THE BORROWED LABOR: LEGAL REGULATION PROBLEMS

Abstract

Problem. Recently in the world, including Ukraine, there are significant changes in the labor sphere. They are associated primarily with the development and introduction of new technologies, which, in turn, lead to the rapid development of atypical forms of employment (distant, borrowed work, etc.) with their positive and negative features.
Legal regulation of labor relations in the field of innovation should be characterized by flexibility, efficiency and complexity at the same time, which will allow to harmonize the processes of economic development of the state and its social sphere.
The aim of this article is to identify the legal nature of contracts on application of borrowed labor, to establish their conditions, to develop proposals for improving the legal mechanism providing productive employment and social protection of workers.

The main material. The author analyzes the provisions of the Law of Ukraine «On Employment» of 2012, where legislator first tried to regulate the activities of entities that provide mediation in employment, as well as economic entities engaged in hiring workers for the further execution of of work in Ukraine to other employers. Based on scientific research achievements of Ukrainian scholars as O. S. Arsentyeva, L. V. Kotova, V. P. Kohan, I. V. Lagutina, M. S. Polishchuk, A. S. Prylypko, Y. V. Simutina, T. Troshina and international legal acts on borrowed labor, the author concludes, that the basis of origin of legal relationship on use of the borrowed labor is not just an employment contract between an entity that hires staff for further execution of work in Ukraine to other employers (employer) and employee, but also an agreement on the employment of workers, according to which the employer sends his/her employees with their consent to another employer (user) to perform them functions provided by the labor contract in the interests, under management and control of user, and the latter pays for these services and uses staff according to their work functions. Along with this the labor contract and the contract on use of workers labor must clearly define the duties and responsibilities as of employer, so of the user on provision of labor and social rights of workers.
It is also proposed to supplement the law «On Employment» and the forthcoming Labor Code of Ukraine with provision, according to which workers, which are hired by employment agency for use of their work to another employer (user) are eligible to participate in collective bargaining and concluding a collective agreement with employees of such employer (user).