Article title The Economic Law Framework for Outsourcing
Authors
Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 5/2018
Сторінки [151-163]
DOI https://doi.org/10.33498/louu-2018-05-151
Annotation

Outsourcing is a modern means used to organize an enterprise’s structural model. However, its positive influence on the indicators of a business entity’s economic activities is possible only provided that a respective business project is properly prepared, including such an important component thereof as the support of outsourcing under economic law. At the legislative level, the regulation of outsourcing is actually lacking. Hence, appropriate instruments for legal regulation of the outsourcing relations at the microeconomic level should be determined. The purpose of the article is to define and describe the essential characteristics of the most appropriate legal means within the framework of regulation of the outsourcing relations, which are built by domestic corporations, under economic law. It is established that outsourcing may be divided into contractual and institutional contractual types. The author provides the arguments confirming that an outsourcing contract in its nature falls under economic law, at the same time denying that it has elements of civil or employment contracts. The article also offers the author’s vision of its contents. The article also reviews other means under economic law ensuring the optimizing influence of outsourcing: economic and administrative regulations of individual action, local regulations, and institutional means in the form of corporatization. The author defines the bodies of a joint stock company and a limited liability company which are authorized to make decisions on the introduction of outsourcing, and describes their competence in this regard. As a possible institutional option to establish an outsourced enterprise, a certain structural unit may be detached from the corporation and a part of assets, rights and obligations of the corporation may be transferred to it on the basis of a distribution balance sheet. The author comes to the conclusion that in the course of making the outsourcing arrangements, the customer enterprise and newly formed outsourced enterprises may be united into an association or may form a holding group. In case of other types of associations, the legal relations between its members are not consistent with the essence of outsourcing relations, and therefore the author denies the possibility of using such structures in the outsourcing relations. Local regulations may provide for the regulation of relations involving the maintenance of trade secrets, safe performance of works, access control, organization of interaction between the customer’s staff and the outsourcer. Although they are auxiliary, they are nevertheless the important means under economic law ensuring appropriate implementation of outsourcing.

 

Keywords outsourcing; outsourcing contract; outsourcing relations; means under economic law; local regulations
References

List of legal documents 
 

Legislation 
1. Hospodarskyi kodeks Ukrainy [The Economic Code of Ukraine]: Zakon Ukrainy [the Law of Ukraine] vid 16 sichnia 2003 r. № 436-IV. URL: http://zakon5.rada.gov.ua/ laws/show/436-15 (accessed: 16.04.2018) (in Ukrainian). 
2. Pro aktsionerni tovarystva [On Joint Stock Companies]: Zakon Ukrainy [the Law of Ukraine] vid 17 veresnia 2008 r. № 514-VI. URL: http://zakon0.rada.gov.ua/laws/ show/514-17 (accessed: 16.04.2018) (in Ukrainian). 
3. Pro hospodarski tovarystva [On Economic Companies]: Zakon Ukrainy [the Law of Ukraine] vid 19 veresnia 1991 r. № 1576-XII. URL: http://zakon5.rada.gov.ua/laws/ show/1576-12 (accessed: 16.04.2018) (in Ukrainian). 
4. Pro tovarystva z obmezhenoiu ta dodatkovoiu vidpovidalnistiu [On Limited Liability Companies and Contributory Liability Companies]: Zakon Ukrainy [the Law of Ukraine] vid 6 liutoho 2018 r. № 2275-VIII. URL: http://zakon5.rada.gov.ua/laws/ show/2275-19 (accessed: 16.04.2018) (in Ukrainian). 
5. Tsyvilnyi kodeks Ukrainy [The Civil Code of Ukraine]: Zakon Ukrainy [the Law of Ukraine] vid 16 sichnia 2003 r. № 435-IV. URL: zakon.rada.gov.ua/go/435-15 (accessed: 16.04.2018) (in Ukrainian). 

 

Bibliography

 

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