By Linda Liang  Hongchuan Li  King & Wood Mallesons’ Commercila & Rehulatory Group

liang_lindaArticle 27 of Interim Provisions on Labor Dispatch stipulates that “where an employer uses workers in the form of Labor Dispatch under the name of hire of work, outsourcing, etc., the provisions hereof will apply.” The so-called concept of “de facto labor

By Lucy Lu  Dai Zhengcao King&Wood Mallesons’ Labor Group

lu_lucySince the amendment of the Employment Contract Law in late 2012, together with the release of a series of administrative statutes and divisional regulations, the labor dispatch method seems to become gradually less used.  Worries about the labor dispatch system have spread throughout the whole labor market, which also makes it difficult to determine whether to adopt the method or discard it.  Recently, the Shanghai Administration of Human Resources and Social Security and Shanghai High People’s Court jointly issued Meeting Minutes regarding Applicable Laws on Labor Dispatch (the “Minutes”).  The Minutes provide interpretation regarding the legal consequences of infringement of laws on labor dispatch, the circumstances for sending a dispatched employee back, outsourcing and other problems.  For those employers trapped in such dilemmas, the Minutes are widely considered as a shot in the arm.  Will labor dispatch quickly fade away in a short period due to legal limitations successively released? Will companies assume huge liabilities due to current noncompliance with labor dispatch regulations? The answers may not be  a simple “yes” or “no” based on our following analysis and comments.
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By Jiang Junlu King & Wood Mallesons’ Labor & Employment Group

At the end of 2013, the Interim Regulation on Labor Dispatch was adopted in the ministerial conference of the Ministry of Human Resources and Social Security. This regulation was promulgated before the Lunar New Year and became effective on March 1, 2014, which is expected to prelude the readjustment of labor dispatch.
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By King & Wood Mallesons Healthcare Group

On December 28, 2012, the Decision regarding the Modification of Employment Contract Law (the “Decision”) was passed by the 30th session of the Standing Committee of the 11th National People’s Congress, which will be implemented from July 1, 2013. This modification is relating to the labor dispatch part in the Employment Contract Law, which clearly expresses the qualification of the dispatch service providers, the administrative license for dispatch service, the “equal pay for equal work” of the dispatched employees and the position applying to the dispatch service.
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By Jiang Junlu and Jin Shan  King and Wood Mallesons’ Labor & Employment Group

Li, employed by a labor dispatch service provider, has been working at Company A for over 9 years. However, he only works at the accepting company as a dispatched employee, whose wage and remuneration are quite different from the ones of regular staffs.

On December 28, 2012, the Decision Regarding the Modification of Employment Contract Law (the “Decision”) was passed by the Standing Committee of the National People’s Congress, which will be implemented on July 1, 2013. From then, Li’s life will be significantly improved.
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Duan Haiyan, associate, Labor & Employment

The Implementation Regulations of the PRC Employment Contract Law, which has been anticipated for over a year, became effective on September 18, 2008. Overall, the Regulations are consistent with the spirit of the Employment Contract Law and resolves certain problems in its implementation. However, the Regulations have a relatively limited impact and failed to meet many expectations.
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