, their inherent advantages and disadvantages. The article analyses the legal nature, the constitutive signs of outsourcing and outstaffi ng contracts that are not named in the current legislation of Latvia, determines their place in the contractual law system, gives their legal and typological characteristics, discloses the content of obligations arising on the basis of these contracts, analyses the differences between these contracts and outsourced employment and recruiting.