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Corporate Service - China

Question

Labour Dispatch in China

Answer
Q:
Under what circumstances can dispatched workers be used?
A: According to the Interim Provisions on Labour Dispatch of the PRC, a company may use dispatched workers in temporary, auxiliary or substitute job positions only. For the purpose of the preceding paragraph, a temporary job position refers to a job position that survives for no longer than 6 months, an auxiliary job position refers to a non-main business job position that provides services for main business, and a substitute job position refers to a job position that can be taken by other workers instead as a result that an employee of an employer fails to work due to full-time study, leave and so on over a certain period of time.

Q:
Is there any limitation on the number of dispatched workers?
A:
Yes. According to the Interim Provisions on Labour Dispatch of the PRC, a company shall strictly control the number of dispatched workers it used, which shall not exceed 10% of the total number of its employees.

Q:
Is there labour relationship between the dispatched worker and working unit?
A:
The employment contract is signed between the dispatched worker and the labour dispatch service provider. There is no labour relationship between the dispatched worker and working unit.

Q:
Is there any restriction on the term of the employment contract for dispatched worker?
A:
Yes. According to the Interim Provisions on Labour Dispatch of the PRC, a labour dispatch service provider shall conclude a written labour contract with the workers to be dispatched for a fixed period of at least 2 years.

Q:
Is there any restriction on the dispatched workers for the representative office of a foreign enterprise?
A:
There is no restrictions. According to the Interim Provisions on Labour Dispatch of the PRC, the use of dispatched workers by the permanent representative office of a foreign enterprise is exempted from the restrictions on the proportion of dispatched workers used for temporary, auxiliary or substitutive job positions.

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