Labour Dispatch Entities
(a) Labour Dispatch Entities and Dispatched Workers
According to the Provisional Regulations on Labour Dispatch which took effect on 1 March 2014, employing units may only use dispatched workers for temporary, auxiliary or substitute job positions.
Temporary positions are positions that exist for no more than six months; auxiliary positions are non-core business positions that provide support to the company’s core business; while substitute positions are those filled by dispatched workers because the regular employee in the position is absent from work because of off-the-job education, leave of absence, etc.
An employing unit must first discuss with the workers' congress or all employees and put forward proposals to the trade union or workers' congress for discussion and adoption on an equal footing before deciding to use dispatched workers. A public announcement must also be posted within the unit.
(b) Points to Note
Dispatched workers may not make up more than 10% of an employing unit's workforce.
An employing unit that employs dispatched workers exceeding 10% of its workforce before the Provisional Regulations on Labour Dispatch come into force shall draw up a plan for adjustment of employment and report the plan to the local administrative department for human resources and social security for recordation and shall reduce the number to the required percentage within two years of the promulgation of the Provisional Regulations. It may not employ new dispatched workers before the number is reduced to the required percentage.
The resident representative offices of foreign companies, the representative offices of foreign financial institutions in China and employers who use international seafarers by labour dispatch are not bound by the requirements on using dispatched workers only for temporary, auxiliary or substitute positions and the percentage of dispatched workers when using dispatched workers.
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