Authored by: Huang Ling, Wang Xinghua (Owen), Li Xin, Xu Jiaxing (Jason), Liu Ning and Fang Wei
Against the current economic environment, many companies are seeking to reduce costs, improve efficiency and maintain flexibility in workforce management. Labour outsourcing has therefore become increasingly common across different industries. However, in practice, companies may face employment and outsourcing compliance risks if they do not clearly understand the legal boundaries of labour outsourcing or if the outsourcing arrangement is not properly implemented.