Tag Archives: Labor Dispatch

July 2014 China Bulletin

The Ministry of Human Resources and Social Security (MOHRSS) issued the Regulations on Labor Dispatch, effective from March 1, 2014 (Dispatch Regulations), providing helpful clarifications to the 2012 revisions to the Employment Contract Law (ECL) (see Secondment/Dispatch Rules Amended, Jan.-Feb. 2013 China Bulletin). These regulations were motivated in substantial part by a perception that labor dispatch arrangements, popular with employers, are an end-run around the employee protections in China’s labor laws. When fully implemented, the Dispatch Regulations will severely curtail the use of dispatch arrangements, limiting them to no more than 10% Continue reading

January-February 2013 China Bulletin

The Employment Contract Law (ECL) was revised on December 28, 2012, with effect from July 1, 2013, to restrict employers’ use of secondees, a widespread practice in China, by 1) clarifying that “temporary” means no more than six months, 2) limiting “substitute” secondments to periods of time when another employee is unable to work or is on leave, and 3) defining “auxiliary” to mean not engaged in the employer’s principal business (see June China Bulletin). As revised, the ECL now expressly states that the number of seconded employees an employer uses may not exceed a “certain percentage” of its total labor force. The specific percentage is not stated. Continue reading