Our lawyers obtained license for employment agency services abroad

In May 2017, we were contacted by a Client who needed to obtain a license for employment agency services abroad within the shortest possible time. The Client intended to work with a Polish agent, who had to recruit Ukrainians to work in the USA. The Client had a contract signed by and between him and the Polish agent (hereinafter referred to as the Agent), a contract signed by and between the Agent and the final Employer (a large American company), and a draft employment contract with potential employees certified by the Employer.

The Client wanted us to thoroughly review the documents and to conclude whether they are legally sufficient for obtaining the license and carrying out a subsequent business activity.

Our lawyers have extensive experience both in analyzing documents and drafting a full package of documents required for obtaining a license for employment agency services abroad. Since the second half of the last year and up to now, it has been probably the most popular license.

Having analyzed the documents provided by the Client, we found out that the contract between the Client and the Agent had several nuances that might prevent it from being passed by the Ministry of Social Policy of Ukraine. And the contract between the Agent and the final Employer, as well as the draft employment contract, could raise even more issues from the licensing authority. We informed the Client about our conclusions and offered him to amend the documents. The Client replied that the contract between him and the Agent could be amended, as the Polish colleagues would sign a new version. But it was impossible to amend the documents signed by and between the Agent and the American company, because they were developed by American specialists according to the templates that have been used by that company for many years. Therefore, they wouldn’t agree to sign the amended documents.

Then we asked the Client whether the American company was the only final Employer the Agent would cooperate with, and whether there were other companies with more legally suitable documents, or at least the partners that wouldn’t be so uncompromisingly opposed to amendments. But the Client replied that the Agent had no other partners.

So we offered the Client to exclude the documents concerning the American company, and to submit the documents related only to his cooperation with the Polish partner as the final Employer. The Client couldn’t understand how it was possible and whether such an option would really work out for him, as he heard that the license shall specify all the countries with which he intends to work personally or through other agents. We explained to the Client that the licensing regulations have changed. According to the current licensing rules, the licensee shall perform any economic activity related to overseas employment services under a foreign economic agreement (contract) on employment services abroad, concluded by and between the Client and a foreign business entity. At the same time, the law doesn’t refer explicitly to the list of countries, which the licensee has the right to work with. Cooperation shall be effected through an agreement, and, of course, a license. And to obtain the license, it is enough to provide an agreement with at least one foreign business entity that will employ workers at its own enterprise.

Although the Client still had some concerns and doubts about the proposed solution, he nevertheless agreed on it. And that turned out pretty well. We obtained the license within the shortest period possible and the Client started the desired business activity.

Publication date: 21/07/2017

About author

Name: Volodymyr Gurlov

Position: Partner

Education: National Academy of the Security Service of Ukraine

Knowledge of languages: Russian, Ukrainian, English

Email: [email protected]

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